ASHLAND — Ashland City Council on Tuesday approved a tax break to a business that wants to expand its Cottage Street site.
The tax break, known as an enterprise zone tax incentive, gives Harris Welding and Machine Co. a 75% discount on its property taxes for 10 years.
Ashland Mayor Matt Miller said the company’s intention is to add another 15,000 square feet onto its existing 35,000 square-foot building at 2219 Cottage Street.
“And they want to do so so they can buy additional equipment that they would use in their processes, as well as have more space to store materials under roof,” Miller said.
Miller said he and Cameo Carey, the city’s economic development director, toured the facility recently and spoke with John Kochenderfer, Harris Welding’s owner, about the plans.
“We were impressed,” he said.
JobsOhio, the state’s private economic development corporation, has pledged a $25,000 grant toward the project.
The expansion is expected to cost between $1.6 million and $1.8 million, according to the city’s ordinance adopting the tax break.
It will also add two permanent full-time employees on top of Harris Welding’s payroll of 24.
The expansion, when complete, is expected to add another $105,000 to its $950,000 of yearly payroll earnings.
A three-pronged strategy
The tax abatement means Harris Welding will pay only a quarter of the property taxes due on the building’s new assessment.
Miller said these kinds of deals are struck to foster economic growth in Ashland.
“When it comes to economic development, we have a three-pronged strategy: retention, expansion and attraction,” Miller said.
The deal comes when residents and entrepreneurs face increasing property values that are driving tax assessments upward. The county’s recent triennial update found that property values in the area have increased by an average of 36% over the last year.
Without the new addition, the company paid an average of $13,300 in property taxes between 2021 and 2023, according to county auditor records.
The property tax bill jumped to $16,739 this year — a 25.5% increase from the past three years.
It’s unclear how Harris Welding’s expansion will change its property tax assessment, but the 75% tax break will curb the burden.