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Youngstown will borrow $5 million to help V&M Star
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EXPANSION INCENTIVE: Posing in Columbus on Monday after a talk are, from left, Youngstown Mayor Jay Williams; Roger Lindgren, president of manufacturer V&M Star Steel; and GIrard Mayor James Melfi. Youngstown and Girard have offered incentives to V&M Star, which borders the cities, if it chooses to expand in that area.
YOUNGSTOWN — City council will consider legislation Wednesday authorizing the city to borrow $5 million through the sale of bonds to purchase and clean-up the property needed by V&M Star Steel for a planned $600 million to $900 million expansion.
The city would borrow the money, with V&M or V&M’s financial institution guaranteeing the repayment, regardless of whether the company uses the land, Mayor Jay Williams said.
The loan is for up to 20 years, but V&M would repay the money in less time, Williams said.
V&M manufactures seamless steel tubes used mostly in the oil and gas industry, and is based in the former Youngstown Sheet & Tube Co.’s Brier Hill Works location.
The expansion would be in Youngstown and Girard on and near Martin Luther King Boulevard with the two cities splitting the 2.75 percent income tax to be accessed on V&M employees there.
The company employs 465 and the expansion would result in the creation of 500 to 1,000 more jobs.
“V&M has yet to make a final decision, but we’re comfortable enough they’ll move forward” to borrow the money, said Williams, who is sponsoring the legislation to be considered by council. “There is no cash outlay [by the city]. We’ll issue the bonds and get repaid by V&M.”
For the complete story, read Tuesday’s Vindicator or Vindy.com