WARREN City, township negotiate revenue-sharing contract

The pact involves the International Steel Group plant.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
WARREN -- City and Warren Township leaders are negotiating a revenue-sharing agreement aimed at job retention at a township plant.
"The city in no way makes money on this," said Mayor Hank Angelo. "The whole idea behind it is job retention."
Township Trustee Kay Anderson hadn't received the proposal and declined to comment.
The agreement's initial term runs until Jan. 1, 2024. It must be approved by city council, township trustees, the company -- International Steel Group -- and Trumbull County commissioners.
Under the proposed contract, the city would reduce water rates for the Joint Economic Development District by 10 percent and sewer rates by 10.5 percent.
An income tax would be levied on company employees beginning in January. The tax would be 0.75 percent the first and second years and 1 percent for years three through 20.
The city would get a portion of the income tax to offset what it's losing from reduced water and sewer rates; $50,000 would be placed into a regional JEDD fund for joint development projects and needs for the city and township; and remaining income tax revenue would be distributed 90 percent to the city and 10 percent to the township.
ISG runs the former LTV Steel coke plant, which employs more than 100.
WCI Steel pact in the works
Angelo said the proposed document for ISG also will be the basis for a JEDD in the works for WCI Steel, which has filed for bankruptcy protection.
The JEDD property itself would remain in the township, which will continue to collect the property taxes.
The contract also calls for establishment of a five-member board of directors who aren't paid.
One member, appointed by the mayor, will represent the city and one appointed by township trustees will represent the township. A third member, appointed by the mayor, will represent business in the area and be a city resident. A fourth, appointed by trustees, will represent employees of businesses within the area and be a township resident.
The fifth member would be appointed by the other members and would alternate between a township and a city resident. Terms are four years.
Other provisions
With the pact, the city also would agree not to accept annexation petitions for property located within the JEDD and won't assist property owners who might try to annex property within the district to the city.
The city also agrees under the proposal that before annexation of any township area not in the JEDD, the township and city would meet to discuss alternatives to annexation, including revenue-sharing agreements.
For the life of the contract, the township agrees to reject and oppose annexation, merger or consolidation of any township property to another municipality without the city's consent.
If approved, it would be the second JEDD in Trumbull County.
Hubbard city and township have a similar agreement regarding the Flying J truck plaza that sits on state Routes 7/62 in the township, just north of the city limits.