LORDSTOWN Council OKs tax break of 60% for new manufacturing plant
Trumbull commissioners are expected to vote on the agreement Wednesday.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
LORDSTOWN -- Village council unanimously approved a 10-year 60-percent property tax abatement Monday for a Michigan company to bring 47 manufacturing jobs to the village.
Oakley Industries of Detroit plans to break ground this month on the roughly $8.5 million manufacturing facility, said Bob Trygstad, vice president.
Most of the 47 jobs at the plant, which will be in the Lordstown Industrial Park off of Bailey Road, will be new, with only a handful coming from other company plants. Annual payroll is estimated at $1.6 million.
The Lordstown facility will be the company's only Ohio plant. "We'll work for GM doing tire and wheel assembly," Trygstad said.
Paint shop: That work is now performed by GM workers. "It's my understanding that they're going to be outsourcing that to make room for a new paint shop," Trygstad said.
He expects the new facility to begin operations in October.
Trumbull County commissioners are expected to vote on the abatement Wednesday.
The agreement doesn't require approval from the board of education. School board approval is required only when abatements exceed 75 percent.
Superintendent Ray Getz said the board doesn't object to the agreement.
"It will benefit us to some extent -- a small benefit," he said. "We understand we're dealing with a new reality and businesses need to do what they need to do to compete."
Council, the school board and county commissioners approved a tax abatement earlier this year for GM, hinging on its plant renovation.
Renovation proposal: That agreement calls for a 10-year abatement for General Motors for investments that would be made under a proposed $500 million renovation of the assembly plant.
The proposed renovation includes a new paint shop and the reconfiguration of most departments.
The agreement gives the company a 75 percent abatement on property taxes that would have gone to the school district.
The village and Trumbull County will give the company a 100 percent abatement under the plan.
The abatement plan enables the school district to receive about $1 million more over the life of the agreement.