Avon Lake Gives Back $215K in Tax Revenue to Businesses
Distribution part of Job Growth Incentive Program
More than 130 Avon Lake companies are receiving checks this week courtesy of the new Job Growth Incentive Program.
At a press conference Feb. 22, Mayor Greg Zilka handed out checks to (four) local businesses.
Rebates, representing 25 percent of (income tax) collections for the 2012, were awarded to companies that posted a growth. In total, $214,448.72 was distributed to 133 Avon Lake companies.
Thogus (pronounced Tow-gus) is in expansion mode. It received a check for $7,858.
The program was initiated by Councilman Dan Bucci to help spur economic development in the city.
“Avon Lake needs to do something to differentiate itself,” Bucci said. “Through this Job Growth Incentive program, I think that’s one way to do that. We wanted to do something to put our money where our mouth is.”
The program looks at a company’s total income tax paid for a first year, then compares it to the following year’s tax collection. Saying that an increase in income tax paid represents a success, either due to expansion, raises or bonuses, the increase indicates growth.
Businesses then get a 25 percent rebate of the year’s increase returned.
The rebates apply across the board—regardless of a businesses size or age.
Businesses receiving checks on Feb. 22 represented the broad spectrum.
Marty’s Cycle, in business for 26 years, represented a longstanding local Avon Lake business while Emerge, which opened in late 2012, represented newcomers. Hinckley selected Avon Lake as its national headquarters.
Matt Hlavin, president of Thogus said the city of Avon Lake played a “pivotal role” in the company’s expansion.
“You guys create a lifestyle in Avon Lake, Hlavin said to city leaders who were present, including Councilman John Shondel and Council President Martin O’Donnell. “It’s a business friendly community.”
Marty Hasenstaub, owner of Marty’s Cycle Center, said 2012 was his business’s best year ever. The company received a check for $184.
Ed Skimin of Emerge, which operates LorainCounty.com as well as the city’s website, said it noticed the building on SR 83 on his way back from Avon Lake City Hall and wanted a building that would attract customers, not necessarily customers.
The company received a rebate check for $353. Hinkley Lighting received a check for $12,034. Hinkley president Rick Wiedemer, was on hand to accept the check.