NORTH JACKSON — A proposed $30 million renovation by Macy’s at its facility here is getting a boost from the Western Reserve Port Authority, which by stepping into the project will save the retailer on construction costs.

On Wednesday, port authority board members agreed to help with the project to convert about 380,000 square feet of its existing distribution center space into a fulfillment center for consumer online orders.

The distribution center provides items to retail outlets.

“The agreement was negotiated and agreed upon in January,” Anthony Trevena, the port authority’s chief operating officer, said. “This is actually to carry it out … all of our documents are in final form (and) we’ll close later this month.”

In January, port authority CEO John Moliterno kept details about the project secret, only saying a company contemplating expansion, if it followed through, “would be a very good job creator for the Valley.”

It wasn’t until the next month when the Ohio Tax Credit Authority awarded a 1.47 percent, eight-year tax credit for the project that more details were released, including investment from the New York-based retailer and the 417 new jobs. The tax credit is worth an estimated $1.8 million.

Most of the jobs will be hired this year and next with the rest in 2023.

The port authority, Trevena said, will provide financing on more than $9 million of the building cost.

Under terms of the agreement with the port authority, it will own the project and lease it back to Macy’s for a period of time, typically five years. It’s a financing mechanism that port authorities in Ohio have available to exempt sales tax on construction-related materials.

As a general rule of thumb, about 50 percent of the building cost is construction-related materials.

The 417 new jobs will have an annual payroll of $16.7 million by the end of 2023. That’s an average salary of more than $40,000 per year. Macy’s also will retain 55 positions with a $2.1 million annual payroll there with the $29,973,625 expansion.

Other costs for Macy’s include new machinery and equipment.

Guy Coviello, president / CEO of the Youngstown Warren Regional Chamber, one of the economic development agencies that helped secure the deal, said, “We’re happy that the port authority is able to assist Macy’s with growing jobs in the Valley. The chamber and port make good economic partners on economic development projects.”

Macy’s operates three retail brands: Macy’s, Bloomingdale’s and Bluemercury. It operates 764 stores with about 90,000 employees. It has Mahoning Valley stores at the Eastwood Mall in Niles and the Southern Park Mall in Boardman.

rselak@tribtoday.com