Is Just Any Job Good For The Community?

Oct 14, 2018

As you drive into southwestern Trumbull County, a few yard signs still mark the battle lines over TJX -- a battle that centers on the question of whether any job is a good job.

Trumbull has lots of highways. Interstates 80 and 76 cut from the Pennsylvania line west; Route 11 ties north and south together. That’s attractive to companies like FedX, UPS and Macy’s, who have distribution centers here.

TJX, the parent company of Marshall’s, TJ Maxx and Homegoods, plans to join them with a 1.2 million square-foot, $170 million facility on 300 acres of green space in Lordstown that was zoned residential.

TJX is promising a thousand jobs and supporters include Republican Mayor Arno Hill, Democratic Congressman Tim Ryan and the local chamber of commerce -- and about three-quarters of the voters in a special election in August.

“Workers in our area will be better off because of this achievement,” Ryan said in a statement after the zoning was changed. “I will continue to do whatever it takes to ensure that this facility, with its thousands of jobs and millions of dollars in payroll and revenue, comes to our region."

Beyond the rezoning, TJX is getting a state Job Creation Tax Credit expected to be worth $3.5 million. It’s also getting a 75 percent, 10-year property tax abatement, which is expected to save the company more than a million dollars a year in property taxes.

The impact on schools
Schools, which depend most on property taxes in Ohio, have no say on partial abatements and took no position on the project. TJX is giving the Lordstown Local School District a one-time $500,000 donation for athletic facilities and security. The district will continue to collect one-quarter of the property taxes on the improved property - an amount that won't be solid until the facility is built and appraised - and a portion of the income tax through a tax sharing program with the village.

In all, the district will receive about $400,000 a year in tax dollars over the next 10 years. The revenue to the school without the abatement would have been about $681,000 a year, said district Treasurer Mark Ferrara.  

TJX also plans to donate 100 acres so Lordstown can maintain a buffer between nearby residences and the warehouse.

Right project, wrong place
Given Trumbull County’s continued struggle over jobs, a protracted fight to stop the project may seem incongruous. But opponents called it the right project in the wrong place, arguing that nearby industrially zoned properties are a better option. They also raised a concern that echoed beyond the immediate neighborhood: How much will $12-an-hour jobs cost the community.

The average warehouse worker’s salary in the U.S. is $31,451, according to the Department of Labor, with the range typically falling between $27,021 and $36,100. Indeed.com says warehouse workers average $11.92 in Ohio.

Nicholas Coggins is Economic Development Coordinator for the Trumbull County Planning Commission
Credit M.L. SCHULTZE

Diversifying Trumbull County's economy
Nick Coggins, the county’s economic development coordinator and a supporter of the TJX project, said the company hasn’t even told him how much the jobs will pay beyond saying they’ll be “competitive.”

He sees the TJX warehouse as part of a diversifying-Trumbull-County getting its feet. And he insisted the county is paying attention to the quality, not just quantity, of jobs.

“If you’re going to have 200,000 people living here, you need to make sure there are jobs. So that’s always a measure. But you want to make sure those are good jobs,” he said.

“I can bring in three McDonald's and a Burger King. … But 500 people working part time at $8 an hour is not the same as 100 people working full time at $16, $17, $18 an hour.”

Shari Harrell heads the Community Foundation of the Mahoning Valley. She underscored that she wasn’t on the inside of the TJX deal, that there may be valid reasons it had to be planted in residential space and said, “I don’t ever want to turn my back on the opportunity to bring jobs to the community.”

But she says she’s been “dismayed from Day 1” by parts of the project that seem to run counter to recommendations in the “Two Tomorrows” report published earlier this year by the Fund for Our Economic Future.

A regional approach to creating good jobs
The report, cited by several people, emphasizes a regional approach to creating good-paying jobs, including encouraging entrepreneurs, going bigger in bioscience and “owning” the modern-manufacturing sector. It also emphasizes racial and economic inclusion. (The Fund for Our Economic Future has pledged to defray some of the costs of the Your Voice Ohio media meetings in Northeast Ohio.)

“We have gone down the path of sprawl and incentivizing companies at whatever cost to build where ever,” she said. “We lose green space, we leave empty buildings everywhere, we create more infrastructure when we can’t support what we already have.

“We really have to think the concepts of jobs hubs and mobility and connecting everybody.”

The concerns of the community
In a recent Your Voice Ohio community meeting organized by local news media, residents echoed her concerns. To make Warren a better place, they said it needs more green space, less sprawl, better public transportation, jobs with livable wages and a plan to deal with empty buildings.

Lordstown Schools Superintendent Terry Armstrong grew up in the valley.
Credit M.L. SCHULTZE

Terry Armstrong has considered the issues as a Trumbull County native whose grandfathers worked at Copperweld and Republic Steel, as a father whose children are starting to head off to college and as superintendent of Lordstown schools, who are giving up a lot of property taxes. He acknowledged the wages at TJX won’t compare with those paid in the halcyon days of manufacturing in the 1970s and ‘80s. But his hope is that the law of supply and demand may be starting to turn back in workers’ favor.

“If you do an equivalent dollar-for-dollar analysis, it's definitely not what they were making. But it's jobs here in the valley," Armstrong said. "We hope a lot of employers keep coming in … because the more jobs there are [and] the less people you have able to work, it's going to raise their wages. So we're happy to have those jobs come in regardless of whether they're $12 or not. We hope they become higher-paying jobs because that just helps everybody."

An important debate
Regardless of the outcome, Tim Francisco, head of Youngstown State University’s Center for Working Class Studies, said the debate over TJX was an important one for the community to have.

“For a very long time (there’s been) an unfair characterization of working-class communities that somehow you should be grateful for any jobs you can get and any industry you can get, and you can’t afford to be choosy and you can’t afford to push back.”

M.L. Schultze is a former editor, reporter and news director for WKSU public radio and the Canton Repository. She currently is a freelance writer and can be emailed.