The state of Ohio is offering ConAgra a payroll tax abatement plan that could save the company $269,000 over the life of the agreement.
The deal was announced Monday, March 28.
Stephanie Gostomski, spokesman for the Ohio Tax Credit Authority board, said the OTCA approved offering the arrangement during its Monday, March 28 meeting.
As part of the agreement, ConAgra expects to create 107 new full-time positions in Archbold as production lines currently located at a ConAgra plant in Trenton, Mo., move to Archbold.
The new jobs are anticipated to generate $5.4 million in new annual payroll taxes.
Also, as part of the agreement, the company plans to retain an additional $13 million of payroll per year.
Gostomski said if ConAgra officials sign the agreement, and if they meet the projection of adding 107 new jobs to the Archbold plant payroll,
ConAgra will receive a 1.121% tax credit on payroll taxes the company pays on new jobs the company creates, for a period of six years.
The estimated benefit to the company will be about $269,000.
She said the company will need to make the full payroll tax payment, but then will be reimbursed by the state.
Gostomski said the tax credit was recommended by JobsOhio, a private, nonprofit organization created to conduct economic development activities in Ohio. Recommendations by JobsOhio must be approved by the OTCA.
If ConAgra creates more than the specified 107 jobs, it will receive additional tax reimbursement.
If fewer than 107 new jobs are created, the benefit to the company will be proportionally less.
The village of Archbold is preparing its own tax incentive for ConAgra, but terms of the agreement will not be announced until it is approved by Archbold Village Council.
Dennis Howell, village administrator, said the pact between ConAgra and the village could come before council as soon as Monday, April 4.
The ConAgra decision to bring new jobs to the Archbold plant came to light earlier this month, when, on Thursday, March 10, a radio station in Trenton announced through its website that ConAgra had informed workers the Trenton plant would close.
The same day, the Fulton County Economic Development Corporation, a public-private partnership, posted the news on the FCEDC website.
A company spokesman confirmed the move.
Dan Hare, ConAgra spokesman, said the additional production will be moved to Archbold between the summers of 2017 and 2018.
In a related matter, the Worthington Steel Company was also approved for a payroll tax abatement deal on Monday.
The company operates a facility on property near the NorthStar-BlueScope steel mini-mill. Both facilities are west of Delta.
Under the agreement, Worthington, a steel processing company, will expand the York Township plant, and expects to create 26 new full-time jobs.
Those jobs are estimated to generate $1.5 million in new annual payroll while retaining $12.9 million in existing payroll.
If company officials sign the agreement, the company will receive a 1.086% six-year payroll tax abatement. Estimated savings to the company are $96,000, Gostomski said.
In all, the OTCA board said in a press release five agreements for companies across Ohio were approved on Monday.
Those agreements are for projects that are anticipated to create 670 new Ohio jobs, retain another 1,419 jobs, and result in $134.8 million in new investment.