Thu Feb 09 2012
by Jeff Saunders
Reporter
Macedonia -- One city's loss is another's gain, as Hudson could gain 37 jobs when a Texas-based beauty salon product company moves from Highland Road in Macedonia to an unspecified location in Hudson.
Beauty Systems Group will move its offices to Hudson while maintaining a retail store at its Macedonia location, said Jan Roberts, a spokesperson for the company. She said she could not give details on how many employees will move or stay by press time.
The company is looking for an existing building in Hudson between 10,000 and 12,000 square feet for as many as 37 employees and would like to move as soon as possible, according to Hudson Economic Development Director Chuck Wiedie said.
"There are spaces within Hudson that will meet their needs," he said. "I don't think they have signed a lease with anyone yet, but they have expressed an interest in Hudson."
Hudson did not recruit Beauty Systems Group to move into the city, Wiedie stressed.
"This is sensitive to us," he said. "We don't want to be viewed as someone who encourages businesses to move from one community to another, but if the other community can't help them, we don't want them to move out of Summit County."
A Realtor approached the city when Beauty Systems Group was looking at some properties in Hudson, according to Wiedie.
"They wanted to talk about support the city could give to help facilitate the move," he said.
The city met with representatives from the company, who shared information about the company and its needs, Wiedie said. The city told Beauty Systems Group to first discuss options with the city of Macedonia, he said.
"We've talked to them in general terms, but no formal offer of an incentive has been made at this time," he said on July 26.
Macedonia Mayor Don Kuchta said a Beauty Systems Group official informed him of the move by phone July 16.
Macedonia officials fear the change could leave the city short $100,000 in annual income tax revenue.
"They've been a staple of this community for a long time," said Kuchta. "Many of our local people, beauty salons, use their products."
Kuchta, however, said that business at the facility has "been declining."
According to Finance Director Loren Sengstock, the company was in the top 15 companies in the city in terms of tax withholding, with the city collecting about $100,000 annually.
However, he said, the company was among the top 10 employers in 2007 and it has reported losses.
Kuchta said that the loss of any jobs in the city is worrisome for city officials there, especially after Graco Children's Products, one of the city's top five employers, announced in June it plans to close its Valley View Road plant, laying off 153 employees by the end of the year.
A business moving into Hudson is a positive sign for the city, according to Wiedie.
"We have been striving to get the word out that Hudson is an ideal location for these types of businesses," he said. "We must have been fairly successful at getting the message across because companies like this would like a Hudson address."
Editor's note: Reporter Laura Freeman contributed to this story.
E-mail: jsaunders@recordpub.com
Phone: 330-688-0088 ext. 3169
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