TALLMADGE — A local firm intends to increase its workforce by bringing 60 new jobs to Tallmadge over the next five years through a New Jobs Program Grant.
Trans-Foam Inc. manufactures foamed plastics used for cushioning or insulation. Trans-Foam is renovating a building at 242 Southwest Ave. to expand its existing business, reports Rita Weinberg, planning director / economic developer for the city of Tallmadge. Lemac Akron Industrial was the previous property owner.
Weinberg says Trans-Foam is also contemplating a second phase, 20,000- to 30,000-square-foot addition to this building, sometime in the summer of 2019.
"These expansions will create an estimated 60 jobs," Weinberg says. The New Jobs Program Grant will provide Trans-Foam with a rebate of a portion of the income taxes collected from these new jobs. Weinberg explains that this is a five-year rebate program of income taxes from new payroll. The new payroll must exceed $250,000 and the jobs must be retained for the entire grant period. The company estimates at least 60 new jobs with a qualifying new payroll of $1,872,000, Weinberg reports. The income tax revenue at 2 percent would be $37,440.
The New Jobs Program was created legislatively in 2006. Weinberg says the program is intended to provide a monetary incentive in the form of an income tax rebate to businesses occupying new and/or existing industrial, commercial or retail buildings while creating new jobs within the city. To date, Weinberg reports 15 companies have been assisted, including three for which payments have not yet been made. That means agreements have been entered into and legislation passed but the rebate is not paid until after an entire year. If a company falls below the minimum threshold, Weinberg says, the grant is terminated.
"The city benefits from new job creation and the additional new income taxes from those jobs," Weinberg says, adding, "After the grant period terminates, the full amount of income tax will flow to the city from any of the new retained jobs."
Reporter Ellin Walsh can be reached at 330-541-9419, email@example.com or @EllinWalsh_RPC.