Medina City Council has approved a grant agreement with Sandridge Food Corp., which will invest $16.1 million in an expansion and create 50 new jobs by 2020.
Fifty new full-time jobs is an impressive figure, Dentler said.
“It does not happen every day,” she said. “I’m very pleased Sandridge chooses to expand in Medina. It has done it three or four times over the years. It’s the city’s largest private-sector employer.”
As an incentive under the city’s Job Creation Grant program, Sandridge will receive an annual payment for five years based on a percentage — up to 40 percent — of the company’s annual payroll withholding taxes generated by new employees.
Sandridge estimates payroll for the new positions at $2.3 million. Keeping existing jobs in Medina will maintain Sandridge’s annual payroll Medina of $28.6 million. Under the agreement, Sandridge will construct a 15,000-square-foot addition at 133 Commerce Drive and add:
- 15 new full-time positions in 2018.
- 15 in 2019.
- 20 in 2020.
Sandridge has 667 employees in Medina and 673 full-time employees in Ohio.
Sandridge’s $16.1 million investment includes:
- Machinery, equipment, $6 million.
- New furniture, fixtures, $200,000.
- Construction, improvements, $9.9 million.
City Economic Development Director Kimberly Marshall called Sandridge’s expansion “significant.”
She said the news comes about a year after Medina lost about 100 jobs with the closing of a Valspar plant.
“These jobs being created (will) help offset those losses,” she said in an email.
The Medina County Port Authority issued bonds Feb. 1 to finance the project.
Terms of the agreement include Sandridge not paying $300,000 in sales taxes for construction materials, Dentler said.
Sandridge, a leader in the North American refrigerated foods industry for more than 50 years, will lease the land from the Port Authority. The Port Authority is a nonprofit organization and is exempt from paying Ohio and local sales taxes.
Rick Sisko, Sandridge president, was not available Wednesday for comment on the agreement or to elaborate on the company’s plans.
Medina adopted the Job Creation Grant program in 2007. Money for the program comes from interest income, permit fees, service charges, etc., not tax-generated revenue.
To be eligible, a Medina company that wants to expand must create within three years an additional 30 full-time jobs or the equivalent, or $750,000 in new payroll while maintaining its employment workforce and payroll, according to legislation creating the grant program.
Contact reporter Bob Finnan at (330) 721-4049 or email@example.com.