Girard council works to secure V&M deal

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Girard Mayor James Melfi

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Youngstown Mayor Jay Williams

Council members will issue a public statement on this issue today.

GIRARD — Girard City Council, that city’s ultimate decision-maker on a property transfer for a potential $970 million V&M Star Steel project, is keeping all options open when it comes to the deal.

Girard Mayor James Melfi refuses to have about 80 acres in his city, bought by Youngstown for the potential project for about $5 million, removed from his city through a “boundary-line adjustment” or annexation or any other means.

But Girard council members aren’t closing the door.

A statement from council will be read today on the legislative body’s position on the issue.

“Council is willing to work to bring this project here, and nothing is off the table yet,” said Councilman Brian Kren, D-at large.

Kren said he doesn’t agree with Melfi that the 80 acres have to stay in Girard.

“Whatever is fair and necessary to bring this deal here will be done,” he said. “I’m not opposed to a boundary change if that’s the only option.”

Youngstown officials say V&M has told them that all the property for the potential expansion must be in that city, or there’s no chance the project would come here.

Kren and other council members say they will make the final decision on the boundary lines and this project.

Though Melfi can veto a decision, it takes only five votes from the seven-member council to override that veto, several members said Tuesday.

If the land transfer doesn’t happen by Aug. 28, V&M will quite likely cancel the proposed expansion, Youngstown Mayor Jay Williams said.

Melfi has said there’s no reason to allow the 80 acres to become part of Youngstown, and no one from V&M has asked him to turn the land over to that city.

V&M officials haven’t commented on this issue to the media.

Melfi signed a document Oct. 14, 2008, agreeing to allow Youngstown to acquire about 125 acres near the V&M site “in both Youngstown and Girard” for this project.

The document also states the two cities “will agree to relocate city boundary lines which will be beneficial to the expansion project” with that land located in Youngstown.

Councilman Thomas Seidler II, D-2nd, declined to comment until today’s statement is made.

“I do have an opinion, but I want to respect the other council members and wait to express it,” he said.

Councilman Joseph Shelby, D-at large, said: “I’d love to express myself” on this issue but will wait until the statement is read.

“I can say that cooler heads will prevail,” he said. “We all feel very, very confident that we’ll be able to strike a fair and equitable decision. This deal isn’t going to escape this Valley.”

Councilman Mike Costarella, D-at large, said he’s bothered that council hasn’t been properly informed about such a major issue.

“It’s a fair statement that we’re going to work to obtain” this project here, he said.

It wasn’t until Monday, two days after The Vindicator first reported about the disagreement between Williams and Melfi, that Girard council members contacted the Youngstown mayor.

“I assumed they had the information pertinent to this issue” before the article was published, Williams said. “That was an incorrect assumption. I’m glad to share information with them.”

If the expansion happens, the two cities would split a 2.75 percent income tax imposed on those working there as well as a profit tax of the same percentage from the company, Williams said.

Each city would get about $1 million annually, Williams said.

Also, it would cost at least $5 million to clean up the property, something Youngstown would do with the expectation of getting state funds to offset those costs, Williams said. If the property stays in Girard’s boundaries, that city wouldn’t have the resources to clean up the site, Williams said.

skolnick@vindy.com