The Morning Journal (Lorain, OH)
Efforts of local business rewarded
The city of AvonLake recognized a number of local businesses May 23 for their commitment to helping drive the city’s economic growth.
In a news conference, city officials formally announced about $75,000 in grants through the innovative Job Growth Incentive Program.
Kick-started in 2012 by former Council-at-Large and Economic Development Committee Chair Dan Bucci, the program provides grants based on withholding tax paid to the city.
Any business operating in the city in a commercial structure that has a higher withholding tax than the previous year is eligible for an
award in the form of 25 percent of that increase.
“We all remember back in 2012 what the status of the economy was,” said Mayor Greg Zilka. “And to the credit of City Council and Councilman Dan Bucci, he came up with this Job Growth Incentive and I feel it’s been very successful and it does give an ‘atta boy,’ if you will, to even the smallest business.”
Zilka added the city gets a lot of satisfaction recognizing businesses with awards as low as$25, thanking themfor their commitment to making Avon Lake a better place to live through increased tax revenue for the city.
“With your growth, we grow,” he said. “And with your growth, we are able to provide city services, not only for you, but for the community.”
Economic Development Director Ted Esborn said the program was created under the notion that local businesses benefiting the city through increasing tax revenue, should be recognized and rewarded.
Esborn used the Job Growth Incentive Program
model recently in teaching a business course at Avon Lake High School about how business supports the growth of cities.
“I think eyes glazed over a little bit when I used the phrase tax revenue,” he said. “But, if there was one point I wanted to leave these students with, it was businesses support cities through income tax payments, and that themore businesses grow, the more they support that city that they’re in.
“And that’s really what’s at the heart of this program is recognizing that fact and when a business has a big year, letting them know we see that and we appreciated that.”
In the sixth administration of the program, the city invited local businesses to accept their checks in person.
Representatives from Chemtron Corp., Jake’s on the Lake, Fontaine Modifications, The Goddard School, Fluid Mechanics LLC. and Duber Automotive attended.
“I really appreciate it and I am honored to be here, and I think I might be the first German,” said Herwig Flug, president and CEO of Fluid Mechanics.
Flug added the company is going to relocate its workshop to Avon lake from Fort
Lauderdale, opening the door to the possibility of more economic growth possibilities for the city.
Harrison Dearth of Fontaine Modifications recently relocated to the city to help grow the business.
Dearth attributed some of the company’s successes to the strength of Ford Motor Co. and its Ohio Assembly Plant in Avon Lake.
“I know Ford Motor Company’s not here, but if it wasn’t for them, this business would not succeed,” he said. “So, as Ford is growing in the commercial market, we hope to capture more business as well.
“And we are actively hiring more folks as we progress. It’s been two years, and we’re looking forward to having a long tenure here in Avon Lake.”
The program is the only one of its kind in Lorain County in providing reimbursement to businesses, said Council President Martin O’Donnell.
“We appreciate, not only getting business in Avon Lake, but also keeping business in Avon Lake,” O’Donnell said. “We wanted to showour appreciation through a program like this, and we want to thank you for all the work you do.”