YOUNGSTOWN City will require data on hiring

Tax breaks could be pulled, and the city could seek collection on taxes already forgiven.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Failure to report hiring statistics could jeopardize the city tax breaks that several companies hold.
The city's Tax Incentive Review Council is taking a more strict position this year on companies that didn't file equal employment opportunity hiring reports for 2000. The reports show the minorities, females and city residents who work for companies that have tax breaks on property and inventory.
Last week, the tax council gave the companies 30 days to file the hiring reports. If they don't, the group will recommend to city council that the abatements be pulled. The city also could pursue collection on taxes already forgiven.
State law: A 1994 state law lets cities recapture taxes already forgiven if requirements aren't met, said Jeffrey L. Chagnot, city development director. It's unclear, however, if tax breaks given before 1994 are subject to the law, he said.
Companies mostly were put only on probation in the past. Stronger measures such as deadlines, revoking abatements and seeking repayment are needed to force compliance, said City Council President Charles P. Sammarone, a tax board member.
"It has to be stronger," he said.
Companies whose abatements are threatened are:
* Airborne Express, which has been on probation the past two years for failing to report its minority hiring statistics.
* Allied Consolidated, which was put on probation last year for initially failing to file the hiring report.
Also, as in previous years, Allied hasn't created any of the 50 jobs it promised. The company continues pointing to severe market declines and foreign steel dumping, Chagnot said.
* Crab Creek Industrial Village, which didn't file the report and has been late sending its hiring data in the past.
In addition, Federal Express and Boston Metals didn't report their hiring data. Each was given 60 days to comply because they hadn't had problems in the past.
Compliance good otherwise: Otherwise, minority hiring for companies with tax breaks looks good, said William M. Carter, director of the Youngstown Area Development Corp. YADC monitors hiring compliance for the city.
A certified accounting firm audits the companies each year. The tax incentive board annually reviews the report. Members look for compliance with job creation, financial investment and hiring goals.
Incentive board recommendations go to city council, which can continue or take away tax breaks.
The 2000 report reviewed last week says that among the 49 companies receiving tax breaks last year, 1,313 of the 1,389 jobs they promised were created. Companies retained 1,797 jobs.
The 1999 report said that among the 43 companies receiving tax breaks that year, 1,379 of the 1,567 jobs they promised were created. Those companies retained 1,930 jobs.
The 2000 report includes city income tax paid by companies with abatements. Combined, the companies paid about $2.08 million in income tax.
On probation: The tax board put one company on probation. Entire-Enviro Inc. has problems with financing, so less investment was made than promised, Chagnot said. The company has until February 2002 to comply.
Many other companies fell short of one or more requirements. They were recommended, however, to keep their tax breaks. City officials gave these reasons:
* AccuForm Inc. didn't file a minority hiring report because construction on its facility didn't finish in 2000.
* BRILEX Industries and Precision Platen Machines, related companies, together met their commitments although separately they didn't.
* FFAP Limited started operations late in 2000 and was expected to finish making its investments this summer.
* Fab-Art Inc. didn't create any jobs because of the struggling steel industry.
* Insulated Glass Specialties moved into its facility in 2000 and hadn't yet created the jobs promised.
* Miller Buckeye Biscuit didn't create any jobs because of bad business conditions.
* Northern States Metals Corp. is well short of the 200 new jobs it promised because of industry changes.
* Roehlen Industries didn't file a minority hiring report because the parent company said the Roehlen division was dissolved in August 2000.
* Schenley Properties was still opening in 2000 and has since come close to its total job goal.
* Tri-State Laboratories didn't produce new jobs last year but has brought a new lab to the city and done hiring in 2001.
* Toys "R" Us didn't file minority hiring reports but is compiling that data.
* United Foundries is short on investment goals because of the struggling steel industry.
* WACO Scaffolding was still hiring and making investments at the end of 2000.
* Youngstown Rubber Products was short on job and investment goals because of a split in ownership.
rgsmith@vindy.com