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Youngstown council will consider two tax abatements Wednesday
YOUNGSTOWN
City council will consider legislation Wednesday to permit the board of control to approve two tax abatements and a $375,000 loan to a business to relocate from Boardman.
The 75-percent, 10-year tax abatements are for Fireline Inc., which manufactures industrial ceramics for the aerospace industry, and Youngstown Stambaugh Hotel LLC, which is building a downtown 130-bed DoubleTree by Hilton hotel.
Fireline at 300 Andrews Ave. is investing $5.76 million on a 25,000-square-foot addition. It currently operates out of a location that’s about 91,000 square feet, said T. Sharon Woodberry, the city’s director of community planning and economic development.
The expansion work would start in April and be done eight months later, according to the company’s tax-abatement documents.
The company employs 94 and within three years of the abatement, it would add 18 full-time workers and three part-timers, according to its application.
If the abatement is approved, Fireline would save $240,076 over the 10-year abatement and pay $80,025 in property taxes.
The abatement at the hotel at the vacant Stambaugh Building, 44 E. Federal St., would save Youngstown Stambaugh Hotel $2,288,870 over the 10 years and pay $762,960 in property taxes.
The $35.4 million hotel is to be finished by Dec. 30, 2017.
The board of control will meet today to approve a $2,050,000 loan package for the hotel company with $750,000 of it forgiven and the remainder borrowed without interest if one portion is paid back in 30 months and the other part is repaid in 36 months.
The company will hire 20 full-time workers and five part-timers when it’s operating.
Council will consider permitting the board of control to loan $375,000 to 2Deep Entertainment, an entertainment booking company, to move from 7326 Southern Blvd. in Boardman to 237 E. Front St. next to the Covelli Centre.
The loan is for up to 12 months at 0.25 percent interest, guaranteed by an irrevocable letter of credit from a lending institution, said city Finance Director David Bozanich.
2Deep will occupy a portion of former Players Club International card distribution center facility with the vacant space leased to other tenants.
Meanwhile, council will also consider voting on a proposal to enter into an agreement with Fresh Coast Capital for an agreement to have the Chicago company conduct an analysis for ways to reduce the amount of storm water that goes into the city’s sewer system.
The work is estimated to cost slightly more than $1.1 million with the city paying about 30 percent up to $350,000.
The proposal would recommend ways to use green infrastructure, including plants, trees and soil to help manage the volume and quality of water going into the sewer system.
Fresh Coat focuses on environmental projects on vacant land in urban areas. It came to an agreement earlier this year with the city to plant numerous poplar trees at three largely empty park areas: Stambaugh Field and Gibson Field’s lower section on the South Side, and Tod Field on the North Side. The company provided the funding for the effort.