MAHONING COUNTY Business park deal is expected to emerge

The auditor is worried that the county would owe $4 million if the project fails.
By IAN HILL
VINDICATOR STAFF WRITER
YOUNGSTOWN -- A developer was expected to reach an agreement with Mahoning County commissioners today that would pave the way for construction of the Centerpointe business park in Austintown.
"We have no reason to believe it won't come together," developer Jonathan Levy said.
If Levy is wrong and the agreement doesn't come together in the next two weeks, a member of the Centerpointe development team says he'll withdraw from the project.
"Our involvement is really contingent on whether the county moves forward," consultant John Kovach said. "At some point in time, we've got to fish or cut bait."
Findlay park
Kovach helped develop Tall Timbers, a park in Findlay, Ohio, that is home to 17 businesses and about 2,000 jobs. Centerpointe is designed to operate much like Tall Timbers.
Commissioners were to meet with Levy in executive session this afternoon to talk about a proposed agreement created by a county attorney. Levy wouldn't discuss details of the agreement because it is still under negotiation.
Commissioner Ed Reese noted that negotiations have been going on for about a year, and several questions have been asked and answered by those on both sides of the table.
"I can understand some frustration on the developer's part and the consultant's part," Reese said. He said he hopes to have the final questions answered today or "very quickly" so that an agreement can be approved to benefit the county and the developer.
"Not too many developers are knocking down our door for this type of development," he said. "The potential is very good for our area."
Reese has proposed using $400,000 in unclaimed funds from the county to help pay for the project's infrastructure, such as roads and sewers.
The 180-acre park would be located in Austintown north of Rutland Avenue between state Routes 46 and 11. Levy has said the park could be the site of $45 million worth of warehouses, retail businesses and offices, creating 1,000 to 1,500 jobs over 10 years.
County Administrator Gary Kubic noted that the park could attract businesses related to GM's plants in Lordstown.
The agreement between commissioners and Levy is expected to call for the county to sell between $3 million and $4 million in 20-year bonds as part of a tax increment financing package for the park. That money would help pay for park roads and utilities.
Half of the real property tax revenue from the park would then be used to service the debts on the bonds. The remaining half would go to local schools and government, like most property tax revenue.
Worried about risk
County Auditor George Tablack has expressed concern that if the project fails, the financially strapped county will be stuck repaying the bonds.
"George Tablack has a job to do; it's getting to the point where he's asking the same things over and over again," Levy said.
He added he and his partners are willing to take a risk on the project by spending $4 million on infrastructure.
"We're putting our money where our mouth is," Levy said. "It's time to decide: Either you're in or you're out."
Kovach also noted that "risk has rewards," and that he has faith that the project can succeed.
"I know there's been a lot in Mahoning County over the last 20 years of promises made and nothing happens; you get a little bit cynical," said Kovach, a Struthers native. "I guess I believe in Mahoning County more than some of the people living there."
Levy said that though the project can move ahead without Kovach, "it would be really bothersome to me that we'd lose a good member of our development team."
The project overcame opposition from nearby residents who opposed the prospect of a business park near their neighborhoods.