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AURORA -- Another big gain of jobs and income tax revenue is possible for Aurora now that city officials are considering a 100 percent real estate tax abatement for 15 years so Trelleborg Sealing Profiles Inc. can consolidate three of its sites into one on Lena Drive.
At their June 12 meeting, City Council members heard details of a plan to grant the company relief on its real estate taxes, plus a 33 percent savings in income tax payments over five years.
According to its website, Trelleborg "delivers customized and standard sealing innovations to a wide range of industries in the buildings and construction market around the world." The firm is part of the Trelleborg Group.
"Our winning aspiration is to help the world become safe, silent and energy efficient by being the market leading sealing system provider in the building industry and selected product niches in automotive and renewable energy," says its website.
"Trelleborg is a solid Swedish company that acquired a local rubber extrusion business in 2006 and now seeks to consolidate its Ohio operations," explained Mayor Ann Womer Benjamin.
"It is looking at a site on Lena Drive for this project, which will cost about $16 million. The company expects to bring about 64 jobs and $3.5 million in payroll to Aurora, and hopes to be in by the end of the year."
Trelleborg wants to erect a new building at 500 Lena Drive, which would consolidate the firm's three local operations at one location.
The company currently operates out of two locations in Aurora, which employ 70 people, and one location in Streetsboro, where 64 people work. Projections are that 21 jobs would be added within three years of the facility's completion.
The initial 134 jobs amount to a payroll of $8 million annually. The 70 jobs now in Aurora amount to a payroll of about $4.6 million. A proposed addition of 21 jobs within three years of the project's completion would add about $1.35 million to the $8 million total, and it's the $1.35 million that would be eligible for the income tax rebate.
In its application for tax abatement, Trelleborg's officials cite a number of factors for requesting tax incentives, including burden of relocation, significant capital requirements, jobs brought in from outside of Aurora and new real assets added to the Aurora market.
Company officials are hoping that if Council approves the tax abatement and income tax incentives, the construction project will begin in the third quarter of 2017 and be completed in the second quarter of 2018.
City Finance Director Tim Clymer reports that the new Trelleborg jobs would generate about $106,280 in income tax, which would be split three ways -- $35,072 to be refunded to Trelleborg, $26,325 for the school district as part of a revenue sharing provision when businesses receiving a tax abatement have a payroll exceeding $1 million, and the remaining $44,883 going to the city.
After the completion of the five years, the school district would continue to receive its 32.5 percent for the life of the 15-year abatement period, while the city would retain 67.5 percent.
Trelleborg's tax abatement proposal is the third major one proposed in the city this year.
In March, the city approved tax incentives for Piping Rock Health Products, which plans to bring 175 jobs initially to Aurora, with that possibly growing to 350 jobs by its fifth year. The firm plans to occupy space at the east end of Lena Drive.
On second reading at Council's June 12 meeting was a tax abatement for Liberty Ford, which plans to move its Solon dealership to property on the northeast corner of Route 43 and Squires Road.
The Piping Rock project involves about an $11.9 million investment, while the new Liberty Ford campus would be worth about $8.5 million.
Phone: 330-541-9400 ext. 4189