City board postpones voting on V&M Star deal

YOUNGSTOWN — The city’s board of control postponed voting today on legislation related to a potential expansion of V&M Star Steel because the company hasn’t yet acquired all of the land needed for the project.

The steel company is still negotiating the relocation of a Norfolk Southern railroad line that runs through the site of the planned expansion.

The relocation of the railroad line is “critical to the project,” said city Finance Director David Bozanich, a board of control member.

Without the line relocation, V&M would have to make changes to the location of the potential expansion, Bozanich said.

“We expect the issue to be resolved shortly,” in about 10 days, he said.

City council approved legislation recently related to the potential V&M expansion.

• Authorizing the city to borrow $5 million through the sale of bonds to buy 103 acres needed for the possible project.

• Having V&M guarantee a reimbursement of the money, plus interest and other related costs to the city.

• Signing agreements with three businesses to purchase the property.

All need final authorization from the board of control.

The extra property in Girard and Youngstown near V&M’s Martin Luther King Jr. Boulevard facility is needed for a $970 million potential expansion that Bozanich said would add 411 jobs.

The rail line relocation would cost at least $20 million. The city included the relocation at that price on its wish list for federal economic stimulus package funding.

For the complete story, read Friday’s Vindicator or Vindy.com