Streetsboro, Shalersville could land thousands of tax dollars if German firm joins JEDD
A German manufacturer that plans to move into the industrial park being built in Shalersville is asking to join Streetsboro's Joint Economic Development District with Shalersville.
Patrick O'Malia, Streetsboro's economic development director, said Viega LLC, an American subsidiary of Germany-based Viega Group, previously announced its plans to construct a 180,000-square-foot plant in the 475-acre industrial park in Shalersville Township, eventually bringing nearly 70 new jobs with it. The company makes copper pipe fittings.
A public hearing will take place at 7 p.m. Jan. 8 at Streetsboro City Council Chambers, 555 Frost Road, Streetsboro, to discuss the application to join the JEDD.
O'Malia said the company recently closed on 80 acres in the industrial park, The first phase of the development will bring 65 jobs, which could mean $20,000 a year in income tax for Streetsboro, $40,000 for Shalersville and $7,500 for the JEDD infrastructure.
"In order for them to receive tax abatement, we want them to pay income taxes," he said.
Tax breaks on the table
A variety of tax breaks have already been offered to Viega.
Streetsboro officials previously said the city and township had competition for Viega from other states, and "multiple layers of tax incentives" were used to lure the business. The Portage County Port Authority issued a "sales tax exemption," which will make construction materials exempt from sales tax if they are used for erecting the building — an incentive that is expected to save Viega $1.5 million on its construction project.
JobsOhio and TeamNEO also offered a grant to reimburse costs associated with infrastructure, build out or machinery and equipment, as well as a job creation tax credit that will rebate a percentage of the new jobs’ contributions to the Ohio income tax, an estimated value of $315,000 over eight years, O'Malia said. Trustees have agreed, contingent on Viega joining the JEDD, to offer a 60% real property tax abatement to Viega for a 10 years, which is expected to save the company $5.4 million over 10 years.
Under the JEDD agreement, income taxes will be split between the city and the township, with 65% of the funds going to Shalersville and the remaining 35% going to Streetsboro. The city and township also are required to contribute equally to a fund used to pay for maintenance and permanent improvements to roads inside the JEDD. Shalersville is responsible for administering the fund.
A JEDD is the only way for townships to collect income tax, according to Ohio law.
Reporter Diane Smith can be reached at 330-298-1139 or dsmith@recordpub.com.
This article originally appeared on Record-Courier: German manufacturer asks to join Streetsboro/Shalersville JEDD
