Tax Breaks for ‘Chill-Can,’ Gasser Project Before Council
YOUNGSTOWN, Ohio – City Council will consider enabling legislation at its meeting Wednesday for two major development projects that together could create more than 260 jobs.
Council will consider an ordinance that gives the go-ahead for the city’s Board of Control to enter into a development agreement with M.J. Joseph Development Corp. and Joseph Co. International Inc.
Also before Council is a proposed development agreement for an expansion project at Gasser Chair Inc.’s plant on Logan Avenue.
Joseph Co. International, based in Irvine, Calif., plans to construct a $20 million manufacturing and research campus on the city’s East Side that will produce the world’s first self-chilling beverage can.
The legislation would award the company a tax abatement of 75% on new real construction over 10 years. Council has already approved the first part of the project’s incentives package – a $1.5 million site development grant that would be used for demolition assistance, acquisition and conveyance of 21 acres bounded by the Madison Avenue Expressway, Oak Street, North Fruit Street and Himrod Avenue.
The project is expected to create 237 jobs.
Mitchell Joseph, the company’s CEO and Youngstown native, told The Business Journal two weeks ago that the campus will consist of four buildings that will house manufacturing, research and development, distribution services and new administrative offices for the company. He said his company is working on other applications for the self-chilling technology.
The city has reached agreements with all of the neighborhood’s residents, while most of the vacant land has been acquired.
Mitchell’s family once owned the Star Bottling Co. on Lane Avenue, where the new complex will be constructed.
The city is also seeking a development agreement with Gasser Chair, which wants to invest more than $920,000 to upgrade the company’s warehouse in order to accommodate expanded manufacturing operations along Logan Avenue.
The company said the project would yield 25 new jobs, and the proposed development agreement entails the city awarding the project a wastewater grant not to exceed $50,000 and an 18-month float loan of $923,000 at 0.25% interest. The float loan must be backed by an irrevocable letter of credit.
Copyright 2022 The Business Journal, Youngstown, Ohio.