DISCUSSION — Law Director Costa Mastros told council undeveloped property tax abatements and redevelopment districts “are just another tool” to bring business and industry to Steubenville. -- Linda Harris

STEUBENVILLE — Acknowledging they can’t continue to do things the way they’ve always been done and expect better outcomes, Steubenville City Council on Tuesday looked at what they can do to spur investment in the city.

Council had planned to spend 30 minutes discussing the potential benefits of a tax abatement program for undeveloped properties and then follow it up with an hour-long conversation with a state senator on homelessness.

The senator was delayed in Columbus, however, and will have to reschedule, so council filled the extra time by revisiting an idea that was first raised four or five years ago — hiring their own community development director.

The bottom line, Councilman Tracy McManamon said, is that they can’t tread water any longer.

“We can’t keep doing the same thing and expect different results,” McManamon, chair of the economic development committee, said after the meeting. “We need innovation. We need forward-thinking, a new perspective, change. The bottom line is we need results — we are looking at return on investment. We have to manage the process differently with a true, dedicated and consistent effort.”

Tax abatements “aren’t a panacea for … getting economic development into the city.,” Law Director Costa Mastros cautioned at the start of the discussion. “It’s a tool — a tool in the toolbox, just like TIF, just like our CRA (community reinvestment area) — this would just be another tool.”

An undeveloped property tax abatement program would allow city officials to grant up to a six-year local property tax exemption for commercial or industrial sites not yet developed or in use, providing those properties meet state guidelines — meaning that, if approved, any increase in the taxable value of the property would be abated from taxes during the exemption period. Also, there would be specific triggering events which, if they happened, would terminate the abatements early.

“We need to grow our tax base,” Councilman Mike Hernon said, though voicing concern that abatements might further strain an already tight budget.

“The tax abatement is just one more tool that we could have to encourage development or rehabilitation to businesses throughout the city,” McManamon said. “We have to stay ahead of our competition in recruiting businesses and industries to Steubenville, and this tax abatement program has proven itself nationally to be effective and an enticing opportunity for business expansion. There are countless examples of across the country, including in Ohio, on the ‘return on investment’ this type of program can bring.”

He said it’s already been used successfully in Jefferson County, though not in Steubenville City limits: The company in question relocated to Ohio because of the tax abatement program “and they are currently in the process of expanding and securing another tax abatement benefit.”

“The end result is jobs and revenue,” he said. “That’s the goal. Investors and developers look for all these opportunities to locate or relocate businesses.”

Council also discussed the feasibility of bringing a community development specialist in who can ‘sell’ Steubenville potential to outside investors.

“The benefit of having consultants like this is the networking opportunities they have within their own industries,” McManamon said. “I think it’s fair to say that we can sit on our hands and hope that businesses will come knocking on our door or we can have an individual who is solely engaged and laser focused on bringing those businesses to our city. Economic development is a very finite metric-driven decision and having a professional lend their expertise to our city is very important.”

McManamon said a consultant with plenty of experience and who comes highly recommended told him he would need about 30 hours a month to do what needs done for Steubenville. The cost would be in the neighborhood of $54,000 — a little more than what the city is currently paying the Jefferson County Port Authority, he said.

But several council members voiced concerns that there’s not much room in the budget for extras. Finance Director Dave Lewis, though, said council will have to “choose it’s priorities.” He said they’re looking at a hefty increase in health insurance costs, so tough decisions will have to be made.

“It’s up to council,” he said. “It’s a very large increase … but you’ve got to spend money to make money. If it’s a top priority for council, we’ll ty to get it in there but there’s not a lot of money right now. The budgets tight, that’s what you need to know.”

Councilwoman Heather Hoover asked what a part-time consultant could bring to the city.

“There’s no sense bringing him if he’s not going to bring ideas that will appease residents, what’s he going to bring in that’s going to benefit (us)?” she said. “I’m not saying I’m against it, but I want to see what he’ll bring to the table.”

“The purpose for tonight is to begin (the discussion),” McManamon said. “We’re not making a decision tonight.

“I think all of us are interested in moving the city forward but good questions but … he wouldn’t be working full time) for us,” Councilman at large Joel Walker said. “These are questions he need to answer … Why not bring him in, let him tell us what he’s done (for other communities).”

Council ultimately decided to ask the specialist to answer those questions.

City Manager Jim Mavromatis told council if they do decide to hire the consultant, he would recommend “pulling back” the $50,000 they currently allocate to the Port Authority.

Councilman Royal Mayo, meanwhile, said he will reschedule the meeting with the state senator, saying the colder temperatures are putting lives at risk.

“I got a call a couple nights ago — an 84-year-old man who is homeless, he had nowhere to go, had spent the night outside Saturday,” Mayo said. “I think one of the housing employees took him home, they feared for his safety.”