Youngstown’s water plan needs independent review

Youngstown’s water plan needs independent review

Given the suspicion with which residents of Austintown and Boardman already view the city of Youngstown’s proposal to use its water to foster economic ties, an independent analysis of a study conducted by a Cleveland firm is necessary.

Regardless of the reputation of The PRM Group, trustees in the two townships are unlikely to be swayed by the revenue projections contained in the 50-page document that was shared recently with Boardman officials.

A meeting between Youngstown and Austintown officials is expected shortly.

From the initial reaction to the proposal, the study, titled “A Regional Approach to Economic Development in the Mahoning Valley,” appears to be dead on arrival — unless its assumptions and projections can be independently verified.

Therefore, we believe Youngstown State University and Kent State University’s Trumbull County branch should be invited to review PRM Group’s work.

Urban specialists and economists from the two institutions should first determine if there is a basis for the economic assumptions that have been made, and then should analyze the methodology used to project the revenue steam for the city and the townships.

Underlying premise

That said, the underlying premise of the proposal merits consideration. We have long advocated a regional approach to economic development. Indeed, governors as far back as the late James A. Rhodes advised area officials to set aside their parochial interests for the good of the Valley.

The strengths of each community should be used in a collaborative effort, the governors said.

And while strides have been made in developing a regional economic development approach, more needs to be done.

Youngstown Mayor Jay Williams is committed to working with neighboring communities on such initiatives as joint economic development districts. The city supplies drinking water to most of Austintown and about half of Boardman, which means there already is a relationship.

But Youngstown’s latest proposal is so far-reaching that township trustees are justified in taking a cautious approach.

One of the main elements is an income tax that would be paid by employees of Boardman and Austintown companies that use Youngstown water. In return, the surcharge township residents pay for water would be reduced, while the city’s income tax rate would also be cut.

More than $400 million is being projected as going into the coffers of the city and the townships over 20 years. That is based on 500 acres of new business development in Austintown and 250 acres of new and redeveloped land in Boardman. The study projects 3,750 new jobs being created with an annual payroll of $170 million by the year 2027.

When such huge numbers are tossed around, the question that must be answered is this: How realistic are the assumptions and projections?