ThisWeek CW 05/17/2012
Manufacturer Manifold and Phalor will receive additional city incentives in its quest to hire skilled workers as part of expanding its Canal Winchester facility.
Canal Winchester City Council agreed unanimously May 7 to a deal that provides the company with a $42,000 loan, forgivable after five years if Manifold and Phalor succeeds in hiring eight new positions or increasing payroll by $376,000, as well as investing $300,000 in related equipment purchases.
The city currently provides Manifold and Phalor with a Commercial Reinvestment Area tax abatement for 15 years. In February, the state announced it would give the company a five-year Job Creation Tax Credit of $87,416 as a part of its expansion efforts.
“We have a chance to help this manufacturer grow their business after they came to us and asked for incentives to help with the expansion,” city Finance Director Nanisa Osborn said at the May 7 council meeting. “We think this is a good opportunity for the city and for this business.”
Osborn said hiring certified skilled machinists will be in done conjunction with the purchase of the specialized equipment the new employees will operate.
“They’ve been trying to recruit from as far north as Sandusky and as far south as Kentucky because those kinds of technical skills are difficult to fill in Ohio right now,” Osborn said of the company’s hiring efforts. “They’ve shared with us some cutting-edge activities they could be a part of and we’d like to see that happen in our community.”
Normally, the Canal Winchester Industry and Commerce Corp. would supply funding for an incentive such as this, Osborn said. However, the organization currently doesn’t have that amount available in its budget.
“This is something the CWICC could do but they don’t have the money, so this appropriation ordinance amendment will give the CWICC the $42,000 which they can then give to Manifold and Phalor,” Osborn said. “The city is asking (council) to suspend the rules (requiring three public hearings of the ordinance) because there is a timing issue with purchasing the equipment.”
Councilman Steve Donahue asked what the financial impact would be.
“Their payroll withholding for this would be right around $42,000, so this loan would be equivalent to that,” Osborn said. “The loan is forgiven if they stay in the community and meet the agreed commitments over the next five years.
“Due to the CRA, they are already expected to stay for 15 years. If they don’t, they’ll have to pay us back in full.”