by Jeff Saunders
Reporter
Macedonia -- A company planning to bring several dozen new jobs into the city should be operating in the next few months.
City Council unanimously approved April 23 the payment of up to $500,000 in grant money, payable over 10 years, as an incentive to bring tanning-booth maker MT Manufacturing Inc. to South Freeway Drive.
"They will come in and bring jobs to the city," said Councilor Shane Barker.
"It would enhance our community because of the fact that business begets business," said Mayor Don Kuchta.
Bob Garber, MT Manufacturing's real estate advisor, who with company accountant Michael Colagiovanni was speaking to Council on behalf of the company, said MT Manufacturing would be moving into the vacant half of a 65,000-square-foot building.
"We have the right to expand into the remaining section," said Garber, adding that the property is large enough for the eventual expansion of the building.
Garber said the company anticipates it will complete its move by July 1.
The grant money is being offered under the Macedonia Occupancy Program, an incentive program for new and current employers who are creating at least 10 new jobs with an added payroll of at least $250,000 per year in the city.
Colagiovanni said that the company expects to have about 50 employees by the end of the year, all but two at the company's Macedonia headquarters. Company payroll will be about $5 million, including bonuses and sales commissions, he said. City Finance Director Anna Musson said this would generate about $100,000 a year in employee income withholding tax for the city.
Under the MOP agreement approved by Council, the city will pay the company the equivalent of either half of the city's employee income tax revenues from the company or $50,000 per year, whichever is smaller, for 10 years beginning in 2010. If the company leaves the city for any reason during that 10-year period, the company is required to reimburse the city for all payments it has received up to that time, the agreement states.
City Law Director Joseph Diemert said that should the company go out of business, the city should be among the first in line to get its money back.
"In a bankruptcy, a tax debt is the first to be paid," he said.
Garber said MT Manufacturing is a new company being formed from the merger, completed April 21, between President and Chief Executive Officer Scott Thomason's Solon-based Magic Tan and Dallas-based Mystic Tan. Both company's, he said, manufacture "sunless" or spray tanning booths.
"It's become a very big industry today," said Garber.
Garber said that because of the merger, Magic Tan's 13,000-square-foot Solon headquarters is now too small. Garber also said that bringing MT Manufacturing to the city hinged on the MOP, but Thomason, a long-time Macedonia resident, considers the city his first choice.
Colagiovanni said that when the company initially opens in Macedonia, it will probably have roughly 25 employees, but about two dozen more will be hired in the following months.
"There will be a lot of new hires because a lot of the employees in Texas are opting not to come here," said Colagiovanni.
He said that company sales are expected to be about $35 million annually.
"And we project in the next few years to have $50 million," said Colagiovanni. "For the economy the way it is, the growth has been tremendous."
E-mail: jsaunders@recordpub.com
Phone: 330-688-0088 ext. 3169