Youngstown council to OK Canfield deal

The city of Canfield owns its waterlines.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- The city is expected to approve a 10-year contract renewal to sell water to the city of Canfield.
City council is to vote today to permit the board of control to sign the deal. The board of control -- consisting of the mayor, law director and finance director -- is scheduled to meet Thursday with a vote to approve the Canfield contract on the agenda.
Canfield City Council approved the contract extension April 4. The contract, retroactive to June 30, 2006, when the old deal expired, also calls for a second 10-year renewal to begin June 30, 2018, if both cities agree to that extension.
The contract renewal doesn't include language regarding Joint Economic Development Systems that would permit Youngstown to provide water and economic development incentives for companies moving to Canfield in exchange for income tax.
The city is expected to receive a 100,000 study of its water system by the middle of next month. The study will advise Youngstown how its water distribution system could be a benefit in the formation of JEDS [between two cities] and Joint Economic Development District agreements [between a city and a township].
The expired water contract with the city of Canfield was temporarily extended while the two political subdivisions worked out an extension.
Townships' concerns
Officials in Austintown and Boardman are concerned that Youngstown may annex portions of their townships through the JEDD process. Youngstown Mayor Jay Williams says that option isn't being considered, and he stresses that JEDDs would help all involved.
Youngstown could receive income-tax revenue from those working in the JEDDs and could possibly reduce the 40-percent surcharge it places on noncity residents who use their water.
In exchange, the townships could share a portion of that income tax and increase development in their areas through Youngstown's economic incentives.
Unlike Boardman and Austintown, the city of Canfield owns its water lines and is responsible for maintaining them. Youngstown owns and maintains the waterlines in Boardman and Austintown.
Youngstown may consider JEDS with Canfield in the future. The only change in the new deal compared to the old contract is Youngstown can bill Canfield monthly rather than quarterly.
Also Thursday, the board of control is expected to approve no-interest loans to two companies seeking to expand their operations.
Council authorized the board of control April 4 to move ahead with the loans.
RAS Manufacturing Co. in the city-owned Salt Springs Business Park on Salt Springs Road is seeking 1.25 million to buy equipment. The company assembles and manufactures devices used to safely transport materials for the automotive industry.
Virgin Oil LLC on Wilson Avenue wants 300,000 to buy and install equipment. Virgin Oil takes wastewater from companies and cleans it so it can be properly disposed.
skolnick@vindy.com