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Jefferson commissioners OK JSW bond issue

STEUBENVILLE — The Jefferson County commissioners say a bond issue allowing JSW Steel to add a vacuum degasser to its operation in Mingo Junction is a win for taxpayers, who will reap the benefits without having to shoulder any risk.

Commissioners gave their approval Thursday to the Jefferson County Port Authority’s plans for a bond issue of up to $145 million for the vacuum degasser project to move forward. The vote was 2-0, with Commissioner Eric Timmons absent due to the birth of his son.

The port authority had requested the approval to facilitate JSW’s plans to install the degasser, which will remove hydrogen, oxygen and nitrogen from the steel melt, lessening surface cracking and the likelihood of the formation of nonmetallic inclusions that can impact the fatigue strength of steel.

Bonds will be issued through the port authority, but they’ll be backed by JSW Steel Mumbai. The bonds will be marketed to institutional investors and, once purchased, funds will be transferred to JSW Steel for use on the project. Since the bonds will be secured, as long as the funds are used for the project — that could include things like site preparation, software and improvements to the caster line — neither the port authority nor the county commissioners would liable for the obligation.

Port Authority Executive Director Robert Naylor said JSW’s “investment and request for incentives” couldn’t have come at a better time for Jefferson County, referencing an economy that “remains distressed due to the decline of the steel and coal industries,” and said Energy Harbor’s decision to shutter the W.H. Sammis Coal Power Plant in Stratton “represents another setback.”

“(They want) to use their products to actually increase where they can market their products,” he said. “In this case, into the green energy industry.”

Commissioner Dave Maple said the proposed bond issue “makes me feel good about the creation of the Port Authority, to help people with these kinds of projects.”

“It’s also a good tool the port authority has to help business, especially a bus with a really, really large-scale project that needed some level of financing and the port authority was able to step in and perform this role for them,” he said. “And the benefit really is economic growth but no risk to Jefferson County taxpayers, so there’s no risk of these bonds having any negative effect on our citizens, not on bond ratings or anything.”

Maple said theoretically, “it could boost their output, their tax load,” and if all goes well, it “would equal more jobs, more revenue, more taxes.”

“This is going to make a higher quality, lower cost, more competitive product,” Maple said. “That’s always good news when it comes to business and being in competition.”

Commissioner Tony Morelli called it a “win-win.”

“It’s a way for the port authority to earn some revenue by handling these bonds,” he said. “And it’s also positive for JSW.”

Commissioners also learned two of the three firms the five-member team interviewed for architectural services at McCollough Children’s Home — TC Architects of Akron and McKinley Architecture and Engineering of Wheeling — were deadlocked when they tallied the committee members’ scoring, though McKinley had a slight edge when the results were averaged.

In October, commissioners awarded Jefferson County Jobs and Family Services nearly $1.4 million from their federal American Rescue Program fund allotment to update its electronics as well as tackle upgrades at the children’s home. At the time, Maple had said “one of the biggest challenges in Jefferson County is when we have children in need of help there’s no where to help them in Jefferson County” so they’re assigned to facilities in other counties and in some cases, states.

Morelli said they’re excited about moving forward.”

“I think it’s positive, No. 1, for the children who may need the services,” Morelli said. “But it’s also possible we could generate some income there, if I understand it correctly.”

With certification, “We would be one of very few that can offer these services,” he said. “Counties throughout the state would be able to send children to us, it would be revenue.”

Commissioners voted to ask the prosecutor to review the scoring and determine if they can negotiate with both firms.

“This is really good work, getting us to this process,” Maple told Jobs and Family Services Assistant Director and Administrator Matt Kendall, who reported the results. “The request-for-quotes process gets you, at least in my experience, to a vendor, then you negotiate a price. I think this tie allows us to engage with both firms on pricing, but I’d like to run that through (the prosecutor.)”

Maple said for “five people to all come up with the same number, that’s pretty good, and both firms have done work in the county.”

Commissioners also:

— Signed off on a request from Jefferson Soi and Water Conservation District for help paying a $7,500 consulting fee for the services of Rick Darke, a landscape consultant, photographer and author.

Darke will assist planning for the Piney Fork Trail, Hellbender Preserve and Quaker Ridge projects, in preparation for submission of JSWCD’s Appalachian Community Grant. His work will include documenting existing vegetation and cultural-historical elements in photos and assisting with text and photos to be incorporated into the grant application.

— Awarded the contract for the Area J and Bloomingdale water tank rehabilitation to Fort Steuben Maintenance for slightly more than $1,954,687. Fort Steuben was the lone bidder.

— Approved jobs and family services agreements with Jefferson County Education Service Center, working within the Jefferson County Prevention Retention and Contingency Plan to provide partial funding for their alternative school; child and adolescent needs and strengths assessments for children, when required; and to provide therapeutic mental health services for residents of the children’s home.

“These valuable programs provide essential services to the youth of Jefferson County,” JFS Director Michelle Santin wrote.

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