Toledo Mayor Proposes Economic Incentives for Health Care REIT Expansion

Strategic Insights -

Toledo Mayor Carty Finkbeiner has introduced legislation to help Health Care REIT, a Toledo real estate investment trust, acquire and renovate the former Dana Holding Corp. headquarters. The proposal aims to incentivize the company to relocate its corporate headquarters to the 160-acre campus, creating about 40 new jobs over the next three years. Health Care REIT plans to invest $10 million to $12 million in the renovation of the Dana building and expects to generate an estimated annual payroll of $3.2 million.

Key Takeaways:

  • The proposed legislation includes a Toledo Municipal Job Creation Tax Credit for seven years at 40 percent of the payroll income tax generated by the employees covered under the agreement, totaling $1.28 million in potential tax savings.
  • The incentives package also includes a Toledo Expansion Incentive and a 12-year, 100 percent real estate tax abatement.
  • Health Care REIT has announced plans to retain its current workforce of 68 employees and add 40 new positions.
  • The company expects to generate an estimated annual payroll of $3.2 million and invest $10 million to $12 million in the renovation of the Dana building.
  • The state has provided a $315,000 grant to help with the renovation of the Dorr Street office, awarded by the Ohio Controlling Board on January 26.
  • The incentives aim to support job creation and local economic growth during challenging economic times.

Statistics:

  • 40: The number of new jobs Health Care REIT expects to create over the next three years.
  • $3.2 million: The estimated annual payroll Health Care REIT expects to generate.
  • $10 million - $12 million: The total capital investment in the proposed renovation of the Dana building.
  • 40%: The percentage of payroll income tax generated by the employees eligible for the tax credit.
  • 7 years: The duration of the Toledo Municipal Job Creation Tax Credit.
  • 12 years: The duration of the 100 percent real estate tax abatement.
  • $1.28 million: The potential tax savings for Health Care REIT through the tax credit.
  • 68: The number of employees Health Care REIT plans to retain.
  • 160 acres: The size of the Dana campus that Health Care REIT plans to acquire.

Sources:

  • The Blade
  • Toledo Mayor Carty Finkbeiner
  • Health Care REIT, Inc.
  • Ohio Controlling Board