Tuesday, January 25, 2005
The city also is providing a loan for one company.
YOUNGSTOWN -- City lawmakers will look at tax abatements for two businesses on their Wednesday night agenda.
T. Sharon Woodberry, development officer for the city's Office of Economic Development, said Youngstown Pipe & amp; Supply Co. is set to receive a 75-percent, 10-year tax abatement on personal property taxes. She said InfoCision is slated to receive a 75-percent, 10-year abatement on real and personal property taxes that may result as a result of its project here.
Youngstown Pipe & amp; Supply Co., located at the former Wean United site, 219 S. Phelps St., is investing about $900,000 in new inventory and $180,000 in new equipment and machinery.
New operation
The company, which is a steel processing and metals distribution center, is starting up a new operation, Woodberry said.
Youngstown Pipe will hire nine workers to start and is projected to create 18 jobs over the next 2 1/2 years, Woodberry added. Company president is Donald Caiazza.
She said the projected annual payroll for the new operation will be $304,000 for the first year, $728,000 in year two and $1.24 million the third year.
The company is providing the financing for the new operation. The lone incentive the city is providing is the tax abatement, Woodberry said.
InfoCision, the call center, also is receiving a float loan of $1.2 million from the city's nontax revenues at zero percent interest, Woodberry said. She explained that InfoCision will provide the city with an 18-month irrevocable letter of credit from the company's bank.
The bank will then pay the city back the $1.2 million. The loan agreement then would be between the bank and InfoCision.
The company is locating a new operation on the fourth floor of the Phar-Mor Centre on West Federal Street.
Woodberry said InfoCision is in the process of hiring between 130 to 200 employees for their downtown call center and is scheduled to start operations Feb. 1.
Steve Brubaker is the company's senior vice president of corporate affairs.