Officials to discuss Leedsworld tax abatement

A county planner says he's pretty sure Leedsworld has decided on Warren.
By ED RUNYAN
VINDICATOR TRUMBULL STAFF
WARREN -- Trumbull County planning officials have scheduled meetings with county commissioners and Warren council to discuss a tax abatement proposed at Warren Commerce Park for a Leedsworld manufacturing facility.
County planner Mark Zigmont said the tax abatement would be for 75 percent on new real-property improvements for 10 years. It would also give the company 100 percent tax abatement for three years and 25 percent for seven years on new personal-property investments.
The company has pledged to hire 241 employees within three years.
At the same time, officials are trying to secure foreign trade zone status for 46.5 acres of the industrial park, 11 acres of which would be for the Leedsworld site on North River Road. That status would be granted by the Western Reserve Port Authority at the Youngstown Warren Regional Airport in Vienna. The port authority is willing to give up acres of its foreign trade zone and assign it to Warren Commerce Park.
Zigmont noted that the transfer of foreign trade zone status could be a boon for more than just Leedsworld. Transfer of foreign trade status will allow the industrial park to provide that status for 35.5 other vacant acres in the park, for use by other companies as they move in. This status allows companies to import products without paying duties on them.
Leedsworld is a promotional products firm that is considering locating a distribution center in Warren. It would lease a 256,000-square-foot facility for the production, processing and distribution of promotional material and goods. The building was formerly used by Delphi Packard Electric as a distribution center.
What's been done
The Ohio Tax Credit Authority in April approved a 65 percent, six-year tax credit worth $436,000 for the company, and the Ohio Development Financing Advisory Council OK'd a $2 million, five-year loan at 1 percent interest to the firm for the purchase of machinery and equipment.
Mayor Michael O'Brien said last month he was "very optimistic" the company will choose the Warren site over one near Altoona, Pa., that it is also considering. Zigmont said he is pretty sure that the company has decided to locate at the Warren location. O'Brien has said the tax abatement could be worth about $313,000 over the 10-year period.
Martin J. Vuono, chief financial officer for New Kensington, Pa-based company, could not be reached to comment on whether a decision has been made. Zigmont said a meeting with Warren council on the tax abatement is set for 7:30 p.m. May 24 in city council chambers. County commissioners will meet on the request at 10 a.m. June 1 in the commissioners' hearing room.
The former Delphi Packard building is located in the LaBrae school district, Zigmont said. There is no requirement for the schools to sign off on the enterprise zone, though a letter is required of the school regarding the foreign trade zone, he said.
runyan@vindy.com