Holmes County outdoor furniture maker LuxCraft gets tax break for expansion, new jobs
MILLERSBURG − Holmes County commissioners on Monday approved a tax incentive deal for a local business that's expanding.
Luxcraft in Walnut Creek Township was awarded a 50% tax break for 10 years under an enterprise zone agreement that will see the business construct a $1.1 million, 35,000 square-foot addition and add three new jobs, while retaining 39 full-time workers, according to the county's Economic Development Director, Mark Leininger.
The company — which makes outdoor furniture, including outdoor structures and poly furniture — also plans to invest an additional $350,000 in equipment, Leininger said.
More:Holmes County commissioners maintain board seats as they eye 2023 projects
The new building would connect the existing production facility to the company's raw materials warehouse, Leininger said.
"This space would be used for materials prep; the raw materials would come into this new facility and it would be prepped before it is moved into the production facility to free up some additional production space that they are currently using for materials prep," he said.
An enterprise zone agreement was approved in 2020 for Luxcraft when the County Road 144 business was building a warehouse to store finished product.
"This company is truly an American Holmes County success story," said Commissioner Joe Miller. "I watched this operation for years and years. ... They've got half a dozen buildings there now. You can't even see all the buildings from the road."
Miller called company President Brian Mullet, who started LuxCraft as a small business in 1990, a hard worker.
Holmes County enterprise zone agreements
Notices about the tax break were sent to the school districts on Dec. 12, and the Walnut Creek Township Board of Trustees approved the agreement on Jan. 12.
With this latest action, 41 Holmes County businesses are now taking advantage of the 10-year, 50% tax break. Three agreements expired at the end of 2022, and five more will expire at the end of this year.
"We started these enterprise zones under the leadership of Mark, and the program has really grown," Commissioner Dave Hall said. "This program has brought much-needed opportunity of business growth to this area. It allows our homegrown companies and entities to compete in the state arena and sometimes national arena of businesses."
Miller noted there was some pushback when the county originally began offering the tax breaks, but they have worked well in keeping companies operating in Holmes County.
"The majority of the enterprise zones are in the East Holmes School District, but we've got a half dozen or so in the West Holmes School District as well," Leininger said. "We haven't gotten any negative feedback from anyone, really."
2023 budget approved
Commissioners also approved the 2023 budget of approximately $27.8 million, a slight increase over last year's expenditures of roughly $27.4 million.
The 2023 budget includes a 5% raise for all nonunion county employees (160 people), which Miller estimates will cost the county roughly $300,000.
Despite an increase in health insurance rates, the county will absorb those costs at no expense to employees. Miller noted that the employee share of health insurance deductibles has remained unchanged since 2007.
"The county is absorbing a significant increase in health insurance rates beginning in 2023," he said. "This increase will be accounted for at no additional costs. We're very, very happy to do that."
In other business, commissioners approved the purchase of less than half an acre near the County Road 23 bridge project for the first phase of the Mohican Valley Trail for construction and maintenance of a drainage ditch.
The Knox Township property, part of a 4.335-acre tract near the Ashland County line, was purchased from Peggy J. Claes for $4,960.
This article originally appeared on The Daily Record: Luxcraft gets tax incentive deal to expand, add jobs in Holmes County
