Bill enlarges Youngstown's tax-break zone

Expanding the renewal zone isn't a done deal yet; the B.J. Alan Co. will stay if it happens.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The city wanted to add one Census tract -- a couple more at the most -- when it started lobbying for an expanded federal Renewal Community designation.
There were two reasons for extending the zone beyond downtown, along with the big tax breaks for businesses that the designation features. One was keeping a large employer -- fireworks maker B.J. Alan Co. The other was to develop prime industrial land along the Mahoning River.
That's why city officials were ecstatic to learn Friday that a U.S. Senate bill expands the zone from three Census tracts to 26 -- encompassing most of the city.
"Wow," said Jay Williams, director of the city's Community Development Agency, drawing out the O sound when he learned of the move. "I can't honestly say I imagined it to this magnitude."
Expanding renewal zones across the country is included in the Senate bill involving big federal tax cuts, said U.S. Sen. Mike DeWine, an Ohio Republican.
Expanding the zones isn't a done deal, however.
The Senate and House now must work out the differences between their two versions of the tax bill. Expanding renewal zones isn't in the House version and Congress could delete the item in negotiations. DeWine said building support among House members with renewal zones is the next step.
"It certainly is fragile," he said.
Nonetheless, DeWine is confident the provision will remain in the final bill. The expanded zones will benefit many cities, which should mean broader support, he said.
"It affects a lot of communities. That's what gives us hope," he said.
DeWine said Mayor George M. McKelvey made enlarging the zone a top priority. The two talked many times about it since the city received the Renewal Community designation last year, DeWine said.
McKelvey credited the senator's efforts. "He hit a grand slam home run. Over the fence, out of the park, out into the street," McKelvey said.
A broader zone gives the city more opportunity to capture business investment, he said.
Applied for small zone
Williams said the city originally wanted to apply for a renewal zone that included big chunks of the North, South and East sides. Instead, the city chose to apply for a zone using only downtown and a segment of the North Side.
Competition was intense and the city wanted to maximize its chance to receive at least a small zone. A smaller area improved the odds.
The city always planned to seek an expansion, but the U.S. Department of Housing and Urban Development made it clear that was unlikely. Even then, the city mostly wanted to add the industrial section along the river and possibly a small segment on the lower South Side, Williams said.
That's why Friday's news stunned him.
The industrial land along the river almost didn't get included in the expansion, said William Weimer, B.J. Alan vice president and general counsel.
The land is in a Census tract with no residents so it wasn't automatically part of the bill. DeWine stepped in at the last moment and brought such areas into the bill, Weimer said.
The expanded zone is vital to B.J. Alan Co. The company was on the verge of moving its headquarters, plant and 250 jobs to western Pennsylvania without the zone.
Weimer said owner Bruce Zoldan wants to stay in Youngstown and will if extending the zone to include the company becomes a reality.
"Yes, we will definitely do that. That is our plan," he said.