Youngstown eyes 75% tax abatement for electrical contractor expansion

 YOUNGSTOWN Next week’s Youngstown City Council agenda includes legislation granting a 10-year, 75% property tax abatement to a local electrical contractor as part of an Ohio Enterprise Zone Tax Abatement Incentive agreement.

Gulu Electrical Contractor Inc. has proposed a $400,000 investment to expand operations at its 1295 Crescent Street location. The ordinance authorizes the city's Board of Control to finalize the agreement.

The company, an electrical contracting business, also proposes hiring two new full-time employees at the project site, according to the legislative filing and project summary documents. The new hires are projected to add an annual payroll of approximately $110,000. The company currently has 60 employees.

If passed, the abatement will apply to the real property involved in the expansion. Project documents indicate the business's total current investment in the facility is $1,700,000, with an existing market value for tax purposes of $1,500,000.

Gulu Electrical Contractor Inc., which was established in 1948, is seeking tax incentives to "expand the business in Youngstown." Project analysis documents show that while the real property tax loss is estimated at $0 (due to the current value being based on the existing facility), the city expects new income tax generation from the projected new payroll. Youngstown's income tax rate is 2.75%.

The Enterprise Zone Program is a state-level initiative administered locally, providing tax incentives to encourage business development and job creation in designated areas.

The legislation is being considered as an emergency measure, which, if it receives an affirmative vote from six of the council members, would take effect immediately upon passage and approval by the mayor. Otherwise, it would take effect at the earliest period allowed by law.