By Melanie Yingst
February 28, 2014
TROY —Troy’s remaining Enterprise Zone businesses are continuing to thrive.
Jim Dando, Troy Development Council and EZA manager had positive news to present to the board during its annual report Friday.
Troy companies Clopay and Honda of America added the most jobs to its payrolls from 2012 to 2013, according to the report summary presented on Friday.
Clopay added 55 jobs and Honda of America added 57 jobs in 2013. F & P America added seven more jobs last year as well.
The city of Troy has six current companies enrolled in the EZA agreements: American Honda in 2005; Clopay Building Products in 2006; F & P America in 2004; Ishmael Precision Tool Corporation in 2005; ConAgra Foods in 2010 and another EZA in 2012.
All EZAs were approved by members of the board Friday.
Dando said ConAgra’s two EZA agreements are exceeding its job creation goals despite the chart showing 23 jobs were lost in 2012 to 2013. In 2012, ConAgra stated it had 734 jobs. The report states 711 full-time employees are on staff in 2013.
In the report, ConAgra also is making a small expansion to its production line of frozen school-lunch pizza to adjust for more nutrition standards.
With the expansion in 2010, ConAgra expanded its jobs from 377 in 2010 to its current 711 employees as of Dec. 31, 2013.
Dando also said the company added a full service health clinic at the food manufacturing plant on Dye Mill Road.
All other EZA companies reported more employees in 2013 than in 2012.
Honda of America reported 678 jobs in 2013, including 28 employees of Komyo America and Crown Packaging. In 2012, Honda reported 631 employees at its Troy location.
Honda of America has had an EZA agreement since 2005. The company originally pledged 337 jobs and create an additional 110, plus 20 part-time positions. As of Dec. 31, 2013, Honda reported 576 full-time jobs as well as 102 temporary workers.
F & P America also had a slight increase in full time employees with 666 in 2012 and reported 673 employees in 2013.
Dando said F & P America’s final EZA agreement will expire this year. Dando reported F & P America originally agreed to retain 519 jobs and create four more for a total of 523 positions. Dando reported as of Dec. 31, 2013, the company has reported 673 employees with a number of temporary workers as well.
As of Dec. 31, 2013, Clopay has reported 874 employees at the garage door manufacturing plant on State Route 55 in the former Panasonic building. In 2012, Clopay had 819 employees on its report.
Dando said Clopay’s investment was mainly for manufacturing equipment and is at full capacity use of the building. Clopay also has had to relocated some production back to Russia due to its robust manufacturing additions. The original EZA agreement was for 555 jobs in Troy.
Ishmael Precision Tool Corporation also is exceeding its orginal job creation goal of 32 jobs with its current 38 jobs. The vehicle parts production was directly impacted by the economy recession, but reached its employment goal in 2010. The company added one position to the payroll in 2013.
Dando’s report stated that today, Troy has far fewer active EZA agreements than in the past. It was noted in the report that with the reduction and elimination of the tangible personal property tax on industrial equipment and machinery, EZAs are not as effective as in previous years. Yet, for a major real estate improvements, in regards to company expansion, EZA can still provide an incentive for a company to locate or expand in Troy. Companies are remaining on the program if a building project would be in their future since building additions would greatly increase their taxes above their existing taxes, according to the report. Existing real estate taxes are not eligible for abatement through the EZA program.
TOWNE PARK TIF
It was the 10th annual review for Towne Park Drive’s Tax Increment Financing (TIF) agreement with the city of Troy.
Gregg Harris, a development department, presented the numbers of the Towne Park Drive’s TIF agreement to the Troy Enterprise Zone Tax incentive council on Friday.
The TIF property improvement valuation of the Troy Towne Park continues to decline, although Troy Development Council director Jim Dando and assistant county auditor Scott Moyer stated they believed the bottom of the drop has been noted and values should begin to slowly rebound in the future.
In 2011, the Troy Towne Park was valued at $15.4 million. In 2012 the Troy Towne Park decreased again by 6 percent for a total of $14.5 million.
Harris said the value of Towne Park has decreased by another 3 percent to $14.1 million in 2013.
Despite the real estate value decline, the city of Troy received $235,542 of TIF payments in 2013 which more than paid for the city’s annual bond payment of $129,500 from the TIF proceeds, Harris reported. Harris said it is anticipated that the bond will be paid off well before its 30 year loan period.
In 2012, the city of Troy received $225, 491 TIF payments in lieu of taxes and was able to make its bond debt service payment of $131,600 from the TIF instead of the general fund.
The Troy City Schools also received 23.54 percent of the TIF for 2013. The rest of the payment goes to paying the bond.
Harris also said the property had no new construction or occupancy permits in 2013. The board approved to continue Town Park Drive’s TIF in 2014.
The board approved to continue the TIF agreement with Troy Towne Park in 2014.
The Troy Enterprise Zone Tax Incentive Review Council also tapped Roy Carlson as vice-chairman of the board at the meeting. Scott Moyer is chairman which is set by Ohio statute as the county auditor’s representative.
Melanie Yingst can be reached at (937) 440-5254 or follow her on Twitter @Troydailynews