HUBBARD TOWNSHIP Trustees OK bid for tax abatement

Declining property values concern some residents.
HUBBARD -- Over the next several years, the township will likely see the creation of manufacturing jobs.
About 35 to 40 residents attended a special public meeting Monday at the Township Administration Building, where trustees approved a request by Warren Fabricating and Machining Corp. for a 15-year, 100-percent tax abatement. The company, which fabricates steel for heavy industry, agreed to create 100 full-time jobs over the next three years.
Warren Fabricating will begin construction of a 540,000-square-foot manufacturing facility April 1 on property the company owns at 7845 Chestnut Ridge Road in the township. The expansion will entail a $10 million building and about $120 million in new equipment. The project could be completed by November 2006.
Company owner John Rehban said Warren Fabricating has been hurt in the last decade by NAFTA as well as cheaper steel imports from China, Mexico and other countries. He requested the abatement to offset the cost of the project and to help the business remain competitive.
"We hope to get a lot of work back we've been losing the last 10 years," Rehban said, adding that the company now has about 50 full-time workers.
In return, Warren Fabricating will pay the Hubbard Board of Education $100,000 annually over the next 15-years; the township will receive $25,000 each year over the same period in lieu of taxes.
Other improvements the business plans include improving the rail system used to transport goods, Rehban said. About 70 percent of steel is delivered to the company by rail and the rest by truck, a situation that will remain about the same after the tax abatement, he added.
Complaints
Despite the promise of jobs to the area, several residents, especially those whose property abuts the land the company owns, voiced complaints about their property values, which they believe will decrease because of the zoning. The commercial property is surrounded by land that is zoned residential.
During a few heated exchanges, others said they were unhappy about mounds of dirt that have been moved and are piling up on or near their yards. Some were upset about the possibility of being awakened early by construction vehicles' headlights and the sounds of machinery during the building process.
Nevertheless, trustees said it was important to "keep jobs here and stabilize our tax base." As procedure, each year trustees review abatements they grant and will do the same with Warren Fabricating's request.
"[Warren Fabricating] has done what it said it would do," Trustee Fred Hanley said, referring to promises the company made to the community during the last abatement granted, which was 10 years at 75 percent. "If you don't perform, you lose your tax abatement. That's the bottom line."
The request still has to be approved by Trumbull County commissioners.