Miamisburg City Manager Keith Johnson, in a memorandum to Development Director Chris Fine, said the incentive is “completely performance based” and its value will depend on the actual jobs created by the company.
Miamisburg officials had been working with the company on its project after the Ohio Tax Credit Authority voted in December 2019 to approve a 1.796 percent, eight-year Job Creation Tax Credit. Assuming all elements specified by the state are met, the value of that credit is $625,000, officials said.
The delay between approval of tax credits by the state and Miamisburg occurred to allow Avery Dennison to assess any effect the pandemic may have had on its operations and the project timeline and numbers, Fine told this news outlet Monday.
“Once that evaluation was done, then we agreed to move forward with the local incentive,” he said.
It is “very common” for a project of such a size for the city to offer an incentive along with the state of Ohio, Fine said.
“Avery Dennsion has been a large part of the Miamisburg business community for so many years,” Mayor Michelle Collins told this news outlet. “The company has employed several generations of area families. This potential tax credit would help them improve this large facility, spur more job growth and keep them as one of this city’s largest employers.
“I personally think partnering to improve for the good of all will usually result in a win for all.”
The contract between Miamisburg and Avery Dennison stipulates that the tax is to be derived from the wages of new employees between Jan. 1, 2021 through Dec. 31, 2025. In addition, the company agrees to maintain operations in the city for at least twice the number of years as the term of the tax credit.
The agreement contains numerous payback provisions if Avery Dennison “significantly fails” to meet its obligations under the terms of the agreement.
Ryan Yost, an Avery Dennison vice president, said in a company statement last December that its Miamisburg location has seen revenue growth of 15 percent via its new “intelligent labels” business.