Youngstown OKs land lease deal for V&M Star expansion
City council approved a 99-year agreement with V&M Star Wednesday to lease land for the company’s expansion project that will pump about $2.8 million annually into the city’s coffers for the next three years.
From the fourth year to the end of the contract, V&M will pay the city about $100,000, said Finance Director David Bozanich.
Mayor Charles Sammarone said the lease payments combined with savings from not replacing most of the 42 city employees who are retiring this year will help avoid a deficit.
“And because we have the money available we don’t need to rush to lease the mineral rights of city land,” Sammarone said.
The mayor has recommended any surplus funds from the lease payments be put toward demolition and said his goal is to demolish 1,000 vacant houses next year.
Earlier on Wednesday, the city’s board of control authorized a final payment of $52,316.55 for 2011 to Girard as part of the income-tax sharing agreement the two municipalities have relating to V&M.
The figure was calculated after Girard officials raised concerns that V&M workers at the former Indalex Inc. site, which is part of Girard, should be taxed at Girard’s 2 percent income-tax rate, instead of the agreement’s tax rate of 2.75 percent, which is split between Youngstown and Girard.