County Administrator Judi Boyko said the terms of the enterprise zone agreement require a minimum real property investment of $34.6 million and the creation of 171 full-time jobs over 36 months with an estimated payroll of $11.6 million.
“I believe in terms of the commissioners’ policy agenda for economic development and for projects that are merited, this is one that will be a significant investment in Butler County from an advanced manufacturing perspective,” Boyko said. “Which I know is one of your key sectors.”
With this abatement, Magnode has received nearly $3 million in tax incentives to stay in Butler County from the commissioners, the port authority and the state. The auditor’s office said there are many variables when trying to project out for an extended period of time, especially since property values fluctuate.
Last month, the Butler County Port Authority awarded the company a sales tax exemption on construction materials for the $28.4 million addition that is is worth about $924,223 to the aluminum manufacturing company on Kennel Road in Trenton.
Construction is expected to start in the third quarter and take a year to complete. The current facility has 196 employees who earn on average $60,012; and the expanded plant will create 171 new jobs paying an average annual salary of $68,030.
“They’re doubling in size and the number of employees, and they’ve been one of the businesses that stayed and maintained their presence in Butler County,” Commissioner Don Dixon said. “It’s not always about getting new factories and new stores; you need to take care of the ones that got you where you are and Magnode is one of them. And we were glad to do it, we think it was a good deal on everybody’s part.”
The Ohio Tax Credit Authority also awarded Magnode a nine-year 1.811% Job Creation Tax Credit for this project, which is worth around $1.4 million, according to the state development department. Magnode is a division of Shape Corporation, which is a global tier-one automotive supplier.
The Job Creation Tax Credit is a performance-based credit, so the actual value of the tax credit is based on verified jobs created and new payroll tax generated. The company must remain in operation at least a dozen years.
Trenton’s Economic Development Director Jim Foster told the commissioners the company has been “a substantial presence” for more than 60 years, keeping it here required a “team effort.”
“We were told we were in competition with four or five other sites, not all of them in this state,” Foster said. “The team effort, our tiny contribution, the contribution of Butler County and the contribution of the state made this possible; and we could not be happier with these people expanding within the city of Trenton.”
Foster said the city is giving the company “a rather substantial reduction in the price” for a 50-acre parcel in the industrial park to build the expansion. The city will also be contributing to a new street to the east of the facility for truck access and the widening of Kennel Road.
Mark Butterfield, managing director of Shape’s Aluminum Division, could not be reached for comment on the incentives, but at the recent groundbreaking said, “it made sense for Shape’s expansion to remain planted in the region and reflect on the value it will add to our community.”
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