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Youngstown seals deal on V&M
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Photo by William D. Lewis
V&M Star Steel
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Youngstown Mayor Jay Williams
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Girard Mayor James Melfi
An estimated $20 million in site improvements could begin within two weeks.
By Harold Gwin
YOUNGSTOWN — An agreement between Youngstown and Girard that could lead to a nearly $1 billion industrial development project along the boundary of the two cities is “a significant step forward for the Mahoning Valley,” said Mayor Jay Williams.
The city controlling board, of which Williams is a member, approved the Cooperative/Joint Economic Development Zone Agreement on Tuesday, a day after Girard City Council approved it.
Youngstown City Council approval isn’t needed as that body authorized the city controlling board, which also consists of the law director and finance director, to act on the city’s behalf.
A formal signing of the document by officials from both cities is set for 10 a.m. today in the Youngstown/Warren Regional Chamber offices in downtown Youngstown.
The deal sets a new precedent for the Valley in economic development, Williams said. It could provide economic benefits for years to come, and it shows the Valley is “ready and willing to do business,” he said.
Both national and international media have been checking on its progress, he said.
The agreement clears the way for a proposed $970 million, 400-job expansion of V&M Star Steel operations in Youngstown.
The company has expressed interest in putting that expansion here but is also looking at sites in Houston, Brazil and perhaps other locations.
Williams said the latest information he has is that a decision from the company is expected by the end of the year. Meanwhile, local, state and federal officials are lobbying the company to use the Youngstown site, he said.
The agreement annexes 191 acres of land in Girard adjacent to V&M Star Steel to Youngstown. It also spells out how tax revenue from the proposed project will be divided between the two cities.
Williams said the deal will immediately allow the spending of $20 million on infrastructure improvements to the building site, including roads, sewers, water lines, railroad lines and more. Most of that funding will come from federal stimulus money, he said.
That work could begin within the next two weeks and will provide as many as 500 temporary construction jobs, bringing a one-time income tax windfall of perhaps $3 million to Girard and $2.5 million to Youngstown, Williams said.
If V&M builds here, the two cities will share equally in the corporate profit tax once the tax amount surpasses a $3.85 million annual threshhold. They would also split the income tax from the 400 new employees, which could mean between $500,000 and $1 million a year for each municipality, he said.
The land will become a part of Youngstown, but will remain as part of the Girard school district, which could receive between $1 million and $1.2 million in annual property taxes if the project is built.
If V&M opts to build elsewhere or cancels the project outright, the site will still be a prepared industrial park with Youngstown and Girard as partners, Williams said.
The mayor said it was V&M Star Steel that insisted the entire project be built on land in Youngstown, if it comes here. The company has a longstanding relationship with the city, the federal stimulus money being used to prepare the site has to be spent in Youngstown, and Youngstown has a track record for cleaning and preparing brownfield sites, he explained.
SFlbgwin@vindy.com
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Comments
SOUNDS GREAT . KEEP THE GOOD WORK
Question, is V&M union or non union?
To be honest, the expansion would probably have a better chance of happening here if the company is non-union and they feel they can keep it that way. Don't mean to slam unions but modern day industry doesn't like to be hampered by the union issues.
Actually, it's not modern day industry that doesn't like to be hampered by union issues. Industry in any period in history didn't like unions. Because it allowed workers to group up and demand safe work environments, more share of the company profits for their labor, and general human respect. Corporate entities in any era dislike having to treat their labor fairly. It's why they invented temporary job placement centers, so that workers are not really employed by the place where they work, but by an agency which takes a cut of their already minimum or near to minimum wage no benefits pay rate. It's a wonderful world to be a worker in, isn't it?
Certainly there are cases of unions that have abused their bargaining power and that have tarnished the good, very real purposes of unions. But there are far more accounts of corporations abusing and taking advantage of their labor forces. There must be a proper meshing of a balance between the owning class and the working class. All involved in a workplace must have agency, and work conditions and pay rates need to be fair. Unfortunately, we live in a world where people tend to take advantage.
Yes tigerlily, we loved the job banks, the idea that we have to have a plumber to turn off a water valve and a electrician to turn off a switch and no cross training to handle absentism etc. The idea that a company does not want to pay us for one of our hunting days. What kind of crap is that? If employers got a honest days work we wouldn't be seeing the problems we have today. May explain why ytown is just rolling along.
But what do I know, just sitting back enjoying a comfortable retirement, 6 months in Ohio, 6 in Florida, never having worked a union job. Of course I kinda liked succeeding on my on merits, having a real say in my future, not what some union dork decided for me. Knowing that if the next guy isn't carrying his share of the load he was gone. Course I was one of those salaried creeps.
I don't get to worry about my pension, I have complete control over my 401K retirement funds. Tis a sad life!
Redvert, You are sooo right! However your philosophy sounds like Martian to the sheep in this valley. V&M will never open here.Why would they?
Redvert, if you were reading closely, you would see that I did agree with you in the respect that there are cases where unions have abused their bargaining power, and the examples you use illustrate many of those ways. However, there are many unions that have not functioned in this way, and those are the ones that should be models for union functionality. As I said, labor and owners need to be in balance.
I myself am not retired but am doing well myself, thank you. I pull a good salary and enjoy six months off a year. I imagine when I'm retired I will be in a similar situation to you, or perhaps better. I hold the same values you do in regards to succeeding on my own merits, and have worked hard all my life to attain what I have. However, where we part ways is in your privileging owners over labor. I do not wish to privilege either. Fairness, respect, and safety are all that I demand in labor relations. And unfortunately people--on both sides of the table--often take advantage of each other. But doing away with unions altogether decides that tug of war, and only leads to a nation where %90 percent of the wealth is in the hands of 1% of the population.
Let me just get to your last sentence. If 1% of the population is responsible for providing 90% of the jobs in this country then I am happy with that 1% doing very well. After all, they are the ones taking the biggest risks. Your 90% of the wealth is a little bit of a reach.
Why is it that so many industries, (the modern High Tech in particular) have been so successful without unions. Unions are not necessary if workers are treated properly. Now, how do I say this next part without offending some people. I worked in the semiconductor manufacturing industry. Good employees were hard to find and thus were treated well with great benefits, profit sharing, well managed 401K plans etc. Seems that the modern industries do not need the unions and the employees do not want them as a rule. Of course the guy that wants to milk the job does want the union protection, especially if he can get in early and get at least one day seniority on the majority of the others.
I was never a fan of the union concept. Absolutely nothing against the rank and file worker, have many lifelong friends that spent their working lives as union members. About half of them are worried about their future benefits. Why is that? Because their union leaders did not look after their best interests. Instead of the hunting days and the job banks crap they should of been negotiating for company funded 401k's setups that were under the employee's control and limited in the amount of company stock that the employee could purchase. No more Inrons!!!
Now back to these union higher ups, any idea how many of them are worried about their retirements? Another 1% group!!!