Tax abatement keeps Reynolds data center in region
Tuesday, September 02, 2008
KETTERING — Reynolds and Reynolds will build a data center on its Kettering campus with the help of a property tax abatement officials say helped persuade the company to put the facility here instead of Texas.
The company will save $430,000 in property taxes over the five-year life of the 25 percent property tax abatement, City Manager Mark Schwieterman said.
The abatement was granted as part of an Enterprise Zone agreement approved Tuesday, Sept. 2, by the Montgomery County Commissioners and on Aug. 26 by the Kettering City Council.
The company pledged to create eight new full-time jobs with a payroll of about $320,000 and retain 1,000 full-time jobs, said Joe Tuss, assistant county administrator for economic development.
Reynolds and Reynolds will spend nearly $23.8 million to build and equip the data center at its 1 Reynolds Way campus in the Miami Valley Research Park.
Schwieterman said the company is consolidating several data center operations in Kettering. The center is a separate project from the company's previously announced plan to move its technical assistance center and 400 employees from downtown Dayton to Kettering.
"We want them to continue to invest in our region as opposed to going to another region, such as Texas," Schwieterman said.
Construction is expected to begin in December, according to Kettering council agenda notes.
Company spokesman Thomas Schwartz declined to comment on the specifics of the project.
"We will have a public announcement sometime down the road," he said.
Kettering has an income tax-sharing agreement with its city schools for property tax abatements. But the tax sharing only occurs when income tax receipts from the new development reach a certain level. Schwieterman said the eight new jobs expected from the project likely won't reach that threshold.
Staff writers Tom Gnau and Kelli Wynn contributed to this report. Contact this reporter at (937) 225-7455 or lhulsey@DaytonDailyNews.com.
