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Youngstown mayor reports progress in V&M land dispute
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VM Star
YOUNGSTOWN — V&M Star Steel’s president had a simple message for Youngstown and Girard officials involved in a border dispute causing headaches for the company.
V&M’s Roger Lindgren told the officials at a private meeting Wednesday: Settle the dispute before Aug. 28, or the company will look elsewhere for its potential $970 million expansion project.
Youngstown Mayor Jay Williams and Girard Mayor James Melfi said after the two-plus-hour meeting the discussion was productive, and both found it beneficial to hear the company’s needs directly from Lindgren.
Representatives of the two cities met later Wednesday for nearly three hours for private negotiations.
With the clock ticking toward the Aug. 28 deadline, the two sides don’t have a deal. They plan to meet again shortly.
“We are determined to work this out,” Williams said. “We’re making progress. We’re moving in the right direction.”
The biggest obstacle is that Melfi doesn’t want about 80 acres in his city, purchased by Youngstown for about $5 million for the V&M expansion project, to become part of Youngstown.
“A billion dollars may very well” hinge on a deal over the 80 acres, Williams said.
Lindgren told those at the private meeting he had that the company needed to have that property in Youngstown or the deal is off, according to those in attendance.
“The company has stated they do want that property in the city of Youngstown,” Melfi said.
Lindgren, who has repeatedly refused to comment on the project, walked out of the private meeting without talking to the media.
When asked by The Vindicator if he re-thought his position on the acreage, Melfi said: “I’m listening. I’m listening. I can’t tell you what my position is right now. I don’t know my position on the boundaries at this particular time. We are negotiating. Anything is possible.”
During later questioning, Melfi said, “Boundaries are an issue. I’m willing to listen. ... I’m still not in favor of moving boundaries. The deal is very important. For that I’m willing to listen.”
Melfi signed a document Oct. 14, 2008, agreeing to allow Youngstown to acquire about 125 acres near V&M site “in both Youngstown and Girard” for this project.
According to the document, the two cities “will agree to relocate city boundary lines” with that land located in Youngstown.
Melfi said that was a nonbinding letter, and he told Youngstown officials at the time that changing city boundaries was going to be an issue.
Melfi later said he wanted to get past all the previous problems and get the deal done for the betterment of the company, the two cities and the Mahoning Valley.
“I may have to be receptive to things” I don’t like, he said. “It’s a good old-fashioned border dispute.”
Even if Melfi refuses to give up the 80 acres, the final decision on that issue rests with Girard City Council.
A majority of councilmen don’t object to giving up the 80 acres of vacant contaminated property to save the project.
In a statement, council members wrote they support the project and “will remain [supportive] until the final details are ironed out.”
If V&M moves ahead with the expansion project, it would hire about 400 employees making about $60,000 to $70,000 a year, Williams said.
V&M is considering an expansion near its Martin Luther King Jr. Boulevard location in Youngstown on the border between the two cities. Nearly all the property for the expansion is in Girard.
A decision by the company won’t come until about the end of the year.
If the expansion happens, the two cities would split a 2.75 percent income tax imposed on those working there as well as a profit tax of the same percentage from the company, Williams said.
Each city would get about $1 million annually, Williams said.
It would cost at least $5 million to clean up the 80 acres, Williams said.
skolnick@vindy.com
Comments
Melfi should tell Williams to go pound salt. V&M needs that 80 acres and they are playing a game of chicken with Melfi. Call their bluff. V&M needs the land now for their baghouse expansion. Easy call Melfi - just say NO!
UnionForever can you read? The company says it wants the property to be in Youngstown. There's no choice here. All of the state and federal money has been funnelled through Ytown and work on the land must start soon. Youngstown is willing to take on the liability of the contaminated land. They are making the land deals. Girard is broke. They don't have a nickel to add to the development. The two sides have to come to an agreement that is mutually beneficial. And they will.
It is hard to imagine a dumber group of politicians than this. So what if a few acres of weeds gets renamed Youngstown. Is that naming right more important than 500 living wage jobs and a billion dollar steel industry expansion in what was once known as Steel City USA? Think maybe Girard's local income tax base may expand as a result? What a bunch of morons "lead" this community.
I hope the Girard City Council has half a brain to do the right thing - its obvious their mayor is clueless.
So what the Governor is sayingis, 'were willing to give Youngstown money for the project and not Girard'? And after all the money is spent and the boundry lines redrawn, where is the FIRM COMMITMENT from V&M???????????
Potentially 970 million dollar expansion. Potentially has a lot of context in that statement. I cannot fathom a scenario where 970 million dollars is spent in an area so unfavorable to businesses in a tax sense.
Secondly, how does Melfi know Youngstown can pay the 5 million for the land? Is it coming out of the stimulus money from the state? Will V&M chip in? What if Youngstown cannot meet the potential installment requirements in the future? What if V&M does not spned anywhere near the 970 million in the future? What is the agreement in regards to the property tax Girard loses?
The only certainty is that there are several questions unanswered. The public does not know all of the issues and I highly doubt the whole thing is as cut and dry as it appears.
I believe the two sides will come to an agreement and in reality, 8 days is a long time to get something done.
Anyone can make easy business decisions based on scattered facts from a two-bit news source.
Here's a fair suggestion: Youngstown wants land from Girard that Youngstown is NOT entitled to. How about Youngstown trades Girard exculsive rights to supply water to ALL of Liberty Township (contiguous to Girard) WITHOUT any requirements for annexations etc. - would easily be win win for all ... Youngstown gets their land grab, and Girard gets to play water administrator for a large customer base and a big chunk of Southern Trumbull County is protected from the disasterous prospect of any future annexations to Youngstown... Well? (Jay won't do it - Jay only wants what's good for him and not what's good for anyone else).
Ya you're right nachocheese. One million annually in tax revenue isn't good for Girard. What the hell is williams thinking.
Again, all of this BS and ol' roger still won't commit to an expansion in the first place!
This is all going to blow up come December. These politicians are insane. Spending all this money and wasting all this time for a bunch of 'potentials'.
Fight for your land Girard! Where else in your town will you be able to grow 80 acres of weeds, as up and coming as your town is? Hell, maybe you can get Dunkin Donuts to commit to a $100,000 expansion down on those acres.With several minimum wage jobs and tax revenue upwards of $10,000 I'm sure your city would be better with that! Get a clue!
Girard has Y-town by the shorts. Keep up the pressure Melfi and leave Mayor Jay blowing in the wind. demand more tax dollars and lease the land to Y-town then have it revert back to you in 50 years.
Campbell would be lucky if Youngstown annexed part of it and demolished all the ghetto trash that lives there! Face it, we all wnat jobs in the area but the few, the proud ,the dumb aren't willing to let a couple of yards of trash land go. UnionForever is just bitter because V&M is not union but lets look at what the unions have done for GM and Dodge or any of the other steel mills... oh thats right they have all gone to sh*t because of the greedy a** unions! Girard get some money for your land and give it up, its not like Jib Jab, which is the only business worth a da** in your town, is going to have a multimillion dollar expansion!