Sunday, May 25, 2003
Sen. DeWine is working to attach the Youngstown provision to another bill.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
YOUNGSTOWN -- An attempt to give city businesses big tax breaks and make it easier for B.J. Alan Co. and its 250 jobs to stay in the city has failed.
A proposed expansion of a tax-break zone that would have helped the fireworks distributor and sparkler manufacturer to expand here has been stripped out of a federal bill.
"We are disappointed," said Bill Weimer, general counsel for B.J. Alan, which employs about 250 near downtown.
U.S. Sen. Michael DeWine, an Ohio Republican who was pushing for the change, said he was disappointed but will continue to fight for it.
Company and city officials were excited earlier this month when DeWine got an expanded renewal zone into a Senate bill involving federal tax cuts.
When the bill came before a conference committee of House and Senate members Thursday, the renewal community provision was removed. The bill was approved by both legislative bodies today and sent to the president for his signature.
DeWine said House leaders insisted that all provisions beyond the basic tax code be removed because their bill did not have any of those measures. There were about 50 such measures in the Senate proposal, he said.
What now?
DeWine said he already has spoken to Senate leaders about attaching the Youngstown provision to another bill. There will be several opportunities to enact the expansion this year, he said.
"It's very important to our community. We're going to try to get this in," he said.
The federal government previously had designated a part of the city as a federal renewal community.
DeWine's proposal was to include most of the city, which excited local officials. The expansion not only would have helped B.J. Alan, but also city efforts to attract other companies, officials said.
Being located in the zone would provide tax breaks to the company.
B.J. Alan officials say they need the breaks to help them expand. Building a new office and plant complex in the city is difficult because lenders don't want to back it, Weimer said. Lenders say the construction value would exceed the market value because it is in the city, he said.
Also, state regulations prevent the company from locating into another Ohio community because of a moratorium on new fireworks licenses.
The company has been looking at moving to western Pennsylvania, but owner Bruce Zoldan wants to stay in Youngstown, Weimer said.
Company executives are trying to find a way to make that work but may be running out of time because of the company's growth, he said.
shilling@vindy.com