PARMA, Ohio – Two years after the Prince & Izant Company announced plans to expand operations at its existing Parma facility, the city council is considering a five-year extension of the international organization’s previous business development agreement.
“Early in 2016, we entered into an economic development agreement – payroll tax sharing – with Prince & Izant,” said Erik Tollerup, Parma’s director of economic development. “In early 2020, Prince & Izant considered moving its headquarters from Parma.
“We made them an offer that if they stayed and expanded here in Parma, once they were done with that work we would give them a five-year extension to their original contract. Now, two years later, they have achieved their expansion, moved jobs to Parma and are poised for further job growth in manufacturing here.”
The 30,000 square foot, $2.4 million expansion resulted in the creation of 21 new jobs with $975,000 in additional salaries and the retention of 104 existing positions.
The economic development agreement provides the Prince & Izant Company with a 50 percent refund of their payroll taxes, equivalent to $108,000 annually.
Tollerup said the city’s approach to economic development is “50 percent of something is better than 100 percent of nothing.”
“They could have gone to greener pastures and accepted property tax incentives from other communities,” said Tollerup. “What it really boils down to is that we don’t give them property tax incentives, instead the payroll taxes cover their property taxes in Parma.
“Plus, we still get 50 percent of those newly created jobs when all the new employees come in. Parma receives $108,000 annually.”
Prince & Izant Company is a global supplier of brazing alloys and metal joining products to the automotive, cutting tool, oil and gas exploration, HVACR and electrical manufacturing industries.
The expansion not only involves increasing production capacity on campus to meet growing demand for the company’s products, but also consolidating work from the company’s recently closed Indiana manufacturing facility.
“We are pleased that Prince & Izant continues to operate and expand in the city of Parma,” said Mayor Tim DeGeeter. “I appreciate their investment and the creation of additional jobs in our city.
“They are a great company and very family oriented, as I attested to when I was a guest at their staff family picnic last year. In addition, I appreciate the hard work of our Office of Economic Development and its Director, Erik Tollerup, to put this in a favorable position for City Council consideration.”
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