A partial tax abatement agreement has been reached between the Wellington Schools and U.S. Screen Co., an industrial manufacturer that recently relocated from Sullivan to Wellington Industrial Park.
U.S. Screen and the village have agreed to a 10-year full abatement in which the business will not pay local real estate taxes, a regular practice for inhabitants of the industrial park since it was designated in 1987 as a community reinvestment area.
Under the agreement, approved Aug. 28 by the Wellington board of education, the district will receive 10 annual payments of $3,450 from U.S. Screen. That amount represents half of the $6,900 that would have been brought in each year through full real estate taxes.
A similar agreement was reached in 2011 between the school district and Kalron LLC, 775 Shiloh Ave.
U.S. Screen will still pay village taxes on personal property improvements, which applies to furniture, fixtures, and other equipment located inside its building.
These figures are estimates and will ultimately be finalized by the Lorain County auditor’s office, said village manager Steve Dupee.
“These abatements have been an economic development tool for the village as well as a job attraction and job retention tool,” he said. “Anyone who comes to our industrial park is made aware of these tax incentives. It’s their choice if they decide to take advantage of it.”
The true market value of the U.S. Screen property is $686,000. Under Ohio Revised Code, properties are taxed at 35 percent of true market value aside from certain land devoted solely to agricultural use. That puts U.S. Screen’s taxable value at $240,100.
Dupee said the village has not received complaints from the school district regarding abatements and that receiving half of what would have been brought in through real estate taxes is better than a new business never coming to Wellington in the first place.
“It’s really the schools and the village working together collaboratively,” he said. “It’s working to help our community grow. There’s no property tax coming in if these businesses choose to move elsewhere. This is only a 10-year reduction. After that, it’s back to the full taxable amount.”
Jonathan Delozier can be reached at 440-775-1611 or @DelozierNews on Twitter.