Source: The Chronicle
AVON, Ohio — Avon City Council officially set out the welcome mat for Bendix Commercial Vehicle Systems, approving the incentives that were part of what made Avon an attractive destination for the company to build its new world headquarters after it chose to leave Elyria.
Bendix will receive a 14-year, 90 percent property tax abatement on new structures at their site, followed by a seven-year cash incentive equal to 25 percent of city income tax withheld from the new employee positions created.
In a meeting last week, Avon Finance Director Bill Logan said the 14-year property tax abatement will come to about $1.11 million per year, based on the assumptions of today’s property tax rates and a $55 million improvement to the property.
The incentives are given with a commitment from Bendix to maintain at least 550 full-time employees with an aggregate salary of at least $55 million.
Plans call for the $55 million headquarters to occupy a new 199,000-square-foot campus on Chester Road, divided between 82,000 square feet of office space, 24,400 square feet of common area, 67,600 square feet of lab space and 10,000 square feet for an engineering garage.
Two Bendix executives — Nestor Piuma, vice president, quality and product safety, and Rusty Hood, vice president, general counsel and secretary — laid out the company’s plans last week at a meeting of the city’s Economic Development Committee.
It is expected that groundwork on the new Bendix headquarters will begin in April to allow for an opening in November 2021.
The opportunity to land a headquarters that brings a $55 million investment and more than 500 jobs rarely comes around, said Mayor Bryan Jensen. Still, he said Avon is sad to see its success come at the expense of Elyria, where the departure of Bendix will cause an estimated $1.5 million loss of income tax revenue for the city.
Stay informed. Sign up to receive The BRAKE Report Weekly.