June 06--YOUNGSTOWN -- A city economic-initiative committee recommended giving $50,000 to a software company and up to $50,000 to an oil-and-gas-drilling equipment company, both of which are looking to expand.
The recommendations made Thursday by the Youngstown Initiative Committee need to be finalized by the board of control before the money can be allocated.
DNV Energy LLC, affiliated with Youngstown Pipe & Steel, is looking to spend $1.15 million to expand its presence in the fabrication and distribution of equipment used in the oil-and-gas-drilling industry.
The company approached the committee last month seeking $100,000 from Youngstown to help defray some of the cost.
The company is on Wilson Avenue on the former Cold Metal Products property, located in both Youngstown and Campbell, so the committee asked DNV to ask Campbell officials to help with the local-government contribution. The two cities share income-tax revenue from DNV workers.
Campbell is willing to pay half of the government contribution but isn't specific as to how much it will give.
The Youngstown committee agreed to have the city, pending approval of the board of control, contribute what Campbell gives up to $50,000.
DNV provides drilling operations with steel products, pipe valves and fittings, hoses and couplings, lubricants and miscellaneous drilling supplies. In addition, the company fabricates equipment needed at the wellhead to serve and clean the pipeline as well as to filter water.
The company plans to have the work done by September and create six full-time and five part-time jobs during the first three years of the expansion.
Also Thursday, the committee recommended that $50,000 be given to SalesKatz Inc., a computer-software company at the Youngstown Business Incubator on West Federal Street.
The company is planning to spend $577,500 on equipment and technology to expand its business from six employees now to 46 in three years. The expansion is expected to be in place by December.
SalesKatz was seeking $100,000 but had to settle for a $50,000 recommendation from the committee. The city's initiative-program budget of $200,000 for 2014 is at that amount, said city Finance Director David Bozanich, a committee member.
The committee will continue to accept applications for grants but may not be able to provide funding to other companies the rest of the year, he said.
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