Purchase options would aid V&M Star expansion
YOUNGSTOWN — The city’s board of control signed purchase option deals today with three companies to provide V&M Star Steel the needed space for a planned $600 million to $900 million expansion.
It would cost $4.6 million to purchase the three sites that total 103 acres.
The city will also have to conduct environmental studies of the properties and almost definitely clean up portions of the sites, said city Finance Director David Bozanich, a board of control member.
While the studies will determine the remediation costs, Bozanich said it would probably be less than $2 million. The city plans to seek financial assistance from the state for the remediation and property acquisition costs, he said.
The city would borrow money — with some hopefully off-set by the state — for the property remediation and acquisition with V&M Star Steel or a financial institution guaranteeing the repayment of the loan, Bozanich said. The payments would be made annually for up to 20 years, he said.
“It’s a lot of money to borrow but if you look at V&M’s assets, we’re very comfortable with their financial strength,” Bozanich said. “It’s a huge benefit to the community if we can pull this off, particularly in this economic climate.”
The company manufactures seamless steel tubes used mostly in the oil and gas industry.
For the complete story, read Friday’s Vindicator or Vindy.com