MAHONING COUNTY Backing of bonds worries auditor

A commissioner says the park's success is in the developer's best interest.
By DAVID SKOLNICK
and IAN HILL
VINDICATOR STAFF WRITERS
AUSTINTOWN -- Mahoning County Auditor George Tablack is concerned about the county's backing millions of dollars in bonds for the Centerpointe business park.
If the project fails, Tablack told county commissioners Tuesday, the county would be responsible for paying back the 20-year bonds, which would be about $250,000 to $300,000 annually. County officials said the bonds will be worth a total of $3.5 million.
Park Developer Jonathan Levy, however, said he expected the bonds to be worth about $3 million. He stressed that he's still negotiating the final details of the funding package.
The bonds would be used to pay for infrastructure improvements including roads, water and sanitary sewers.
Tablack said that there is a risk involved with this project, which is particularly heightened because of the county's current financial situation, and that it would be committing to paying for a project for the next 20 years.
Developer's investment
Levy noted that the county's not alone when it comes to taking a risk on the project.
"We're willing to shoulder a bunch of the risk," he said. "We're making a very substantial investment ourselves."
Levy and his partners expect to spend about $4 million on park infrastructure in addition to the money borrowed through the sale of the bonds.
The park is slated to be located between state Routes 46 and 11 north of Rutland Avenue. Scott Weasel, an engineer working on the project, has said the park's location near highways running through Chicago, Cleveland, Pittsburgh and New York will make the park attractive to businesses.
Levy has said he's received several calls from businesses interested in the park.
"We've said all along that we're trying to do something for the community," he said. "It's a benefit to the county and a benefit to the community."
Commissioner Ed Reese said Levy has a solid reputation, adding that it is in Levy's interest to make Centerpointe a success.
Funding proposal
Under a tax increment funding proposal, half of the real property tax revenue from the park would be used to service the debt on the bonds and the other half would go to local governments and schools for property tax revenue.
Also, Levy plans to post a letter of credit to pay for 3 1/2 years' worth of bond payments to make up any possible shortfalls. Tablack wants the letter of credit to be for more time.
Levy stressed that the final details of the letter of credit are still under negotiation. He added that he has met with Tablack in the past to discuss his concerns.
The bonds are expected to be sold in July, with the improvements taking about 18 months to complete, said Joseph Caruso, the county's special projects director.
"There is a risk involved, but we're trying to minimize the risk," Caruso said.
skolnick@vindy.com
hill@vindy.com