City renews commitment to local manufacturer

10/22/2012
FOR IMMEDIATE RELEASE
October 22, 2012

Contact: Jeannie Roberts (440) 885-8181/(216) 346-9935 

City renews commitment to local manufacturer

PARMA, Ohio ‐ Parma Mayor Tim DeGeeter and OSG/Sterling Die Vice President Ed Segula signed a new economic development agreement today, granting OSG/Sterling Die a 46% rebate on payroll taxes paid to the city for the next 12 years.

This agreement replaces a 10‐year, 50% deal that brought OSG/Sterling Die to Parma in 2001. After 10 years of leasing space on Venture Drive, OSG/Sterling Die recently invested millions in the purchase and renovation of its new home at 12502 Plaza Drive.

"Our administration values public/private partnerships and job creation," Mayor DeGeeter said. "Sterling Die invested in Parma, and we value the relationship we have with the company. In its first 10 years in Parma, Sterling Die’s payroll has increased by 40%. Since November of 2011, Sterling Die has hired 11 additional employees and is seeking additional qualified employees," he added.

The agreement begins with the property tax year starting Nov. 1, 2011 and with a base of 62 jobs and $2,715,596 in payroll.

“Based on the 11 new hires since 11/1/2011, Sterling Die could very well exceed $3,000,000 in payroll, which would trigger an automatic increase and extension of the original terms of the contract ‐ a maximum 50% for 15 years,” said DeGeeter.

Said DeGeeter: "It's a testament to Sterling's success that it met its 12‐year hiring goal in such a short time, and it's still looking to add people."

The City of Parma utilizes a uniform sliding scale for payroll tax incentives ranging from a low of 15% for 5 years based on $1,000,000 in payroll to 50% for 15 years on payroll in excess of $3,000,000.

“We feel this is a fair and generous incentive for both the employer and taxpayer," DeGeeter said. "We are rebating money already paid to the city as opposed to property tax abatement deals that could cost the school district money should the company fail.”

OSG/Sterling Die is the largest manufacturer of threaded rolling dies in the United States and services internationally to over 20 countries.