Crescent-News.com - Council learns of job creation incentive program

By TODD HELBERG

cnedit@crescent-news.com

A new job creation incentive program may be offered by Defiance City Hall following Tuesday's city council meeting.

Council also let lie an ordinance approving designs for improvement of North Clinton Street in anticipation of a larger project in 2010 and passed legislation authorizing a contract for pavement markings.

And, council learned that the city planning commission has okayed bus traffic on Rosewood Avenue to the new Carter Road elementary school.

During council's study session, Defiance Community Improvement Corp. (CIC) executive director Jerry Hayes presented information on the proposed tax incentive program.

According to Hayes, the program would provide cash incentives -- or other benefits, such as breaks on utility services -- to a prospective company planning to create jobs in Defiance. The money would be allocated by council, but provided through the CIC office.

How much money new or expanding companies would receive depends on the payroll they would create. For example, a $250,000-$499,999 annual new payroll would qualify for $750-$2,500 per year while the figure would increase to $1,500-$13,000 for a new payroll of $500,000-$2,499,999. The respective figures for payrolls of $2.5-$4 million and those over $4 million would be $9,400-$30,000 and $25,000-$60,000.

The maximum number of years for such an incentive would range from three to 10, depending upon how many jobs are being created.

A key reason for the program, according to Mayor Bob Armstrong, is the ability to tell prospective companies that the city has a job incentive program. This follows recent changes in Ohio tax law which effectively curtailed some local incentive programs.

"When they (companies) ask, 'Do you have a job incentive program?', we can say yes," explained Armstrong.

All councilmen agreed with the program's need, but At-large Councilman Ellen Upp said she would like a little more notice from CIC or administration officials when a company is interested in coming to the area. However, city administrator Jeff Leonard and others noted that companies value confidentiality when examining several competing sites.

"I'm only suggesting that when you sit down to the table and say what you can do for these people, ... (council economic development committee) should be involved," said Upp.

At-large Councilman Joe Eureste said council would still make the decision on an incentive package, and it also has a representative on the CIC board.

The only ordinance approved okays designs for improving North Clinton Street, south of U.S. 24. Some driveway entrances to businesses there would also close in an effort to make travel more safe. The work would be conducted in anticipation of expanding the U.S. 24 interchange in 2010 from three to five lanes. Eighty percent of the interchange's construction will be covered by the Ohio Department of Transportation.

Improvements on North Clinton will include constructing a concrete median to divide traffic and building turn lanes.

Also approved was an ordinance authorizing the administrator to contract for pavement markings. The cost is approximately $20,000.

In another matter, Leonard told council that on Tuesday the city planning commission recommended modifying the site plan for the new elementary school on Carter Road by allowing bus access only via Rosewood Avenue.

The issue will now go back to the city's traffic commission.

If the change is ultimately allowed, Leonard said Rosewood will have to be extended to the east. He said this may require legislative action by council.

Some Rosewood Avenue residents have expressed opposition to the idea.

On another front, Armstrong reviewed his weekly roster of community activities.

These include the honoring of Defiance Truck and Transfer for 75 years Thursday at 7:30 p.m. at the Defiance Arts and Media Center, 319 Wayne Ave.; AuGlaize Village's Halloween lantern tours on Friday and Saturday; and the Sleepy Hollow Fest scheduled from 1-5 Saturday at the fortgrounds.