Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A JOB CREATION GRANT AGREEMENT WITH KELTEC, LLC; AND DECLARING AN EMERGENCY.
Brief Description: Keltec, LLC is requesting a 50% income tax credit for 10 years. The company, currently located in Twinsburg, Ohio, will relocate their headquarters operations to 5581 Hudson Industrial Parkway. The company is a leading manufacturer of compressed air and gas filtration solutions, providing a comprehensive range of high-quality products for industrial applications. Keltec, Inc. will employ 175 staff at the facility.
Body
Legislative History
Resolution No. 05-39, passed May 4, 2005, Council created the Job Creation Grant Program pursuant to Article XVIII, Section 3 and Article VIII, Section 13 of the Ohio Constitution.
Resolution No. 23-157, passed December 19, 2023, Council amended the Job Creation Grant Program pursuant to Article XVIII, Section 3 and Article VIII, Section 13 of the Ohio Constitution.
Purpose & Explanation
Keltec, LLC is requesting a 50% income tax credit for 10 years. The company, currently located in Twinsburg, Ohio, will relocate their headquarters operations to 5581 Hudson Industrial Parkway. The company is currently spread across three buildings owned by the business owner, paying less than market rate rents. The business leaders conducted a site selection process to identify opportunities to consolidate operations to one building. The economic development incentive has been requested to assist the business as they transition to market rate rents in the relocation.
The company is a leading manufacturer of compressed air and gas filtration solutions, providing a comprehensive range of high-quality products for industrial applications. Keltec, LLC was purchased by a private equity firm in March 2024 and has since experienced significant growth through acquisition and organic business development. Keltec, LLC. will employ 175 staff at the facility.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
X Other [provide explanation]
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required
Does this legislation require use of an emergency clause?
X Yes, an Emergency Clause and vote after the First Reading has been requested so that the business may execute a lease for the building in the month of May.
No
Recommendation
Suggested Action
Staff recommends that City Council approve this Job Creation Grant incentive.
Submitted by,
Thomas J. Sheridan, City Manager
Greg Hannan, Community Development Director
Katie Behnke, Economic Development Manager