City hopes to make up for loss of revenue

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by Jeff Saunders

Reporter

Macedonia -- Though the city expects to see a $200,000-per year loss of income tax revenue due to the loss of Excello and Norandex, it's a far from going broke, according to Finance Director Steven Brunot.

Brunot said tax revenue from other sources will help to make up for the losses this year.

Total income tax revenues were expected to add up to $7.7 million by the end of the year, according to finance department records.

Brunot said the city expects to get $85,000 in extra income tax revenue from businesses in the Crossings at Golden Link, part of a joint economic development district between the city and Northfield Center.

Brunot said this spike is thanks to an income tax settlement with one business that, through an apparent oversight, had not been paying its withholding tax since it opened in 2004.

In addition, Cobra Plastics Inc., with as many as 100 employees, is expected to complete its move to Highland Road from Twinsburg Township later this year. Brunot said it is uncertain when the company will begin operation, so he cannot estimate how much revenue the city will receive for 2008.

However, with its $5 million payroll, Cobra is expected to generate about $100,000 in tax revenue each year.

"I think we're OK this year," said Brunot.

Kuchta said he is hoping that it will not take too long to at least fill the Norandex building.

He also said there are prospects for development on a portion of about 80 acres still available on North Freeway Drive.

"Not all of it pans out, but I would say we get a call from an interested business once a week," said Kuchta.

E-mail: jsaunders@recordpub.com

Phone: 330-688-0088 ext. 3169