International Steel Group Inc. and the Warren City Schools Board of Education have announced an agreement regarding partial exemption of property taxes over the next 15 years arising from future investments at ISG’s coke production facility in Warren Township.

Under the plan, ISG would receive a 100% exemption of new real and personal property taxes arising from the capital improvements made to the coke plant. In return, ISG would make payments in lieu of tax to the school district equal to 25% of the tax that would have been due if there was no exemption. Additionally, ISG has agreed to make contributions totaling $117,000 for school district capital improvements and college scholarships.

As part of the agreement, ISG will begin a major capital improvement project—expected to cost more than $13 million over the next 10 years—to upgrade and modernize its coke-making facility. The improvements should help to secure future stability for the plant and its approximately 140 jobs. The use of the payment-in-lieu-of-tax (PILOT) actually increases the overall benefit to the school district by preserving funding from the State of Ohio that ordinarily would have been lost as the new assets were installed and became taxable.

Jeff Foster, General Manager at ISG Warren, remarked, "This is a very positive agreement for both the community and ISG. We are pleased the school board and local officials have expressed their support for the project and we have worked closely with them to structure a package of mutually beneficial economic incentives. I am grateful for their support, which is an important factor in moving this project to reality."

"We are very pleased the Board of Education and the company are working so well together to preserve jobs and improve the community," said Bill Prejsnar of United Steelworkers of America (USW) Local 1375. "The steel business today is very competitive and we must make continuous improvements to succeed over the long term. This agreement is a good deal for everyone in Warren."

The Enterprise Zone tax exemption arrangement must be approved by the Warren Township Trustees, the Trumbull County Commissioners, and the State of Ohio.

International Steel Group Inc. is one of the largest steel producers in North America. ISG’s steel products including hot-rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, rail products and semi-finished shapes are supplied to the automotive, construction, pipe and tube, appliance, container and machinery markets.