The city’s board of control finalized a 99-year agreement with V&M Star to lease land for its $1.1 billion expansion project.
Youngstown will receive $8,573,805 from the company during the first three years of the deal.
The company will pay $2,857,935 annually for the first three years under the contract approved Thursday by the board. V&M will pay $100,000 annually to the city for the remaining 96 years.
Also, V&M can choose to extend the contract 10 times, each for five additional years, for $100,000 annually.
The V&M payments will help off-set shortfalls in the city’s budget, said Mayor Charles Sammarone, head of the board of control.
City council voted last month to authorize the board of control to sign the lease agreement.
The city and V&M spent close to two years negotiating this deal that repays most of the nearly $12 million spent by Youngstown on water and wastewater lines, a new road and a water tower near the company’s expansion site, off of Martin Luther King Jr. Boulevard, that also benefits nearby neighborhoods and commercial businesses.
V&M’s facility produces pipes for the gas and oil industry.
The plant began operating Oct. 26 and is scheduled to begin sales at the expansion location in early 2013.