The Tax Credit Authority reviewed 10 economic development proposals brought to the board by JobsOhio and its regional partners. The approved projects are expected to result in more than $35 million in new payroll, nearly $66 million in investments, 726 new jobs and the retention of 1,216 jobs statewide, according to the Ohio Development Services Agency.
Local companies granted the tax credits include Aero Fulfillment Services Corporation of West Chester Twp. and Mason, NSC Global Managed Services LLC in Deerfield Twp. and Pretzel Baron LLC in Springdale.
Aero Fulfillment Services, which provides business-to-business and business-to-consumer inventory and fulfillment processes, received a 1.2 percent, six-year Job Creation Tax Credit to create 65 full-time positions and retain 199 jobs, generating $2.6 million in new annual payroll and retaining $7.3 million in existing payroll. Capital investment is listed as $2.75 million.
The company receives merchandise from clients nationwide, including books, grills, glasses, toothpaste, shaving kits and diapers, re-kits it and ships it out globally. It has been based in the Cincinnati area since its founding in 1986, according to company President and CEO John Gimpel.
“The Job Creation Tax Credit allows us to continue our growth in Cincinnati that is both from our existing business with Fortune 500 clients such as Procter & Gamble and Luxottica as well as some of our newer mid-market clients such as Party Lite and Dorcy/Life Gear,” Gimpel told the Journal-News. “We’re excited and appreciative for this help from the State of Ohio.”
The proposed project involves Aero Fulfillment Services acquiring a new, out-of-state business and moving its functions to Ohio, according to the state. The company’s fixed asset investment would be towards leasehold improvements and new machinery/equipment.
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NSC Global Managed Services, which provides IT services to companies to advance technology, recruit talent, manage infrastructure and support operations, received a 2.13 percent, six-year JCTC expansion project in Deerfield Twp. It expects to create 50 full-time positions and retain 372 jobs, which are projected to generate $2.5 million in new annual payroll and retain $12.3 million in existing payroll.
Ohio is competing for the proposed project with New York, where NSC Global’s finance and sales team work, according to the Ohio Development Services Agency.
Pretzel Baron, a new extension of the Servatii family, produce pretzel products. It received a 1.048 percent, six-year JCTC and expects to create 49 full-time positions and retain 10 jobs. That’s expected to help the Springdale-based company generate $1.2 million in new annual payroll and retain $264,033 in existing payroll.
JobsOhio, Ohio’s private economic development division, and regional economic organizations recommend projects to the TCA, which then votes on the projects. Credits are a performance-based incentive and may only be used when the jobs are created.
As part of the tax credit agreement, the TCA requires the companies to maintain operations at the project location for at least nine years.
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