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Council approves community reinvestment agreement for Lakeshore Cryotronics site with reduced expansion plan
Summary
Council approved a 12-year, 65% tax abatement on new value for Schwartz 575 LLC (Lakeshore Cryotronics) after the company revised its expansion from a $9 million, 59,000 sq. ft. addition to a two-part, smaller project that includes a $2 million, 17,000 sq. ft. addition and acquisition of a nearby property.
Westerville City Council on Feb. 4 approved a community reinvestment area (CRA) agreement with Schwartz 575 LLC, the property-holding company for Lakeshore Cryotronics, to incentivize a modified expansion of the company’s Westerville operations.
Administration staff explained that the company’s original 2023 proposal — a roughly 59,000-square-foot addition estimated at just over $9 million — has been restructured into two parts. The company still commits to retain 168 existing local jobs and create 36 new jobs, but will now proceed with a smaller first-phase building project: an approximately 17,000-square-foot addition with an estimated $2 million cost and a revised completion deadline of December 2026.
Economic development staff recommended the city continue to support a 12-year, net 65% property-tax abatement on the value of the new real property investment. Staff estimated the company’s 12-year benefit at roughly $415,000 and presented a preliminary estimate of the city’s annual income tax revenue related to the project at about $306,000 per year. Staff also estimated an annual payment in lieu of taxes (PILOT) to the Westerville City School District at roughly $17,000 based on the $2 million investment, and noted that PILOT size scales with the value of the addition.
A council member recused themself from the matter before the vote. The motion passed unanimously among participating members.
Staff emphasized that state law prohibits abating existing taxes; the proposed abatement applies only to taxes generated by the new investment. The administration said the CRA will allow the company to move forward with the phased expansion while preserving the company’s local employment base.
Council approved the agreement and authorized the city manager to execute the CRA documents.
