Council approves enterprise-zone tax abatement for Steel Corps Operations LLC

Newark City Council on Monday approved an enterprise-zone agreement that grants tax-abatement incentives tied to a planned manufacturing project and a minimum $4,180,000 investment by Steel Corps Operations LLC. The council voted to authorize the mayor to execute the agreement as written.

The measure matters because the enterprise-zone program is intended to support local economic development by linking tax incentives to new investment and job creation in the city.

City staff explained the structure of the deal during the meeting. Mr. Herrick, a staff member, said the company that will operate the business is Steel Corps Operations LLC while the real-estate owner listed to receive the tax abatement is C O 4 Real Estate LLC. He told council members the enterprise-zone agreements are “based upon … new jobs and new payrolls in the city” and that the change clarifies that the real-estate tax abatement will flow to the property owner, not the operating company.

The resolution text attached to the agenda states the enterprise-zone designation traces to a 1991 city resolution and references Chapter 5709 of the Ohio Revised Code as the enabling authority. The agreement before the council commits the city to grant the tax-abatement incentive for the amount and time periods specified in the agreement and authorizes the mayor to sign the enterprise-zone agreement number 25-1 (listed on the agenda as 25-069).

Council member Mr. Fowley moved adoption; Mr. Duncan seconded. During roll call the members present voted in favor and the resolution passed.

The council did not specify payroll or job-creation targets in the floor discussion beyond the general linkage between abatements and new jobs that staff described. The agreement itself is incorporated into the record by reference and was approved as presented.