One business owner praised Youngstown's work force.
THE VINDICATOR, YOUNGSTOWN
By JoANNE VIVIANO
VINDICATOR STAFF WRITER
YOUNGSTOWN -- A new business and another that plans to expand should bring 34 new jobs to Mahoning County within the next three years.
County commissioners Thursday approved a measure that would grant $104,300 to M-7 Technologies to help build a heavy industrial machine shop in Youngstown at the site of the former U.S. Steel Ohio Works. The brownfield site has been turned into the 135-acre Ohio Works industrial park over the past several years.
County Special Projects Director Joseph Caruso said the company will provide 30 high-tech jobs over the next three years, with employees earning $830,000 in wages and benefits the first year and $1.2 million in its next year. The 50,000 square-foot building, equipment and other costs will create a $4.3 million investment.
In collaboration with the county, the city of Youngstown has committed an additional $100,000 to the project, from Community Development Block Grant Funds, said Jeffrey Chagnot, the city's economic development director. The county has allocated its share from its economic development fund, generated by the 0.5-percent sales tax, Caruso said.
As a further incentive for the company to locate in the city, M-7 Technologies will receive a 75 percent abatement on real estate and property taxes over the next 10 years, Chagnot said.
He said the partnership with the county is one of many the city has entered in an effort to "break down past barriers." The city also has partnered with neighboring communities for other economic development projects over the past several years, he said.
Michael Garvey, president of the Garvey Corp. based in Canfield, will also be president of the new M-7 Technologies. He said he hopes to break ground by Aug. 15 and have the plant built and equipped by next August.
Why in Youngstown
Garvey said he chose Youngstown because of its location to the marketplace, infrastructure, work force and cooperation of local government. He also operates a shop in Farrell, Pa.
Garvey said his family, with its roots in the steel industry, has been in the machine shop trade for three generations.
"With the history of Youngstown and the work force here in Youngstown, I anticipate nothing but untethered success," he said.
In another economic development move, commissioners Thursday also voted to grant a 55 percent tax abatement for an expansion to an Austintown company. The abatement for Formetco Inc. on Maple Avenue will run eight years.
The company sits in the Austintown-Jackson Enterprise Zone. It will undergo a $250,000 expansion to double the size of its 12,000 square-foot plant, said Matt A. Xander, vice president of finance for Formetco and Peachtree Metals Co., both based in Georgia.
The companies manufacture billboards and process stainless steel.
Xander said the Austintown site employs 12 and is growing at a fast pace.
He said he had promised 14 months ago that he would bring in eight new jobs and has. He has promised four more jobs by 2004 and expects they will be created much sooner.