A Fairlawn company is poised to become the first resident of the Granger Township Community Reinvestment Area business district along state Route 18.
S&V Industries has purchased land in the reinvestment zone and plans to relocate its corporate headquarters and 39 workers, Medina County Economic Development Director Bethany Dentler told county commissioners on Tuesday.
The company proposes to hire another 16 employees within three years, bringing its total payroll to $2.5 million.
“They were looking at alternate sites and Granger Township is a good location for the workers they have now,” Dentler said.
S&V provides corporate customers with supply-chain management, engineering and consulting services and warehousing and trucking services on a global scale. It has divisions in Virginia and India.
The CRA formed in August 2013 offers a commercial tax abatement of up to 50 percent for up to 15 years to entice companies to come to Medina County.
The tax abatement applies only to the commercial area along Route 18 and the road frontage along Beach, Granger and Coddingville roads.
Dentler said the company already has bought the 2.1-acre property along Paramount Boulevard north of Route 18 for $125,000.
S&V Vice President Joan Owens said they plan to finish construction of the 10,000-square-foot, $1 million building and be moved in by Dec. 31.
Owens said S&V looked at other properties in Akron, Fairlawn and Copley and the price and location of the Granger property worked best.
While the Federal Community Reinvestment Act allows the township to provide the 50 percent tax abatement — the limit without school district approval — Granger Township trustees Monday met with Dentler to discuss guidelines for placing limits on the tax credit given to each business that applies.
Trustee Richard Pace said officials will consider each new business based on its amount of investment.
“We’re going to look at how many real estate dollars will be invested,” he said. “The larger the project, the more incentive we have to give them full amount of tax abatement credit.”
The new guidelines would offer the full 50 percent, 15-year tax abatement for projects of $3 million or more.
For projects like S&V, rated between $1 million and $3 million, the township will offer the 50 percent credit for seven years, followed by 40 percent for four years, and 30 percent for the final four years.
Improvements of $999,999 or less would qualify for 40 percent credit for 10 years and 30 percent for five years.
“It helps us look at the project and be somewhat consistent,” Pace said. “We will also take into account the type of business and the products or services created there, to determine the impact on township services. That’s where we’ll have room to move the credit up or down depending on what we think it’ll cost the township.”
Pace said the company made a good impression — especially its CEO, Senthil Kumar.
“This company is led by a very dynamic individual and it’s no wonder he’s been successful,” Pace said. “I won’t be surprised if these folks meet all of their goals as far as hiring and expanding.”
Officials said the company already has discussed expanding the building, either on the existing lot or buying an adjacent lot.
Contact reporter Dan Pompili at (330) 721-4012 or email@example.com.