MAHONING COUNTY Taxpayer files suit against Sebring

A common pleas court judge put a temporary hold on the ordinance Friday.
By BOB JACKSON
VINDICATOR COURTHOUSE REPORTER
YOUNGSTOWN -- A lawsuit filed Friday in Mahoning County Common Pleas Court against Sebring officials could stunt the village's economic growth, an official there said.
Atty. Kenneth Cardinal filed a taxpayers' suit on behalf of James W. Cook of North 12th Street. The suit alleges that Sebring Village Council illegally voted to lend $100,000 to a company that employs one of the councilmen, Carl Mort. Cardinal is a former village solicitor.
It also alleges that council violated Ohio's open meetings law, known as the Sunshine Law, in talking about the loan.
Judge Jack Durkin of common pleas court issued a temporary restraining order Friday morning to keep the loan ordinance from taking effect. A hearing will be scheduled to determine whether the restraining order becomes permanent.
About the vote: Council voted Nov. 15 to lend $100,000 to KELCO General Commercial, a company located in Alliance but that has a warehouse in Sebring. Mort did not vote. The suit says the loan was made with no repayment schedule, interest or security agreement.
"The ordinance is simply a gift of $100,000 to KELCO," the suit says.
It also says that before voting, council went into executive session to discuss economic development, which is not among the valid reasons for a public body to go behind closed doors.
Defends action: Village Manager Teddy Ryan said the loan is an economic development incentive. KELCO was planning to relocate its entire operation to Sebring but pulled back because of the country's recent economic downturn.
Ryan said that to keep the project moving, he offered the zero-interest loan, which would eventually be forgiven if the company met certain conditions, mostly regarding improvement of the property. The proposed site is an old pottery in an abandoned industrial area, he said.
He said the village's solicitor, Andrew Zumbar, authorized everything as legal.
"Mr. Cardinal is way out of line in filing this," Ryan said.
He fears that the suit will give other businesses the impression that economic development incentives aren't available in Sebring and scare them away.
"If that happens, I won't be able to give this community away," Ryan said. "What we're really talking about is the future economic viability of this community."
Besides blocking the loan, the suit also asks that the village be ordered to stop violating the Sunshine Law and be assessed a $500 fine.
bjackson@vindy.com