Gabe’s plans to create 833 full-time equivalent jobs during a five-year period that accounts for about 740 full-time jobs and 330 part-time jobs, said Springfield City Manager Bryan Heck in terms of the Employment Incentive Agreement.
If Gabe’s delivers on its promise of job growth in the city, it will receive a 30% return on the income tax generated by those new jobs as part of the agreement.
However, the exact amount of money the company can see back per year during the five-year period of the agreement depends on how many jobs are created annually, said Tom Franzen, the assistant city manager and director of economic development for Springfield.
“It will take the company time to ramp up to that 833 full-time equivalency number that we are basing (the agreement) on,” Franzen said.
It is estimated that if Gabe’s is able to fulfill its goal of creating the equivalent of 833 full-time jobs in the area, the company will generate $27.8 million in new annual payroll. That would mean that Gabe’s could get back up to $190,000 a year during the agreement timeframe.
The decision to approve the agreement during the commissioners’ public meeting on Tuesday follows the announcement this month of Gabe’s decision to build its new distribution center at the Prime Ohio II Industrial Park in Springfield.
Multiple commissioners spoke during their public meeting on Tuesday that they were pleased with Gabe’s decision and see it as a major economic boost to the area.
“I wanted to express, as a commissioner, my gratitude for (Gabe’s) to locate here and to bring nearly 1,000 jobs to our community,” said Commissioner Rob Rue.
Mayor Warren Copeland added: “I think this will be a really major expansion of our economy, and we appreciate their decision to locate here.”
The recently approved Employment Incentive Agreement follows other local and state incentives that were awarded to Gabe’s for its project in the area.
That includes a Enterprise Zone Agreement that Springfield City Commissioners passed during their Oct. 12 public meeting. It will allow for a 100% tax abatement for 15 years regarding the property at 1801-1830 Prime Parkway. The same agreement was approved by the Clark-Shawnee Local Board of Education in August.
The Ohio Tax Credit Authority approved a 1.488%, 10-year job creation tax credit earlier this month for the Gabe’s project.
The distribution center will be located on 114 acres of land that was purchased from the he Community Improvement Corporation of Springfield and Clark County.
Construction on the project started this month and a groundbreaking ceremony was held last week. The facility is expected to be fully operational by the fall of 2022.
The new Springfield facility will support each of Gabe’s 120 stores that are in 14 states as well as allow the company to expand its presence. The chain’s closest retail outlet to Springfield is in Beavercreek.
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