Enterprise zone agreements are contracts between businesses and government bodies where a business commits to investment and employment opportunities if it receives certain tax incentives from the local taxing jurisdictions, according to the Ohio Department of Development.
The aircraft business will pay $50,000 in taxes annually in the 10-year span with $74,000 in taxes abated each year. Tax abatements are offered to businesses to encourage development or economic activity within a city or community. Clark County Community and Economic Development Director Ethan Harris told commissioners that the relocation of Lone Mountain’s maintenance operations, which were once based out of Lebanon-Warren County Airport, will give the business an opportunity to expand, but will also offer Clark County an incentive: visibility.
The aircraft company has clients across Ohio and the United States, as well as in several other countries.
“They’re going to be seeing Clark County, they’re going to be staying in Clark County,” he told the commissioners. In addition, the business will have 13 full-time employees and a handful of part-time positions at its Springfield location as a part of the agreement.
In January, the Springfield City Commission authorized the city manager to enter into a Joint Development Agreement and Hangar Rental Agreement with Lone Mountain Aircraft. Lone Mountain is leasing two hangars at the airport, and the City of Spring invested $50,000 toward their renovation, with Lone Mountain contributing to the bulk of the more than $100,000 renovation project.
Springfield’s Director of Economic Development Tom Franzen told commissioners Wednesday that the addition of Lone Mountain adds to a mix of businesses operating out of the airport, with four other tenants calling the airpark home and another in the works. The airport has an additional 150 acres that could be leased to a company, he said.
The city of Springfield falls within an enterprise zone in Clark County. Other enterprise zones, as defined by the Ohio Department of Development, are located in New Carlisle and South Charleston. Another enterprise zone stretches across Springfield, Bethel, German, Green, Mad River, and Moorefield townships.
By the Numbers:
10: The length in years of the tax abatement for Lone Mountain Aircraft
13: The number of full-time employees expected from the company
74,000: The amount in taxes abated annually during the abatement period
