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Youngstown schools' tax abatements questioned
YOUNGSTOWN
Youngstown school board members approved two tax abatements and disapproved another at their Tuesday meeting.
The board disapproved a 100-percent tax abatement for Hallmark Student Housing with just one member, Ron Shadd, voting for it.
The board must agree to grant 100-percent tax abatements on economic-development projects.
The board approved a 75-percent tax abatement for 10 years for M.J. Joseph Developing Co. and a 75-percent, 10-year tax abatement for Fireline Inc. Board members Corrine Sanderson and Jerome Williams were absent.
The M.J. Joseph Developing Co. and Hallmark Student Housing received city council tax-abatement approval earlier this year.
Hallmark Student Housing wants to build additional student housing along Lincoln Avenue on the Youngstown State University campus and develop retail along Fifth Avenue.
M.J. Joseph Co. International is owner of the trademarked Chill-Can, which allows a drink to be chilled in less than a minute and which is to be manufactured on the city’s East Side.
City council will discuss the abatement for Fireline today.
Fireline, 300 Andrews Ave., is investing $5.76 million on a 25,000-square-foot addition.
The school board fulfilled its due diligence to also vote on the tax abatements.
Fellow members Jacqueline Adair and Dario Hunter repeated their feelings of opposition to any tax abatements at this time.
“Everyone keeps saying that we need more money,” Adair said. “If that’s the case, [business developers] need to pay the cost like we do. It’s unfortunate that we have to weigh education versus economic development, but the school district is not in the business of economic development. That is the business of our city fathers: city council, the mayor etc. ... If the city wants to give the 75-percent [abatement] they can do it without my permission.”
While discussing the Hallmark abatement, Hunter said he thinks the tax-break request is “absurd and obscene.”
“[Hallmark] will be making money off young people seeking education at Youngstown State University, but do not want to give money to the school district educating young people in this area?” Hunter said. “There isn’t any set of circumstances that would make me say yes to this. No, no, no, a thousand times no.”
Shadd reiterated his pro-business position when it comes to abatements by saying businesses generate revenue and jobs for students and locals.
The board later entered into a conversation dealing with its relevance and the reorganizational meeting it will have in January.
Adair questioned the point of having a reorganizational meeting if the board has no power.
She was referring to CEO Krish Mohip having managerial, operational and instructional authority over the district issued to him in House Bill 70.
HB 70 appointed Mohip to lead the school district and have it overseen by a state-appointed academic distress commission, although its elected board of education remains in place.
Brenda Kimble, board president, said board members were elected officials “voted in as the eyes and ears to the community,” and it was their duty to carry on as best they could.