Axalta Coating Systems will invest $2.2 million in equipment and machinery and $750,000 in building improvements in exchange for a 12-year, 50-percent property tax abatement, Hilliard Development Director David Meeks said.
Axalta acquired the site at 4130 Lyman Court from DuPont Powder Coatings.
The company does color mixing for custom automotive paint.
Hilliard City Council July 14 approved a community reinvestment area, or CRA, to facilitate the property tax abatement for Axalta.
Axalta currently employs about 65 people with a payroll of $3.1 million and is expected to add seven new full-time jobs with a total payroll of $400,000 within five years of the completion of the expansion project, according to the agreement.
The property tax abatement applies only to the $750,000 investment the company is making in the building, Meeks said.
The estimated annual value of the tax abatement to Axalta is $13,665. The total value over the 12-year term is estimated at $163,980, Meeks said.
The city of Hilliard's share of current property taxes from the site is $896 annually. The amount is projected to increase to $1,057 during the term of the abatement and rise to $1,219 after its expiration.
Tolles Career and Technical Center will receive identical amounts in each instance.
The Hilliard school district currently receives $36,388 from the site. It will collect $45,407 during the lifespan of the abatement and $54,425 upon its expiration.
Norwich Township currently receives $8,244. Norwich will get $10,404 annually during the 12-year term of the abatement and $12,583 after its expiration.
The Columbus Metropolitan Library collects $1,568, and will $1,850 under the abatement and $2,133 after, with Franklin County receiving $10,334, $12,196 and $14,059, respectively.
Council Vice President Kelly McGivern, upon learning that the school district had not been formally notified about council's intent to grant the CRA to Axalta, said the city needs a policy to do so.
Meeks said the district was aware the city planned to offer the deal to Axalta, and did not oppose it, but he did not advise the district about the legislation at the July 14 meeting.
McGivern said she would not vote against the measure but made clear her desire for affected entities to be made aware when such legislation is scheduled for adoption.