MAHONING COUNTY Council approves loan for steel company

The grant is to help pay the costs of moving the equipment.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The city will give an interest-free loan to a western Pennsylvania steel company moving to the city.
City council approved an interest-free loan Wednesday of up to $2 million for up to 18 months and a $30,000 grant, both to help pay for the move, said Jeffrey L. Chagnot, city development director.
Council also approved the city's standard 10-year, 75 percent tax abatement on real and tangible personal property for Wendelin House Inc. of Ambridge, Pa. The Youngstown Board of Education had approved the abatement last week.
Wendelin is to buy the former Allegheny Steel Distributors building and its equipment at East Federal Street and Andrews Avenue. Wendelin, a distributor of galvanized steel products, is to invest $2 million into buying the building and $1.3 million in new machinery and improvements. The company also is to move about $287,000 in machinery to the city.
Jobs
The move is to bring 20 jobs into the city, and the company is to create 30 full-time jobs within three years.
The grant is to help pay the costs of moving the equipment from Ambridge, just northwest of Pittsburgh, and hooking it up in the city, Chagnot said.
The company must post an irrevocable letter of credit to secure the loan, meaning the city would receive immediate, full repayment of the money on demand. The federal government sets aside $5 million to $6 million a year exclusively for the city to offer such loans.
rgsmith@vindy.com