Finance committee endorses ESIP participation for expansion project expected to add 166 jobs and $7 million in payroll; legislation set for April 7

Todd Severed, chair of the Troy Finance Committee, said the committee would recommend council approve an application to participate in the Employee Creation Incentive Program (ESIP) for a company expansion that staff described as adding 166 new employees and more than $7,000,000 in annual payroll.

A staff member said the ESIP is an income-tax-rebate program the council approved in 2020 for qualifying expansions. For this project staff reported an estimated capital expenditure exceeding $25,000,000, projected new payroll of more than $7,000,000 and an estimated income-tax rebate to the company of about $34,000 a year. The staff member said the city would net an estimated $88,500 in annual net income-tax revenue during the incentive period under the project's estimates.

The staff member also noted program safeguards: the rebate would be suspended if the qualifying payroll dropped below $1,250,000. Committee members said they were pleased with the projected job growth and development. The committee did not request emergency legislation for this item; Todd Severed said he, Jeffrey Schilling and Ms. Westfall agreed to move forward with legislation on April 7.

No formal vote tally was recorded in the transcript for the committee's recommendation on ESIP participation, but committee members stated agreement to transmit legislation to council for the April 7 agenda.

The staff member said the report and rebate calculations would be provided to committee members along with the abatement numbers for the other agenda item. The matter will next be considered by the full city council on or after April 7 when legislation is introduced.