Council to mull Bendix $1.1M deal

Committee approves 14-year incentive package on 550 employees, $55M annual payroll, HQ

Avon City Council Economic Development Committee voted Feb. 17 to unanimously recommend to council a 14-year tax abatement for Bendix Commercial Vehicle Systems.

If approved by council, the city would grant Bendix a community reinvestment agreement which consists of a 14-year, 90 percent tax abatement on improvements and an income tax grant after the abatement ends.

Finance Director Bill Logan said the abatement works out to about $1.11 million annually over 14 years.

The income tax grant will be the equivalent of 0.25 percent of the municipal income tax withheld from Bendix employees for a period of seven years.

The incentives are contingent on Bendix maintaining at least 550 full-time positions at a total annual payroll of $55 million.

Bendix representatives Nestor Piuma and Rusty Hood presented a site plan for a new 199,000-square-foot, $55 million campus.

Piuma, Bendix’s vicepresident of quality and product safety said the facility will include an 82,000 -square-foot main structure, 67,000 square foot lab, and an engineering garage at 10,000 square feet.

The new headquarters is expected to be completed in November, 2021 with ground work scheduled to begin in April, 2020.

In reviewing the process Piuma added that Avon was among several cities who put in offers and while they received more lucrative financial incentives elsewhere, Avon had the whole package in meeting their needs of attracting and retaining talent.

“We had to balance everything. And this area is so vibrant to attract the talent. That was the goal,” Piuma said. “Everything we did was revolving around attracting and retaining talent.

As a company that thrives on innovation and being ahead of the curve, he said Avon’s vibrant community really sold the company.

“It’s the sweet spot,” Piuma said. The headquarters will continue to emphasize the company’s research and development activities and will bring at least 550 jobs to the city, with the new building having a capacity of up to about 670, leaving room for some additional growth. Mayor Bryan Jensen said it isn’t every day that the city has the opportunity to bring in a world headquarters and noted the addition of Bendix will benefit Avon for decades to come. Council will consider passage of the agreement at their regular session on Feb. 24.

Bendix set to leave Elyria The City of Elyria has been working to convince the company to stay put using some creative means.

Mayor Frank Whitfield and members of his administration met with Bendix executives on Feb. 7 after declaring #BendixWeek with a week’s worth of events to show Bendix how much the city cared about them staying.

“We believed since they hadn’t broken ground yet, and they haven’t broken ground yet that they should hear opportunities to stay in the city,” Whitfield said.

“We started off the presentation talking about our understanding of their challenges, that we understand that this wasn’t just about tax breaks and financial incentives, but their strategy is really around re-branding their company, it’s around their image, it’s around attracting and retaining talent; so we spoke to their needs and then we really started to share that their priorities and their focus is very similar to what we have in Elyria.”

City officials did not immediately respond to a request for comment on Avon’s incentives package.

The company located in Elyria announced plans to relocate to Avon by the end of 2021.

The company paid more than $4.5 million in March of 2017 for 58 acres in Avon north of Chester Road between state Route 83 and Jaycox Road, according to property transfer records filed at the Lorain County Auditor’s Office.

Bendix employs about 3,400 people across North America and has 100 locations in 30 countries.