Ruralogic, a start-up information technology firm that could provide as many as 500 new jobs in Northwest Ohio, cleared another hurdle Monday, receiving State of Ohio tax credits.
State officials announced Monday that the Ohio Tax Credit Authority approved job creation tax credits for three Ruralogic operations, along with 11 other Ohio businesses.
Ruralogic received 60% job creation tax credits for sites in Archbold, Bryan, and Napoleon. Each credit is valued at $707,700 over the eightyear term of the tax credit agreement.
The Ruralogic projects are expected to create 121 jobs in each community.
The state will require Ruralogic to maintain operations in the three locations for 11 years.
“Ruralogic provides Tier 1 corporate software development services such as report writing, forms development, SharePoint management, and NET and JAVA development,” the Ohio Department of Development announcement states.
The ODOD announcement said the Archbold facility is a $230,000 project.
ODOD called the Bryan facility an $870,000 project, with a 17,000 square-foot building. Napoleon’s site is also a $230,000 project.
One More Step
Jim Wyse, Archbold mayor, said the state announcement “is just one more step in making this become a reality.
“But we still have work to do,” he said.
Wyse said the Archbold Community Improvement Corporation is negotiating the contract for a loan to the start-up company.
“We’re still working on some legal issues,” he said.
The group recently met, and is to meet again in the next week or two. Wyse said the group is battling vacations to get the members together.
The Archbold Village Council agreed to give $400,000 from the general fund to the Archbold CIC. The money will go toward a revolving loan fund operated by CIC.
In a revolving loan fund, as the company pays the loan back, CIC loans it to other companies. As the second company pays back the loan, it can be loaned to a third company; hence the term “revolving.”
However, Wyse said the CIC already has some money, including about $50,000 from a First Energy Solutions grant given to the village as part of the electricity aggregation agreement.
The loan to Ruralogic could be $450,000, or even $475,000, Wyse said.
In addition, Wyse said Ruralogic is planning to participate in a Fulton County revolving loan fund.
Joe Burmester, chief executive officer of Ruralogic, said the communities of Archbold, Bryan, and Napoleon are working together to secure financing for the start-up.
“Coming to final agreement for the loans and grants” is the next big hurdle.
“We’re looking forward to getting that done in the next couple of weeks,” he said.
The next step is business development.
The firm also needs to recruit its work force.
“Northwest Ohio has traditionally been a manufacturing area, and this is a service industry. Some have been a little skeptical. Some are looking at this and saying, ‘gee, we don’t have technical people.'”
Burmester said they’re looking for candidates with the right aptitude, then Ruralogic will provide training.
The firm is working with Northwest State Coomunity College to provide the training.
Wyse called the Monday announcement “not big news.
“It’s one more step forward,” he said.–David Pugh