Youngstown mayor reports progress in V&M land dispute

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YOUNGSTOWN — V&M Star Steel’s president had a simple message for Youngstown and Girard officials involved in a border dispute causing headaches for the company.

V&M’s Roger Lindgren told the officials at a private meeting Wednesday: Settle the dispute before Aug. 28, or the company will look elsewhere for its potential $970 million expansion project.

Youngstown Mayor Jay Williams and Girard Mayor James Melfi said after the two-plus-hour meeting the discussion was productive, and both found it beneficial to hear the company’s needs directly from Lindgren.

Representatives of the two cities met later Wednesday for nearly three hours for private negotiations.

With the clock ticking toward the Aug. 28 deadline, the two sides don’t have a deal. They plan to meet again shortly.

“We are determined to work this out,” Williams said. “We’re making progress. We’re moving in the right direction.”

The biggest obstacle is that Melfi doesn’t want about 80 acres in his city, purchased by Youngstown for about $5 million for the V&M expansion project, to become part of Youngstown.

“A billion dollars may very well” hinge on a deal over the 80 acres, Williams said.

Lindgren told those at the private meeting he had that the company needed to have that property in Youngstown or the deal is off, according to those in attendance.

“The company has stated they do want that property in the city of Youngstown,” Melfi said.

Lindgren, who has repeatedly refused to comment on the project, walked out of the private meeting without talking to the media.

When asked by The Vindicator if he re-thought his position on the acreage, Melfi said: “I’m listening. I’m listening. I can’t tell you what my position is right now. I don’t know my position on the boundaries at this particular time. We are negotiating. Anything is possible.”

During later questioning, Melfi said, “Boundaries are an issue. I’m willing to listen. ... I’m still not in favor of moving boundaries. The deal is very important. For that I’m willing to listen.”

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

According to the document, the two cities “will agree to relocate city boundary lines” with that land located in Youngstown.

Melfi said that was a nonbinding letter, and he told Youngstown officials at the time that changing city boundaries was going to be an issue.

Melfi later said he wanted to get past all the previous problems and get the deal done for the betterment of the company, the two cities and the Mahoning Valley.

“I may have to be receptive to things” I don’t like, he said. “It’s a good old-fashioned border dispute.”

Even if Melfi refuses to give up the 80 acres, the final decision on that issue rests with Girard City Council.

A majority of councilmen don’t object to giving up the 80 acres of vacant contaminated property to save the project.

In a statement, council members wrote they support the project and “will remain [supportive] until the final details are ironed out.”

If V&M moves ahead with the expansion project, it would hire about 400 employees making about $60,000 to $70,000 a year, Williams said.

V&M is considering an expansion near its Martin Luther King Jr. Boulevard location in Youngstown on the border between the two cities. Nearly all the property for the expansion is in Girard.

A decision by the company won’t come until about the end of the year.

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.

It would cost at least $5 million to clean up the 80 acres, Williams said.

skolnick@vindy.com