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Galion City Council authorized an agreement on Tuesday to provide tax incentives for Covert Manufacturing’s $7.9 million expansion project.
The company intends to invest $2.3 million for the construction of a 51,480-square-foot building within the existing campus. It will also purchase $5.6 million in new equipment.
Covert requested a 50% tax abatement for 10 years through the Community Reinvestment Area (CRA) program. The abatement is placed on the increase of the assessed property value resulting from this project.
Council held a special meeting to consider the CRA application. It unanimously approved legislation to enter into an agreement with C & C Real Estate Investments, Ltd., a company which owns the land.
The agreement is conditional to Covert creating 35 additional jobs, equivalent to an estimated $998,400 in annual payroll.
The City also agreed to relocate a water line currently running through the project area, saving the company approximately $75,000.
Covert Manufacturing is a family-owned business founded in 1967. It specializes in precision-machined products and pattern tooling for various industries, including automotive, agricultural, and heavy truck.