Youngstown buys property to help V&M Star Steel expansion project

YOUNGSTOWN — Though a potential major project by V&M Star Steel is far from certain, the city’s board of control today signed a contract to purchase about $5 million worth of property needed by the company for the possible expansion.

V&M should sign the deal shortly, said city Finance Director David Bozanich, a board of control member.

The struggling national economy is delaying V&M’s decision on the nearly $1 billion proposed expansion, company officials say. V&M’s decision on the potential expansion, that would create about 400 new jobs, is expected toward the end of the year.

Also, the board of control agreed today to spent $1.4 million to purchase 61 acres at its Salt Springs Business Park from LaFarge North America Inc. for a possible expansion of Exal Corp.

The money to buy the property comes from a $4.9 million state grant to the city. The rest of the grant will be used to make the land level as well as install roads, and water and sewer lines.

Like V&M, there’s no guarantee Exal will move ahead with expansion plans.

The economy is the main reason both proposals are on hold, according to officials with the companies and the city.

If Exal doesn’t use that land, it could be used by another company, said city Finance Director David Bozanich, a board of control member.

For the complete story, see Tuesday’s Vindicator and Vindy.com