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Decision on Kraft expansion coming to Coshocton to be made soon

| October 1, 2014

004COSHOCTON – The Coshocton County Commissioners met with Dorothy Skowrunski, executive director of the Port Authority, to sign an Enterprise Zone Agreement with Kraft Foods. Kraft is looking to expand its Oscar Mayer meats manufacturing operations either in Coshocton or at a site in Missouri.

An enterprise zone is a program by the state which allows counties, cities, villages, and townships to attract businesses and offers real estate tax incentives where they will wave a certain amount of taxes for a certain period of time. The Enterprise Zone Agreement with Kraft Foods will apply a 75 percent real estate tax abatement over the next 10 years.

The Coshocton Port Authority presented two incentives with the application, the JobsOhio Job Creation Tax Credit of 60 percent for 10 years approved by the Ohio Tax Commission Authority and a Port Authority Sales Tax Savings Financial Structure.

A final decision on whether Kraft will expand in Coshocton or Missouri is expected to be announced no later than by the end of October. It is estimated to create at least 300 jobs.

During the meeting, the commissioners also approved:

–        A motion to approve the vacation request of the Crawford Township Trustees for the vacation of all alleys and streets east of CR 10 in the Village of Chili, D.R. 7, Page 359, Crawford Township. However, Crawford Township Trustees shall retain the right to own, operate, maintain, and expand, as necessary, a storm sewer system in the vacated cross street.

–        A motion to sign an Enterprise Zone Agreement with Kraft Foods Group Inc., The Project: Kraft shall expand its Oscar Mayer meats manufacturing operations at its property. Said property is located on Tax Parcel Numbers 044-00000727-00 as the same is known and designed on the Coshocton County Auditor’s revised list of lots in the City of Coshocton, Ohio. The purchase price for the plant expansion project, exclusive of due diligence expenses, financing costs, and closing costs, is estimated to be $43,000,000. Kraft estimates that projected manufacturing facility improvements shall cost $23,000,000. In addition, Kraft will purchase and install new machinery and equipment estimated at $20,000,000.

The project is expected to begin in November 2014 with all acquisitions, renovations, construction, and installation completed by October 2017.

The total investment of this occupancy project is a significant new investment and is greater than 10 percent of the market value of the facility assets already in place on the project site prior to such expenditures, as evidenced in Exhibit A.

Kraft shall use its best efforts to create within a time period ending December 2017, 300 full-time, permanent employees and no temporary or part-time employees. Kraft’s estimated schedule for hiring is as follows: 80 full-time, permanent employees by Dec. 31, 2015; an additional 100 full-time, permanent employees by Dec. 31, 2016; and an additional 120 full-time, permanent employees by Dec. 31, 2017.

Employment of this number of employees will result in approximately $8,736,000 of additional annual payroll for Kraft. The following is an itemization by the type of new jobs created: For 300 full-time, permanent jobs, (assuming a 40-hour week) at an average of $14 per hour per employee, an additional or new payroll of $8,736,000 is established. The job creation period is expected to begin November 2014 and end no later than December 2017.

Kraft shall provide to the proper Tax Incentive Review Council any information reasonably required by the council to evaluate the enterprise’s compliance with the agreement, including returns filed pursuant to Section 5711.02 of the Ohio Revised Code if requested by the council.

City and Commissioners hereby grant Kraft a tax exemption for the real property and real property improvements made to the project site pursuant to Section 5709.632 of the Ohio Revised Code.

The agenda also included:

–        A motion to pay the fourth quarter 2014 Port Authority payment in the amount of $12,500 as requested by Robin Schonauer, budget director

–        A motion to accept the resignation of Collin Greene as a paramedic at the Coshocton County Emergency Medical Services effective Sept. 24, 2014.

–        A motion to accept the resignation of Carolyn Ryberg as a paramedic at the Coshocton County Emergency Medical Services effective Sept. 30, 2014

–        Receive the dog warden’s report for the week ending Sept. 29, 2014 with 11 dogs picked up by the warden, four dogs brought in as strays, 21 citations issued, 35 calls handled, 11 dog licenses sold, four late fees paid, three dogs sold, five dogs redeemed, two dogs per owner surrendered, $45 in boarding fees collected for a total of $430 in fees collected.

–        A motion to appoint Ryan McPeek to serve on the Convention and Visitor’s Bureau effective immediately with a term ending Dec. 31, 2015

–        A motion to sign Change Order #1 with Motorola Solutions for the Coshocton County MARCS Tie-In to change the completion date from May 12, 2014 to Dec. 31, 2014.

–        A motion to sign the CDBG Participation Agreement with the City of Coshocton for the FY 2013 CDBG Program as requested by John Cleek, CDC of Ohio.

–        A motion to sign a Partial Certificate / Payment Request in the amount of $10,000 to Staley Technologies for the repeaters in the vehicles to enhance the MARCS portable coverage

–        A motion from Bernie Minet to allow Keith Shriver and Jennifer Kenworthy to travel to Atlanta, GA, to pick up a newly-purchased EMS vehicle.

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Category: Government

About the Author ()

I have been employed at the Coshocton County Beacon since September 2009 as a news reporter and assistant graphic artist. I am a 2004 graduate of Newcomerstown High School and a 2008 graduate of Capital University with a bachelor’s degree in Professional Writing. I am married to John Scott and live in Newcomerstown. We have two beautiful daughters, Amelia Grace Scott and Leanna Rose Scott.

Comments (1)

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  1. Tam Pow says:

    Ya y take the jobs from our plant so u all can have more jobs. We have people worried sick about there jobs while u all r happy to have more jobs to come. Its crazy that it is going this way. Our kraft is laying off because of it going to ur Kraft.