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Work to ready former Wheeling-Pittsburgh Steel mill for some production could mean revenue to Mingo Junction

MINGO JUNCTION — The village could see an increase in income tax collections from contractors who are working inside the former steel plant preparing for its possible reopening.

Clerk James Huggins told Village Council Tuesday he went to the plant to inquire about workers and the need to file village income taxes. Huggins said there are 33 contractors working inside the mill, and he was told there have been 170 to 200 workers doing work to bring the plant back to operating order.

Huggins said any increase in collections on the 2 percent income tax is welcome.

Council was informed in late September that water had been turned on to the mill, and that electricity also has been turned on.

Village Fire Chief John Wright said he has been asked to conduct a fire safety inspection at the plant, and village officials said workers have been in the mill for the past several weeks checking equipment for the possible restart of the 80-inch rolling mill.

The facility, the largest of the former Wheeling-Pittsburgh Steel Corp. plants, includes the $115 million electric arc furnace that was installed in 2004. However, workers have not produced any steel at the plant since its 2009 closure while under the ownership of OAO Severstal.

Due to RG Steel’s 2012 bankruptcy, Buffalo, N.Y.-based Frontier Group of Cos. purchased the facility — including its electric arc furnace — for $20 million. Frontier since has demolished most of the northern part of the plant.

A Canton real estate agent started marketing the plant site in March.

Councilman George Irvin, chairman of council’s water and sewer committee, said, depending on the production at the plant, the water usage will benefit the water income for the village.

Council also discussed setting an industrial water rate. Village Administrator Bob Smith said another business is interested in purchasing a large amount of water from the village. Smith suggested setting the industrial rate at $8.50 for water use greater than 12,000 gallons a month. But Village Solicitor Ernest Wilson said council first will have to establish the definition of an industrial user because an apartment building using that much water could claim it should pay that same rate. Irvin said the water and sewer committee will work on the language of the rate.

Council also heard a presentation from Scott Belcastro of Treble, an energy consulting company interested in managing the village’s electricity and natural gas aggregation programs which were approved by village voters.

The current consulting company wasn’t filing paperwork with the Ohio Public Utility Commission, which could have resulted in fines for the village. Belcastro said he has filed the paperwork on behalf of the village with the PUCO.

He now wants the village to contract with Treble to negotiate electricity and natural gas rates for village residents, which have to be in place by February.

Council will consider an ordinance contracting with Treble at its next regular meeting on Nov. 15.

Belcastro said his company will be in contact with village residents about the aggregation programs.

Two village residents complained about inaccurate water meter readings, forcing them to possibly pay more for water use. There have been several people who have approached council in the past months about similar situations with water meter readings.

Smith said he reviews each complaint and makes adjustments.

Smith asked the water and sewer committee to purchase about 10 new meters because the village doesn’t have any new replacements.

A water leak detection program is continuing, with 30 different locations set to be analyzed in November, he noted.

Huggins reported the village got its first electric bill since the village replaced hundreds of light fixtures in village buildings with LED lights. He said the bill showed a decrease of $3,000.

Police Chief Joe Sagun reported a shed at Aracoma Park had been broken into last week and power tools used for maintenance at the park were stolen. Sagun said the village has a video recording from security cameras at the park.

Council’s safety committee will meet at 4 p.m. on Monday in council chambers.

(Law can be contacted at mlaw@heraldstaronline.com.)

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