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Girard, Youngstown officials meeting on V&M Star project
YOUNGSTOWN — Needing a fast resolution to a potential border fight that could kill a potential $970 million V&M Star Steel project, the mayors of Youngstown and Girard along with U.S. Rep. Tim Ryan of Niles, D-17th, and others are now meeting privately working to settle the dispute.
Ryan of Niles, D-17th, and Thomas Humphries, the head of the Youngstown-Warren Regional Chamber, are talking to officials with the two cities at the chamber’s office in downtown Youngstown, said Jason Whitehead, Youngstown Mayor Jay Williams’ chief of staff.
V&M Star President Roger Lindgren was invited to the meeting. But Whitehead wasn’t sure if Lindgren is in attendance.
Girard Mayor James Melfi is refusing to have about 80 acres in his city, bought by Youngstown for the potential V&M expansion project, removed from his city through a “boundary-line adjustment” or annexation or any other means.
Without that land in Youngstown, V&M will cancel the proposed project, according to Youngstown officials.
V&M officials have declined to comment on this issue.
Girard City Council members, who’ll make the final decision on a property transfer for that city, are expected to make a statement today about the issue. Several members of Girard council don’t oppose the property transfer if that is the only way V&M will move ahead with the expansion.
Ryan will hold a press conference at 10:30 a.m. today at the Youngstown Business Incubator to make a statement and answer questions about the proposed project.
Girard Councilman Thomas Seidler II, D-2nd, told The Vindicator on Tuesday that council would have a statement on the V&M issue at Ryan’s press conference.
For more on this, read The Vindicator or Vindy.com
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Comments
One BILLION dollars vs. "I got mine, and to hell with you" mentality. Hmmm?
Let us analyze this whole situation. Stimulus money was used for one political subdivision (Youngstown) to buy property in another (Girard). Stimulus money was used to pay a business that was located on a portion of that land (NS railroad) to relocated somewhere else, thus causing a loss of tax revenue to Girard. Now Youngstown wants to take the land from Girard, so Youngstown gets all of the income tax and Girard gets none.
What this all amounts to is that when V&M erected their new baghouse, yard space was lost. Now to expand their yard and re-organize their shipping department, they have concocted this "expansion" scheme to use public monies to aquire more land. It isn't completely obvious that workers are entering the jobsite in Youngstown and working in Girard now, but when there yard is expanded and closer to 422, it will be completely obvious that workers are working in Girard and Girard is getting no income taxes from them. That is why they are in a hurry for Girard to give up this land. Melfi is 100% right for opposing this annexation.
$20 million for 80 acres equals $250k/acre for "improved property." The city paid $5 million for 80 acres, or $62,500 per acre. With 400 jobs created, that is only 5 jobs per acre. This entire deal is a fleecing all of the way around. For $20 million, the city could have leveled a HUGE parcel on the south or east sides. The stupidest part is the city committing to buy the land before V&M committed to building the "expansion." V&M will get this land and do nothing with it.
Girard gets screwed over on the local income taxes as it stands now. All V&M workers and most of the contractors enter the work site from Youngstown. However, many of these people do work in Girard, and Girard doesn't get any income tax from them.
If the city would make better investments, that is spending its money economically to aquire land at reasonable prices and providing the land to concerns that will develop the land to a higher density, a greater number of jobs will be created and higher tax revenues will be collected. This deal has cost them $50k per "job that MIGHT be created."
Hahaha.. the biggest joke in this whole story is Timmy Ryan!
Melfi is 100% correct in opposing this annexation. If this deal goes through, then Campbell had better be ready for it's "boundary adjustment." When Youngstown demands land from Austintown, the precedent will have been set.
Girard is being screwed over on this deal. Look how quick council is willing to sell them out. Under law, 2 communities cannot share income tax on any given parcel without a JEDD. A JEDD is not possible because Girard's 2% and Youngstown's 2.75% tax rates are different. A parcel can only sit in one political subdivision at a time. Winner takes all. Soon Youngstown will be looking to other neighboring communities for "boundary adjustments." This sets the precedent. Campbell, Struthers, Boardman, Austintown, Hubbard, and Liberty beware.
V&M is not actually going to expand! This is one big scam to seize land from Girard so V&M can re-arrange their yard. No jobs will be created, and low-paid contractors will be the only workers on that land. Girard is already being screwed out of tax money right now. Many contractors enter the site from Youngstown and work in Girard, especially in the part of the yard they call "Siberia," and Youngstown gets all of the tax revenue. The taxpayers have really been fleeced on this one. 125 acres for $20 million equals $160k per acre. All to subsidize a foreign-owned non-union steel mill run by liars that exploits its workers.