YOUNGSTOWN — Penguin City Brewing Co. is seeking a 75%, 10-year tax abatement from the city to help offset costs for a $700,000 expansion.

The investment would go toward paving the remaining portion of the parking lot at the brewery and taproom, 460 E. Federal St., providing additional handicapped accessibility, installing roof panels, adding outdoor electrical outlets to support food trucks, constructing restrooms for its banquet center as well as sanitary repairs, window replacements and insulation improvements, according to the tax abatement application request from Aspasia Lyras-Bernacki, its managing member.

Since it opened in 2021 at the former Republic warehouse downtown, Penguin City has invested about $4.5 million into the business, creating a multi-use facility — taproom, manufacturing space and event center — that brings on average more than 1,000 people weekly into the building, according to Lyras-Bernacki.

The business has created 20 jobs — six full-time workers and 14 part-timers — and plans to add three full-time and three part-time workers over the next three years with the expansion, according to Lyras-Bernacki.

The location originally opened in 1884 as a stable, saloon, wagon shop and lumber yard. It’s been a hotel, restaurant, billiards parlor, blacksmith shop, candy shop, steel and iron fabrication business and steel warehouse over the years.

The building is also home to the DOPE (Dwelling on Positive Energy) Cider House & Winery, which employs four people.

“With additional funding, we can grow each of the departments and create more jobs, bring more people into our city and expand workforce output for biochemistry students in the Mahoning Valley,” Lyras-Bernacki wrote in the application. “The tax incentive will help business cash flow and additional job creation.”

City council’s Community Planning and Economic Development Committee will meet Tuesday to discuss the tax abatement, said Councilman Julius Oliver, D-1st Ward, and the committee’s chairman. Penguin City is located in his ward.

“I support Penguin City,” Oliver said. “It is one of the catalysts for change on the east end of Federal Street.”

The proposal was on the agenda for Wednesday’s council meeting, but it was removed because the committee meeting last month was canceled, Oliver said.

“I want to discuss it first with the committee and provide the information to my colleagues,” Oliver said. “Proposals like this shouldn’t be in front of council before it’s in front of the committee. Important things should be in front of the committee first without pushing it to the floor of council. This provides information beforehand so we don’t have to waste time during council meetings asking questions about something that’s already been discussed.”

Oliver said tax abatements “haven’t always worked in the city. It depends on the company. Penguin City is a good company. We have a number of tools in our toolbox.”

According to the tax abatement proposal, Penguin City would save $13,413 per year for 10 years in taxes while paying $4,471 a year. During the 10 years of the abatement, if it is approved, Penguin City would save $134,137 and pay $44,712 in taxes.

The new employees would pay about $5,400 annually in city income taxes. The city’s income tax rate is 2.75%.

The tax abatement request could be in front of city council at its Dec. 18 meeting.