St. Marys has an extremely active Community Improvement Corporation (C.I.C.) which can and will assist with Industrial Revenue Bond financing, tax
abatement, and a variety of other economic incentives.
REVOLVING LOAN FUND (RLF):
The City of St. Marys manages an RLF Program which loans lower interest money to a business/industry to assist with their start-up or expansion
project. Below is a brief summary of the qualifications to be eligible for a loan through this program.
Eligibility Requirements:
1. The project must show a need in one of the following ways:
a. Gap Financing - the bank considers the project too risky to finance the entire project.
b. Lower Interest Money - cash flow shows a need for lower interest funding as part of the project to make the project work. The interest rate is determined by project need based on
cash flow reports showing need.
2. The RLF Program cannot contribute more than 40% of the total project. Owners must invest a minimum of 10% of their own equity into
the total project.
3. The amount of the loan available is determined by the number of jobs created and/or retained. The RLF Program can loan up to
$25,000/job created or retained, not to exceed 40% of the total project.
4. 51% of the jobs created or retained must be to persons of low-to-moderate income households.
5. The project must be located within the city limits of St. Marys.
If your project meets the above preliminary requirements and you would like additional information or to apply for a loan, please contact the
City's Development Manager at the address listed above.
TAX INCENTIVES:
The City of St. Marys can negotiate a tax abatement
agreement with existing and new businesses/industries within the city limits of
St. Marys through our Enterprise Zone Program (EZ) or Community Reinvestment
Area Program (CRA). A project which is located within an EZ and a CRA may
only apply for one program.
Enterprise Zone Program (EZ):
Any tax abatement negotiated with a new industry under the
Enterprise Zone legislation shall conform to the general guidelines established
by the Board of County Commissioners of Auglaize County. The City, through
delegation of powers from the State of Ohio and Auglaize County, is authorized
to negotiate real and personal property tax abatement agreements with industries
proposing to undertake private investments and to create, expand or retain
employment opportunities within the designated enterprise zone.
The project must be located within the corporate limits of
the City of St. Marys.
1. May apply for up to 75% tax abatement
on real estate for a period of up to 10 years, if the project is considered to be a substantial
investment. A minimum substantial investment will be defined as a project
that nets to the Schools the amount of $2,500/year after the tax incentives are
applied and must create at least 3 jobs.
2. In addition, to qualify as a
substantial impact, an existing business must agree either to:
a. Retain all
existing jobs for the duration of the agreement; or
b.
Employ a minimum of 2 additional full-time employees upon completion of the
project. New businesses must agree to employ a minimum of 3 full-time
employees as a result of the investment in order to qualify as having a
substantial impact on jobs.
c.
The Auglaize County Board of County Commissioners and the City of St. Marys
Council may grant tax exemptions for a portion of the values of new real and personal property. Existing land values and existing
building values are not eligible.
d.
Expansion projects must make investments that equal at least 10% of the value of
the existing plant or facility. In addition, the law permits incentives
for a business to renovate an existing facility if the renovation exceeds 50% of
the facility's value. Also, a business willing to occupy a vacant facility
and invest at least 20% of the facility's value to alter or repair the facility,
is considered eligible to tax incentives when it meets the substantial
investment criteria.
3. Each agreement submitted must be
accompanied by a one-time $750.00 application fee. This fee is payable via
check or money order to the Ohio Department of Development.
4. Each business receiving a tax
incentive through an EZ shall pay an annual fee of $500.00 for monitoring of the
agreement. The fee is to be made payable to the Auglaize County Board of
Commissioners. This fee is due annually for each year the business
receives a tax benefit under the agreement.
5. An industry choosing to receive the EZ tax abatement will not be eligible for the CRA abatement.
Major Changes in Ohio Tax Law Regarding Tangible Personal Property Tax:
1. All new investments in machinery and equipment made since January 1, 2005, are exempt from taxation.
2. As of January 1, 2008, all three classes of tangible personal property are removed from the tax base:
a. Manufacturing machinery and equipment.
b. Inventories.
c. Furniture and fixtures.
3. Phase-out over 4-years at 25% per year:
a. January 1, 2005, to December 31, 2005 (Tax Year 2006): 25% reduction in tax liability.
b. January 1, 2006, to December 31, 2006 (Tax Year 2007): 50% reduction in tax liability.
c. January 1, 2007, to December 31, 2007 (Tax Year 2008): 75% reduction in tax liability.
d. January 1, 2008, (Tax Year 2009) and each year thereafter: 100% reduction.
Community Reinvestment Area (CRA):
This program is restricted to specific areas of the city.
The City of St. Marys has 3 separate areas of the community designated as CRA's.
An industry choosing to receive the CRA abatement will not be
eligible for the EZ abatement.
Under this program, an applicant may be granted a 100%
reduction in real estate tax normally due on new or extensively expanded or renovated
industrial or commercial buildings amounting to $5,000 or more for a period of 10 years.
This program is also eligible for residents who reside in
one of the designated CRA's. A property owner may be granted a 100%
reduction in taxes for new construction or remodeling amounting to $2,500 for up
to 10 years.
In addition to the guidelines set forth herein, any
business applying for a tax incentive must comply with all other applicable
local, county, and State regulations pertaining to the abatement granted.
The applicant must also continue to cooperate with City and County Officials by
providing any information requested to insure compliance with the terms of the
tax incentive agreement.
Other Incentives Available from the State of Ohio:
-
Community Development Block Grants (CDBG)
-
Direct Loan (166 Loan)
-
Export Tax Credit
-
Linked Deposit Program
-
Ohio Machinery & Equipment Investment Tax Credit
-
Ohio Enterprise Bond Fund
-
Ohio Job Creation Tax Credit
-
Ohio Industrial Training Program
-
OSDC/ABA 504 Loan
-
Pollution Prevention Loan Programs
The Governor's Region Three Director, Jerry Good, of the Ohio Department of Development, is available with assistance for any new or existing company needing state
funding. Mr. Good can be reached at 419-229-5320 or via e-mail: jgood@odod.state.oh.us.
Information on all of the above can be obtained by contacting the Ohio Department of Development - 1-800-848-1300,
www.connectohio.com.
