Economic Development Council accepts all 39 EZA partners
Berlin Gardens LLC is one of the more than three dozen Holmes County companies that have utilized the Enterprise Zone Agreement benefits to build on and hire more people.
The Holmes County commissioner met Monday, March 10 in the Old Jail in Millersburg to approve recommendations of the Tax Incentive Review Council regarding the ongoing Holmes County Enterprise Zone Agreement that has provided growing manufacturing companies with a tax abatement of 50% for 10 years when they agree to meet certain terms.
Among those requirements are agreed upon building construction projects and the hiring of additional employees, with the idea behind the incentive to entice businesses to commit to growing Holmes County’s manufacturing economic landscape.
The resolution includes 39 Holmes County businesses.
According to Mark Leininger, Holmes County Economic Development Council director, three former companies completed their 10-year tax incentive this past year, while three of the existing 39 have yet to receive the benefit of the program because they were still under construction.
The council met Thursday, March 6 to review each of the incentive businesses and remained pleased with the progress, direction and commitment of each of the companies as they continue to drive the county forward economically.
“Not all of the companies met their requirements, but the council recommended that we approve all of them,” said commissioner Joe Miller.
Miller said one reason behind the failure of a few of the businesses to meet the required growth agreements was due to a change in the market conditions of the furniture business.
Miller went on to note that investing in these types of business growth opportunities is what truly drives a county’s economy.
“This is where it’s at, government is not the answer,” Miller said. “People are the answer to the success of Holmes County.”
Leininger said the council was impressed with the devotion and commitment of the entirety of the group of 39 businesses involved with the tax incentive program, stating that overall, the program has done exactly what it was designed to do in growing the manufacturing world of the county.
“There were a handful that had fallen short of their agreements, but overall, if you look at the 39 agreements as a whole, they are associated with projects that have a total capital investment of $181,400,000, with a total of 3,242 jobs retained and 1,099 jobs created,” Leininger said.
“If you look at the commitments associated with those agreements, the job creation number is nearly doubled the job creation commitments, so while there were a few that fell short, overall, the companies are outperforming.”
Leininger said the total tax savings for all 39 companies equaled nearly $630,000, which also means that same amount was created in new taxes for the county.
Leininger added that changes in markets can alter the way companies are able to meet their respective commitments, something that the council takes into consideration when reviewing each company’s progress.
“We always talk with the business owners and inquire about have adjustments been made, are you being a good community partner and are you making other investments,” Leininger said. “There are always other factors to consider other than those initial metrics.”
The overall success of the enterprise zone agreement process along with all of the above factors enticed the council to accept all of its partners.
“It’s really been good for Holmes County,” Miller said of the program. “This is the real deal. This is what makes Holmes County work.”
Hall said the establishment of this program has been instrumental in retaining companies invested in Holmes County and enticing new ones to come into the county.
He added that each of the participating companies have been wonderful community partners in their respective communities, establishing sewer lines, working with villages and becoming vital parts of growing communities.
Miller said it is also exciting to see the companies that didn’t make the requirements retooling their efforts and expanding their companies in new directions.
“That’s what people of Holmes County do, if something isn’t working, they find something that does work,” Miller said.
“This is a very valuable program enticing community investment,” added commissioner Eric Strouse.
Hall said this program is unique and one that most counties don’t implement.
The program is designed for manufacturing companies, while service industry companies do not qualify.