MAHONING COUNTY Council OKs break for metal fabricator

Council deferred action on an increase in fees charged for police-ordered towing.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- One small business will get a tax break on its new investments and another may get one.
City council approved a 10-year, 75-percent tax abatement Wednesday on personal property for Tremont Cultural Center but, upon the request of Councilman Rufus Hudson, D-2nd, placed into second reading a similar proposal for Lyden Oil Co.
Tremont, a metal fabricator on Wilson Avenue, is promising to create eight jobs within three years plus some part-time work. The company is getting the tax breaks on investments of $250,000 for three cutting machines, $100,000 in inventory and $50,000 in fixtures. Tremont makes architectural and ornamental metal such as fences, gates and staircases.
Lyden, a bulk-oil distributor with a site on North Meridian Road, is pledging three new jobs within two years. The company is investing $500,000 in inventory, storing lubricants in bulk in facilities left vacant two years ago by Safety Clean.
Expansions
Neither is getting standard real property tax breaks because both already are expanding at current locations, said Jeffrey L. Chagnot, city development director.
Tremont, however, will receive a different type of tax break in the future, he said.
The tax break will come because the firm is in an area covered by the federal Community Reinvestment Act, he said. Tremont company plans to invest slightly more than $1 million in its building and improvements, city records show.
The tax breaks for both companies have been approved by the Youngstown Board of Education.
Because of a waiting list of companies seeking economic development loans, Finance Director Dave Bozanich told council the administration will soon introduce legislation to expand the no-interest, 18-month float loan program to spur job creation.
The loans would be guaranteed by unconditional, irrevocable letters of credit from banks.
Towing increases
Also, council sent to its safety committee for further review proposed contracts with two companies that tow cars for city police, together with a proposed increase in fees the towing companies can charge.
The $15-per-tow increase would raise the cost to $55 per tow, or $65 if a flatbed truck is needed. Storage charges of $5 per day wouldn't change.
The charges come when police need vehicles to be hauled away after accidents, when drivers are arrested or illegally parked and must be moved.
Ludt's Auto & amp; Truck Towing and Bob O's Towing would continue serving the police department. The companies handle city calls on alternate days.
Two-year contracts with the companies expired in August. The two have been working under terms of the old contact. Company operators argued the $40 per tow was too low, suggesting $65 per tow.
The companies deserve increases because of rising fuel and employee costs, but the current rate keeps the fee affordable to residents trying to get their cars back, council members said.
rgsmith@vindy.com