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GIRARD -- City council on Monday suspended its rules to approve a 10-year, 75 percent tax abatement for Yellowstone Industrial LLC, which is planning to locate in the former Syro Steel building off North State Street.
Third Ward Councilman Jeff Kay, chairman of the economic development committee, made the motion to suspend the first, second and third readings to allow the company to begin planning for the move. Kay said he wanted to have the motion passed as soon as possible as three readings would have taken the issue into early June.
"Council agreed to get this moving forward. When they are in operation, it will mean money coming into the city from the property," he said.
Nick Coggins, assistant director with the Trumbull County Planning Commission, said at a previous meeting the company still needs approval for the abatment by county commissioners.
Coggins said the abatement "will help the company bring a vacant industrial site back to use." Coggins said the company wants to begin working on the building this month.
Officials have said Yellowstone Industrial LLC plans to invest about $3 million to improve the building, another $3 million to install new equipment and $2 million more on inventory.
The company is planning a total of between $6.8 million and $8.3 million in investments.
He said the city and school district will be notified when the agreement is finalized.
"This is a good idea to have them use the former Syro Steel building, which has been empty for the last couple of years. We will now have activity back and workers there who will pay city income tax. It will be good to have jobs available and revenue for the city. It is a very positive thing," said John Moliterno, councilman-at-Large.
JOBS PLANNED
A letter from company officials to Girard officials states the company plans to add 25 jobs, with the job creation period between September 2023 and December 2025. The increase in employees will result in $1.097 million of additional annual payroll for the enterprise.
The company plans to add 20 full-time permanent jobs the first year.
Yellowstone officials said they plan to revive the vacant industrial plant that was used for manufacturing of steel highway products. Plans are for a galvanizing facility that will provide coating for steel highway safety products manufactured by RG Steel Corp. in Pulaski, Pa.
Yellowstone Industrial LLC will recommission the vacant hot dip galvanizing facility with the project site, providing opportunity for additional expansion in supporting manufacturing and fabrication services, the letter states.
The Syro Steel building has been vacant for several years. The company that owns it, Coggins said, has invested some money to renovate the office.
The hot dip galvanizing facility as this point "is a steel structure with old steel framing," Coggins said. "They are going to recommission that, so there is going to be an investment in equipment, upgrading the exterior facade of it so they can operate their galvanizing facility."
"That will be huge ... it's totally vacant right now, so 25 jobs is a pretty significant increase on any project where you are doing just one structure," Coggins said.
A company named 1170 State Road LLC acquired the land and several buildings at the site for $400,000 in August 2021 from Syro Steel Corp., according to the Trumbull County auditor's office. Syro Steel acquired the property in 1990.