Ardagh gets tax abatement

HURON — When people shout out, "can it," it normally means stop talking. But in Huron, proclaiming the phrase takes on an entirely new, and opposite, meaning when referencing an estimated $411 million investment. During a recent public meeting, city council members approved a 15-year tax abatement agreement with the Ardagh Group to assist in its ongoing construction efforts. Ardagh, in short, is building a manufacturing plant at Sawmill Parkway, an industrial park off Rye Beach Road. The company produces recycled materials, such as beverage cans. The abatement forgives 100% of all property taxes for new development for a 15-year period. Before the deal came to fruition, for months, officials constantly continued dialogue with Ardagh representatives to hammer out this complex deal. Officials felt comfortable authorizing this arrangement based on several factors. Most notably, this includes making two impacted local school districts whole, as they would have lost out on a sizable amount of money otherwise. Huron city manager Matt Lasko explained. "Ardagh agreed to provide payment to Huron Schools and EHOVE Career Center for the amount of taxes they normally would have received if there wasn't an abatement in place," Lasko said. "In other words, Ardagh will make payments to the school districts for an amount equivalent had there not been an abatement at all." It's not known exactly what these payments could total today. Lasko further stressed the deal's importance. "For a community like ours, it's amazing to have all of this job creation, which will attract new residents to the region," he said. "Couple that with the fact that those new employees will be paying our city income tax certainly made it a worthwhile investment for the city to forgo our future real estate taxes for 15 years." Articulating Ardagh Jennifer Cumbee, a company spokeswoman, previously provided some details on the project: • Location: "The Huron location was decided based on regional beverage can demand, distance to customer filling locations, access to suppliers, distribution efficiencies, etc. We are also excited to further build our employee base in Ohio, complementing our locations in Fremont and Whitehouse with talented, focused teams targeting customer quality and satisfaction." • Timeline: Full-scale operation should begin later this year. • Investment: The estimated $411 million investment in Huron "is part of a $1.8 billion global capacity expansion program through 2024, increasing production output across our business to meet fast-growing demand as consumers increasingly recognize the environmental and quality advantages of beverage cans." • Size: "The (Huron) site consists of more than 340,000 square feet, and we will be using the majority of the space as well as adding on where necessary." • Jobs: "The new Ardagh Metal Packaging Huron plant will generate more than 200 jobs in the region." Through these 200 jobs, Ardagh previously acknowledged its annual payroll in Huron would equate to roughly $16 million. • Production: "The Ardagh Metal Packaging Huron plant will consist of three can production lines, together with ends capacity, and will produce beverage cans in multiple sizes for a variety of categories, including sparkling water, soft drinks, teas and alcohol beverages. Output from the Huron plant is secured by long-term customer agreements." • Profile: "Ardagh Group is a global supplier of infinitely recyclable metal and glass packaging for the world's leading brands. Ardagh operates 56 metal and glass production facilities in 12 countries, employing more than 16,000 people with sales of $7 billion."