Under proposal, Dover would share income tax from Schaeffler Group employees with schools
DOVER ‒ Dover City Council is considering a Tax Incremental Financing (TIF) agreement to assist Schaeffler Group USA to build a manufacturing facility on the north end of Dover, bringing 450 jobs to the area.
Under the agreement, the 53-acre site on the property known as the Streb farm along North Wooster Avenue would be exempt from property taxes for up to 30 years, but the company would have to make service payments in lieu of taxes.
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In addition, Dover, Dover City Schools and Buckeye Career Center would split income tax receipts paid by workers at the plant for the duration of the TIF agreement. The city would get 50% and the two schools would get the other 50%.
Mayor Shane Gunnoe said that total income tax collections are estimated at about $14 million over that 30-year period. Between $200,000 and $250,000 would go to the schools each year and the other $200,000 to $250,000 would go to the city. Currently, the Dover School District receives about $550 a year in property taxes from the site.
"In the long run, I think it'll be a great benefit to Dover Schools. They're (Schaeffler) coming later this week to explore partnership opportunities with the Dover Schools and Buckeye," he said.
The TIF agreement also needs approval from the Tuscarawas County commissioners and the Dover and Buckeye boards of education.
Schaeffler currently operates a manufacturing facility in Wooster and an automotive aftermarket operation in Strongsville. The company is a global manufacturer of high-precision components and systems for engines and transmissions. The company’s new facility in Dover will manufacture electric beam axles and electric drivetrain systems to support the hybrid/EV industry.
Crown Road improvements
The project will also require significant improvements to Crown Road, which runs along the north end of the site. Gunnoe said he anticipates the Schaeffler plant will front on Crown Road.
Work will include widening it to standard city street size so that it is capable of handling truck traffic, as well as storm water improvements and culverts to collect water that puddles up around the street. Plans also include installation of a traffic light at the intersection of Crown Road and North Wooster Avenue.
The Crown Road work is expected to cost around $1.4 million. On Monday, the Ohio Controlling Board approved $775,000 in state roadwork development grant funding for the project. The city has also requested and expects to receive nearly $200,000 from the Ohio Department of Transportation, Jobs and Commerce section. Dover has allocated $500,000 in this year's budget for the improvements.
Utilities available
Gunnoe noted that water and sewer lines are already available at the site. Two years ago, Dover used American Rescue Plan Act (ARPA) funds to extend water to the property. The Schaeffler plant will get its power from Dover Power & Light.
Asked if this would make up for the loss of Dover Chemical Corp. as a customer, the mayor answered, "I don't want to speculate on their power usage, but I anticipate it to ultimately be a significant customer."
Dover Chemical switched to AEP for power in the midst of the company's ongoing legal dispute over electricity rates.
'A great thing for the local economy'
Gunnoe said Schaeffler will be spending around $230 million to build the Dover plant and expand its facility in Wooster.
"It will definitely be a great thing for the local economy in terms of contractors and local labor. We put together a working list for the company. They asked us about local contractors and what they supply. So, we're trying to advocate for our local business community," he said.
Community reaction to the news has been positive.
"The community's been very supportive," he said. "Since it's been announced, our office has received a tremendous amount of interest from people who would like to be part of the project in some way, shape or form. We're trying to keep a list and provide that to the company, because they want to get people under contract as soon as possible. I've had some people ask how they can apply to work there already. All good things.
"I think in the long run, everybody realizes a project of this size can only be beneficial to both Dover and Tuscarawas County."
Reach Jon at 330-364-8415 or at jon.baker@timesreporter.com.
This article originally appeared on The Times-Reporter: Dover council considers TIF agreement to assist Schaeffler development
