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Union opposes tax break for company to expand

WARREN — Dawn Incorporated met with the Trumbull County commissioners for a second time Wednesday to discuss a request for an enterprise zone agreement that would allow the company to renovate two buildings.

The company is looking to remodel 2861 Sferra Ave., its existing 4,500-square-foot warehouse into 10 new offices, a training facility, a conference room and a gym for its employees. It also will renovate 2961 Sferra Avenue to create a new warehouse.

Brian Wydick of Western Reserve Building Trades said the union opposes approval of providing the company a 75%, 10-year tax abatement.

Wydick said the Warren City School District is preparing to place a renewal levy on the ballot.

“It is sad that we are looking to provide a corporation a tax abatement, when they are going to be asking residents to pay a greater amount of money to maintain the district,” Wydick said.

A Feb. 12 letter from Warren Board of Education President Patricia Limperos stated the burden of any tax abatement will fall on funds that would be geared to the school district.

“The agreement under consideration is for an entity that has already received the benefit of an existing tax abatement in the very enterprise zone which is the subject of the proposed agreement,” she wrote. “It is our position that this agreement is contrary to the intention of the Enterprise Zone program.

“Tax revenue is an integral part of the finance of the Warren City School District. Accordingly, any effort to limit the district’s access to tax revenue could have a devastating and long-term impact on the resources and programming for the children of our community.”

Commissioner Niki Frenchko questioned if the company considered asking for a lower percentage and, perhaps, one of a shorter duration.

She noted other communities have negotiated lower percentage abatements with companies.

Dawn Ochman, owner and founder of Dawn Incorporated, said she was not aware they had the ability to negotiate a smaller amount. The 75%, 10-year abatement was what was presented to the company, so that is what they applied to obtain.

When Dawn Incorporated first presented the enterprise zone agreement to Trumbull County commissioners it was denied because of questions dealing with the projected payroll for new employees.

Ochman emphasized the initial salary amount of more than $1 million per year provided to Warren council was a clerical error. She noted she also did not know where a second incorrect salary amount of more than $200,000 came from.

The latest estimated amount of $428,000 for four full-time employees and one part-time employee is correct, she said. The company has 32 full-time workers and one part-time employee.

Councilman Ronald E. White, D-7th Ward, emphasized the school district is expected to request a renewal of an existing levy.

“It will not be asking residents for additional money,” White noted. “Residents have the ability to have their properties reevaluated, so they’ll pay less.”

White told the commissioners that Warren council is expected to discuss and, perhaps, vote for or against the project during next week’s council meeting.

Council must decide whether it will want to rescind its prior vote and have a second vote on the abatement based on the new payroll information that it is receiving.

Ochman emphasized if the project fails to get support from either the Warren City Council or Trumbull County commissioners, any potential property tax or sales tax gains will be eliminated with no votes.

Ochman emphasized the county would still receive the sales tax dollars that will be collected during the construction phase of the project. The company is expected to spend approximately $1.3 million during the construction project.

Coggins described Warren schools forgoing receiving $4,486 per year in property taxes over the 10 years of the abatement. All the tax districts, which will include Warren City Schools, would forgo receiving $6,881 per year in taxes.

An enterprise zone the company currently has is set to expire in two years, Coggins said.

Commissioner Denny Malloy said the commissioners will not act on the enterprise zone request until after Warren City Council votes on the project.

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