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.
Those rebates spanned from $11.13 to Fifth Third bank (for its Avon Lake location) to $76,642.36 to Ford Motor Company headquartered in Dearborn, MI.
Representatives from Hinkley Lighting, Marty’s Cycle Center, Emerge and Thogus were on hand to accept their company’s checks and give a few comments.
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.
B. H.
5:46 pm on Friday, March 1, 2013
How does giving money under the “Job Growth Incentive Program” to companies that are already established in Avon Lake spur economic development? These companies already know the benefit of investing n Avon Lake and are most likely not going to move out anytime soon. So after asking the police, fire, and city service workers to take a 2 year pay freeze our leaders are giving back $214,448.72 from the operating budget to business’s that are already in town?
Seems to me a tax incentive program to help fill more of the vacant land on Pin Oak would have made more sense.
AvonLaker1234
11:41 am on Saturday, March 2, 2013
I agree with you. If the city leaders are going to have a program in place use it to attract NEW businesses. Seems to be more of a corporate welfare program versus true economic growth strategies. Personally since I've decided not to move will the city offer me a rebate...oh wait we need more money to fund half baked programs like this.
B. H.
9:47 am on Monday, March 25, 2013
There were at least 2 businesses that received rebate checks that moved out of Avon Lake and into Avon last year! Didn't anybody think to check on these details before they sent out the checks? I wonder if any of the recipients realize that by law, they will receive a 1099 tax form on that money?