TCTC agrees to tax break for Clean Energy Future Trumbull

Approves 15-year abatement for Clean Energy Future Trumbull

CHAMPION -- The Trumbull Career and Technical Center Board by an 11-7 vote approved a 15-year tax abatement request for Clean Energy Future Trumbull LLC.

The company is planning the construction of an energy generation facility in an enterprise zone and is seeking a 15-year tax exemption for 100 percent of the value of real and tangible personal property improvements constructed as part of the project.

The vote of the 20-member board, which had two members absent Thursday, was unusual because most of the decisions acted upon receive a unanimous vote.

The village of Lordstown and the Trumbull County commissioners are permitted to grant enterprise zone exemptions in excess of 75 percent of the improved value of the project for up to 15 years if approved by the affected school district.

Superintendent Jason Gray said a lot of times with the tax abatement agreement requests, "the companies want to know who will welcome them with open arms."

He said the TCTC board is asked to act on the abatements because the career center covers all school districts in the county. Gray said even 22 jobs is good for the area.

"We want to welcome as many businesses as we can. There is currently an empty building that is not generating anything,'' he said.

Board member Dan Denman of Maplewood, who voted against the abatement request, said the company is going to spend millions of dollars and they want a 15-year free tax abatement and hire only 22 people.

"That is not worthy of a tax abatement, in my opinion. I understand it will be 22 jobs, but 22 homes don't generate enough income for one student to go to school. That is why I have a hard time with this," Denman said.

Board member Carla Click of Lordstown said the Lordstown Board of Education also will need to act on the request.

"It will get passed by the board," she said.

PAST AGREEMENT

In September 2017, the Lordstown Board of Education approved a 15-year agreement with Clean Energy Future LLC, which is building the Trumbull Energy Center and a twin facility, Lordstown Energy Center. The agreement gives the school district an initial $800,000 when the company breaks ground and, after operations start, $800,000 annually through the fifth year of the pact. The school district receives slightly more than $1 million annually in years six to 10 and $1.2 million annually in years 11 to 15.

The first $500,000 generated by the net profit tax go to the village, with anything in excess of that to be split equally with the schools once the plant is operating. School officials said at the time that early projections show the school district's portion could be between $500,000 and $750,000 per year. The schools also could receive about $400,000 in income tax from workers during construction.

The district waived its right to receive income tax from the LEC construction. Instead, the company entered into a tax donation agreement that gives the district $1 million per year the first five years, $1.25 million per year the second five years and $1.5 million per year in each of the final five years once operations start. Clean Energy also is giving the schools $500,000 each year during the LEC construction.

INTERNSHIP POSSIBILITIES?

Board members said regardless of TCTC's decision, the only ones who can stop the abatement request are the county commissioners.

Board member Sue Ellen Harris-Davis of Girard questioned if internships with the company for TCTC high school students could be available.

"Giving the abatement, even though it looks like it is not the wisest decision, perhaps down the road the company can offer an educational learning program for the students at TCTC," Harris-Davis said.

Click said Lordstown Schools Superintendent Greg Bonamase reaches out to companies planning to locate in the village to see if they can offer internships.

TCTC board member Michele Garman of Mathews, who voted against granting the abatement, said the company is hiring just 22 people.

"Tax abatements to me, and I think for many of the people of the community, are not favored. It is an unfair burden placed on individual citizens and we don't get equal returns. It seems like the communities do not benefit from this," said Garman, who said she is planning to speak to county commissioners at their upcoming meeting.

Those who voted in support said tax abatements are necessary to bring business to the area.

Last November, the TCTC board joined Lordstown village and schools in supporting a 75 percent, 15-year tax abatement to M&M Industries Inc., which is considering locating on Henn Parkway in Lordstown.

The container manufacturing business has looked at the former 81,000-square-foot Magna Seating property off Henn Parkway, which closed in 2018.

Company officials expressed interest in the Lordstown site with plans for a $36 million investment in the building, with expansions and additions, as well as a rail spur. The company plans to add 106 jobs in five years.

bcoupland@tribtoday.com