State Approves Tax Credit for Potential $30M Macy’s Project
YOUNGSTOWN, Ohio – Macy’s Inc. is expected to make an announcement Wednesday regarding a nearly $30 million potential expansion at its Jackson Township fulfillment center following approval today of a state tax credit.
During a virtual meeting Monday, the Ohio Tax Credit Authority approved the 1.472% Job Creation Tax Credit for Macy’s Corporate Services LLC, which coordinates merchandise distribution and logistics functions for the national retailer’s stores.
Under the terms of the agreement, Macy’s would receive the tax credit, which would expire Dec. 31, 2028, in exchange a fixed-asset investment of $29,973,625 at the North Jackson facility, Walt Good, managing director of project management for Team NEO, said during the meeting. That investment would result in the creation of 417 full-time equivalent positions with annual payroll of $16,775,000 by Dec. 31, 2023, and retain 55 positions paying $2.1 million annually.
“We’ve been working with JobsOhio and other agencies on a possible collaboration to add to Macy’s facility in Jackson Township,” Andrea Schwartz, senior director of media relations for Macy’s, said in an email.
“We’re delighted the Tax Authority approved the proposal today and look forward to sharing further information on Wednesday,” when JobsOhio and Macy’s are expected to release a joint statement, she added.
Macy’s also is considering facilities it operates in West Virginia and Illinois for the project.
“The Job Creation Tax Credit is a major factor for the company moving forward in Ohio because of this out-of-state competition,” Good told the tax credit board.
Officials did not respond to requests for information regarding what region the expanded facility might service. The 900,000-square-foot Bailey Road distribution center now serves Macy’s stores in Ohio, Pennsylvania and West Virginia.
Jackson Township Trustee Tom Frost, who said Macy’s had not reached out to the township regarding the project, welcomed the potential expansion for the new jobs for the area and the boosts to the township’s tax base it would bring.
“We’re always interested in people that are looking to invest out that way,” Frost said. Much of that interest is driven by the township’s existing infrastructure and interstate access, as well as its police and fire departments, he said.
Copyright 2022 The Business Journal, Youngstown, Ohio.