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Council to discuss aid for 2 companies
A company plans to build a $3 million facility and open in December.
YOUNGSTOWN — City council will consider giving a $1 million no-interest loan today to a company seeking to grow, and a property tax abatement to another company looking to open a $3 million business here.
If council favors the two proposals, the requests go to the city’s board of control for final approval.
GLI Pool Products on Sinter Court in the city-owned Ohio Works Business Park is seeking a $1 million loan to expand its operations. If the company gets the loan, it would have up to 18 months to repay it.
The company employs 110 full-time workers and plans to hire 15 more.
GLI manufactures pool lines, covers and fencing for retailers.
The city provides no-interest loans to some companies looking to expand or open in Youngstown. The companies must have an irrevocable letter of credit from a bank in order to qualify for the loan.
City council approved no-interest loans to three companies last month. The board of control has yet to give final approval to any of them.
Among the companies approved last month for a loan, for up to $2 million, was Pull-A-Part, a used-auto-parts store with 21 other locations nationwide.
On today’s council agenda is a request for Pull-A-Part to receive a 75-percent, 10-year, real property tax abatement. The company plans to build a $3 million facility and open for business in December.
The city is selling 22 acres at the former Sinter facility off Division Street, and near the Ohio Works Business Park, to Pull-A-Part for about $665,000.
The company plans to hire 20 people with a $500,000 annual payroll, according to documents it filed with the city for the abatement. It also anticipates $4.5 million in annual sales revenue.
If Pull-A-Part receives the abatement, it would save $257,063 in taxes and pay $85,688 over the 10-year period, according to the documents.
Also, its employees would pay $223,188 in income taxes to the city over those 10 years if Youngstown keeps that tax at 2.75 percent.
skolnick@vindy.com