WARREN Joint proposal would retain jobs

ISG is the city's largest sewer consumer, and WCI is the city's largest water consumer.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
WARREN -- Mayor Hank Angelo says a proposed Joint Economic Development District would retain jobs, but some council members worry the city is carrying too much of the burden.
The JEDD would be among the city and Howland and Warren townships regarding International Steel Group's Warren Coke Plant and WCI Steel.
An ordinance authorizing the administration to contract for legal services of up to $15,000 for development of a JEDD agreement is on the agenda for council's meeting tonight.
Two phases
The agreement would be done in two phases. The first is for ISG for about $7,500. Officials then would determine whether or not a similar agreement could be worked out with WCI. If it goes forward, the legal cost of developing the agreement with WCI also would be $7,500.
"We're working with our neighbors to make sure these companies are still here," Angelo said at a finance committee meeting Tuesday.
Angelo said ISG, formerly LTV, located in Warren Township, is the city's largest sewer consumer. It accounts for about $350,000 annually for the city. WCI, in Howland, is the largest water consumer, using about $1.2 million annually in water.
Details haven't been worked out, but the plan would likely involve discounted rates in exchange for income tax paid to the city.
Angelo said it's not a moneymaker for the city. The money received in income tax would go back into the water and sewer departments. Discussions are ongoing at the companies' unions.
"This is our attempt to do what we can to see that these jobs stay," the mayor said.
The Summit County attorney who would devise the agreement has written many such agreements across the state, Angelo said.
Concerns about legal costs
Some council members expressed concerns about the two townships not sharing in the attorney's costs.
"If one of those communities pulls out, we're already out $15,000," said Councilwoman Susan E. Hartman, D-7th.
Councilman Gary Fonce, D-at large, agreed.
"What about a good-faith gesture where Warren and Howland townships ante up a portion of the cost and we reimburse them if the JEDD goes through," he said.
If the townships also front some of the money, they also have something to lose if the agreement falls through, Hartman said.
Angelo said the city has the most to lose.
"To me, $15,000 isn't a gamble; it's an investment in retaining jobs," he said.
dick@vindy.com