Troy companies participating in the city’s enterprise zone tax abatement program have exceeded employment goals, some “considerably,” Jim Dando, city enterprise zone manager, told the Tax Incentive Review Council during its annual meeting March 10.
Troy City Council approved two new agreements during the past year, with both companies increasing employment while the new facilities are under construction, Dando said.
That’s because Clopay Building Products Co. (in a building owned by the Dayton-Montgomery County Port Authority) and Arc Abrasives Inc. have installed and are using some of the equipment targeted for the new space in existing areas.
“I think that indicates those are good projects,” Dando said.
The review council heard brief updates on the enterprise zone agreements before recommending council continue the agreements. Two agreements are recommended to be withdrawn, at the request of the companies. Dando explained that’s because tangible personal property tax abatement at the time of the agreements’ approval has been eliminated.
The following is a brief summary of the existing agreements, job goals and reported job levels:
- American Honda Motor Co., 2005 agreement: Benefits through 2018. Pledged jobs, retain 337; create another 110 plus 20 additional part-time temporary positions. As of Dec. 31, 629 full-time equipment jobs, 81 temporary workers.
- Arc Abrasives Inc. 2015 agreement: For new manufacturing plant on Mary Bill Drive. Pledged jobs, from 92 full time to 107 within three years of project completion. As of Dec. 31, employment at 97 full time.
- Clopay Building Products, 2006 agreement: Benefits through 2019 (for conversion of Panasonic plant). Pledged jobs, 555. As of Dec. 31, 1,294 full time and 23 part time. Company requested withdrawal of this agreement.
- Clopay Building Products, 2015 agreement: Pledged jobs, 1,123. As of Dec. 31, 1,294 full time and 23 part time.
- ConAgra Foods, 2010 agreement: Pledged jobs, to create 188 more for 555 full- time equivalents. As of Dec. 31, 697 jobs plus fluctuating number of temporary employees.
- ConAgra Foods, 2012 agreement: Pledged jobs, 10 more to existing 643 positions. As of Dec. 31, 697 jobs plus fluctuating number of temporary employees.
- F&P America Mfg. Inc., 2004 agreement: Pledged jobs, retain 519 and create four. As of Dec. 31, 714 ful- time positions and 296 temporary workers from employment agency. Company requested withdrawal of this agreement.
- Ishmael Precision Tool Corp., 2005 agreement: Pledged jobs, retain 20 and crate 12 for 32 total. As of Dec. 31, 37 full-time and six part-time jobs.
The review council also heard an update on the city’s Tax Increment Financing (TIF) district, the Troy Towne Park TIF. The district is comprised of an area north of West Main Street between Experiment Farm Road and Interstate 75.
Gregg Harris, the city’s assistant development director, reported the city received $198,388 in TIF payments in 2015, making a bond payment of $130,000. Since the TIF in the area of the Troy Towne Center was started in 2003, the property valuation has grown to $13,508,800 million in 2015, he said.
A new project is under way in the TIF with construction of the Story Point Senior Living facility scheduled for completion in the fall.
The TIF program provides financing for public improvements by setting aside part of the future property tax payments on developed properties to pay off the bond. The TIF includes payments to the city schools with remaining income going to bond payments and other expenses.
In addition, Harris said, the businesses located in the TIF have generated sales tax for the county and income tax for the city.
The review council recommended city council also continue the TIF.
“The TIF is healthy and there is no reason not to continue it,” Harris said.