5/6/14 Commissioners grant tax abatement on Dundee furniture company expansion
By Nick Sabo
May 6, 2014
416
SUMMARY: Winesburg Chair Co. pledges to add 25 jobs over three years in exchange for abatement
The Holmes County Commissioners have approved a tax abatement for a Dundee furniture business seeking to expand operations with a new, 40,000 square feet facility.
Winesburg Chair Co. has been granted a 50 percent, 10 year real estate tax abatement on the new facility, to be located at 2871 U.S. Route 62. The tax abatement will save Winesburg Chair an estimated $7,400 on real estate taxes every year for the life of the abatement. In exchange for the abatement, Winesburg Chair has pledged to create 25 new full time jobs over three years, generating $636,000 in new payroll.
The abatement was engineered through the countys enterprise zone (EZ) program. The program is through the Ohio Department of Development (ODOD) and is administered locally by the Holmes County Economic Development Council. It seeks to retain businesses and encourage growth through tax incentives.
The new facilitys primary function will be to manufacture hardwood furniture products, according to Winesburg Chairs EZ agreement.
In its application to the ODOD, Winesburg Chair states that successful marketing has resulted in increased demand for its products, requiring action be taken to expand the operation and facilities which are currently functioning at capacity. The new structure will accommodate needed fabrication assembly.
The new facility will be located at Winesburg Chairs current address, according to the EZ application.
Winesburg Chair writes in its ODOD application that it is seeking the tax abatement so the company may complete the project in its entirety at this time.
Construction of the building is estimated at $1.4 million, with a further investment by Winesburg Chair in new equipment. Equipment is not taxed by the state.
Construction is scheduled to begin in June and wrap in December, according to Winesburg Chairs EZ application.
Winesburg Chair has pledged to create 10 new full time jobs in the expansions first year, with 10 more in the second year following and five in the third year.
The EZ is the fifteenth active agreement of its kind in Holmes County. The agreements have created a total of 174 new full time jobs as of March, according to economic development council executive director Tom Wilke.
County Commissioner Joe Miller said the EZ program is helping to create and retain jobs.
This really has been working for us in Holmes County, Miller said. Weve been creating more jobs and were really fortunate.
Winesburg Chair currently employs 55 persons full time. It manufactures high quality hardwood furniture.
