A local laser cutting company will receive a tax abatement to expand its operations, with the support of the Jerome Township Trustees and Union County Commissioners.
Ohio Laser, which has an existing facility in Jerome Township, will receive a seven-year, 50% tax abatement to complete an expansion project adjacent to their existing facility.
The 57,000 square-foot facility will be constructed on a two-acre site at 8260 Estates Parkway.
The expansion will result in the creation of 30 new jobs and the retention of 62 existing positions.
Union County-Marysville Economic Development Director Eric Phillips explained that Ohio Laser, which was founded in 1997, specializes in laser cutting and welding services, machining and assembly of metal products.
In a presentation to the trustees Tuesday, he said the company services the aerospace, agricultural, automotive, defense, furniture, research and development and wind and fuel cell industries.
“It is kind of an advanced manufacturing kind of use, which is a use we would really like to see grow in our county,” Phillips said.
He noted that the company was considering expanding in either Iowa or Pennsylvania, so the tax abatement was an important tool in keeping them local to Union County.
“The company’s never asked for any local incentives,” Phillips said. “This is the first time they’ve asked for this.”
The Enterprise Zone Agreement, which applies only to the real property, will result in a company savings of approximately $291,000 over the seven-year term.
Still, Phillips said the project will generate significantly greater tax revenue than the property currently does.
Now, the property generates $868 per year in tax revenue. The Ohio Laser expansion would generate $41,575 in property taxes annually.
Over the full term of the abatement, the company will pay $291,000 in property taxes, with the largest share going to the Jonathan Alder Local Schools District and additional monies directed to Jerome Township, Union County and Tolles.
The Enterprise Zone Agreement also requires a partnership with Jonathan Alder and Tolles, which Phillips said could range from internship opportunities to the creation of curriculum.
Phillips listed a number of “community benefits” he feels will result from approval of the tax incentive.
First, he emphasized that Ohio Laser is “a well-established company that has been in Union County for many years.”
Aside from the partnership with local school districts, Phillips added that the company will create a minimal demand on the schools. Likewise, he said little additional traffic will be generated and there will be a low impact on roads.
Trustee Barry Adler said he was in favor offering the tax incentive to Ohio Laser.
“I appreciate the effort to attract high-tech and low-impact industries,” he told Phillips.
The trustees voted 2-0 to approve the Enterprise Zone Agreement, as Trustee Wezlynn Davis was absent from the meeting.
Wednesday morning, the Union County Commissioners also voted unanimously to approve the abatement.
Phillips said the company could see additional savings through seeking a financing arrangement with the Marysville-Union County Port Authority.
A capital lease financing agreement would provide a sales tax exemption on construction and building materials purchased by the company, resulting in approximately $280,000 in savings.
Phillips noted that nearly 90% of construction materials are purchased in Franklin County, so the agreement would not largely deprive Union County of generating sales tax.
He said the port authority will consider the capital lease agreement on Oct. 31.
In other business:
-The trustees delayed a public hearing regarding the development plan for Jerome Park Subarea A-3 – Memorial Health.
Zoning Inspector Eric Snowden said the township received a request from the applicant to continue the case until the next regular meeting, Nov. 1.
– The board encumbered an additional $2,500 for legal fees.
Adler reiterated an earlier statement, encouraging the township to approve a policy that would outline when private legal counsel is used as opposed to the Union County Prosecutor’s Office.
Sloat, however, said she does not “feel at all like anyone is using private legal counsel inappropriately.”
“Unfortunately we just have a lot of issues right now that do need legal attention,” she said.
– Adler said he learned that bids are being solicited for new playground equipment but said he feels this conflicts with an earlier decision to suspend the work of the parks and trails committee until a new township administrator is hired.
He said, if the parks are going to be addressed in the comprehensive plan rewrite, for which a Request for Proposals is currently being advertised, “it doesn’t make sense” to purchase new equipment first.
Adler said he would like to see any bids that are received by the township.
Sloat noted that Davis, who acts as a liaison to the Roads Division and Roads Superintendent Breht Fillinger were absent from Tuesday’s meeting. She encouraged Adler to address the issue when the pair is present.