Honda supplier gets $300K tax credit to bring 85 jobs to Springfield

A Japanese auto parts supplier is one step closer to creating 85 new jobs and taking over a Springfield industrial park after receiving tax credits valued at about $300,000 on Monday.

Members of the Ohio Tax Credit Authority voted unanimously Monday to approve a 1.217-percent, seven-year tax credit for the Topre America Corp., which has pledged to take over Springfield’s Champion City Business Park.

Topre plans to invest $55 million and create at least 85 jobs, with the expectation more workers could be added over the next several years. The 85 jobs the company has pledged to bring to Springfield would generate an estimated payroll of more than $3.4 million, according to state documents.

RELATED:Honda supplier to add 85 jobs, invest $55M in Springfield plant

City leaders are also expected to offer an incentive package, although details haven’t been finalized, said Tom Franzen, assistant city manager and director of economic development. Springfield City School District board members also need to approve any potential agreement, but it’s possible city commissioners could review a proposal as early as May 9, Franzen said.

The incentives are important in part because Springfield competed with sites in New York and Pennsylvania for the project, said Horton Hobbs, vice president of economic development for the Chamber of Greater Springfield.

“We had to be very competitive and thankfully we were,” Hobbs said.

READ MORE: Honda to invest $124M for new wind tunnel in East Liberty

The state’s incentives will begin in 2019 and expire in 2025. The Job Creation Tax Credit is performance-based, so the estimated value assumes the company meets its job creation and payroll commitments. Topre wouldn’t receive the incentives if it falls short on those measures.

The incentives would allow the company to claim a 1.2-percent credit on Ohio employee payroll related to the new jobs created, said Lisa Colbert, a spokeswoman for the Ohio Development Services Agency. Businesses still pay 100 percent of their withholding taxes.

As part of the agreement, Topre would be required to maintain its operations in Springfield for at least 10 years, according the state. The manufacturer didn’t respond to requests for comment on Monday.

DETAILS: Topre plant in Springfield to bring new life, jobs to historic site

SOCIAL MEDIA: Follow this reporter on social media

Topre specializes in stamping and producing high-strength steel, which is in demand as automakers work to produce vehicles that are strong enough to withstand crashes but light enough to improve fuel efficiency. The company initially announced plans in December last year to create 20 jobs as part of a project to manufacture parts for the Acura MDX in Springfield.

But the manufacturer quickly secured additional work. Just weeks ago, company leaders announced the initial $10 million investment had grown into a $55 million deal to create 85 jobs in a 146,000 square-foot facility.

Topre’s plant will go on a roughly 30-acre industrial site that once housed an International Harvester/Navistar factory until it closed in 2002. The business park was completed in 2013 after a decade of cleaning up industrial contaminants and improving infrastructure.

RELATED:Honda supplier may be expanding its investment in Springfield

“It’s key to activate a long-idle site,” Franzen said of the business park. “It’s been over 15 years since that neighborhood has seen this kind of activity. We’re excited about bringing those job opportunities to that area of town and the community.”

Company and local economic development officials are now working to finalize details about the company’s investment, Hobbs said. The company is also finalizing building design plans, and construction activity is expected to begin at Champion City as early as May.

Reader Comments ...

Next Up in Business

Recalls: Dangerous baby carriers and poisonous tables 
Recalls: Dangerous baby carriers and poisonous tables 

Parents and those cleaning up from this week’s ice storm should check to see if they have this week’s recalled products. Jobs news: Amazon hiring in Butler Co.  Active Series baby carriers by LILLEbaby are being recalled because a clip can detach and cause your child to fall, according to the Consumer Product Safety Commission. There...
Beware of shady door-to-door energy sales tactics
Beware of shady door-to-door energy sales tactics

It’s the time of year for door-to-door pitches to get you to switch your energy provider, but consumers need to be wary of shady sales tactics. Norm Krebs of Dayton said he was pressured into an energy contract with a new supplier. Instead of saving money, as he was promised — his bill skyrocketed.  He listened to a pitch from a salesperson...
Dayton Children’s gets approval from accreditation agency
Dayton Children’s gets approval from accreditation agency

Dayton Children’s Hospital is fully accredited by a leading industry rating agency after a preliminary denial earlier this year. The Joint Commission, a nonprofit that accredits hospitals and other health care businesses, had updated the hospital’s accreditation status following a survey at the hospital on Oct. 30. CEO Deborah Feldman had...
Amazon reportedly chooses second headquarters: What it means for Ohio
Amazon reportedly chooses second headquarters: What it means for Ohio

Amazon will reportedly split its second headquarters between New York and Virginia, the Associated Press reported this morning. Instead of one location, Amazon is expected to announce early Tuesday it will build two offices — one in New York and one in Northern Virginia near Washington D.C., the AP reported. The search for a second headquarters...
Cactuses, street graffiti and thousands of sandwiches: The tactics cities used to try to lure Amazon
Cactuses, street graffiti and thousands of sandwiches: The tactics cities used to try to lure Amazon

The guessing game is over: reportedly plans to open new corporate outposts in Northern Virginia and New York, two already crowded metropolitan areas that are likely to become even less affordable with a new influx of tech workers. In some ways, the decision isn't surprising, as Amazon had made it clear that the company wanted to base its...
More Stories