Sumitomo wants to consolidate, expand in city
A "staple" business in Marysville is seeking City Council approval of an enterprise zone agreement that would allow it to consolidate and expand its operations.
Jason Stanford, business development manager for the Union County Economic Development Partnership, explained the project to council at its Thursday, Oct. 10 meeting.
The agreement would involve the city, Union County, the company and developer Sumary Investment LLC.
"Sumitomo Electrical Wiring Systems is currently working with a developer to construct a new 350,000-square-foot manufacturing facility on approximately 27 acres along Honda Parkway in the city of Marysville," he said.
The developer is expected to construct and own the facility and lease it back to Sumitomo, which plans to extend its operations and invest $10 million for the facility.
"The enterprise zone negotiation recommended to City Council and county commissioners gives the approval of a 75-percent, 10-year tax abatement for this project," Stanford said. "Sumitomo has been a staple of Marysville and our community and we're very happy to have this project and this partnership."
In return for the tax abatement, Sumitomo agreed to invest the $10 million, retain 123 jobs with an annual payroll of $6.2 million and create 15 additional jobs with an annual payroll of $675,000.
Mayor John Gore said members of the Columbus 2020 delegation that visited Japan last month saw the company's presentation about the project.
"They have a target date of opening summer next year. They were hoping for July or August of 2014," Gore said.
Gary Lauman, facility manager for Sumitomo, agreed with the time frame.
"We are against a very tight schedule to meet our customer's -- Honda's -- needs," he said. "We're hoping to break ground and start construction yet this year so we can get in sometime in the August timeline."
Lauman asked council to waive the third reading of the resolution about the enterprise zone agreement so the company can get started on the project as soon as possible.
"If not expedited, the project will be delayed through the cold weather period and we'll wind up pushing this well into the next fall and past Honda's new model launch for which we're gearing up," he said. "Marysville's not the only site we were looking at, but we've been a partner here for over 20 years. We were hoping to make a faster move and quality move and stay on in this community"
Council agreed to add an emergency clause so the final reading and a vote on the resolution will be done at the next regular council meeting, Oct. 24.
Sumitomo is currently located in four separate buildings on Square Drive in Marysville. Lauman said the move to Honda Parkway would consolidate operations.
Stanford and Gore said the move would also allow the city to market the buildings on Square Drive and attract more businesses to the area.
The project comes at no cost to the city. Lauman said the company is pursuing a state grant to widen the road in front of the new facility on Honda Parkway.
"I believe it's all on our side of the road for deceleration lanes for trucks. We're only widening six feet," he said.