WARREN, Ohio – Trumbull County commissioners on Wednesday unanimously approved a 10-year, 75% enterprise zone tax abatement for Charles Manufacturing Co.
Charles Manufacturing plans to expand its facility at 3021 Sferra Avenue by 1,350 square feet, a $250,000 investment, which will allow the company to hire additional engineering and accountant personnel while increasing the payroll by $400,000.
Commissioner Denny Malloy was initially on the fence about the project, questioning if it qualified for such a large enterprise zone tax abatement. His questions led to the matter being tabled last week.
On Wednesday, the project got glowing reviews from Malloy after he heard the presentation on the project and toured the facility Tuesday.
“I’m happy to brag about this company after seeing it,” Malloy said. “It is the epitome of the American dream, where he started out in the garage and worked his way up. I walked in there, and it just has that sense of hard work.”
Malloy talked about the pride he saw in the employees and the tiny office space shared by the owners, Dave and Chris Frazier.
“Their chairs literally were touching each other back-to-back when they were in there working,” Malloy said, adding Frazier needs more space for a new engineer and other employees but has nowhere to put them.
“The light went on to me and I said, ‘This is what this is all about,’” Malloy said. “This is us as a community, city, county, working to give this guy a hand up so that he can expand his business and shop more products across the country. … This is a guy that’s going to reinvest in our community, and we’re going to benefit in the long run because of it.”
Commissioner Rick Hernandez said while there is a dilemma involving property taxes and a push for property tax reform, he believes commissioners are still responsible for stimulating economic activity.
“I believe that this is the right move for this company to expand and to hire additional employees,” Hernandez said. “And as I’ve always said, Trumbull County is open for business.”
Commissioner Tony Bernard said he agrees with Hernandez about helping economic development in the area and added the tax abatement is not taking money away from the schools or the taxpayers because Charles Manufacturing will continue to pay what it is currently paying in taxes.
“This is just an additional break for them that gives them some time to get everything under control, to help control their costs so they can expand. And I think that’s what government should do,” he said.
Bernard questioned whether the commissioners even have the ability to disapprove of an enterprise zone tax abatement following information presented Tuesday by Nick Coggins, assistant planning director.
On Wednesday, Coggins clarified his statements by saying commissioners have the power to turn down such an agreement if the administrative process is not being followed by his office or the municipality or community negotiating and approving it.
“But as far as the terms and length of, percentages, that’s something that’s not within your power at this time,” Coggins said.
Last week, Malloy said he believes there should be a rubric so commissioners can approve or disapprove tax abatements based on the scope and scale of a project, giving maybe a lesser percentage or number of years to a smaller project. Coggins said Tuesday the agreement created in 1994 gives the power to negotiate those amounts to the 30 municipalities and communities involved in the enterprise zone.
Bernard said he is in favor of treating small businesses the same as larger ones.
“There’s a lot more small business owners that need help,” Bernard said.
David Wilaj, director of project management with Lake to River Economic Development, thanked the commissioners for approving the abatement.
“It’s just good to see those family-owned businesses getting the support by the community, getting the support by the state,” he said, adding that Charles Manufacturing also has proven how much it works with other local companies throughout the region.
Frazier on Tuesday said the company supplies steel parts to more than 130 customers, many of them local companies.