Commissioners reject tax abatement

Projected payroll for Warren construction company questioned

WARREN -- Trumbull County commissioners unanimously voted to deny approval of a 10-year, 75% enterprise zone agreement between Dawn Incorporated and Warren that would have allowed the company to begin the process of renovating two existing buildings.

Under the proposal, Dawn Inc. was to purchase the approximately 8,500 square feet of warehouse at 2961 Sferra Ave. to renovate and retrofit it with gas and electrical upgrades.

The company already owns the adjacent property, 2861 Sferra Ave., and looks to install a new parking lot to connect the two facilities.

Dawn Incorporated estimates its cost to be between $900,000 and $1.2 million.

The commissioners rejected the passage, in part, because of questions dealing with the projected payroll for new employees at the company.

During the company's presentation to Warren City Council for its approval of the tax abatement, it was projected that four full-time and one part-time job will be created over 10 years.

The estimated annual payroll presented to council members was projected to be closer to $1.1 million.

However, a recalculation lowered the annual payroll to approximately $260,000 per year.

Commissioner Mauro Cantalamessa questioned whether the new information with the lower salary figures should be sent back to Warren City Council for reconsideration. Representatives of area unions on Wednesday spoke against the project.

Jim Taylor, a representative of painters and allied trades, argued the company already has a tax abatement for the 2861 Sferra Ave. building that will not expire until 2029.

Taylor argued that Ohio's Department of Development has stated enterprise zone agreements should be tools of last resort.

"I don't believe all incentives were considered before using an enterprise zone agreement, " he said. "This affects Warren City Schools, TCTC (Trumbull Career & Technical Center) and LaBrae Schools."

Taylor said Jason Gray, superintendent of Trumbull Career & Technical Center, suggested in a letter that he was not aware of the project or the proposed tax abatement request.

"I am writing to express my opposition to the current request for a tax abatement for Dawn Inc., due to the fact that this company already has an abatement," he wrote. "Tax abatements, such as this, will affect the future property taxes that help our local school revenue.

"I support business growth throughout the valley, but think that tax abatements need to be reviewed carefully and used as a last resort," Gray states in his letter.

Commissioner Denny Malloy, during Wednesday's enterprise zone meeting, said he wanted to hear from representatives of the Warren City Board of Education that they would receive fewer future tax dollars if the agreement passes.

Malloy asked whether the request for the tax abatement could have been lower than the 75% requested.

Dawn Ochman, founder of Dawn Inc., described the company as having existed for 30 years in Trumbull County. She said it is the largest construction company within Warren city limits.

"We are going to expand 13,000-square feet," she said. "So 2961 Sferra Ave. will be a warehouse, which will be our shop and maintenance garage. The current shop will be all modern offices."

Ochman said the project will not move forward without the abatement.

In other business, commissioners:

Approved the hiring of Teri Anderson to a full-time position as a 911 supervisor at a rate of $30.22 per hour.

Approved a pay increase for David Vasel to $36.08 per hour as a full-time 911 supervisor. He has worked for the 911 department for 27 years.

Voted 2-1 for the purchase of two used vehicles for the Trumbull County Sheriff's Department.

Voted to appoint the three members of Trumbull County Board of Commissioners as members of the Trumbull County Tax Incentive Review Council that will meet on March 14.