Fri Feb 03 2012
by Tim Troglen
Reporter
Hudson -- The state has offered an incentive package to keep Little Tikes part of the city's landscape for at least the next 14 years.
MGA Entertainment, parent company of Little Tikes, was awarded a state tax credit June 29 to expand operations in Hudson.
Tom Richmond, general manager of Little Tikes, said company officials "are very pleased" with the tax credit offer, but they are anticipating more incentives from the state before they make a decision.
The Ohio Tax Credit Authority approved a 50 percent, seven-year tax credit to MGA Entertainment Inc. for the creation of 63 new full-time jobs as a result of the company's expansion at its location on Barlow Road in Hudson, according to a report from the Ohio Department of Development.
As part of the tax credit agreement, the authority requires MGA Entertainment to maintain operations at the project site in Hudson for at least 14 years.
"The Job Creation Tax Credit is just one part of a total economic package of which Little Tikes is awaiting word from the state," Richmond said. "Once we have the total package, which should be the end of July, we'll be able to make our decision."
MGA Entertainment CEO Isaac Larian, had said earlier this year the company was considering moving Little Tikes out of Hudson if it didn't receive incentives from the city and state.
Hudson's Economic Development Director Chuck Wiedie said several states, including Kentucky, Oklahoma, Texas and West Virginia, have made offers to try to entice Little Tikes from Hudson.
"Mr. Larian has been pretty vocal about needing some assistance from the state and city to make it financially viable to keep Little Tikes in Hudson," Wiedie said.
He said part of the agreement calls for the city to give MGA a municipal income tax credit of 50 percent for six years, yielding an estimated value of $123,552 over the term.
Wiedie thinks the incentives will show Larian the city wants him to stay.
"Both the state and city feel that once we act on this, it will show the commitment we have to keeping Little Tikes in Hudson," he said.
Wiedie said more developments will be coming from the state level.
"The state still has to act on some of its commitments, but we all have committed to trying to move this ball forward," he said.
He declined to elaborate on any further "commitments."
The city also plans to offer, if approved by Council at its July 7 work session, a one-time grant of $300,000 to match the Ohio Department of Development's Rapid Outreach Grant offer, Wiedie said.
MGA Entertainment's Hudson project includes "the expansion of the company's existing 1.2 million-square-foot facility to increase operating capacity for manufacturing, distribution, and research and development functions," according to the Ohio Department of Development. "MGA will make a fixed-asset investment of at least $5.8 million in machinery and equipment.
The company new hires for the project will consist of both manufacturing and office staff.
"The company will create 63 new full-time jobs within three years of the project's initial operations and retain 398 existing full-time jobs at the project site for twice the term of the tax credit.
"The average wage of the new jobs will be $12 per hour, plus $4 per hour in benefits. MGA has committed to hiring at least 10 percent disadvantaged and/or minority persons, as defined by the Ohio Administrative Code."
The tax credit, if approved, will begin January 2010 and will end December 2016, according to Robert Grevey, public information officer for the Ohio Department of Development.
MGA has 30 days to accept the offer from the state, he said.
E-mail: ttroglen@recordpub.com
Phone: 330-688-0088 ext. 3146
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