WEST CORP. CALL CENTER Niles will share a smaller amount of taxes with Howland schools

The new law took effect in February.
By SHERRI L. SHAULIS
VINDICATOR TRUMBULL STAFF
NILES -- City leaders will take advantage of a new state law to collect more income from a new business and share less with Howland schools.
Council will meet today and is expected to approve a tax-abatement request from West Corp., of Omaha, Neb. The company is committed to creating 880 full-time jobs at a new customer service center at the former MCI call center on Youngstown-Warren Road.
Mayor Ralph A. Infante had considered asking council not to act on the request but said information presented to him from the Trumbull County Planning Commission made him reconsider. Infante said he was negotiating with representatives from the Howland Local School District on how to split taxes to be paid by the company.
West has already receiveda 75-percent, five-year tax credit from Ohio for the company's West Teleservices division. West is also asking Niles and Trumbull County to approve a 75-percent, 10-year abatement on real and personal property taxes.
In exchange for the abatement, the company expects to invest between $1.8 million and $2.2 million in new machinery and equipment, furniture and building improvements. West Corp. officials plan to begin operations by the end of this month.
When MCI was in operation, former state law required Niles and Howland schools to split the municipal income-tax revenue 50-50.
New law
But Infante said the planning commission researched a new law, which took effect in February, that allows the city to collect the bulk of the taxes and reimburse the school district only the amount lost through the abatement.
Infante said preliminary figures show the city would only need to pay about $18,000 to $20,000. That amount would decrease annually as assessments on the property owned by the company increase.
Tom Krispinsky, treasurer of Howland Local Schools, said the board of education met Monday and discussed the proposal, but he added that board members did not need to vote on the agreement between the city, the county and the company.
State law requires boards of education to vote on tax-abatement requests only when they exceed 75 percent or 10 years.
"But we are very much in favor of them bringing in those jobs," Krispinsky added.
If Niles council approves the abatement request, county commissioners are expected to act on the matter at the Oct. 14 regular meeting.
slshaulis@vindy.com