by Laura Freeman

Reporter

Hudson -- Norandex Building Materials Distribution will move its 72 jobs to town this summer after Council unanimously approved a job creation grant agreement with the company.

The office headquarters for the manufacturer and distributor of exterior building materials will move from Macedonia into the former Dairy Mart headquarters at 300 Executive Parkway West off Boston Mills Road.

Norandex will lease 35,500 square feet of a 46,700 square-foot 11-year-old building, owned by CAM Developers, on 10.15 acres.

Norandex Property Manager William Bode said 72 employees will move around July 1 to the new location. Remodeling of the building has already begun.

"The Hudson location allows expansion if we decide to grow farther than currently projected," Bode said. "Norandex looked at a number of buildings and overall this was the best choice."

Council May 7 approved a local job creation tax grant which would cut the company's income tax payments to the city in half for eight years, said City Manager Anthony Bales. Based on an estimated $5 million payroll, the grant would equal approximately $50,000 per year and $400,000 for eight years.

Norandex must create 10 new jobs in three years and maintain 75 jobs for at least 10 years to maintain the tax abatement.

Council also approved an infrastructure assessment grant to the property of $29,000 annually for five years, totaling $145,000, for a water line, Bales said. The money would be paid to the property owner and passed onto Norandex.

In addition to the city's incentive, the Ohio Department of Development has approved a 45 percent credit on state income taxes for five years, estimated at a total of $59,686 for five years.

Norandex is required to maintain operations in Hudson for 10 years. The "job creation tax credit" is for state income tax withheld on new, full-time employees. Norandex is expected to create 10 new positions and retain 75 jobs within the first three years.

Macedonia officials estimated their city would lose $200,000 per year in income tax revenue with the Norandex move and the closing of Excello Engineering Systems.

However, they believe the loss could be made up by Cobra Plastics Inc., which will complete its move to Macedonia later this year, and a joint economic development district deal with Northfield Center.

E-mail: lfreeman@recordpub.com

Phone: 330-688-0088 ext. 3150