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Youngstown schools CEO says authority for tax abatement undetermined
By Denise Dick
YOUNGSTOWN
Whether Youngstown schools’ CEO or its board of education will make the decision about a tax abatement request for a downtown hotel is undetermined.
“We are looking into the issue,” said Krish Mohip, district chief executive officer. “The legislation is not 100 percent clear, and we want to make sure we get it right.”
Regardless of who makes the final decision, either Mohip or the school board, he said he wants to work collaboratively with the board.
A company planning to convert a downtown landmark into a hotel seeks a 15-year, 100 percent tax abatement.
Brenda Kimble, school board president, said that the board will make the decision about the tax abatement requested by Dominic Marchionda of NYO Property Group. “It’s in the statute that it’s the board that has to make the decision,” she said.
Dan Tierney, a spokesman for Attorney General Mike DeWine’s office, said he couldn’t comment about the specific situation in Youngstown.
House Bill 70 created a new city schools academic distress commission, which appointed the CEO,
“In general, it does not look like the state statute grants that power to either the CEO or the academic distress commission,” Tierney said.
Ultimately a court of law would make that determination, Tierney said.
NYO Property Group plans to convert the historic Stambaugh Building, East Federal Street, into a DoubleTree Hilton hotel by December 2017. Because it’s a 100 percent abatement, the school district must approve it as well as the city.
Kimble said H.B. 70 allows for a lot of gray area.
Mohip “has full authority over the district, but he does not have authority over elected officials,” she said.
“He has authority over board policy, but he is not in charge of the board.”
She said she doesn’t support a 100 percent tax abatement for the company.
“I think that [NYO Property Group is] probably more than a multi-million dollar company,” Kimble said. “They have several tax abatements already, and they are profit-making businesses. The city can do 10 years and 75 percent” without approval from the school board.
“They want 15 years and 100 percent. I think that’s a bit much.”
A city official earlier this month also presented options for a 15-year abatement at 75 percent or a 10-year abatement at 75 percent or 100 percent.
Jackie Adair, a board member, also opposes the 100 percent abatement for the project.
She said she’s contacted people in the community, seeking their input and they oppose it.
“I don’t feel like people who pay their taxes should subsidize millionaires,” Adair said. “To me it equals corporate welfare. I’ve never approved a tax abatement.”