Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A JOB CREATION GRANT AGREEMENT WITH DIMENSION ENGINEERING, INC., AND DECLARING AN EMERGENCY.
Executive Summary: Dimension Engineering, a manufacturer of electronic circuit boards, is considering Hudson as a potential location to consolidate their two current locations, one from Akron and one from Ashtabula. The company is also considering Solon for this consolidation. Approval of this Job Creation Grant will place Hudson in a favorable light for attracting this company.
Body
Legislative History
None.
Purpose & Explanation
The Hudson Economic Incentive Committee met on December 10, 2015 and voted to recommend to Council, approval of a 50% Job Creation Grant for a period of seven years which would cover income taxes paid by employees being transferred from Ashtabula and all new hires (14 total employees - $1,039,746 in payroll). Income taxes paid by employees being transferred from Akron (16 total employees - $728,102) will not be incentivized. All these jobs will be in place within one year of occupancy. Further the company proposes to hire 15 new employees in years two and three with an additional $1 million in payroll for each year. Within three years the company anticipates having 60 employees with a total payroll of $3,767,848.
Timing Considerations
Staff would like this to be a consent agenda item with an emergency clause, so that the company can finalize purchase agreements and begin the consolidation process.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends that City Council follow the recommendation of the Economic Development Incentive Committee and approve this Job Creation Grant Agreement.
Submitted by,
Jane Howington, City Manager
Charles E. Wiedie, Economic Development Director