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A company is planning a $1.15 million expansion
YOUNGSTOWN
DNV Energy LLC, affiliated with Youngstown Pipe & Steel, is looking to spend $1.15 million to expand its presence in the fabrication and distribution of equipment used in the oil- and gas-drilling industry.
DNV officials sought $100,000 Wednesday from Youngstown through the city’s economic initiative committee, for the expansion in which the company also would spend $913,969 to purchase machinery and equipment and the rest for inventory.
Initiative committee members say they support the project, but held off on recommending funding for the proposal because of the business’ location.
Since 2011, Youngstown Pipe & Steel has been on Wilson Avenue on the former Cold Metal Products property, which is in both Youngstown and Campbell. DNV was created in 2012 at the facility.
Because the two cities share income-tax revenue from workers at that location, the Youngstown Initiative Committee members wanted to talk to Campbell officials first and have the two cities split the $100,000 local-government contribution to the project, said Youngstown Finance Director David Bozanich, an initiative committee member.
Campbell would “frown on us approving it and then asking for the money,” Bozanich said. “We’d like to talk to Campbell first.”
The committee can meet as early as next week to recommend funding for the proposal, which needs approval from Youngstown’s board of control.
DNV provides drilling operations with steel products, pipe valves and fittings, hoses and couplings, lubricants and miscellaneous drilling supplies. In addition, the company fabricates the necessary equipment needed at the wellhead to serve and clean the pipeline as well as to filter water.
The initiative committee also made the following recommendations Wednesday to the board of control for approval:
$1,888 to Attire Tire Covers LLC, a company in the Oak Hill Collaborative, that is planning an $18,880 project to sell spare-tire covers and inserts with the provision that it gets a three-year lease. The committee requires companies receiving money to have a lease at a city property for at least three years. The company’s lease with the collaborative, a small business incubator on Oak Hill Avenue, is for six months. The company plans to relocate across the street with a three-year lease.
$50,941 to via680 LLC, a software company in the Youngstown Business Incubator at 241 W. Federal St. The company has a $254,709 business expansion plan. Via680’s lease with the incubator expires next January, and it also needs to get a guarantee it will be in Youngstown for at least three years to get the money.
$8,608 to Happy Campers Learning Center, which is relocating from Midlothian Boulevard to East Indianola Avenue. The daycare and preschool has spent about $100,000 so far to buy and improve the building, said Tracy Jordan, its owner. It will be spending another $86,089 for further improvements and buying equipment.
$1,505 to Blue Magic Tattoos and Piercings LLC at 217 W. Federal St. toward the purchase of $7,528 worth of new equipment.
City Law Director Martin Hume, attending his first meeting as an initiative committee member, voted against the proposal saying the business doesn’t help the “social good” of the city. The four other members voted in favor of the proposal.
The initiative committee recommends the board of control spend city money to help businesses grow or locate in Youngstown.
Several of the projects recommended for funding don’t go anywhere as they’re unable to obtain the money from banks or other lending institutions needed to advance, Bozanich said.