YOUNGSTOWN Food company gets package of incentives

The investment total is unusually high for the city small-business initiative.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Sometimes, small business can be big business.
The city inked a larger than normal deal Tuesday using its small-business program, a project that will mean a $1 million investment including renovating an eyesore.
The city's board of control approved a package of incentives for Riverbend Food Service.
The company, 944 W. Rayen Ave., will move to the former Passarelli Bros. Automotive Service building at 832 Mahoning Ave. The company is pledging to create 13 full-time jobs over three years.
Riverbend will invest $850,000 to renovate and upgrade the building. The company is a food wholesaler that sells to restaurants, institutions and the public.
The move gives the company room to expand its inventory, which will require more equipment.
Riverbend officials could not be reached to comment.
Mahoning County property records show the building was bought recently for $160,000, pushing the total investment just over $1 million.
That's unusual for the Youngstown-U.S. Small Business Administration Revitalization Initiative, said Tameka Woodberry, program coordinator.
Usually, the program provides incentives to companies that make investments of $400,000 or less, she said.
Some details
The deal involves substantial investment, comes with decent job creation numbers and will improve the building, which was becoming an eyesore, Woodberry said.
"It's just nice we're able to do a profitable business in an existing structure," she said.
The city will provide:
U A $60,000 loan that doesn't have to be paid back if the company creates the promised number of jobs and remains at the location three years. The city's small-business program provides 15 percent of a project's cost up to a maximum of $60,000.
U A 10-year, 75-percent abatement on personal property. The city might grant a real property tax abatement later, Woodberry said.
U A fa & ccedil;ade improvement loan that is expected to reach the program maximum of $10,000. The loan doesn't have to be paid back if the company remains at the location five years.
U Waiver of building and other permit fees.
The deal also involves low-interest bank financing and loan guarantees from the U.S. SBA.
rgsmith@vindy.com