ONTARIO ─ The City of Ontario has given a boost to the revitalization of the former General Motors site.
Ontario City Council voted on Wednesday night to offer Charter Next Generation (CNG) a 10-year job creation tax credit. The company will start specialty bags production at the former press prep building later this month.
According to the agreement, CNG will receive the tax credit at 50 percent of the income tax, from April 1, 2021 to Dec. 31, 2031. The company plans to create 300 full-time jobs within three years and a payroll of $37 million in total.
Council president Eddie Gallo said from what he understands, CNG will provide 30 to 40 job opportunities when it begins production.
Projects eligible for Ontario Job Creation Tax Credit include headquarter, manufacturing, science and technology, research and development, distribution and certain service projects, according to Ontario Codified Ordinances.
Businesses have to create and maintain at least 10 new and full-time jobs in the first three years of operations, the ordinance states. Those jobs’ average hourly wage must be at least 150 percent of the U.S. Federal minimum wage or the Ohio minimum wage.
Brandon Hall, CNG’s executive vice president of operations, previously told Richland Source the company will invest $67 million through the next three years in the Ontario expansion. It will install 16 blown-film production lines and 13 specialty bags machines by the end of 2023.
Gallo said it is exciting to see CNG partner with Industrial Commercial Properties to develop the site. The operation is going to bring jobs to the community and boost the local economy.
“We want to return Ontario to be the epicenter for all business activities in the region, not just in the county. And a big part of that is developing this site,” Gallo said.
“We know what GM meant to this area before. The recovery has taken quite a while but we're on the cusp of it right now.”
In addition, Ontario is projected to receive about $1.1 million through the American Rescue Plan Act. Mayor Randy Hutchinson said the exact amount of funds the city will receive remains uncertain, so do the full guidelines for the use.
The mayor will be joining a related webinar conducted by the Ohio Municipal League at the end of April to gather more information. He said he wants to find out the fund’s eligible uses before starting a discussion with the council and making plans.
Also, Ontario City Council accepted a donation from Trent and Sara Walter for the police department to purchase a MARCS radio system. The council also voted to accept a grant from Merris and Jean Welge Fund at the Richland County Foundation.
The grant will help pay for Ontario police officers’ training. Hutchinson and Gallo both thanked the citizens’ support for the city.