Land purchase option time extended for V&M Star Steel

YOUNGSTOWN — The city administration is hopeful enough that V&M Star Steel will proceed with a potential expansion project that the board of control agreed today to a one-month extension on a purchase option for land needed by the company for the nearly $1 billion proposal.

The optimism remains even though V&M Star laid off about 50 of its workers month and delayed a decision on moving ahead with the project.

Also, V&M Star President Roger Lindgren confirmed today that his employees had their weekly hours reduced from 40 to 24 because of the struggling economy.

The company employs more than 400 workers.

Lindgren declined to discuss the proposed expansion.

The city board agreed today to the one-month extension on the $360,000 purchase of 15 acres at the former Demsey Steel facility in Girard. The city’s six-month purchase option for that property, near V&M’s location on Martin Luther King Jr. Boulevard in Youngstown and near the Girard border, expired Wednesday.

The city also has an option to buy agreements with two other companies near the V&M site.

The city is holding off on finalizing any of the property deals until V&M can come to an agreement with Norfolk Southern to purchase about 30 to 40 ares from the railroad company needed for the potential expansion. That land is vital to the project.

For the complete story, read Friday’s Vindicator or Vindy.com