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WARREN -- A Trumbull commissioner Tuesday was still undecided on how he would vote on the expansion of a Warren business that is awaiting word if the county would approve a 10-year 75% tax abatement on one of two properties.
Commissioner Denny Malloy during the county's weekly workshop debated the need to provide Dawn Incorporated a tax abatement to renovate an approximately 4,500-square-foot warehouse space at 2861 Sferra Ave. to be office facilities and purchase the approximately 8,500-square-foot warehouse at 2961 Sferra Ave. to renovate and retrofit with gas and electrical upgrades, new overhead doors and install a new parking lot to connect the two facilities.
Nick Coggins, of the Trumbull County Planning Commission, said the property was purchased with the intention of expansion of the company.
"There are two things I'm having an issue with," Malloy said. "Enterprise zones should be used as a tool of last resort."
Malloy questions if the new building is at least 50% larger than an existing building on the property.
Coggins described the existing warehouse that was already on the property as less than half of the new building size.
"Is this a tool of last resort," Malloy questioned.
Coggins said there are not a lot of incentives available to the company. He said they can go after loans.
"The Jobs Ohio model goes after much larger expansion -- 20 acres, multiple jobs, and multi-million dollar investments," he said. "The Port Authority has a price point to use for its programs. There is some workforce development grants they can go after.
"They can go after loans from the Valley Partners. There is not a whole lot for small existing businesses to do some expansions."
The Warren City School Board has come out against providing Dawn Inc. the new tax abatement. The company already has a tax abatement on one of its properties.
Malloy also stated his concern the company has only promised to expand its employees by four to four-and-a-half new employees. Two of the new employees are not expected to be hired for another two years.
The commissioner questions the fairness of companies being given ways to avoid paying taxes.
"Everyone pays our taxes," Malloy said. "This is a way for businesses to get out of paying taxes."
The commissioner is concerned the company will not pay potential property taxes over the next decade.
"We need to do what is right and not what's politically correct," he said. "I've always viewed things like this if we were competing with North Jackson and they were deciding whether they were going there or coming to Trumbull County we could do something to entice them to come to our county.
"They are already here. They already have an abatement on what they have. Are they going to move their whole facility and go somewhere else if we don't do this over $11,000 a year in taxes? I don't think so."
Representatives of the Youngstown-Warren Regional Chamber and Warren Mayor Doug Franklin have expressed support for allowing the company to have the tax abatement.
Malloy said he wants to look at the whole picture, before making his vote.
"I want my decision on what is in the best interest of the citizens of the whole county," he said. "This will be a tough vote. It will probably be the toughest vote I've made since I've been elected as a commissioner."
Coggins reminded the commissioner that Warren voted in favor of the tax abatement on at least two occasions.
Dawn Inc. estimates its cost to be between $900,000 and $1.2 million for its expansion.
Cantalamessa said the expansion will generate sales taxes. Cantalamessa has not said how he would vote on the abatement request.
Commissioner Niki Frenchko did not attend the workshop.
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