TALLMADGE - The good economy and demand for skilled labor is good for business.

City Council July 11 approved 5-0 two ordinances for New Jobs Program grants.

The ordinances allow Mayor David Kline to enter into an agreement with Herman Machine Inc., 252 Northeast Ave., and NC Chassis Co. LLC/W.E.C. Chassis LLC, 298 Northeast Ave., for New Jobs Program grants; both are owned by Buddy Catlette.

The New Jobs Program offers income tax rebate to businesses creating new jobs in the city.

Herman Machine produces and repairs parts for a variety of different industries including automotive, aerospace, medical, military, rubber and others, said Rita Weinberg, planning director/economic developer for the city of Tallmadge. The original 252 Northeast Ave. location specialized in machining and grinding small precision parts and served as the corporate office.

The second location moving from Akron to Tallmadge had a larger machining mill department and a welding department. "The new larger location at 298 Northeast Ave. will combine both operations into one updated and larger facility," Weinberg said.

NC Chassis, also relocating to 298 Northeast Ave., manufactures and sells parts and components for the racing industry, Weinberg said.They also provide a large range of welding grinding and other fabrication services for other industries.

Herman Machine will qualify as an existing business creating new jobs resulting in new payroll in excess of $250,000 within a one-year period. NC Chassis will qualify as a new business creating new jobs resulting in a minimum of $500,000 in new payroll.

The New Jobs Program is a five-year program that rebates a portion of the new income tax resulting from these jobs, she said. The rebate is based upon a published schedule based on payroll ranges. It is not a 50 percent rebate across the board.

"The businesses must maintain the new payroll throughout the grant period," Weinberg said. "Should they fall below the established threshold, the agreement becomes null and void."

Herman Machine has been in Tallmadge for 100 years, said Operations Manager Collin Schlosser.

"It's changed ownership over the years," he said. "It was a machine shop, but I can't tell you what they made then."

The building at 298 Northeast Ave. still has the Waltco sign on the building but is owned by Catlette, who is making $1.5 million in renovations, Schlosser said. Workers are on the roof, painting the interior and doing landscaping.

Schlosser said they hope to move the machines from the Akron locations to Tallmadge by the end of this month.

"We have 25 machines and one weighs 20,000 pounds coming from the Ellet plant," he said.

More than 40 employees will be at the new Tallmadge location, which has 30,000 square feet of space, Schlosser said.

"With three different locations we spent a lot of time running around between the shops," Schlosser said. "It's all in one place now and the ceiling is twice as tall and the cranes are bigger. All that works in our favor."

Schlosser said the economy has been good the last few years and they have hired good employees.

"All these factors came together," he said.

The old building, which was 20,000 square feet, has five acres of land and may be sold in the future, he said.

Reporter Laura Freeman can be reached at 330-541-9434 or lfreeman@recordpub.com