Centerville extending tax deal with company planning to add jobs

Credit: FILE

Credit: FILE

The city of Centerville will extend a tax deal for a logistics business planning to expand and add nearly two dozen new jobs.

Total Quality Logistics is a freight brokerage and third-party logistics firm headquartered in Cincinnati. It occupies 15,000 square feet of space at at 6525 Centerville Business Parkway and intends to expand its existing operation.

That expansion means adding 23 employees to its workforce of 71 employees and increasing overall payroll to an estimated $5.5 million annually, according to the city.

The continuation of a property investment reimbursement (PIR) grant with Centerville will give TQL a payroll tax break if it meets job requirements outlined in an extension, Centerville records show.

PIR grants are intended to incentivize business operations in strategic sectors like information technology, medical office and logistics, plus corporate and professional office users. Centerville has three active PIR agreements, city correspondence shows.

TQL connects customers who have shipping needs with carriers that have the available capacity and service offerings, its website states. The company employs more than 5,000 workers in 26 states and has 57 offices, including nine in Ohio.

Centerville City Council voted last week in favor of a PIR grant extension.

“The agreement will be circulated for signatures from both the city and company,” said development director Michael Norton-Smith. “Once approved, the city’s finance department will evaluate the company’s 2021 withholdings relative to the established baseline and determine whether a payment should be issued.”

The company received a PIR grant in 2020 to assist with renovation costs related to an expansion of its Centerville facility. But due to staffing changes related to the COVID-19 pandemic, TQL dropped below the required pay threshold, resulting in the termination of the previous agreement.

The new agreement, which mirrors the structure of the 2020 agreement, establishes 2020 as the new payroll baseline and is valued at 10 percent of the company’s projected withholdings for one year.

TQL’s lease for its location in Centerville is set to expire this year. If the company elects to retain that location, the agreement will renew for an additional two years, and the reimbursement rate will increase to 15 percent.

“TQL is an important part of the Centerville business community,” Norton-Smith said. “We understand the COVID-19 pandemic affected the company’s operation in Centerville, but despite these issues, TQL representatives expressed a commitment to its job creation numbers.”

TQL initially agreed to a similar deal with Centerville in 2012 and it has been renewed once. The 2022 PIR is the same as the one finalized in 2020 with the exception of the revised baseline, Norton-Smith said.

Expansion costs will “include, but may not be limited to, costs relating to recruitment, hiring and training new employees, and the purchase of computer and other office equipment for new employees,” according to the agreement.

TQL grew staffing by 49% from 5,500 in January 2021 to 8,200 in December 2021, according to the company. As of February 2022, it has over 9,000 employees nationwide in 26 states. It has 56 offices.

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