Maumee OKs firm for jobs program

6/27/2007

One of Maumee's best-known companies has qualified for the city's cash-for-jobs program.

City Council last week approved an application from The Andersons Inc. for participation in Maumee's Job Creation and Retention Grant Program.

The company will receive $10,000 a year for nine years. In return, The Andersons will expand its operations, moving people into 1283 Conant St. and 480 West Dussel Dr.

The company anticipates that within three years it will have 75 full-time employees at the two sites with an annual payroll of about $2 million.

Fifty current workers will be housed at the Conant Street address and 25 new employees associated with the company's ethanol operation will work at West Dussel Drive, said Dale Fallat, The Andersons' vice president for corporate services.

"It's good news. It'll be growth all the way around," Mr. Fallat said.

In exchange for the annual payments, The Andersons agrees to maintain this work force and payroll in Maumee for a minimum of 13.5 years. Failure to do so could require the company to pay back to the city all of the payments it received under the program.

With an income tax of 1.5 percent, Maumee would collect $30,000 annually from a $2 million payroll.

"It's not tax abatement, because it doesn't involve real estate taxes or affect school millage," Maumee administrator John Jezak said. "This has proved to be a handy tool to encourage investment in our community."

Grant payments will start a year after occupancy begins at the sites. Payment is always a year in arrears so the city can verify payroll withholding, Mr. Jezak said.

In other action, council authorized paying an additional $75,480 for the storm sewer project in the area of Parkway and Chantilly drives, bringing the total cost of the project to $2.6 million.

After installation of the storm sewer, it was determined that the soil was not firm enough to hold new pavement. Rather than install pavement that might fail in a few years, officials decided to reinforce the unstable ground with a membrane material before repaving.

Council also approved paying $14,298 for a 2008 F-250 four-wheel-drive pickup for the service department, and increased spending on the Rolf Park Walkway project by $3,432.02.

A snow plow and dumper insert approved for the truck will cost another $7,250. The park project is funded by a $47,000 community development block grant.

Council also approved the appointment of Melissa Jessup to the position of firefighter, authorized the purchase of a leaf loader for $15,009, and agreed to terminate the 1998 Enterprise Zone agreement with Stoneco Inc. because of changes in Ohio's tax code.