Westerville board incentives land at Vertiv Corp’s global headquarters.
The City of Westerville is to welcome the headquarters of Vertiv Corp., a global leader in the design, construction and maintenance of critical infrastructure that enables mission-critical applications for data centers and other facilities commercial and industrial.
The city council unanimously approved a law on November 2 to allow the city manager to enter into a community reinvestment agreement with Vertiv to modify the property tax abatement at 530, boul. and authorize a development and tax incentive agreement.
President Michael Heyeck, Craig Treneff, Alex Heckman, Valerie Cumming, Diane Conley, Kenneth Wright and Kathy Cocuzzi voted in favor of both laws.
Rachel Ray, director of economic development for Westerville, said her staff had had conversations with representatives from Vertiv about investing and growing in the city.
âVertiv is a global company that also has very strong roots in the City of Westerville as one of the very first companies to plant their flag in the Westar area,â she said. “One of the two facilities they own was built in 1999 at 610 Executive Campus Drive and the second building built a few years later at 530 Westar Boulevard as a training and development center.”
Over those 20+ years, Ray said, the company has grown to nearly 350 employees with a payroll of over $ 30 million, making it one of the “top five” employers in Westerville. .
“The company has therefore recently assessed the opportunities for consolidating its operations, including its global headquarters currently located in the city of Columbus,” she said.
The business incentive proposal consists of two parts: a property tax reduction proposal and a retention incentive through tax compensation.
The property of the company at 530, boul. currently benefits from a net reduction of 65% of the property tax.
In recognition of Vertiv’s investments in Westerville and maintaining jobs in the community, staff recommended and council approved a 100% property tax abatement for the entire 15-year abatement period allowed by law. from Ohio.
The value to the company would be around $ 1.1 million over the remaining four years, Ray said.
It is in the school district of Olentangy, which would be made whole, she said.
The city administration also recommends a series of eight annual income tax withholding payments of $ 150,000, or roughly 25% of the company’s 2020 basic income tax withholding.
To be eligible for the annual incentive payments, Ray said, the company must agree to keep its current annual payroll of $ 30 million with the city and either acquire additional commercial properties in Westerville or enter into a lease of at least 10 million. years. The value to the company would be $ 1.2 million over eight years, Ray said.
She said that over the term of the 10-year lease, the city could receive around $ 14 million in new and retained tax revenue, and the total value for the business is around $ 2.3 million. .
âWe are delighted that a publicly traded global company like Vertiv Corp. choose to continue to invest and grow in our community, âsaid Ray. âIt’s a really special time for Westerville and Vertiv. We have a long-standing relationship with the company, working together at key points in their growth strategies and providing affordable power and utility services and partnerships. Having their head office join us is a big deal. More importantly, these jobs remain in central Ohio and the talent grows from here. “
Ray said Vertiv’s workforce is highly skilled and talented.
âSome of the best minds in the country in the field of enterprise infrastructure work at Vertiv,â she said. âFor Westerville, this demonstrates the value of offering and delivering high caliber community amenities, giving us a competitive advantage over the world’s Silicon Valleys.â
Eric Broxterman, vice president and deputy general counsel for Global Internet Protocol at Vertiv, said he appreciates the board’s review of the legislation.
âVertiv looks forward to continuing its positive relationship and presence in the City of Westerville,â he said.
Jason Lake, a financial consultant with the Cushman & Wakefield real estate team, said he has worked with Vertiv for the past six months to identify sites and options.
âI work with hundreds and thousands of communities across the United States,â he said. âFew reach the top in terms of customer service, availability, creativity and help. “
Lake said the Westerville property had peaked.
âWe also looked at other potential consolidation options etc. in the community and elsewhere,â he said. âWe are eager to put it in place. We still have a lot to do. We are still in negotiations with the owner, but this is an important step in getting us here.
Craig Treneff, vice chairman of the board, said that is why he supports economic development in principle.
âIt takes an existing property tax abatement and expands it and a retention incentive to keep jobs here,â he said. âThis is essentially an investment of approximately $ 2.3 million for over $ 14 million in tax revenue for our citizens.
What that essentially means, Treneff said, is that Westerville has another national headquarters.
âWhat it does for our residents is it helps provide services to our residents with income,â he said. âYears ago, we had the foresight to invest in our business community. We have a large business community with over 30,000 people who come to town to work every day, which allows us to have the park system that we do, to maintain our roads, to have excellent police and fire departments, etc.