NORTH CANTON — The city is welcoming Diebold Nixdorf and 215 jobs to the Hoover District with a five-year income tax deal.
The company plans to move into a 200,000-square-foot space in the northern portion of the former Hoover Co. headquarters. The space on Orchard Avenue previously was occupied by Suarez Corp. Industries.
The city and Diebold Nixdorf announced the move last week, and the City Council on Monday approved a Job Creation Incentive Grant Agreement.
“We’re thrilled to be offering this incentive to them to get them into our community,” said Councilwoman Marcia Kiesling, adding that North Canton has to sometimes strike deals with companies as it is competing against other municipalities for jobs.
Diebold Nixdorf’s 215 jobs at the North Canton site comes with an estimated payroll of about $8.4 million.
Under the agreement, the city would return 50% of collected income tax, about $62,954 annually, back to Diebold. The remaining tax would be split: 45% to the city and 5% to the city’s Community Improvement Corp. (CIC).
The city projected to collect about $629,545 in income tax over the five-year period. The city projected to return about $314,772 to Diebold, give about $31,477 to the CIC and retain about $283,295.
Diebold must meet annual compensation and job projections to receive the grant funds. The company also has to remain in the Hoover District for at least five years.
Last week, the CIC approved reimbursing Diebold Nixdorf up to $100,000 for fees for permits and building plans.
The deal does not involve property taxes, which are primarily used to fund city schools.
Manufacturing jobs have a greater economic return to the community than jobs in other fields, said Mayor David Held, adding that employees will patronize local businesses and spend money in North Canton.
Diebold Nixdorf is going to revitalize that portion of the Hoover building and be a new economic anchor for the facility, he said.
With new businesses in the facility, the city is economically stronger now than ever before, he added.
“This is an extraordinarily competitive environment for jobs, particularly in Northeast Ohio. We were lucky to get this opportunity through some very quick and very skilled negotiations,” Councilman Daryl Revoldt said. "It could have gone to some other place. There are other communities that could have, and would have, won this one.”
The city worked with the Stark Economic Development Board on the deal.
The company plans to have some operations in the building by August. According to the agreement, the company should complete renovations on the new space by the end of the year.