Commissoners OK V&M deal

WARREN - Trumbull County commissioners today will sign off on an agreement that transfers 191 acres of Girard property to Youngstown, essentially bringing an end to official local efforts to land the proposed $8.3 million V&M Star Steel expansion in the Steel City.

''We're done,'' Girard Mayor James Melfi said. ''There is nothing else that apparently needs to be done.''

But what Youngstown Mayor Jay Williams would like to see happen is the U.S. International Trade Commission provide U.S. steelmakers protection from Chinese government-subsidized steel imports, which have affected production, including V&M's.

That decision could come in the next 10 days, Williams said.

Whether a positive decision would favorably affect V&M's determination to locate its expansion plan in Youngstown remains up in the air, it would positively affect steel producers like V&M and Wheatland Tube Co., which have anti-dumping and countervailing cases on Chinese imports.

"It is a big deal and will level the playing field after years of unfair practices by China,'' U.S. Rep. Timothy J. Ryan, D-Niles, said.

V&M officials have not spoken publicly on their expansion plans since last December, but it's believed they wanted a deal quickly to begin preparing the site before the end of winter. Melfi said it's rumored V&M will make a determination in early 2010.

The property borders V&M's current plant on U.S. Route 422 in Youngstown at the site of the former Sheet and Tube Brier Hill works. V&M officials were adamant that all the land for the project be located in Youngstown, which caused some stumbling.

Things appeared to go smoothly until August, when Melfi balked at such a large transfer of land, saying he was against changing the city's borders. Both sides reached a tentative agreement on the transfer Aug. 24 but were held up over how tax revenue from the project should be split, with Girard holding out for a 50/50 division.

Later, an agreement was reached when Girard was granted an even split of wage tax and corporate tax revenue from the proposed site.

''I strongly disagreed, but in the end, we came to an agreement and we were able to negotiate a very good deal for our community,'' Melfi said. ''And when the project comes, the city of Girard will be enriched by that.''

Williams said today's land transfer agreement paves the way for the expansion to happen, which would create new jobs and investment in Youngstown, Girard and Mahoning Valley.

''Also, it shows the need to cooperate on a regional basis. This time it happens to be V&M, but there will be other opportunities that require us, call upon us to cooperate in a similar fashion,'' Williams said, adding this type of cooperation is the only way for the Valley to compete globally.

If V&M does not go ahead with its plans in Youngstown, the agreement between the two cities calls for a joint Youngstown-Girard industrial park to be constructed on the site.

But local officials are confident that V&M will select the local site for expansion.

''We feel pretty confident, but we'll just have to wait and see,'' said Trumbull County Commissioner Frank Fuda.

rselak@tribtoday.com