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North Royalton gives tax break to growing company

July 31, 2018

North Royalton gives tax break to growing company

NORTH ROYALTON, Ohio – The city will give a North Royalton company a property tax break of about $32,000 a year for 15 years.

In exchange, the company – Royalton Architectural Fabrication Inc., a maker of architectural panels and column covers – will stay in North Royalton, build a new office-warehouse and create 13 new jobs. Construction is scheduled to begin in September.

Stefan Winkler, president of Royalton Architectural Fabrication, said he was “a pen stroke away” from relocating his firm to Brunswick.

“I decided to stay in North Royalton because I love it in North Royalton, I live in North Royalton and I know everyone in North Royalton,” Winkler told cleveland.com. “And the company is one mile from my home.”

City Council unanimously approved the tax agreement earlier in July.

The agreement with Royalton Architectural Fabrication is the city’s third tax abatement through Ohio’s Community Reinvestment Area program, created in 1977 and revised in 1994. In the program, areas historically hard to develop or redevelop are eligible for tax breaks if someone renovates an existing building or constructs a new one.

Municipalities usually designate certain parts of town as community reinvestment areas. But in March 2015, North Royalton City Council named the entire city a community reinvestment area because business districts are spread throughout town. Ohio verified the designation in June 2015.

According to its agreement with the city, Royalton Architectural Fabrication will move from its existing York Delta Drive building, which Winkler said is about 14,000 square feet, and construct a new 36,000-square-foot office-warehouse on York Road, behind the existing building. The total investment is estimated at $3.2 million.

The company will move its existing 13 workers into the new and larger building and double the size of its workforce within two years. With the additional jobs, taxable payroll would rise by about $438,000, to $1.2 million.

Under the tax abatement agreement, Royalton Architectural Fabrication would continue to pay taxes on the land it owns. However, if the property value rises with the new building, the company would not pay taxes on 49 percent of the additional value for 15 years.

Thomas Jordan, North Royalton’s director of community development, said the actual amount of taxes abated depends on how Cuyahoga County values the land Royalton Architectural Fabrications owns. He believes the abated amount will likely end up less than $32,000 a year.

Also, the agreement requires the company to pay the city an annual fee equal to 1 percent of the abated taxes or $500, whichever is greater. The annual fee cannot exceed $2,500.

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