Friday, August 21, 2009
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John McNally IV
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Youngstown Mayor Jay Williams
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Mahoning County Commissioner Anthony Traficanti
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Girard Mayor James Melfi
Everybody benefits if the steel-mill expansion goes forward, commissioners say.
YOUNGSTOWN — Mahoning County commissioners have appealed for a quick resolution of the dispute between Girard and Youngstown over annexation of Girard land to Youngstown for the proposed $970 million V&M Star Steel expansion project.
“I want to urge [Girard] Mayor [James] Melfi to do the right thing. The property there will be used for nothing else in the future. He should work with the city of Youngstown to let that property be annexed,” said Anthony T. Traficanti, chairman of the county commissioners.
“Both counties will benefit from that project,” he added, referring to Mahoning and Trumbull counties. Girard is in Trumbull County. Youngstown is in Mahoning County.
“We’re urging the city of Girard and the mayor to work diligently with Mayor [Jay] Williams [of Youngstown] to accomplish this. To me, it sounds like a no-brainer and it should have gone forward by now,” Traficanti said during Thursday’s commissioners’ meeting.
“I expect by Aug. 28 that these issues will be resolved, and V&M will continue to think of the current location in the city of Youngstown as their home for that proposed expansion,” said Traficanti’s colleague, Commissioner John A. McNally IV.
“Every indication that we’ve seen as commissioners and just on the streets is that V&M wants us to be their proposed expansion location,” McNally said. “Let’s get these issues behind us and let’s move forward and then bring much-needed job growth to this area,” he added.
“Four hundred jobs is going to be a help no matter who is sharing in the revenue of this proposed deal,” McNally said. “I expect, in the end, the city of Youngstown and the city of Girard are going to come up with a solution that makes sense for both of them.”
V&M, which manufactures seamless tubes used mostly in the gas and oil industry, hasn’t given a firm commitment to the expansion project. A final decision from the company on the project is expected by the end of the year.
Roger Lindgren, steel company president, told officials of both cities in a two-hour plus private meeting Wednesday that they must settle the land dispute before Aug. 28, or the company will consider moving the project elsewhere.
Representatives of the two cities met later Wednesday for nearly three hours of private negotiations.
Melfi doesn’t want 80 acres of vacant Girard land, which were purchased for about $5 million by Youngstown for the project, to be annexed to Youngstown.
That acreage must be relocated to Youngstown, or the project is off, Lindgren told the officials.
in the private meeting, according to those in attendance.
If the steel company proceeds with the expansion, it would hire about 400 additional employees making $60,000 to $70,000 a year, Williams said.
Girard City Council members have issued a statement saying they support the project. Also, a majority say they don’t object to giving up the 80 acres to save the proposal.
milliken@vindy.com
V&M Star Steel has announced a possible expansion on the border of Youngstown and Girard. The expansion would add about 500 jobs. Here’s how the two cities would split the benefit:
Any employees working in the expansion facilities would pay income taxes at the Youngstown tax rate of 2.75 percent. That would amount to about $2 million annually. Those tax dollars would be divided evenly between the two cities every quarter. Youngstown would supply the facility with water, collecting profit from the sale of that water.
Girard will supply sewer service to the facility, collecting profit for providing that service.
The expansion must be approved by corporate officials in France. A decision is expected at the end of this year.
Source: Youngstown and Girard officials