Lordstown OKs tax agreement for Old Dominion
Council approves enterprise zone for Old Dominion
LORDSTOWN — Village council has given its approval for an enterprise zone agreement with Old Dominion Freight Line Inc. for exemption of 40 percent for 10 years on real and tangible personal property taxes.
Mayor Arno Hill said the freight trucking company is planning to construct a terminal of more than 30,400 square feet on 15.2 acres off Tod Avenue near the planned General Motors / LG-Chem multi-billion-dollar electric vehicle battery-cell manufacturing plant.
The Trumbull County commissioners also are scheduled to act on the tax exemption this month.
Trumbull County Commissioner Frank Fuda said Tuesday the issue likely will be acted upon next week.
Hill said he would expect once commissioners give their approval, construction on the project will begin immediately.
Old Dominion requested a tax break from the commissioners to abate a portion of property taxes on the new terminal. If approved, the North Carolina-based company is planning a $6 million project.
Officials have said the trucking company’s facility would have 59 docks, fuel islands and other equipment. Old Dominion already has a facility on North State Street in Girard, but the property is landlocked, eliminating expansion possibilities.
The company employs 48 in Girard. It plans to hire 20 new employees in the next five years, with hopes for bringing on more after that.
Nicholas Coggins, assistant director of the Trumbull County Planning Commission, has said the company’s goal is to hire 40 over 10 years, but it committed to getting 20 new by five years.
County commissioners in May had a public hearing on the tax request, and no objections were raised.
A rough estimate based on like buildings in the area has Old Dominion saving $27,500 per year in taxes. The actual savings cannot be determined until the building is constructed and appraised for tax purposes.
Officials with the Youngstown Warren Regional Chamber have said the location gives the company easier access to the Ohio Turnpike and provides the opportunity for future growth.
Lordstown’s planning commission in March gave site approval for the project.
Old Dominion has 237 service centers in the United States. Its contractor for the Lordstown project is Furst Construction of Salt Lake City.
In other business at its meeting Monday, council:
• Approved paying the Lordstown Board of Education $50,808 as part of an income-sharing agreement with the village generated from employees of Anderson Dubose Inc. Hill said any company with a payroll of more than $1 million is required to have an income-sharing agreement with the schools;
• Is reviewing a proposal submitted from the Lordstown Board of Education about sharing the income tax over 15 years for the planned battery-cell plant, which is the life of an approved 75 percent abatement. The board has proposed 75 percent to the village and 25 percent to the schools for years one to five and 50-50 sharing of taxes for years six to 15. Hill said the proposal was being reviewed by council, but no action has been taken. Village officials previously asked the school district not to take any income tax even though the district is entitled to it.
• Set the next meeting for 6 p.m. June 15 and then will meet as needed during July and August.