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V&M supplier backs off plans to move to Ross
YOUNGSTOWN
A proposal to relocate a scrap-metal supplier to V&M Star to an East Side industrial area — and the $280,000 in cash the city was going to receive as part of the deal — is dead.
“It’s unfortunate we couldn’t come to an agreement,” said city Finance Director David Bozanich.
The plan was for Metalico Inc. to relocate from its property on Division Street extension, land V&M needs for its $650 million expansion, to the Ross Industrial Park on Albert Street.
But city council refused to support the move last month until it could hear more details. Councilwoman Annie Gillam, D-1st, and Councilman DeMaine Kitchen, D-2nd, led the opposition. They were concerned about the aesthetics of Metalico at Ross and that the area is zoned light industrial and Metalico is a heavy industrial business.
Kitchen said Wednesday he’s pleased Metalico isn’t moving.
In a Monday statement, Metalico, a Cranford, N.J., company, announced it “has elected to remain at its existing location permanently, but will proceed with plans to overhaul and upgrade” that site.
During the upgrade, starting this month, the company will shut down its shredding work.
Repeated attempts earlier this week by The Vindicator to contact Metalico officials were unsuccessful.
Metalico was to move to accommodate V&M’s plans to use that company’s location for its expansion.
V&M was going to pay $540,000 to the city to purchase about 45 acres at Ross Park for Metalico. Also, the Cafaro Co., which owned the site, was going to give the city $280,000 and 18.3 acres of land there.
Cafaro sold the property in February to TPOH1 LLC, a Lisbon company, that is taking down a 1.1-million-square-foot building at the park. The company bought the site solely to salvage the scrap metal, said Joe Bell, Cafaro Co. spokesman.
As part of the sale, Cafaro had an option to repurchase the land after the salvage project is done, Bell said. With Metalico not moving, Cafaro will not buy back the land, Bell said.
The city administration originally included the $280,000 it expected to receive from the Cafaro Co. in the city’s 2011 budget, but removed it before council adopted the spending package on March 30. It would have provided much needed revenue for the city, which has only a $16,500 surplus in this year’s budget.