Leetonia council OKS tax break for Pennex expansion
LEETONIA–Village council Wednesday night joined the school district in granting a tax abatement to a local business that is expanding.
Council approved a 15-year tax abatement for Pennex Aluminum Company LLC and Leftonia Leasing LLC as a part of an enterprise zone agreement after the company announced a $23 million, 110,000-square-foot business expansion at the World Trade Park off state Route 344. The abatement waives 75 percent of the tax, with the company paying the remaining 25 percent directly to the school district. The village will collect the income tax.
Council approved the agreement as an emergency so it will take effect immediately. It has already been approved by the school board.
Village Solicitor Walter Newton noted that the agreement is possible because of the “great relationship” the village has with the school district.
In other business, council agreed to pay off the Ohio Police & Fire Pension Accrued Liability at $9,591. According to Fiscal Officer Randy Chismar, the fund replaced the Local Pension Fund in 1965 because the latter did not have enough assets to pay off future benefits. At that time, the state approved a 70-year loan at 4.25 percent interest, he said.
Council will be paying off the loan 17 years early for a savings of $3,681.94.
Also at the meeting, council authorized Newton to draw up an updated wage ordinance that includes cost of living raises for employees and changes the zoning inspector position to an hourly wage.
Council also moved police Sgt. Richard Glidden to part-time and granted permission for Village Administrator Gary Phillips to develop specifications and advertise for bids for the paving of Walnut Street between Main and York streets.
Council also changed the authorized signers for the Police Care & Share account to Mayor Kevin Siembida and Chismar.
An insurance committee meeting with the police department is scheduled for 4:30 p.m. Nov. 28 at village hall.
The next regular council meeting is scheduled for 7 p.m. Nov. 21 at village hall, preceded by a meeting with NECO representatives regarding the new water meters at 6 p.m.