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Trumbull commissioners hire attorney to defend RG steel lawsuit over $3 million
By Ed Runyan
WARREN
The Trumbull County commissioners have taken “the next step” to challenge the claim of RG Steel that the Warren and Howland school districts and other entities owe the former Pine Avenue steelmaker $3 million.
Commissioners on Wednesday hired Atty. Michael A. Gallo of Nadler Nadler and Burdman of Youngstown to represent the county in legal action RG Steel filed July 29 asking that the auditor and treasurer take steps to forward the payments to RG Steel.
The commissioners hired Gallo in April to analyze a decision the Ohio Supreme Court and Ohio Board of Tax Appeals made indicating that RG overpaid tangible property taxes from 2001 to 2003 and the money is now owed to RG Steel.
Bill Danso, assistant county prosecutor, said Wednesday the hiring of Gallo is just “the next step” now that RG has filed a mandamus action in the Warren-based 11th District Court of Appeals.
In an April 10 letter, the county prosecutor’s office told RG representatives that the office “suspect[s] and, indeed, hope[s], that there are valid defenses to this refund claim, submitted, frankly, on behalf of a company or companies that have ultimately departed from Trumbull County or ceased doing business, leaving our community with unemployed steelworkers and facilities, equipment and materials to be sold only for their value as scrap.”
The current owners of the mill, which is south of Warren, bought it out of bankruptcy court and are demolishing it.
If the refund were made, Warren schools would be the hardest hit at $1.537 million, followed by Howland schools at $525,000. Next would be the county at $445,000; Warren Township, $287,000; Howland Township, $203,000; Trumbull County Career and Technical Center, $70,000; Warren-Trumbull County Public Library, $17,000; Warren, $10,000; and Howland Township Park District, $5,000.
Commissioners also approved a new three-year contract for 27 dispatchers with the county’s 911 center that increases pay by 30 cents per hour in 2014, retroactive to Jan. 1, and increases the shift differential by 15 cents per hour for afternoon-shift and midnight-shift employees.
The contract, which contains no changes to the health-care plan, will cost the county $22,464 more in 2014, but it contains wage reopeners effective Jan. 1, 2015, and Jan. 1, 2016. All dispatchers earn a base pay of $15.72 per hour.