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Competition for new residents heats up
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Realtor Jerry Altobelli supports an idea by Niles Mayor Ralph Infante to give a $500 city grant to GM employees working the third shift at Lordstown if they buy or build a home in Niles. Altobelli says the $500 of taxpayer money will be regained several times over in the new homeowner's taxes.
By Ed Runyan
Competition for new residents heats up
Cities can offer incentives that the townships and county cannot, one assistant county prosecutor said.
LORDSTOWN — Several communities across Trumbull County are planning to offer financial incentives to workers hired to work the new third shift at the General Motors plant here if they are willing to move to their community.
Niles is considering $500 grants, while Warren and Lordstown are planning to offer $500 city income tax credits. Warren will require them to live in the city for at least three years. A tax credit is a reduction in the amount of tax owed. Trumbull County is researching what it can do.
Whatever the communities do, it would be added to $500 in cash to be offered by the Cafaro Corp. of Youngstown to anyone purchasing a home anywhere in Trumbull County, said Joe Bell, director of communications for the company.
Full details of the plan will be unveiled at a news conference at 11 a.m. Thursday at Lordstown High School.
Warren Mayor Michael O’Brien said Warren “will be involved” in offering a $500 income tax credit to any new GM workers purchasing a home in the city. He said he’s not aware of any similar credit being offered at any time in the past.
Niles City Council will hear a proposal from Mayor Ralph Infante this morning for a $500 grant to any of the 1,400 workers who will staff the third shift starting in August, many of whom will be transfers from other GM plants. To qualify for the Niles money, the workers must be new Lordstown employees working the third shift, have been transferred from outside the area and must purchase or build a home within Niles city limits.
Lordstown Mayor Michael Chaffee said Lordstown Village Council will be asked Thursday night to approve a “parallel” incentive to what Niles and Warren are proposing, though details of Warren’s plan are still sketchy.
Two Mahoning County communities contacted by The Vindicator on Tuesday afternoon said they have not formulated any plans to offer an incentive.
Austintown Township Administrator Mike Dockry said the township expects to benefit from new construction and home purchases in the same ratio that it always has from General Motors employees but has not formulated any plan to offer an incentive of the type being considered in Niles, Warren and Lordstown.
Canfield City Manager Chuck Tieche said the city has not considered any incentive program either. Youngstown Mayor Jay Williams could not be reached Tuesday to comment.
James Saker and Jeff Adler, assistant Trumbull County prosecutors who advise the county commissioners, said their office has given the county commissioners a legal opinion that the county is not allowed to offer any incentive to individual Lordstown workers.
Saker and Adler, however, are continuing to research the matter to determine if there is a way for commissioners to provide another type of incentive. They would not say what other types of options might be available.
A county incentive would enable townships to participate in an incentive program, Adler said, adding that counties and townships are governed by state law, whereas cities can write their own because of their home-rule powers.
Adler said such home-rule powers make it possible for cities to offer the incentive. Adler is also law director for the City of Hubbard.
Niles Law Director Terry Dull said his research indicates that such an incentive is lega for the city to reduce its number of vacant homes.
He said if workers from other companies ask for the same incentive, Mayor Infante would have to look at that issue when it arises.
runyan@vindy.com