Tuscarawas County, Ohio - County Commissioners have given their seal of approval to a tax agreement between Franklin Township Trustees and ProVia.
During their meeting Monday, commissioners approved a Rural Jobs and Enterprise Zone agreement between the two parties that grants ProVia a 10-year tax abatement in exchange for its $33 million investment in the township.
The company is planning to construct a 300,000-square-foot distribution center and vinyl products manufacturing facility near the intersection of routes 21 and 250 that is expected to bring about 200 new jobs to the area.
Tuscarawas County Economic Development Director Scott Reynolds says the agreement grants the company a 75 percent property tax exemption for five years commencing the first year that the improvements become taxable and a 25 percent exception for the following five years.
“What that will allow is ProVia with this really large investment that they’re doing to have a break on the real property taxes that would be generated from that new investment. We’re not giving away any taxes that currently exist, but what they’re doing is they’re going to abate a portion of the new taxes that would be collected,” he explains.
Reynolds says the agreement is designed to temporarily offset a portion of the taxes so the company can focus on paying off their initial investment.
Reynolds says the company has an agreement with Strasburg-Franklin schools to make up for a portion of the exempted taxes.
“ProVia did work out something with the school district where they will give them a direct payment when they’re ready. When the project kicks off, they’ll give the school district a direct payment to... I would normally say make them whole but the school district hasn’t really lost anything. This will basically be a payment in lieu of some of the new taxes they would have received,” he says.
Reynolds says the company has also agreed to help cover the cost for Strasburg to extend water and sewer service to the project site.
“Part of the reason we’re doing the tax abatement is to pay back a little bit of what they would’ve paid out in taxes, which is what they’re going to use to do the investment. That investment is going to benefit the village because they can pick up additional customers between the village and ProVia, and that’ll help pay for the water and sewer system,” he says.
The village and township have already formed a Joint Economic Development District to capitalize off of the infrastructure improvements and promote future development in the corridor.
Commissioner Joe Sciarretti says the commissioners are ecstatic about the company’s investment in Tuscarawas County.
Reynolds says the investment is expected to generate about $10 million a year in new payroll taxes.