The Bell administration and Owens Corning have reached a tentative agreement to keep the company downtown until at least 2030, officials said.
"The city has been working collaboratively with Owens Corning and other community partners over the last several months to develop a competitive incentive package to support a decision by Owens Corning to remain at and reinvest in its current downtown Toledo world headquarters," said a statement from city spokesman Jen Sorgenfrei. "We will forward legislation to Toledo City Council next week for immediate consideration of an agreement to extend the Owens Corning presence in downtown Toledo and their commitment to the city."
The company operates in a building owned by the Toledo-Lucas County Port Authority that sits on land owned by the city. Its current lease expires in 2015.
Included in the deal is extension of the existing tax increment financing structure for an additional eight years. That TIF was critical to the initial financing of the building 20 years ago.The current TIF with the city expires in 2016. The amended TIF will expire in 2024. The TIF extension includes provisions for Owens Corning to make payments in lieu of taxes to Toledo Public Schools in future years.
"Starting in 2018, the school system will get $450,000 a year," said company spokesman Brian McPeak. TPS gets nothing from Owens Corning currently.
Under the deal, Owens Corning will also get the land where its headquarters sits, contingent upon Owens Corning remaining at the site for 15 additional years.
The city must also repave One Owens Corning Parkway, the public road in front of the building in 2015, with funding help from the state.
There are currently about 1,250 workers at the site. The agreement would retain 925 full-time employees. There are an estimated additional 350 on-site contractors as well.
Mr. McPeak said the company has agreed to add 50 new jobs downtown within three years.