Following Monday’s state announcement, a Troy City Council committee recommended the full council approve an Employee Creation Incentive Program offering a maximum 15-year payroll withholding rebate with maximum annual incentive of $100,000.
The Pella project estimated payroll should generate around $332,500 annually in income tax with an annual rebate of approximately $83,000 for 15 years. The company’s annual payroll was estimated at more than $19 million, Patrick Titterington, Troy’s service and safety director, told the council finance committee.
“These are big wins for the city,” said Councilman Todd Severt of the Pella project and a second ECIP project also discussed Monday. That project involves addition of a surgical mask and N95 mask production operation at the Troy Laminating and Coating Inc. on South Union Street, creating around 53 new jobs.
Pella will make an estimated $11 million capital investment in renovating and reusing the United Retail/Avenue building, Titterington said. Graves said the building needs work on its roof, HVAC system in the office area and removal of a mezzanine inside.
The ECIP was created earlier this year as an added tool for the city in attempts to attract new investment as well as encourage existing industries to expand, Graves said, adding a similar incentive package is available in several Ohio communities.
The United Retail/Avenue building became available in July 2019 when it was closed by the Avenue. Around 80 percent of industrial searches target available buildings, as occurred in this case, Graves said.
Titterington and Graves said the project was an example of cooperative work between the city and development council along with the Dayton Development Coalition, JobsOhio, Vectren and DP&L.
The project finalization was delayed by COVID-19. “They were committed to Troy, I think, very early on,” Titterington said.
Hiring for the project probably will increase later this fall, Graves said. The 428 jobs will be created over five years, he said.