Eight Youngstown businesses fall short on job creation commitment

YOUNGSTOWN, Ohio -
Time and time again local communities offer big businesses big tax cuts to build their projects in the Valley. These tax breaks are great economic development tools, but more and more lately there are questions on if these tax incentives give away too much?
In the city of Youngstown, there are 17 companies currently receiving a tax break in exchange for bringing jobs and investment to the city. A committee that reviews these incentives say eight of these companies are falling short on their end of the deal.
"The city and it's residents can't keep losing," said Councilman Julius Oliver.
Youngstown's Tax Incentive Review Council looks annually at each business in the city receiving a tax break to determine if they're holding up their end of the bargain.
"Although it is incremental, I think we are showing some progress for our city residents," said City Economic Development Director T. Sharon Woodberry.
Woodberry said, in the review of 2019, the city is seeing both an increase in the number of city residents being hired and the number of minorities being hired.
But it's an ongoing battle.
"The goal is to have skilled residents who are then prepared and meeting the qualifications for these businesses," said Woodberry, as she explained some city programs in place to help interested workers acquire the right skills.
During the meeting, a one-by-one review of the businesses receiving a tax incentive showed that of the 17 companies, eight fell below 75% of their employment goals. The reasons vary, but the majority point to economic impacts.
Councilman Oliver questioned if in these situations, the companies could provide some other benefit.
"How can we put those savings into something that's going to benefit the city as well as these companies, get more people hired, get more business flowing through these companies," said Oliver.
One company though, the review committee is putting added pressure on is the Chill Can Plant - a promised business that has sat on the city's east side for years with little to no development.
"With regards to specific dates and timelines, we have not been able to commit them to any dates," said Youngstown Chief of Staff Nikki Posterli.
Bi-weekly discussions with the company are now taking place, and the city's finance director commented briefly that talks to "unwind" the deal are under review.
"It is something that is being contemplated with a lot of seriousness," said Interim Finance Director Kyle Miasek.
Before ending the meeting, the committee voted to create a sub-committee that would focus on finding other ways businesses unable to meet their employment goals, due to reasonable circumstances, can benefit the city.
Mahoning County Auditor Ralph Meacham noted that this review meeting was for the results of 2019, and because of the Covid-19 Pandemic the group should expect potentially more companies to be struggling in the review of 2020.