Girard council OKs V&M land deal

But the resolution does not finalize the agreement between the two cities.

By Rick Rouan

GIRARD — City council passed a resolution Monday night supporting an agreement to annex 191 acres in Girard to Youngstown for V&M Star Steel’s $970 million potential expansion project, but the deal is still not done.

The resolution, which passed with a 5-1 vote with one abstention, essentially says that the council will accept the final terms that are negotiated between the two cities, said Michael Costarella, councilman at-large.

The two sides have said that V&M Star officials want all of the land needed for a potential expansion in Youngstown, but that would require Girard giving up 191 acres to Youngstown. If the expansion near V&M’s Martin Luther King Jr. Boulevard facility is done, it would employ about 400 new workers.

Girard Mayor James Melfi said that the two sides are close to finishing an agreement but would not discuss the details of the contract or what potential hang-ups were keeping it from being finalized.

“I don’t believe the city of Girard has to be rushed into anything,” Melfi said. “Rushing the smaller entity, which has all the property, is not fair.”

The resolution passed by council does not finalize the agreement between the two cities, but it does authorize “the preparation of a final draft of such an agreement with the City of Youngstown pending all final negotiated terms.”

Girard at-large Councilman Joe Shelby sponsored the resolution at Monday night’s meeting but declined to speak to media about it.

Costarella said that the resolution effectively means the council agrees to whatever terms are negotiated without reading them.

“I don’t have a crystal ball,” said Costarella, who was the only councilman to vote against the resolution.

Costarella said that he supports the potential expansion but voted against the resolution because approving the contract terms without seeing them “would be irresponsible.”

Voting for the resolution were: Shelby, Brian Kren, councilman at large; Frank Migliozzi, first ward councilman; Larry Williams, second ward councilman; and Tom Seidler, third ward councilman.

Thomas Grumley, fourth ward councilman, abstained from the vote because, he said, he is waiting for advice from legal counsel. The pact would require Girard to give up 191 acres of land to Youngstown. The two cities would split a 2.75 percent corporate-profit tax from V&M and a 2.75 percent income-tax collection on employees at the expansion site. Girard also would receive 55 percent of the $5.5 million in income tax that is expected to be generated by construction workers who help build the expansion.

Youngstown also would give $400,000 to Girard to install sewer lines to the V&M location.

Youngstown’s board of control and county commissioners in both Mahoning and Trumbull counties also must approve the agreement. Commissioners have said they support a deal between the two cities.

The Youngstown board of control canceled a meeting scheduled for today because it is waiting for Girard to take action, Youngstown Mayor Jay Williams said.

Williams said the board of control needs 24 hours notice to schedule a meeting.

The two sides reached a tentative agreement last month after closed-door meetings with V&M Star officials, U.S. Rep. Tim Ryan of Niles, D-17th, and chamber representatives.

Melfi has complained that the city is losing too much land and is lobbying hard for the city to take its time to work out a deal.

“We all support the project, but we’re not going to bargain away our city,” Melfi said.

rrouan@vindy.com