MANSFIELD –Newman Technology is exactly the kind of project local economic developers want to assist, according to Jessica Gribben.
“A company that’s already proven they want to be here. They have a great workforce here. They’re doing good things. They’re a great community partner here so we know what we’re getting,” the president and CEO of the Richland Area Chamber & Economic Development said on Monday.
“(Working to attract new business) sometimes is a little more sexy, but at the end of the day, you don’t really know what you’re getting.”
Newman Technology will celebrate its 40th year of operations in Mansfield in 2027.
She spoke during a Richland County Port Authority meeting that saw the port’s board approve up to $21 million in revenue bonds for a Newman expansion project that will allow the company to proceed with state and local sales-tax exemptions in exchange for fees paid to the local authority.
Under Ohio law, a port authority can approve property lease-leaseback transactions and bond issuances where qualifying construction materials and equipment are purchased under the port’s umbrella in exchange for agreed-upon developer fees.
“These are tried and true, great jobs, great company, and we’re excited to support them,” Gribben said during a meeting that included two Newman Technology representatives — Director of Operations Bill Nagle and Luke Thomas, senior manager of engineering.
Under the terms of the agreement, it’s estimated Newman will save $742,658 in state and local sales tax on all materials purchased for a $21 million construction project that will add an estimated 70 jobs to its current 630-member workforce.
As part of the agreement, Newman Technology will pay an estimated $185,774 in fees to the Port Authority, which can be used for future local economic development projects.
Newman will also make about a $50 million investment for “new projects, new lines (and) press machines that’ll go into the expansion,” according to Nagle.
In total, Newman plans a $74.5-million expansion, including a 25,000-square foot building, adding an estimated $3.5 million in local, annual payroll.
It’s the third leg of tax considerations which began when the company at 100 Cairns Road was approved in March for a 1.225 percent, six-year Job Creation Tax Credit from the Ohio Tax Credit Authority.
In July, Mansfield City Council approved a 100-percent local property abatement for 15 years on the new development, which will include a new 1,500-ton stamping press. That work is scheduled to start in September and be complete by October 2027.
A separate agreement approved by local lawmakers will reimburse the Madison Local School District for the property tax break through company money and city income tax funds.
The deal was brokered by the Richland Area Chamber & Economic Development/Richland Community Development Group on behalf of the Port Authority.
During a City Council meeting, Barrett Thomas, Richland Area Chamber & Economic Development’s senior director of economic development, said it was a unique expansion.
“This is a relatively small footprint, 25,000 square-feet, but a lot of jobs. Often we’re looking at something like 100,000 square-feet and 15 jobs. So this is a huge jobs-per-square-foot ratio and that puts this into a special category, especially as it relates to the school system,” Thomas told lawmakers.
“Because the payroll is high enough that it goes over a threshold at the state level, we (negotiated) with the schools to find a solution that works for everyone. The solution that we all kind of collectively came up with is instead of doing a 75-percent abatement, we will do a 100-percent abatement.”
Newman Technologies (will then) make a 50-percent payment in lieu of taxes direct to the schools. In addition to that, the city will use some of the increase in income tax that we get to help compensate the schools. So they are made whole in this instance, which is unusual, Thomas said at the time.
“The city administration wanted to be sure to be a good helpful partner with schools as we go through this.”
Brian Baker, vice president of planning and development for Newman’s local operations, told City Council that Newman Technologies is a Tier One automotive supplier — a company that manufactures and provides major systems, modules or complete assemblies directly to an original equipment manufacturer.
Honda is the company’s primary customer.
“We started (at) just under 40,000 square-feet (in 1987 on Newman Street) and as of now, we’re just over a million square-feet of production space,” Baker told council.
“We have an opportunity through our customers … through community support … through our workers … to gain some additional business.”
