YOUNGSTOWN, Ohio (WYTV) – Youngstown Mayor John McNally says the use of money given to the city for water-related improvements can legally be used to help pay for economic development.
The city’s board of control approved a ten-year tax abatement Thursday for an expansion project at Gasser Chair Company on the city’s north side.
The board is also expected to provide the company with a grant of up to $50,000 next week. The money is coming from a fund set aside for improvements to local water and sewer systems.
McNally said the practice has been in use since the 1980s.
“It terms of our ability to do this legally? I don’t think there are any restrictions on us. Constitutionally we can run our utilities. We are a charter city. We have powers of a charter city,” McNally said.
Some of the water fund grants given to local developer Dominic Marchionda are reportedly being scrutinized by Ohio’s Auditor of State.
Agents raided Marchionda’s home last week as well as the offices of his company, NYO Properties. Officials have not said what they were looking for in those raids.