Council to consider
enterprise agreements

By TODD HELBERG
City Editor
Tax incentive packages are being considered for several spin-off companies related to Defiance Powertrain's new use of aluminum.
During its meeting tonight, Defiance City Council will be asked to support three enterprise zone agreements between county commissioners and the new companies. They include CBS Boring & Machine Co., Fraser, Mich.; and Alfe Heat Treating Inc., Fort Wayne. Two other agreements are also on the table between commissioners, One Source Diversified Services and Advantage Powder Coating, which will expand its GM-related business next to the Powertrain plant on Ohio 281.
One Source is owned by Advantage Powder Coating and will construct a 146,000 square foot building for the above companies just west of Powertrain, according to Defiance County economic development director Jerry Hayes.
More than five dozen jobs are expected to be created.
Although council has the option of approving the enterprise zone agreements, county commissioners ultimately have the final say. Hayes said commissioners will consider the agreements Monday. Each proposes a 100 percent abatement of taxes on new investment during the next 10 years.
Meanwhile, Four-County Joint Vocational School supports the deals, Hayes said, while Ayersville Local School District's board has yet to receive details on the proposed agreements.
The proposed agreements and plans for each company include:

CBS Boring & Machine
- The company will provide machining for metal parts, Hayes said.
- Plans to invest $30 million in machinery and equipment.
- Will create 35 full-time jobs over three years with an annual payroll of approximately $950,000.
- Enterprise agreement will provide $2.7 million in tax savings over the 10 years.
- In return for abatement, CBS Boring & Machine will make annual donations to Ayersville Local Schools and Four-County Joint Vocational School. These amount to about 35 and 5 percent, respectively of tax savings to the above schools.

Alfe Heat Treating, Inc.
- The company will provide heat-treating services for engine blocks, but will be looking to serve more than one customer, Hayes said.
- Plans to invest $5.6 million in machinery and equipment.
- Will create 19 full-time jobs over three years with an annual payroll of approximately $672,000.
- Enterprise agreement will provide $550,000 in tax savings over the 10 years.
- In return for abatement, Alfe Heat Treating will make annual donations to Ayersville Local Schools and Four-County Joint Vocational School. These amount to about 35 and 5 percent, respectively of tax savings to the above schools.

Advantage Powder Coating
- Already providing Powertrain with metal-related services, the company will embark upon a new process that controls leaks in metal products, particularly aluminum, Hayes said.
- Plans to invest $1.3 million in machinery and equipment.
- Will create 11 new full-time jobs over three years with an annual payroll of approximately $270,000.
- Enterprise agreement will provide $120,000 in tax savings over the 10 years.
- In return for the abatement, Advantage Powder Coating will make annual donations to Ayersville Local Schools and Four-County Joint Vocational School. These amount to about 35 and 5 percent, respectively of tax savings to the above schools.

One Source Diversified Services
- This company, owned by Advantage Powder Coating, will construct the new 146,000 square-foot building to be used by the above three firms. Hayes said construction likely will begin this year and could be completed in 2002. The building will be located due north of Advantage Powder Coating's existing operations.
- Plans to invest $3.1 million in new construction.
- Enterprise agreement will provide $440,000 in tax savings over the 10 years.
- In return for abatement, One Source Diversified Services will make annual donations to Ayersville Local Schools and Four-County Joint Vocational School. These amount to about 35 and 5 percent, respectively of tax savings to the above schools.

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