Schools to pay fees for building

A settlement waives water and sewer tap-in fees, not building permit fees.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The board of education must pay for building permits as outlined in a legal settlement last year, city council members say.
Council's finance committee voted Wednesday to stick with terms of the settlement despite the board's request that the city waive building permit fees.
Those fees, on the nearly $200 million school construction project, are estimated at $420,000. The figure would rise if more construction is done as planned.
Five years ago, the school board sued the city and Corrections Corporation of America over tax breaks the city granted the private prison company. Millions of dollars were at stake. Last year, the three parties settled.
The terms
Among the terms were that the city would waive water and sewer tap-in fees on the school construction project. Those fees are estimated at $380,000. The school board, however, was to pay city building fees.
Nonetheless, the school board recently asked the city to waive the building fees.
Council invited school district officials to the committee meeting to explain the request, but they didn't show up.
The fees are to offset the city's costs, such as conducting inspections and reviewing construction plans.
The building fees were built into funding for the schools project, so they should be paid, said Rufus Hudson, D-2nd.
Water tap-ins
Waiving even water tap-in fees -- standard procedure in economic development deals in recent years -- might not last much longer, said Jeffrey L. Chagnot, city economic development director.
The water department is projecting a deficit this year, so the city may not be willing to waive those fees any longer, he said. Water waivers amount to about a $2,500 break for a typical business, he said.
rgsmith@vindy.com