77 tax abatements questioned

YOUNGSTOWN — A meeting to continue 77 tax abatements to businesses in the city ended abruptly when questions were raised about whether the companies are employing enough minorities and women.

The city’s tax incentive review council typically meets once a year to review a report that details if companies that received abatements the previous year are complying with the tax break agreements. The council’s main focus is to make sure the companies meet financial investment and employment projections.

Tuesday’s meeting came to an end after the Rev. Kenneth L. Simon, acting chairman of the city’s Human Relations Commission, questioned whether the companies were complying with provisions in the abatement agreements to hire city residents, particularly minorities and women.

HRC’s tax abatement committee collects that information and the commission’s Equal Employment Opportunity and Minority Business Enterprise/Women Business Enterprise programs coordinator shares it at the review council’s annual meeting.

The city severed its ties in August with the Youngstown Area Development Corp. to handle those responsibilities, and the information was never collected. Those responsibilities were transferred to the Mahoning Youngstown Community Action Development Corp., which hired former Councilman Herman Hill to handle those services.

Contacted after the meeting, Willliam Carter, YADC executive director, said he wrote letters to Jason Whitehead, the mayor’s chief of staff/secretary, and the city law department asking if his agency should collect the information. When he didn’t receive a response, Carter said he didn’t gather the information.

Whitehead said the YADC contract for the work ended in August and the agency should have at least sent out the letters to the companies that have tax abatements before being replaced. The letters are usually sent in July, he said.

Hill, who attended Tuesday’s meeting, was caught off-guard by the request for the information.

“I received 50 boxes of files 10 weeks ago and I went through each one,” Hill said. “I didn’t know I needed this information coming to this meeting. I didn’t have a chance to ask [Carter] about the report.

The Rev. Mr. Simon expressed concern about continuing the abatements without the information. He said 22 companies that received abatements from the city in 2004 failed to respond to letters from the Human Relations Commission’s tax abatement committee seeking information.

“Companies can’t continue to do this and get abatements,” Mr. Simon said.

City Finance Director David Bozanich, a tax council member, said a majority of the 22 companies on Mr. Simon’s list are in compliance with the abatement agreements. But he agreed to postpone the meeting because the companies should provide information requested by the HRC.

The decisions on the abatements — all 77 were recommended for continuance by city tax abatement officials — must be made by the tax council before the end of the year, Bozanich said. That’s because council must approve legislation on the abatements before Jan. 1 under state law, he said.

Hill is sending letters to the companies receiving tax abatements asking for employment information on the hiring of city residents, particularly minorities and women. But he said it’s doubtful the responses will be in his hands by the end of the year.