ThisWeek CW 06/06/2014
The city of Groveport will add more than 100 new jobs over the next three years as a part of a tax incentive agreement with a new business tenant, HD Supply.
After Ryder Logistics ceased operations with Philips at the Greenpointe Business Park location last year, Groveport has been actively looking for a new business to fill the void, according to Finance Director Jeff Green.
“We’ve been working on this deal since just after the Christmas holiday and with it approved now, it will put us in the top bracket for having one of the lowest industrial building vacancy rates in central Ohio,” Green said. “It’s always nice to be adding jobs, especially this many.”
The terms of the incentive require that HD Supply relocate its existing 19 employees, with an annual payroll of $770,000, to Groveport and to create 111 new Groveport jobs at a total payroll of $5.2 million during the first three years of the seven-year agreement.
However, the 30-percent income tax credit, which is worth about $120,000 over the full term to HD Supply, will not begin until 2015. This is because of a Community Reinvestment Area tax abatement currently attached to the building, which provided 100-percent abatement of real estate taxes for 15 years and requires an additional 50-percent income tax share with the schools. That abatement ends in 2014.
“The state of Ohio reviewed the incentives and the Controlling Board made approvals, so we need to pass these as an emergency to get them in place so we’re in sync with the state,” Green said.
Groveport City Council approved the income tax credit at its May 28 meeting with all members voting in favor of the emergency measure, except Ed Dildine, who was absent.
HD Supply provides distribution of industrial supplies and has locations throughout North America, focused primarily on water and power, construction, and maintenance and operations. The company currently has four locations in central Ohio.
Besides the increase in jobs and payroll, Green said the company will make a $7 million investment in building improvements and machinery and equipment.
“It’s getting back to the point we were once at, where we’re going to have to start building more space to bring in more companies,” Green said.