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Lorain approves tax-abatement package for Absolute Machine Tools tied to $1.8M investment
Summary
Council voted to approve a community reinvestment area (CRA) tax abatement for Absolute Machine Tools Holdings that the city says is tied to about $1.8 million in investment and an estimated $1 million annual payroll; the company opted for a 50% threshold rather than a full abatement and council supporters said the incentive will help retain and expand local jobs.
Lorain City Council unanimously approved a community reinvestment area tax abatement for Absolute Machine Tools Holdings after questioning and discussion about whether an abatement is appropriate for a company already operating in the city.
Sponsor remarks and staff presentations said the abatement is tied to roughly $1.8 million in capital investment and could produce an incremental $1,000,000 in annual payroll. Council members queried why an abatement was being offered when the manufacturer is already located in the city; the city’s economic-development representative and the sponsor argued the abatement will encourage future expansion and retention rather than relocation. The company elected a 50% abatement option rather than pursuing a larger incentive.
Council discussed the trade-offs between using tax incentives for retention versus deploying the same dollars to attract new businesses but ultimately accepted staff recommendations that the payroll and expansion justify the incentive. The ordinance was adopted after roll-call and passed unanimously.
