A solution must be found to V&M Star land dispute

We don’t know whether the parent company of Youngstown-based V&M Star Steel will give the green light for an $800 million to $1 billion manufacturing facility, but what we do know is this: If the cities of Youngstown and Girard don’t resolve their dispute over land, the Mahoning Valley will no longer be in the running for the project.

Indeed, this region has been the preferred location for the V&M Star expansion since the plans were announced by the company and its parent, Vallourec of France, last fall. And as of just a few weeks ago, it seemed the company was happy with the decision it had made. In December, the Ohio Credit Authority approved a 10-year, 75 percent tax credit for V&M to take effect in January 2010, and earlier this year the state helped steer $20 million in federal stimulus money to buy and improve property the company has selected for the project. The city of Youngstown recently purchased 80 acres for $5 million and will also pay for the environmental cleanup.

In addition, the Public Utilities Commission of Ohio has approved discounted electric rates for the proposed new plant.

But because the 80 acres are located in Girard, the company has asked for a boundary-line adjustment so the property becomes a part of Youngstown. It would still remain in the Girard City School District, but Youngstown’s income tax rate of 2.75 percent would be applied to workers in the new facility.

Last week, however, Girard Mayor James Melfi balked at the boundary change and insisted that a Joint Economical Development Zone, which he and Youngstown Mayor Jay Williams had touted to facilitate the sharing of tax revenue, is his preferred option.

Melfi said residents of his city would not agree to giving up such a significant amount of land to Youngstown.

He may be right, but as the leader of the community he has the responsibility to persuade his constituents that this project is larger than any one entity. The fact of the matter is that V&M Star can go to just about any part of the country and even the globe with its plans for a new plant and it will be welcomed with open arms. Such is the reality of today’s economy.

Political backlash

For his part, Mayor Williams must recognize the political backlash Melfi could face if he agrees to the land transfer without being able to show a respectable financial benefit. It is estimated that between $2 million and $3 million a year in income and property tax revenues would be split between the two cities if Youngstown is able to extend its boundary to include the 80 acres.

Faced with an Aug. 28 deadline set by the company for the land transfer, the need for a quick resolution to the dispute is clear.

Business and community leaders in the Mahoning Valley should let their voices be heard. We are confident a solution can be found if the government officials take a step back and look at the big picture.

Ever since the proposed project was announced and the Mahoning Valley emerged as the top site, Gov. Ted Strickland and members of his administration have pulled out all the stops to ensure that V&M does not have second thoughts.

Likewise, Congressman Tim Ryan of Niles, D-17th, and his staff have worked hard to not only pave the way for federal dollars, but to facilitate negotiations between Youngstown and Girard.

From the outset, this newspaper has hailed the spirit of cooperation between mayors Williams and Melfi and we have gone so far as to suggest that this project could be a template for future cooperative endeavors.

Too many people have invested too much time and energy in this project for it to fall victim to public sector myopia. There are potentially 400 jobs at stake with an average salary of $50,000.

If V&M says it wants the 80 acres to become a part of Youngstown, government officials must find a way to make that happen.