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By Betty Lin-Fisher
Beacon Journal staff writer
POSTED: 07:10 p.m. EDT, Jun 30, 2009
The first piece of the puzzle in keeping toy manufacturer Little Tikes in Hudson has fallen into place.
Officials for the toy maker's parent company — Van Nuys, Calif.-based MGA Entertainment, which also produces the Bratz dolls — have been in negotiations with the state and city of Hudson for three years asking for assistance to keep the headquarters off Barlow Road.
Other states have been wooing Little Tikes to leave Hudson.
On Monday, the Ohio Tax Credit Authority awarded MGA a 55 percent job creation tax credit for seven years, valued at $134,228, for a Little Tikes expansion project in Hudson. The $5.8 million project is expected to create 63 positions and retain 398 jobs.
If the company accepts the tax credit, it would be required to maintain operations in Hudson for 14 years.
Ohio Department of Development spokesman Bob Grevey said it's a company's prerogative whether to utilize or accept a tax credit offered by the state.
''The tax credit award is not a final step, but it's an important step. It is not uncommon for us, when companies like Little Tikes come to us for help, to construct a package of incentives,'' Grevey said.
In a prepared statement, Little Tikes Worldwide General Manager Tom Richmond said, ''though we are very pleased with this first step, the Job Creation Tax Credit is just one part of a total economic package of which Little Tikes is awaiting word from the state. Once we have the total package, which should be the end of July, we'll be able to make our decision.''
He declined further comment through a spokeswoman.
Chuck Wiede, Hudson economic development director, said the tax credit is a step toward keeping Little Tikes.
The city of Hudson has also offered a job creation tax credit to Little Tikes in the form of a local match. The city would give the company a municipal income tax grant of 50 percent for six years, which is valued at about $123,000, said Wiede.
''The state is still working on about three other pieces that they need to come together with. We hope to have an answer with the state by the end of July,'' he said.
The actions by the state are not a guarantee that Little Tikes will stay, but Wiede said he believes ''it's a very, very positive first step. If they really didn't want to stay in Hudson, they wouldn't have gone through the application process and go through appearing in front of the Tax Authority.
''I think they truly, truly want to stay in Hudson. They are being thrown some ridiculously crazy offers from other states,'' Wiede said.
Wiede acknowledged that tax credits from the state and Hudson amounting to about $250,000 aren't going to be enough to keep Little Tikes.
Wiede said MGA Chief Executive Officer Isaac Larian has been very clear that the company needs help to stay in Hudson.
''We've come to a middle ground,'' Wiede said.
Wiede and Grevey both said they could not discuss what other incentives the state might be able to offer, but Wiede said part of the state package includes work force training. Hudson also has committed to match one of the grants the state is considering, but Wiede said he could not go into details.
The toy company is offering to expand its operations to invest in new machinery and equipment and upgrade some tooling to make the facility more productive, said Wiede.
Betty Lin-Fisher can be reached at
330-996-3724 or blinfisher@
thebeaconjournal.com.
The first piece of the puzzle in keeping toy manufacturer Little Tikes in Hudson has fallen into place.
Officials for the toy maker's parent company — Van Nuys, Calif.-based MGA Entertainment, which also produces the Bratz dolls — have been in negotiations with the state and city of Hudson for three years asking for assistance to keep the headquarters off Barlow Road.
Other states have been wooing Little Tikes to leave Hudson.
On Monday, the Ohio Tax Credit Authority awarded MGA a 55 percent job creation tax credit for seven years, valued at $134,228, for a Little Tikes expansion project in Hudson. The $5.8 million project is expected to create 63 positions and retain 398 jobs.
If the company accepts the tax credit, it would be required to maintain operations in Hudson for 14 years.
Ohio Department of Development spokesman Bob Grevey said it's a company's prerogative whether to utilize or accept a tax credit offered by the state.
''The tax credit award is not a final step, but it's an important step. It is not uncommon for us, when companies like Little Tikes come to us for help, to construct a package of incentives,'' Grevey said.
In a prepared statement, Little Tikes Worldwide General Manager Tom Richmond said, ''though we are very pleased with this first step, the Job Creation Tax Credit is just one part of a total economic package of which Little Tikes is awaiting word from the state. Once we have the total package, which should be the end of July, we'll be able to make our decision.''
He declined further comment through a spokeswoman.
Chuck Wiede, Hudson economic development director, said the tax credit is a step toward keeping Little Tikes.
The city of Hudson has also offered a job creation tax credit to Little Tikes in the form of a local match. The city would give the company a municipal income tax grant of 50 percent for six years, which is valued at about $123,000, said Wiede.
''The state is still working on about three other pieces that they need to come together with. We hope to have an answer with the state by the end of July,'' he said.
The actions by the state are not a guarantee that Little Tikes will stay, but Wiede said he believes ''it's a very, very positive first step. If they really didn't want to stay in Hudson, they wouldn't have gone through the application process and go through appearing in front of the Tax Authority.
''I think they truly, truly want to stay in Hudson. They are being thrown some ridiculously crazy offers from other states,'' Wiede said.
Wiede acknowledged that tax credits from the state and Hudson amounting to about $250,000 aren't going to be enough to keep Little Tikes.
Wiede said MGA Chief Executive Officer Isaac Larian has been very clear that the company needs help to stay in Hudson.
''We've come to a middle ground,'' Wiede said.
Wiede and Grevey both said they could not discuss what other incentives the state might be able to offer, but Wiede said part of the state package includes work force training. Hudson also has committed to match one of the grants the state is considering, but Wiede said he could not go into details.
The toy company is offering to expand its operations to invest in new machinery and equipment and upgrade some tooling to make the facility more productive, said Wiede.
Betty Lin-Fisher can be reached at
330-996-3724 or blinfisher@
thebeaconjournal.com.
Comments
Click here to post your comments
Akron, OH
Posted 09:31 PM, 06/30/2009
Tax credits are immoral and should be illegal. Schools are the big losers. If these credits were illegal then the playing field would be level and we wouldn't be jeopardizing our children for a few additional jobs. We would only have to worry about foreign competition instead of internal competition. BTW - How do I get a personal tax credit? Do I threaten to move?
Posted 10:44 PM, 06/30/2009
$5.8 million to keep 398 jobs, most of which are paying probably less than $12/hr....oh good grief.....
Especially when NO American city can compete with Chinese labor!
Scraping the bottom of the proverbial barrel; Corporate welfare at its finest....just my views....
akron, oh
Posted 05:42 PM, 07/02/2009
To Jabarten:
Perhaps if the 398 employees lose their jobs, they and there families could move in with you. Or because you feel that $12.00 an hour is not enough to help support a family, maybe you could help support them now.
