Cattron Communications is looking for a little help from Sharpsville Area School Board as it attempts to get more of its property enrolled in the new Keystone Opportunity Expansion Zone offered by the state, school Superintendent Dr. Derry L. Stufft said this week.

The zones are designed to promote development of old industrial sites by giving companies who move to those designated areas a break on all local and state taxes, normally for a period of 10 years.

Based on that, Cattron would receive an exemption in a KOEZ on real property tax until 2013, according to Stufft. The borough's original KOZ resolution, however, marks Dec. 31, 2010, as the end of the exemption period for personal and income tax.

During a board work session Monday, Stufft said 300 acres are available in Mercer County as part of the state's new expansion program. Cattron, the second-largest employer in Sharpsville's school district with more than 100 workers, is asking for "3 to 5" acres to be added, he said.

While Cattron, 29 N. Second St., would be exempt from some $16,000 in annual county, borough and school property taxes for the period of the KOZ exemption, Stufft said the company has made a verbal commitment to pay the district $10,000 annually in lieu of the tax assessment.

"Our objective to getting the expansion in the KOZ is not to do it to the detriment of the local community," said Mike Pearson, chief financial officer of Cattron Group Inc. "It's for the betterment of the local community. One of the primary things we do in that regard is to provide jobs. ... And we've brought in employees and families into the Sharpsville school district, which of course has a positive impact on the school and community, and we'll continue to do that in the future."

Borough council recently voted 5-2 to seek the expansion for Cattron, but based on comments made by several school directors it appears Cattron might have a bit more to do before gaining the board's approval.

"I don't see a whole lot of advantages for us in the community," director Donna Murray said. "... And I feel like we're between a rock and a hard place."

That rock and a hard place, Stufft explained, is the gamble the board will have to take when making its decision, perhaps as early as its next scheduled meeting on Wednesday.

"There are two scenarios," Stufft said. "One is they're talking about bringing five to 15 families" into the community as part of a plan that would expand the company's operations.

If they're forced to leave for another KOEZ, all their jobs go with them, he added. "And then what happens if they say, 'We could have stayed, but the school board didn't support us?' '' Stufft said.

And that ultimately is what the board's decision will boil down to, but that doesn't make it any easier, directors said.

"I don't like it," said board vice president Terry Karsonovich. "It almost feels like someone holding a gun to our heads, but I think it's a gamble we have to take."

"I feel like we're being held hostage," director Joyce D. Grandy added. "And the comment that irritated me more than anything at the borough council meeting was that Cattron had done so much for the community. I would be more surprised if they followed through with their verbal commitment of $10,000 a year."

Director David DeForest wasn't quite ready to go that far.

"To say Mr. Cattron wouldn't honor his agreement, I find that hard to believe," he said, although the board seemed to be nearly in unanimous agreement by the discussion's conclusion that it would be beneficial to at least get Cattron's commitment in writing.

"If we have to do it, and I'm opposed to it, then what's wrong with asking for a written guarantee from them?" Ms. Murray said.

Pearson said there might be nothing wrong with asking.

"The company would certainly consider it," he said.

In addition to asking for a written guarantee, a few directors also seemed willing to ask Cattron for more money.

"They're going to save $1 million to $1.5 million," Ms. Grandy said. "Could we ask for more?"

Karsonovich agreed.

"I say instead of them holding us hostage, we hold them hostage," he said. "They stand to make a lot of money. Maybe we should ask for more."

"What we're into here is a tradeoff," DeForest added. "If you want to ask for $150,000, that's OK with me."

If the school board approves the expansion, Stufft said county commissioners will then have to follow suit before it's sent to the state for a final approval.

You can e-mail Herald Political Writer Jeff Greenburg at jgreenburg@sharonherald.com

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