NILES Dinesol abatement will go to council
By SHERRI L. SHAULIS
VINDICATOR TRUMBULL STAFF
NILES -- Plans to add a 100,000-square-foot building and 20 jobs in the next 10 years are incentive enough for a tax abatement, city council members say.
Council's finance committee agreed Wednesday to draft legislation granting a 10-year, 75-percent abatement to Dinesol Plastics Inc. at 195 Park Ave.
The company makes molded plastics, including mailboxes and food containers.
Council is expected to pass the ordinance as an emergency at next week's meeting and send it to Trumbull County commissioners the following week for their approval.
The abatement would be the third for Dinesol, said Mayor Ralph Infante. One expired last year, and the second is set to expire in the next year.
The company began paying $127,000 in personal property taxes when the first abatement ended, and when the next one ends, it will mean more than $2 million in property taxes annually, Infante said.
If the third abatement is granted, $128,000 in taxes to the city and $42,000 a year to the Niles school district would be forgiven.
The committee also agreed to bring up an ordinance allowing for the emergency purchase of a new boiler for the street and light departments.
The boiler installed in 1985 has three heat exchangers on it, one of which broke down about two weeks ago, Infante said. Repairs were made on another heat exchanger about two years ago.
Auditor Neil A. Buccino said it would cost about $4,000 to repair the boiler, which is costing the city about $2,500 per month in natural gas, because it is not functioning properly.
Based on gas prices, Buccino suggested that in the long run it would be better to replace the boiler with an electric model.
Infante said preliminary quotes he obtained price gas models around $15,000 and electric ones at about $22,000, and the city would save about $10,000 a year using its electricity rather than natural gas.