GALION — A $7.9 million investment by Covert Manufacturing is expected to result in 35 new jobs at the long-time company, and a new 51,000 square foot building.
At a special meeting of Galion City Council on Tuesday evening, the city authorized an agreement to provide tax incentives to help facilitate the project. The city also agreed to relocate a water line that currently runs through the project area, saving the company approximately $75,000.
Covert Manufacturing officials had requested a 50 percent tax abatement for 10 years through the Community Reinvestment Area (CRA) program. The abatement will be placed on the increase of the assessed property value resulting from this project.
The company intends to invest $2.3 million for the construction of a 51,480-square-foot building within the existing campus. It will also purchase $5.6 million in new equipment.
The agreement is conditional to Covert creating 35 additional jobs, equivalent to an estimated $998,400 in annual payroll.
What is a Community Reinvestment Area?
The City of Galion has a Community Reinvestment Area within the full city limits. Community Reincentives Area incentives are temporary abatements of real property tax for eligible renovation or construction projects — both residential and commercial.
Abatements are determined on a case by case basis by the Housing Council, as authorized under Ohio Revised Code 3735.69:
Any increased property value after the project is completed — as assessed by the county auditor — gets abated for the negotiated term.
For more information on the city’s Community Reinvestment Area, visit the City of Galion website.