CUYAHOGA FALLS — City Council on Monday night approved a 10-year, 75-percent property tax break agreement with a tool manufacturing company that is making a $22.4 million investment that will move 84 employees, equipment and inventory from two buildings in Munroe Falls to a pair of structures in Cuyahoga Falls this year.

Kyocera SGS Precision Tools is a leading manufacturer of solid round carbide cutting tools such as end mills, drills and reamers, according to the company’s web site. The firm was purchased by Kyoto, Japan-based Kyocera Corp. in 2016.

The company has manufacturing sites in Munroe Falls at 55 S. Main St. and 103 S. Main St. The vast majority of the 78 full-time and six part-time employees who work in those two buildings will be relocated to structures at 220 Marc Drive and 238 Marc Drive in Cuyahoga Falls this year, according to Tom Haag, president and CEO of Kyocera SGS. The others will go to 180 Marc Drive. These 84 employees encompass nearly $5.7 million in annual payroll. In addition, about $11.3 million in machinery and equipment will be moved to the 220 and 238 Marc Drive sites.

The company is planning to spend $2.97 million to remodel the inside and outside of the 220 and 238 Marc Drive buildings to match the design of another Kyocera SGS building at 150 Marc Drive. 

Kyocera SGS’ Marc Drive buildings are in the Woodridge Local School District. Woodridge currently receives a total of $537,872 in annual property taxes from 220 Marc Drive and 238 Marc Drive. The planned renovation of the buildings, as well as the relocated inventory and equipment, will increase the value of the properties, according to Diana Colavecchio, the city’s community development director. This means the school district will receive more annual property tax money ($609,069) from the two Marc Drive buildings during the 10-year abatement period. Once the abatement ends, the district will receive $822,674 in yearly property tax funds from the two structures.

Kyocera SGS has also committed to providing one or more paid internships and a $1,000 scholarship to the district in each year of the abatement.

The city now receives $10,797 in annual property tax money from the sites at 220 and 238 Marc Drive, according to city spokesperson Kelli Crawford-Smith. During the abatement period, the city will receive $12,227 in yearly property taxes and $16,515 from that source annually once the abatement ends.

Colavecchio said the company is not planning to expand any of the Marc Drive buildings. There are currently 125 employees at all of the Marc Drive properties and Colavecchio said the company intends to retain all of those workers. Kyocera SGS recently acquired a building at 120 Marc Drive, which Haag said means his firm owns five buildings on 23 acres on Marc Drive.

Cuyahoga Falls and Munroe Falls officials are working on an income tax revenue sharing deal in connection with the planned relocation.

Kyocera SGS is the second-largest employer in Munroe Falls, trailing only the school district, according to Ann DiCola, the community and economic development coordinator for Munroe Falls.

Kyocera SGS has a third site in Munroe Falls — a research and development, human resources and information technology building with about 15 employees at 54 S. Main St. — that will remain in its current location, Haag said.

While noting he would ideally like to have the move happen this summer, Haag noted it’s possible it may not occur until closer to the end of the year. Once it happens, Haag said the buildings at 55 S. Main St. and 103 S. Main St. will be completely vacant. He noted there are no immediate plans for those buildings’ future use.

Reporter Phil Keren can be reached at 330-541-9421, pkeren@recordpub.com, or on Twitter at @keren_phil.