YOUNGSTOWN Panel looks at tax-break deals

Companies don't say they're in a downturn just to get out of hiring, a city official said.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Companies with tax abatements sometimes are excused from hiring goals they promised when they contend there is a downturn in business.
Some members of the city human relations commission question whether that's a good enough reason.
The city should explore the definition of good-faith effort toward meeting those goals, said the Rev. Lewis W. Macklin, a commission member.
Just claiming a change in business conditions so hiring goals are set aside is an easy escape, not a good-faith effort to meet them, he said.
"I don't think that's acceptable," Macklin said.
That goes for promised hiring of total employees under an abatement or the required hiring of city residents, minorities and females, Macklin said.
The city needs a standard that is applied consistently to all companies, said the Rev. Kenneth L. Simon, also a commission member.
The city's economic development department handles tax abatements. The office will be invited to a future commission meeting to talk about the issue.
Another view: Businesses don't say they're in a downturn just to avoid hiring, said David Bozanich. He is the city's deputy finance director in the economic development department.
Businesses would much rather be seen as successful and expanding, he said.
Audits are done annually on companies that are getting city tax breaks. A committee reviews the investment, hiring and affirmative-action goals outlined in the abatement. Recommendations then are made to city council on which companies are put on probation or have their tax breaks revoked for falling short.
Many businesses are cyclical, especially manufacturing. That's behind many of the cases where goals aren't met, Bozanich said. That doesn't happen too often, he said.
"In general, we have found Youngstown companies have a very good record in complying with their original commitments under their tax abatements," Bozanich said.
Project discussed: The human relations commission also talked Wednesday about the proposed downtown civic center project.
The commission will have a hand in monitoring hiring during construction. That's because the city now is leading the project, said William M. Carter, the commission executive director.
The city's goals are 25 percent to 35 percent minority hiring and 10 percent to 15 percent female. Those goals are waived if minority companies or workers aren't available to do certain work.
Once the center is built, the center's operator likely will have a tax abatement. That will dictate the level of minority and female hiring, Carter said.
rgsmith@vindy.com