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Council will consider bond sale
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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.
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Youngstown Mayor Jay Williams
V&M Star would be responsible for repaying the loan even if the company never uses the land.
YOUNGSTOWN — City council will consider legislation Wednesday authorizing the city to borrow $5 million through the sale of bonds to buy 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 make the payments in a shorter time period, 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 assessed on V&M employees there.
The company employs 465, and the expansion would result in the creation of 500 to 1,000 additional 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.”
The city’s board of control has to approve the loan for it to be finalized, said Williams, a control board member.
Also Wednesday, council is being asked by the mayor to allow the board of control to hire a company to replace the sidewalks around city hall on West Boardman and South Phelps streets.
The project is estimated to cost between $30,000 and $50,000. The work would begin in the spring.
Council will also consider an ordinance to increase the fine for those found guilty of leaving their trash cans out too long from $25 to $50.
Residents can put out their garbage only 12 hours before it’s to be picked up and the cans can stay out no more than 24 hours after pickup, said Councilman John R. Swierz, D-7th, who’s sponsoring the legislation.
The legislation would also eliminate a provision that makes someone convicted of violating the ordinance a second time face jail time of up to 6 months.
“I don’t want anyone to have a record” for not taking care of garbage cans, Swierz said. But there should be a stiffer fine for violating the ordinance, he said.
skolnick@vindy.com