Board OKs $4M for work at V&M Star site

September 3, 2010 at 12:06a.m.

By DAVID SKOLNICK

YOUNGSTOWN

The city’s board of control approved spending more than $4 million for improvement work at the V&M Star expansion site.

The board agreed Thursday to borrow $3.62 million from the Ohio Water Development Authority to build a 500,000-gallon water tower and a 16-inch waterline the company needs as part of its $650 million expansion project near its location off Martin Luther King Jr. Boulevard.

Also, the board approved a $747,000 contract with A.P. O’Horo of Liberty to demolish four tunnels along Roger Lindgren Way, the former South Road, that will be used as the main access to the new plant. The road is named for the recently retired president of V&M Star who was instrumental in bringing the $650 million facility to Youngstown.

A.P. O’Horo had the least- expensive proposal among eight companies that sought the job. The city had estimated the cost of the work at $1 million.

The city will open proposals today on the installation of water and sewer lines and the reconstruction and expansion of Roger Lindgren Way.

The road will be 1.8 miles. The city estimates that work at close to $2 million.

All of the expenses paid by the city, including interest on loans, will be reimbursed by V&M, said Finance Director David Bozanich.

V&M paid $6.42 million in late July to reimburse the city for the purchase of five properties the company needs for its expansion.

About 400 construction workers are building the plant. When it opens in late 2011, the mill will employ 350 permanent, full-time employees.

Also Thursday, the board approved a lease agreement with VXI Global Solutions for the 31,000-square-foot fifth floor of the city-owned 20 Federal Place.

The call-center company already employs about 500 people on the downtown building’s fourth floor.

The company plans to hire 500 to 600 more people as part of the expansion.

As part of the contract, the city is giving up to $1.2 million to VXI to offset some of its construction costs.

The company also is spending about $2.7 million on the expansion.

“We’re excited about this,” Bozanich said. “It’s a whole bunch of new jobs. It’s great for downtown.”