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Incentives to buy homes growing
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Lordstown Mayor Michael Chaffe talks about the incentive program at Lordstown High School to his right are Mayor Michael J. O'Brien of Warren and Niles Mayor Ralph Infante and Chamber President Thomas Humphries.
By Don Shilling
Other local cities are welcome to join in offering tax breaks to GM transfers.
LORDSTOWN — Community leaders hope to expand an effort that will provide $1,000 in cash and incentives to dislocated autoworkers moving into certain parts of Trumbull County.
First, they are welcoming other communities to join Warren and Niles in offering tax breaks to workers moving into the area to take jobs at General Motors’ Lordstown complex. Lordstown City Council was considering joining the effort Thursday, but the vote didn’t make the ballot due to council members’ receiving the legislation too late. The effort will be put to the vote Wednesday.
Trumbull County commissioners are looking at state law to determine if they can provide tax breaks for the new residents, but the review so far doesn’t look promising.
Second, the backers are suggesting that the program for GM workers is just the start.
“I hope that this mushrooms into incentives for anyone who wants to call Trumbull County home,” said Michael Chaffee, Lordstown mayor.
Joe Bell, director of corporate communications for the Cafaro Co., said the supporters would like to use this program as a model to attract other new residents, but discussions haven’t started on how to do that. The program could be restricted only to the limited times when companies are hiring hundreds of workers at one time, he said.
Bell and other supporters explained the first phase of the program at a news conference at Lordstown High School.
Eastwood Mall is offering eligible transfers $250 in cash, and the Regional Chamber is providing the same amount. The chamber’s money is coming from the Cafaro Foundation. The Youngstown-based Cafaro Co. operates the mall, which is in Niles.
The $500 in cash is designed for transfers who buy homes anywhere in Trumbull County from June 4, 2008, to July 10, 2009. The people must be coming from outside the region.
In addition to this $500 in cash, the cities involved are offering tax incentives for transfers who choose to buy homes in their cities.
Warren City Council has approved a $500 tax credit, and Niles City Council has approved a $500 grant. Lordstown is considering a $500 tax credit. A tax credit is a reduction of taxes that are due, while a rebate is money that is returned.
The offer is limited to the first 500 who accept. If that number is reached, the mall and the Cafaro Foundation each would be donating $125,000.
Officials said about 500 people are being transferred to GM Lordstown from GM and Delphi Corp. plants around the country.
GM is adding 1,400 people to the Lordstown plant to replace 550 workers who have left with buyout offers and to fill a third shift that’s being added to the complex. In addition to transfers from out of the area, the plant is hiring workers and taking transfers from local Delphi plants.
Tom Humphries, Regional Chamber president, said the cooperation between the governments, the Cafaro Co. and the union will help raise the area’s reputation in GM’s eyes.
“We are making a statement to the corporation that we really welcome you here. That message is invaluable,” he said.
Bell said the company is supporting the effort as a way to introduce the Eastwood Mall. The cities are interested because it expands the tax base of their communities, he said.
Chaffee said the program provides benefits for current residents of the cities even though they aren’t receiving tax breaks. Filling up vacant homes in the cities will help the property values of current residences, he said.
shilling@vindy.com