If approved at the next meeting Aug. 17, Phoenix Metals will construct a 156,000-square-foot facility in Middletown’s MADE Industrial Park. Phoenix Metals has been located at its current Middletown location, 1211 Hook Drive, since September 2008, according to city officials.
Economic Development Director Chris Xeil Lyons said Middletown has a long heritage in steel making and steel processing and the decision by Phoenix to invest in a larger operation represents another “important development” in the history of the Middletown steel industry.
Palenick called the company’s expansion “a really good economic project.”
Once construction of its new facility is complete, Phoenix Metals will increase its workforce from 60 to 80 over the next three years. The city will provide a 75%, 10-year tax incentive to help offset construction costs for the company.
The company is planning to invest $15 million with $12 million being for new construction and the rest for equipment and soft costs, according to the city. Payroll will increase from $3.9 million to $4.5 million, an increase of $600,000 for the new positions.
According to the staff report, with current tax rate and assuming the auditor would pick up the full value, the taxes would be $280,558 per year; $210,419 would be abated; $70,139 would be paid.
Over the life of the incentive this equals to $2,104,195 abated and $701,398 paid, according to the city.
Rick Pearce, president of the Chamber of Commerce serving Middletown, Monroe and Trenton, said Phoenix Metals “provides a great service” to its customers and the move to a larger facility will allow them to “better provide excellent service to their customers and increase employment opportunities.”
He hopes once Phoenix leaves its Hook Drive location, another “growing business” will move into that location.
REDI Cincinnati/JobsOhio will also provide an economic development grant to assist with the expansion, according to the city.
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