ASHLAND – A proposed tax abatement agreement for S.J. Electro Systems moved one step closer to reality after the Ashland City Council put its stamp of approval on the issue Tuesday night.

The Ashland City School Board and Ashland County-West Holmes Career Center Board previously voted in favor of the 75-percent, 15-year abatement for the Minnesota-based manufacturer which conducts business in Ashland as SJE Rhombus.

The city’s enterprise zone negotiation committee recommended the abatement so the company can construct a new manufacturing facility in the Ashland Business Park.

Under the abatement agreement, the company will receive a 75-percent reduction in real property tax for 15 years in return for an investment of between $5 million and $8 million in real property. The deal also calls for the company to create five new full-time jobs each year for three years and to retain the 59 full-time employees and seven contract/temporary positions currently employed at its Ohio Street facility.

“As we went through the process, and especially when the issue came before the school board, it was well discussed,” Councilman Matt Miller said. “The facts were laid out on the table and I did think the school board did a good job of questioning the company and making sure they are committed to the area.”

Construction on the new facility is expected to start next month and be completed by the fall of 2018.

Ashland Economic Development Director Kathy Goon said the abatement will now be presented to the Ashland County Commissioners for approval.

Repaving Project

City Engineer Shane Kremser shared news with councilmany city residents have been waiting a long time to hear. Sarver Paving, which was awarded the contract for the Ashland repaving project (funded by the levy voters’ approved last fall), will begin milling work this week on the first phase of the project.

Kremser said work will begin on Luray Drive, Morgan Avenue, Budd Avenue, Avalon Drive and King Ridge Drive.

“It took a lot of preparation to get to this point so we’re excited,” Kremser said.

Kremser urged residents to be patient with any traffic delays caused by the construction.

Council also approved a permit application submitted by Fin Feather Fur Outfitters to construct a 6-foot-high chain link barbed wire fence with gates around a warehouse facility at 816 Clark St. This new fence would be along the front of the facility on Clark Street and link with an existing fence along the other three sides of the property.

According to city ordinance, council is required to approve any barbed wire fence construction.

In other business, council:

  • Approved a contract with Simonson Construction Services for the Englewood Court storm sewer extension project.
  • Approved a renewal contract with Forest Recovery Services to collect delinquent emergency management service bills for the city
  • Authorized a renewal contract with Medicount Management to provide emergency management service agency billing services for the city.
  • Approved a facilities management contract with Casnet Document & Information Management for a software and hardware document storage system.
  • Approved a facilities management contract with Software Solutions for the accounting systems software programs and computer hardware equipment.