Failure of zone expansion disappoints city officials

There will be more opportunities this year, a senator said.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- City officials expressed disappointment when they learned that Congress had not passed a proposed expansion of the Renewal Community zone in Youngstown.
The expansion would have helped new and established businesses across much of the city by giving them a variety of reductions in federal taxes.
However, city officials remain as hopeful as one of the expansion's sponsors, U.S. Sen. Mike DeWine, that the expanded tax break-area eventually will become reality.
"I have no reason not to be," said Jay Williams, director of the city Community Development Agency. "If he's optimistic, so am I."
Last week's hope
Word that major expansion of Renewal Community zones nationwide was included in the $330 billion tax cut bill was cause for celebration a week ago. Mayor George M. McKelvey called DeWine's inclusion of the expansion in the bill "a grand-slam home run. Over the fence, out of the park, out into the street."
The expansion would stretch the zone in Youngstown from three Census tracts, primarily the downtown, to 26 -- encompassing most of the city.
"I was really excited. That opens up everything," said Jeffrey L. Chagnot, city development director.
However, DeWine cautioned last week that the renewal zone item was fragile because the entire tax-cut bill was controversial.
Indeed, House leaders insisted on stripping out all Senate provisions attached to the tax bill, including renewal zone expansion, DeWine said.
Not giving up
DeWine isn't giving up, however. He said Friday that he already spoke to Senate leaders about attaching the renewal provision to another bill. There will be several opportunities to enact the expansion this year, he said.
City officials are disappointed by losing the expansion for now, but not dispirited.
There are 40 renewal zones around the country. That means there is broad interest in them, which should breed support, Williams said.
Tax cuts like the renewal zone are a top issue with the Republican administration, another reason the expansion still has a chance, Williams said.
The city will hold back on a second campaign to market Youngstown's renewal zone to companies because the expansion fell through, Chagnot said. The city was about to spend $10,000 to $15,000 on the marketing push.
If possible, Chagnot wants printed material to include a map showing the zone covering much of the city. He is confident the expanded zones will happen.
"We have faith in Sen. DeWine," Chagnot said.