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Unpaid V&M fees trigger dispute
Youngstown leaders say they’ll pay Girard next week
YOUNGSTOWN
Youngstown’s failure to pay $39,441 to Girard for its share of permit fees for V&M Star’s expansion project has the mayors of the two cities exchanging barbs again.
Frank R. Bodor, a Warren attorney retained by Girard, sent three registered letters — on Jan. 14, Feb. 10 and Thursday — to Youngstown Mayor Jay Williams and Law Director Iris Torres Guglucello asking for the money. Thursday’s letter included a warning that he would recommend Girard “pursue legal action” for the money if Youngstown didn’t respond.
He or Girard city officials still haven’t received a response from anyone in Youngstown, which bothers Girard Mayor James Melfi.
“This is not the way to do business, and it doesn’t build up trust,” he said.
It was only after The Vindicator inquired about the money that Youngstown agreed to pay it. Youngstown will give the $39,441 to Girard on Monday or Tuesday, said Deputy Finance Director Kyle Miasek.
Williams said he only remembered one letter from Bodor. If Melfi had a problem, Williams said he should have called him rather than have an attorney send letters.
“Man up, pick up the phone and tell me you’ve got an issue,” Williams said of Melfi.
“It’s just ridiculous. Finances might be tight in Youngstown, but not so bad we need to avoid paying money to Girard. If he didn’t get a response, man up and fix it.”
Melfi said he doesn’t “have to be told to ‘man up.’ Tell him to operate the city properly and no one has to man up. I don’t have to man anything up. It’s his responsibility to notify us. Tell me to man up? Please. Don’t begin that rhetoric.”
Under an agreement between the two cities, finalized in October 2009 after sometimes contentious and confrontational negotiations, both cities agreed to split any permit fees paid by the company. V&M is building a $650 million expansion on 191 acres, most of it annexed from Girard into Youngstown.
In late 2010, V&M paid $225,380.34 to Youngstown for building, sewer, water and zoning permit fees. V&M later requested a refund on those fees, and received 65 percent of that money back last week. Youngstown kept 35 percent of the money, $78,883.12, to cover the cost of man hours and other expenses related to taking care of those permits, said city Finance Director David Bozanich.
To this day, Youngstown officials have provided no information to Girard.
Melfi said he wants documentation showing how much V&M paid and its refund amount with the money from Youngstown because “I’m not taking people’s word for it.”
One issue is Youngstown officials didn’t believe Girard was entitled to the money.
Bozanich said he mistakenly thought Girard was to split only permit money above Youngstown’s costs to handle those permits; that’s because the original proposal called for that.
Bozanich said he realized the mistake after The Vindicator asked about it.