YOUNGSTOWN, Ohio – Hiring remains difficult for some Youngstown businesses receiving property tax incentives.

At the city’s Tax Incentive Review Council meeting Wednesday, Brian Clinkscale, the city’s human relations director, reported meeting with the president of Fireline Inc. and Vallourec. He said both companies voiced concerns about the difficulty of hiring employees in Youngstown.

In an example Clinkscale gave, more than 150 people indicated they planned to attend a job fair, but only about 75 showed up. Of those, between 30 and 35 applicants filled out the application correctly and signed it, leading to about 22 people being eligible for hiring with the right qualifications. About 10 of those refused to take a job or did not pass the urinalysis test.

The council had a lengthy discussion about the need for drug testing to catch up with the legality of marijuana use.

Additionally, Clinkscale said for many people, manufacturing jobs are hard work despite the good money they pay.

Councilman Julius Oliver, 1st Ward, said it’s an old problem and called it an excuse companies use not to hire local residents.

“The other thing that’s not new is, somehow, these employers are constantly able to keep employees that don’t live here,” Oliver said.

According to Kyle Miasek, city finance director, 92% of the city’s income tax money comes from people who don’t live in the city – the ones who can’t vote or make any decisions about how their tax dollars are being spent.

Miasek also challenged Oliver’s view that the only benefit of the tax abatements is to bring jobs for the residents of Youngstown. When businesses grow and tax abatements expire, it means more money for the schools, city and the county, he said.

“The whole point is to employ the city residents,” Oliver said.

“The point is for the city to grow and be prosperous,” Miasek countered.

One thought tossed out to improve the process was to ask businesses to give those they are hiring time to pass a drug test. Another was to put a program in place to assist those filling out applications and writing resumes.

Oliver said there must be ways to push companies to hire local employees.

“So I still think there’s some ways we can still put pressure on these companies to get Youngstown residents hired,” Oliver said, “because we know our biggest issue in Youngstown is supposed to be not having adequate employment.”

The council found those who have currently received tax incentives have been successfully meeting the requirements for making improvements and hiring.

But in the future, Stephanie Gilchrist, the city’s head of economic development, suggested tax incentives also could be tied to helping create apprenticeship programs or other benefits of the schools that are giving up tax dollars for incentives.

“Almost like a test – what is something else that we can do to get you committed to the community that’s outside of job creation?” Gilchrist said.

Oliver pointed to the city’s workforce database, which gives residents the opportunity to be listed with others looking for jobs, along with their qualifications. If companies would be willing to help those in the database get prepared for the workforce with new skills, that would help more city residents get employed, he said.

Clinkscale said he has spoken with United Returning Citizens about creating a class to provide prospective employees with ways to better present themselves for a job interview.

Regarding the businesses currently on the list for tax exemption agreements, the council took the following action Wednesday:

  • Because of its nonprofit status, which means it would not pay property taxes anyway, the council decided to remove the Youngstown Business Incubator from the list of 100% tax abatements it must review each year. The abatement was due to expire in August 2026.
  • Due to Youngstown Tool & Die changing its name to REI Pool and losing its incentive with the Ohio Department of Taxation, the council voted to remove it from the list and no longer continue an abatement through the city. The abatement was due to expire in December 2026.
  • The council voted to recommend that City Council continue the abatements for Fireline Inc.; Youngstown Stambaugh Hotel LLC; and Youngstown Campus Associates LLC, all of which expire in 2027.

Additionally, it was noted there are three newer tax incentives recently approved or under consideration:

  • Valley Foods has been approved for enterprise zone abatement through the Ohio Tax Commission in December 2024. The East Boardman Street company received a 75% abatement on the assessed value of all real properties – 100% for years one through five and 50% for years six through 10.
  • With a $700,000 expansion project, Penguin City Brewing Co. was approved in December 2024 for a 75% abatement for improvements to its 460 E. Federal St. property.
  • An application for a 75% abatement for Gula Electric is anticipated to reach City Council for consideration in September. The project at 836 W. Rayen St. would be a $400,000 investment by the company.

Pictured at top: Fireline’s building in Youngstown.