Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A COMMUNITY REINVESTMENT ACT AGREEMENT WITH FORTEC MEDICAL, INC. AND 10125 WELLMAN REAL ESTATE, LLC, FOR PARCEL #2 AT HUDSON CROSSING PARKWAY; AND DECLARING AN EMERGENCY. (as revised 1-17-17)
Executive Summary: ForTec Medical is currently located in Streetsboro and is desirous of relocating to Hudson and building an approximate 68,400 square-foot commercial / industrial building on Lot #3 of Hudson Crossing Parkway in Hudson Crossing Business Park, provided the appropriate development incentives are available to support the economic viability of their project.
Body
Legislative History
None.
Purpose & Explanation
To provide real property tax abatement to support the construction of an approximate 60,000 square-foot commercial/industrial building at an approximate cost of $4,750,000. This new construction will provide office and warehouse building space for ForTec Medical’s company headquarters, allowing for the transfer of 70 full-time and 13 part-time employees from Streetsboro with an existing annual payroll of $8,500,000 and relocation of assets valued at $4,500,000, as well as the hiring of 50 new full-time and 5 new part-time employees over the course of five years, estimated to result in an additional annual payroll of $835,000.
Timing Considerations
The company would like to break ground in February, 2017, which would allow for construction completion by October, 2017.
Pursuant to Ohio Revised Code Section 5709.83, a copy of the Community Reinvestment Area Tax Incentive Application was delivered to the Board of Education Office on November 16, 2016. A copy was also delivered to the Clerk of Council for the City of Streetsboro on November 16, 2017, and a copy was received by the Ohio Development Services Agency on November 21, 2016, via Certified Mail.
At its meeting on January 5, 2017, the Board of Education passed Resolution #17-01-05-08, a copy of which is attached.
Resolution No. 16-197 will be actionable after its third reading at the Council meeting on January 17, 2017.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends that Hudson City Council authorize the City Manager to enter into the Community Reinvestment Agreement with ForTec Medical, Inc.
Submitted by,
Jane Howington, City Manager
James Stifler, Economic Development Director