ASHLAND – Harris Welding & Machine Company is planning to expand its operations in Ashland, investing money and creating new jobs in the community.
According to an enterprise zone agreement approved by Ashland County Commissioners Thursday, Harris Welding plans to add 7,500 square feet of new roof to the back of its building and construct a 2,500 square foot addition. The building is at 2219 Cottage Street.
Ashland County Commissioners approved a five-year, 75 percent tax abatement for the company Thursday.
In exchange, the company commits to investing $450,000 to $575,000 in the project and to adding three full-time positions for a total additional payroll of at least $105,000. The company also commits to retaining its existing 23 full-time positions in Ashland with a total existing payroll of about $800,000.
The company still must receive approval from the city of Ashland for the abatement.
Ashland Area Economic Development director Kathy Goon said she typically brings enterprise zone agreements to the city council for approval first and then to the county commissioners.
In this case, Goon said she went to the county first because the city council has no regularly scheduled meetings in August.
The council did hold a special meeting Aug. 17 to approve a different enterprise agreement, that one with Central Ohio Medical Textiles, also known as COMTEX. In a special meeting Aug. 24, the city council approved the sale of 7.75 acres of city land to COMTEX. COMTEX will pay $70,000 for the land, and the sale will be done through Community Improvement Corporation.
County commissioners also discussed and approved the COMTEX agreement Thursday.
Commissioner Denny Bittle commended Goon for the work of her staff and board in securing the deal with COMTEX.
“That’s phenomenal,” he said. “To get 75 to 100 jobs is pretty impressive. It’s really cool for this community. It shows the cooperation between the city and county and everybody who worked to get this done.”
Welch said it’s worth noting that Ashland County and the city have become “very business-friendly governments.”
“You have to starve, and then you get hungry and you become very aggressive to get the jobs,” Welch said.
Goon emphasized that while the tax abatements do lessen the new property tax revenue the city and county would receive from new construction, they do not reduce the existing tax base or increase the burden on other taxpayers.
For the COMTEX abatement, which is a 75 percent abatement for 10 years, Goon said the project still will bring in about $40,000 in new property tax revenue each year.
“There’s no money coming out of anyone’s pockets,” she said. “Nobody has to pay extra. It’s new money coming in.”
The city will also receive revenue by selling about $500,000 of water to the company each year, Welch added.
Goon also noted that with some funding from COMTEX plus a state grant secured by State Senator Larry Obhof, the project will involve a $1.6 million investment in running new gas lines to the property.
Goon said that should resolve a lack of natural gas capacity that has been limiting growth in the entire Ashland Business Park.
In addition to approving the two tax abatement agreements Thursday, commissioners also approved 2 percent raises for all county employees effect retroactively Aug. 1.
Bittle said the commissioners wanted to consider raises in January but held off until they knew the county would have the funds available.
Factors that allowed for the raises included lower-than-expected costs for the Shawn Grate murder trial and an higher-than-anticipated sales tax revenue, he said.
