Gulu Electrical seeks tax abatement from city

By David Skolnick

YOUNGSTOWN — An electrical contracting company is seeking a tax abatement from the city to build a 3,700-square-foot warehouse building.

Gulu Electrical Contractors Inc., through Crescent Street Properties LLC, its property entity, is seeking a 75-percent, 10-year, real-property tax abatement to build a warehouse at its location, 1295 Crescent St.

The warehouse would take about two months to build and create two full-time jobs, according to the company’s written request for the tax break. It would cost between $90,000 and $110,000 to build the structure.

City council will consider the abatement at its meeting today.

The city’s board of control — consisting of Mayor Jay Williams, Finance Director David Bozanich and Law Director Iris Torres Guglucello — as well as the Ohio Department of Development also have to approve the request.

If the abatement is approved, Gulu would save $18,034 and pay $6,011 in property taxes over a 10-year period.

The company, founded in 1993, employs 25 full-time workers with an annual payroll of $925,000, according to documents filed with the city by the company.

Also at today’s meeting, council will consider authorizing the board of control to pay $39,000 to Steve Novotny, an intern in the city’s planning department, as an independent contractor to develop and implement a plan to “deconstruct” vacant houses rather than demolish them.

The city received a $39,000 grant from the state Environmental Protection Agency for the program. Novotny, a 24-year-old Youngstown State University student, wrote the grant application.

Deconstruction is a technique to systematically take apart a structure by removing portions of it that can be salvaged and sold rather than demolishing it.

The city hired a company this past summer to take down two houses using the deconstruction method with Novotny helping with one.

skolnick@vindy.com