Council considers $1M loan to MS Consultants

June 2, 2010 at 12:08a.m.

By DAVID SKOLNICK

YOUNGSTOWN

City council will consider legislation today to give a $1 million low-interest loan to MS Consultants, which is improving its East Federal Street office and building an expansion.

MS — an architectural, engineering and design firm — is spending between $1.575 million and $2.4 million for a 6,800-square-foot addition and to renovate its 20,000-square-foot building.

The company employs 86 and plans to hire 10 new employees over the next two years.

The city provides loans, with a 0.75 percent interest rate, to qualified companies looking to expand or open in Youngstown.

MS would need to provide an irrevocable letter of credit from a bank to obtain the loan.

MS would have up to one year to pay the loan, though the city can require the company to pay the full amount at any time.

Two weeks ago, council agreed to give MS a 75 percent, 10-year tax abatement for this project.

MS would save $196,673 over a 10-year period and pay $65,558 in property taxes.

Both the loan and the tax abatement need final approval from the city’s board of control.

Also today, council will accept about 6.4 acres of vacant land that will be annexed from Austintown for the construction of a B.J. Alan Fireworks Co. store.

Mahoning County commissioners gave approval to the annexation in February. Austintown trustees don’t oppose the annexation.

The land is near Meridian and Lanterman roads. B.J. Alan plans to build a $1.5 million Phantom Fireworks facility.

The company will close a location at the former Greyhound bus station near its downtown Youngstown headquarters, which has 20 to 25 workers during peak season and opened on an on-call basis during the off-season. The new store would be open all year and employ up to 50 full-time workers around the July 4 holiday.

The Ohio state fire marshal has a moratorium on issuance of new fireworks licenses, and current licenses can be transferred only within the community for which they were issued. Because of that, B.J. Alan can expand in only Youngstown.