Ravenna is completing tax based projects offered to LG Chem to give the manufacturer a keep up comes to the county seat of Portage.
Add:LG Chem has broken ground on two new Ravenna plants expected to employ at least 100
Director of Economic Development Dennis West This week the tax credit proposal was introduced to the council, which is officially approved by the time the manufacturer opens its two stores this year. year. The company is building two buildings in the Chestnut Commerce Center off North Chestnut Street, a 148,400-square-foot ABS compounding building, and a 60,350-square-foot ABS Technical Center.
The Community and Economic Development Committee approved two laws, which will be reviewed by the full council for final approval in February. The company will begin hiring workers in April, and the buildings are expected to be in use in September, West said.
Under the five-year tax credit, the city will refund 45% of LG Chem’s income tax paid to the company each year. The company will pay $4.9 million when it reaches 72 employees, something the manufacturing company hopes to do in its second year.
Under a tax sharing agreement with the Ravenna School District, the city must also share a portion of its income tax with the schools, something that was agreed to in a tax reduction approved last year.
According to West, the city gave the approval because the project will create new jobs and is good for the economy.
Getting the approval was a big part of the company’s decision to move forward with the project in Ravenna, he said.
“We came up with the employment tax credit because we were competing with two other states and another place in the state,” West said. “And the reason we were chosen was because of the sustainability, because of the location on a railway line, and our ability to move quickly through our plans and construction and approve everything, and proceed smoothly. everything so that they can start. build and go into the market as soon as possible.”
The company will manufacture and conduct research on ABS plastics. The Ravenna location will be the company’s first location in the United States.
Under the agreement, the company must return the tax credit if the number of employees is not employed.
Councilman Rob Kairis said he sees the agreement as a “give and take,” noting that 72 workers will receive an average salary of $65,000 annually.
“We’re giving a piece back,” he said. “These are the things to do. After five years, the income tax will be collected from their employees.
According to West, the company will bring an element of “primary manufacturing” to the city that the region has not seen in a while.
“You’re going to attract more businesses like this,” he said. “It will provide higher wages for the majority of local people in the country, who have master’s degrees and higher education degrees. Engineers will make more money, not only winning from the tax side. but also a victory in terms of industry and the type of production that Ravenna can attract.”
Mayor Frank Seman said that the company had a problem with its power line and worked with First Energy to solve the problem.
“Our main selling point is our chip,” he said. “One of the things these businesses love about Ravenna is that we don’t hold back.”
Reporter Diane Smith can be reached at 330-298-1139 or dsmith@recordpub.com.