Tax Abatement for Gasser Chair on Council Agenda
YOUNGSTOWN, Ohio – City Council is expected to consider a 10-year, 75% property tax abatement to support a project at Gasser Chair Co. when it meets next week.
The company, on the East Side, plans to expand its manufacturing capacity by converting about half of a 70,000-square-foot structure dedicated to warehousing to additional manufacturing space, said its president, Mark Gasser.
“We have been on a mission to create more of a manufacturing campus,” Gasser said. He expects the project to be complete by year-end. His company’s manufacturing space at its plant on Logan Way is about 100,000 square feet, he said.
Gasser Chair, founded in 1946 by three brothers, manufactures seating products for hospitality and gambling venues.
The abatement legislation is on the agenda of City Council’s housing, community and economic development committee. Other topics include a discussion of the city’s 2017 economic development goals and an update on the Wayfinding project.
According to Mayor John McNally, 20 full-time jobs over three years are expected to result from the projected $923,700 investment in the plant. Draft legislation was submitted to the clerk of council’s office yesterday, McNally said.
The size of the investment is yet to be determined, Gasser said. Factors including the cost of new equipment are still being assessed.
“We’re still tallying up the numbers,” he said.
In November, City Council approved a development agreement that included an 18-month float loan of $923,700 at 0.25% interest backed by an irrevocable letter of credit and a water/wastewater grant of up to $50,000 for the project.
The company “has not exercised any of that at this point” and is considering its financing options, Gasser said.
“We are going ahead with the project” regardless of whether it takes advantage of the city financing or other financing, he affirmed.
After the legislation is discussed at this week’s committee meeting, it is expected to be on the agenda of the March 15 meeting, McNally said.
Copyright 2023 The Business Journal, Youngstown, Ohio.