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City to pay for testing at proposed sites
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Youngstown finance director David Bozanich
YOUNGSTOWN — The city board of control agreed to pay $242,844 for soil testing and a report on what hazardous materials would need to be removed to clean up two key properties needed by V&M Star Steel for its potential $970 million expansion project.
MS Consultants Inc. of Youngstown will test the property and provide a report of what needs to be cleaned up on the two parcels in about three months, said city Finance Director David Bozanich, a board of control member.
The board approved the contracts Thursday with MS to do work to two parcels in Girard the city purchased — the former Dempsey Steel and the former Shelly & Sands/McCourt Construction property.
There are three other properties Youngstown purchased in Girard that V&M Star needs for the potential expansion.
The board of control is expected to sign contracts for testing and remediation reports shortly, Bozanich said.
The cost of cleanup of the various properties, approximately 170 to 190 acres in Girard, is estimated at $5 million, Bozanich said.
But the city won’t know the exact cost until the reports are done, he said.
Hazardous materials on the properties will be removed between April and June of next year, he said.
V&M will reimburse the city for the cost of the studies under a deal the two entities signed, Bozanich said.
The money for the property cleanup will come from a $20 million federal stimulus package grant Youngstown received.
V&M officials couldn’t be reached Thursday to comment. They have repeatedly declined to discuss the potential project with the media.
But Bozanich said he spoke Wednesday with company officials who are pleased with the progress being made by Youngstown and Girard on the property needed for an expansion.
Girard and Youngstown officials say a deal between the two on a property transfer and sharing tax revenue could be finalized within two weeks.
The two cities are to split a 2.75 percent corporate-profit tax from V&M as well as a 2.75 percent income-tax collection on employees at the potential expansion site.
V&M officials want all of the land that would house an expansion in Youngstown. Currently, Youngstown owns all of the land, but the property is located in Girard.
About 120 acres would be used for the expansion.
As part of a deal, a boundary line change would put all of the land in question inside the Youngstown city limits.
V&M will decide at the end of the year whether it will move ahead with the expansion. The new facility is expected to cost about $970 million and would employ about 400 new workers.
If the project moves ahead, construction would take about 18 months.
skolnick@vindy.com