LORDSTOWN Council OKs 2nd agreement to forgive taxes

More than $996,000 in taxes will be exempted during the 15-year period.
By SHERRI L. SHAULIS
VINDICATOR TRUMBULL STAFF
LORDSTOWN -- In an effort to keep a local business's expansion plans viable, council members unanimously approved an agreement to forgive even more taxes.
After granting a tax abatement last month to Taylor Steel Inc., council agreed Monday night to approve a Community Reinvestment Area agreement between the village and the company.
The agreement forgives 75 percent of the company's real property taxes for 10 years, and 50 percent for five years after that. The total tax exemption during the 15-year period will be more than $996,000.
"This will replace the Enterprise Zone agreement that was turned down by the county commissioners and give them [Taylor Steel] close to what they would have gotten under that agreement," said Ron Barnhart, village planning and zoning administrator.
Trumbull County commissioners declined to grant a 10-year, 75 percent tax abatement to the company last month. It was only the second time commissioners had not approved a tax abatement request since the program started in 1983.
Relocating from Niles
Taylor Steel officials had asked for the abatement to relocate some of its equipment and work force from its Niles plant to its location in Lordstown. The company would invest $12.7 million in the expansion and bring an additional 25 full-time jobs to the village in the next five years.
The company's original request for the tax abatement was approved by village officials and the Ohio Department of Development.
Niles officials had strongly urged county commissioners to deny the request, arguing that not all the union workers in Niles would be transferred to the nonunion shop in Lordstown.
Niles Mayor Ralph A. Infante also was upset that the company was requesting a second tax abatement from the county, after receiving a 10-year, 100 percent abatement for its Niles plant.
Although the village's board of education was not required to approve the original tax abatement, it was necessary for members to approve the CRA agreement, Mayor Arno Hill said.
School board members unanimously agreed to forgo the schools' share of income tax at their meeting last week.
Barnhart said the county commissioners' approval is not needed for the CRA agreement, and with council's approval of the measure, Taylor Steel officials could receive a permit as early as today to begin expansion work. The Niles plant will close by March 31.
slshaulis@vindy.com