Youngstown to get Vallourec property taxes starting in 2041
Change in state law will let city claim $1.6 million share for 30 years
YOUNGSTOWN — City council took advantage of a change to the state tax increment financing law to permit Youngstown to collect about 34% of Vallourec Star’s property taxes beginning in 2041.
Starting that year, Youngstown will receive about $1.6 million annually for 30 years in Vallourec property taxes, said city Finance Director Kyle Miasek.
City council Wednesday authorized the change in tax increment financing for Vallourec, which makes seamless steel pipes.
When Vallourec signed a 30-year TIF deal in 2010 for its $1 billion expansion, Youngstown approved a joint economic development district agreement for the project with Girard to share income tax revenue between the two cities.
The property was in Girard and is now part of Youngstown though it remains in the Girard school district. Along with the Trumbull County Career & Technical Center, the Girard school district receives about $1.17 million annually in Vallourec property taxes.
That’s 25% of Vallourec’s tax bill with the rest going back to the company as part of the tax increment financing deal, Miasek said.
Miasek said he was alerted to a change in state law that will permit the city under a second TIF to start in 2041 to collect about 34% of that Vallourec property tax once the existing TIF expires.
That money would have gone to Trumbull County if the city didn’t take action, he said.
That second TIF will see the Girard school district and the career and technical center receive about $3.1 million annually for 30 years, Miasek said.
While the money won’t come to the city for more than 17 years, Miasek said: “It’s something for our children. How do you pass it up? It brings stability to the future of the city.”
Over the 30 years, Youngstown would get about $48 million.
Vallourec is one of the city’s largest businesses, resulting in the collection of more than $1.5 million in income tax, Miasek said. The city’s income tax rate is 2.75%.
City council voted Wednesday to authorize the board of control to make a $110,936.74 payment in damages from a lost court case.
In that case, Youngstown hired a contractor to improperly remove and destroy items in a storage warehouse at 905 South Ave. in preparation for a demolition that was stopped by court action.
The board of control scheduled an emergency meeting today to approve the payment to Carl A. and Patrice Ross from the city’s environmental sanitation fund.
The couple filed a complaint Nov. 30, 2020, in Mahoning County Common Pleas Court against the city for “forcibly” entering the South Avenue location and removing several items including tools for their construction business, personal property, an antique automobile and a snowmobile.
In a June 6 court decision, Judge R. Scott Krichbaum upheld the March 14 ruling of Magistrate Timothy G. Welsh in favor of the Rosses and against the city, fire Chief Barry Finley and Michael Durkin, the city’s code enforcement and blight remediation superintendent.
The decision gave the Rosses $54,588 for property that was destroyed — the couple was seeking $126,940 — as well as $40,676.35 in legal fees and the rest — $15,672.39 — for 5% annual interest since Nov. 25, 2020, when the property was removed, as well as the cost of the court action.
Council voted Wednesday to repeal legislation approved June 21 to give $55,000 in American Rescue Plan funds to the Youngstown Neighborhood Development Corp. to sponsor five students at Beyond Expectations Barber College at 2246 Glenwood Ave.
Councilwoman Anita Davis, D-6th Ward, sponsored the legislation on June 21 and Wednesday.
Council gave $2 million to each of its seven members from the city’s ARP funding for projects of their choosing.
The $55,000 came from Davis’ allotment.
The money will eventually go to the college for equipment, said Nikki Posterli, the mayor’s chief of staff.