New Philadelphia, Ohio - Tuscarawas County officials are giving Eagle Machinery some more time to become profitable before making it pay all of its taxes.
County commissioners gave their stamp of approval this week to an Enterprise Zone agreement that grants the Sugarcreek-based company a 50 percent property tax abatement for the next five years.
County Economic Development Director Scott Reynolds says the new agreement is an extension of a previous 10-year deal that gave the company a 75 percent tax break for moving into Tuscarawas County.
“Originally in 2007, they were granted a 10-year agreement by the Village of Sugarcreek. They had moved their operation from, I believe it was from Farmerstown, out of the county into the Village of Sugarcreek,” he says.
Reynolds says the company has gone above and beyond the terms of the original agreement and has been a good partner to the village and the Garaway school district.
“They’ve met or exceeded their investment on that original agreement. They were to retain 26 jobs and create 3, and in relation to that agreement, they’ve actually retained the whole 26 but they’ve created 7 jobs, and so they’ve more than lived up to both their monetary commitment and their job creation commitment on that agreement," he says.
Reynolds says they were more than happy to approve the company’s request for an extension. He says the agreement also means more money going to Garaway schools.
"The school district will be getting more money based on that additional 25 percent of the taxes coming to them for the next five years,” he says. “Then at the end of that five years, they’ll get the whole amount that would come to them based on the distribution model."
Reynolds says Garaway has already signed off on the deal, along with Sugarcreek and Buckeye Career Center. The company’s total investment into the Dutch Valley Drive property was just under a million dollars.