Council OKs tax breaks

By DAVID SKOLNICK

skolnick@vindy.com

YOUNGSTOWN

City council agreed to provide 75 percent, 10-year tax abatements to two businesses wanting to grow in Youngstown.

The city’s board of control also must approve the tax breaks for MS Consultants and Coronado Steel. Council gave its approval Wednesday.

MS plans to spend between $1.575 million and $2.4 million for a 6,800-square-foot addition and to renovate its 20,000-square-foot building on East Federal Street.

Coronado Steel on Funston Drive plans to spend $780,000 to build a 9,760-square-foot machine-and-fabrication shop to serve as an adjunct to its steel foundry.

MS — an architectural, engineering and design firm — would hire 10 employees over the next two years if the tax abatement is approved. The company employs 86.

Coronado would hire five to eight workers over the next three years. It employs 33.

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

Coronado would save $112,221 over a 10-year period and pay $65,558.

When asked about giving tax abatements to established companies planning to hire a modest number of new workers, Mayor Jay Williams said: “It’s a legitimate debate, but it is additional investment.”

Companies don’t make decisions on expanding only because of tax abatements, Williams said.

“But if we can help encourage or facilitate that investment [through tax abatements, hopefully] more investment will occur,” he said.