Daily Record Articles


State OKs loans for Smucker, ATI

By MARC KOVAC
Dix Capital Bureau

COLUMBUS — The state Controlling Board has signed off on a $1.8 million low-interest loan for a new research and development facility at the J.M. Smucker Co. in Orrville.

Smucker’s plans to use the funds, along with $11.7 million of its own, to build the 35,000-square-foot building and equip it with machinery and equipment to house the company’s Global Coffee R&D operations. The latter currently are housed in Cincinnati.

The new facility “will allow Smucker to develop innovative new products and maintain its status as a market leader in the coffee production industry,” according to documents.

Smucker’s committed to retaining 85 full-time positions at the site. The company also plans to cut about 40 percent of its manufacturing work force over the next three years.

According to documents, “The state of Ohio is in competition with the states of Kentucky, Tennessee and Louisiana. The R&D Investment Loan is a major factor in Smucker’s decision to construct its Global Coffee Research & Development facility and retain 84 full-time jobs. State assistance is instrumental in making the Ohio site cost-competitive.”

In other business, the Controlling Board released funding for improvements at the Agricultural Technical Institute’s livestock facility near Apple Creek.

The project calls for the installation of a cattle corral and livestock handling system in a pasture at the site on Apple Creek Road.

Funding originally was set aside for an equine storage facility, but ATI determined there was a greater need for the livestock handling system, according to documents.

The lawmaker panel released $23,200 for professional design services related to the project.


Major facility to expand on Orrville campus

March 25, 2010

By PAUL LOCHER
Staff Writer

ORRVILLE — The J.M. Smucker Co. announced plans Wednesday to build yet another major facility on its fast-growing Orrville campus, but at the same time said it will reduce its manufacturing plant workforce by about 40 percent over the next three years.

The good news-bad news scenario was contained in an announcement that the Orrville-based conglomerate will undergo an extensive economic restructuring that will result in closing some of its plants in the United States while making major investments in others.

In a Wednesday release that took administrators at city hall completely by surprise, Smucker’s announced capital investments for a new state-of-the-art food manufacturing facility in Orrville, as well as expenditures for equipment and technology enhancements at its Ripon, Wisc., facility totaling $150 million.

The newly announced manufacturing facility at Orrville will produce fruit spreads, ice cream toppings and syrups, and will have the additional capacity to support future growth.

However, the company said it will be closing its fruit spreads manufacturing facilities in Memphis, Tenn., and Sainte-Marie, Quebec, as well as coffee plants in Sherman, Texas, and Kansas City, Mo. Smucker’s will also make capital investments totaling $70 million to consolidate all coffee production into its existing facilities in New Orleans.

The changes come as a result of Smucker’s completing an extensive analysis of its coffee and fruit spread chain network. As a result, it will begin what it calls a “multi-purpose initiative” that will be implemented over the next three years. Company officials characterize that initiative as “a long-term investment to optimize production capacity and lower the overall cost structure,” according to a release.

Smucker’s plans include making a $220 million investment in its coffee and namesake fruit spreads businesses over the next three years. Additionally, the company is expected to incur about $190 million in restructuring charges over the life of the plan.

Tim Smucker, chairman of the board and co-chief executive officer, said, “We are confident that this strategic decision is important for the long-term growth of the company. However, it was difficult, given the effect on employees, their families and the communities related to the impacted facilities. We appreciate the contributions of our employees,” he continued, “and are committed to treating them with fairness and respect as we transition these facilities over the next several years.”

His comments were echoed by Richard Smucker, executive chairman and co-chief executive officer, who said, “This initiative is consistent with the commitment we’ve had to continuous improvement throughout our history. This significant investment we are making in our coffee and fruit spreads business will help us achieve our long-term financial objectives, strengthen our category leadership positions, and enable us to deliver even greater value to our consumers, customers and shareholders.”

Maribeth Badertscher, vice president of corporate communications, said the new plant to be constructed in Orrville represents “the largest capital investment in the company’s history,” and predicted it would dwarf the 137,000-square-foot office complex under construction on the campus, which is scheduled to open in 2011.

Badertscher said the two major new buildings will be under construction simultaneously. She said the exact location of the new manufacturing building has not yet been sited, but said it would be northeast of the new office complex off of Mill Street and be connected to the existing warehouse facility.

While the exact costs for the new plant were not available, Badertscher said it would represent the lion’s share of the announced $150 million capital investment shared between the Orrville and Ripon, Wis., locations.

Badertscher said ground for the sprawling new plant will be broken this fall, with a phased-in startup beginning in the summer of 2012 and moving into the summer of 2013. When the new plant starts up, Smucker’s will close it Memphis and Sainte-Marie plants.

Badertscher said the new facility will completely replace the company’s existing manufacturing plant in Orrville, which is more than 60 years old. Because of the new technologies and efficiency improvements designed into the new facility, a reduction of the Orrville plant workforce of about 40 percent is anticipated over the next three years.

Smucker’s currently has about 1,300 employees on the Orrville campus, with 420 being full-time manufacturing jobs and 60 temporary manufacturing jobs. This means, Badertscher said, that about 168 full-time manufacturing jobs will be lost. However, she noted that of those positions, as many as 130 long-time employees are eligible to take advantage of Smucker’s voluntary retirement program. She said other jobs will become vacant as a result of attrition and not be filled.

Badertscher said the company – which has a reputation as one of the best to work for in the United States – “had to make very difficult decisions” about employment to implement the ambitious new plan.

According to Badertscher, it is unknown how many people will be employed in the new manufacturing facility, but the math suggests that number might be around 250.

As a result of these initiatives, Smucker’s manufacturing facilities in North America will be reduced to 18 from the present 22, with a total reduction of about 700 full-time employees, or 15 percent of its work force.

Upon completion of the new plant, the production of Smucker’s fruit spreads, syrups and ice cream toppings in the U.S. and Canada will be concentrated in Orrville and Ripon.

When its plan is fully implemented, Smucker’s expects the annual savings will be about $60 million.

Badertscher said Wednesday’s announcement illustrates Smucker’s long-term commitment to Orrville, which represents “the heritage of the company.”


Wayne College has created its campus goal

February 25, 2010

By PAUL LOCHER
Staff Writer

ORRVILLE -- Half a year has elapsed since Wayne College opened the doors on its new $8.5 million student life building, which transformed the single-building institution into a genuine campus.

During that time, administrators have had an opportunity to look back and reflect on the structure and the choices they made in the years leading up to the actual construction, and ponder things they might have done better.

And you know what? They can't think of anything.

"We created exactly what we hoped for," said Dean Jack Kristofco. "The first week of the fall semester it became apparent that we had transformed this into a campus. That struck me as I stood in the new building and watched students walking back and forth across the lawn between the buildings, and just hanging out in the new building."

Kristofco said efforts are now focused on using space in the new structure as effectively as possible. For example, he noted, discussions are under way about using the wide hallway/foyer area outside the Smucker Multi-Purpose Room as gallery space for art and photography.

"We want to take advantage of all the space we have for the best possible use," said Kristofco, adding moving some operations into the new building has provided opportunities for the original structure on campus.

He said full utilization of both buildings is expected to occur by the fall semester.

Cindy Summers, director of student recruiting and community relations, said after the old Filling Station cafeteria was closed and the space converted into quiet study lounges, students began to use that area immediately for its intended purpose.

Meanwhile, she said, the new cafeteria with its "grab 'n' go" format has proven popular with students, who suggested the idea. The new facility offers a daily selection of salads, soups, pizza by the slice, yogurt and other items students can eat at the nearby table area, which, Kristofco said, will soon be equipped with two wide-screen TVs.

As for the Barnes & Noble bookstore, Summers notes it has much more space to market books and other merchandise to the public than the old bookstore.

"This was built and set up as a store," Summers said. "There are windows, and the walls are set up to display products."

Kristofco said if there were any real surprises in watching the utilization of the building, it was seeing the high usage level of the office spaces that had been constructed for various student organizations, including the student senate.

"Those are always crowded with students," he said.

Summers said the Smucker Multi-Purpose Room has proven a boon to the college for large-group gatherings, including the Shakespeare Festival held in October. For the first time, she noted, the event was able to be held in an acoustically correct environment with the audience able to enjoy good sight lines and lighting.

She said the space has been used for a variety of holiday events, Leadership Orrville, continuing education courses and a musical concert.

"One thing it hasn't been used for yet has been classroom space," said Summers, adding some classes have now been scheduled for the room, which can be divided into as many as five soundproof spaces.

Kristofco said the transfer of many functions to the Student Life Building has allowed space in the original structure to be "repurposed, updated and renewed." He called that a positive effect for the old building.

Summers said the faculty also has especially enjoyed using the tiered classroom in the Student Life Building capable of seating as many as 84 students.

Asked whether the building already was facing updating any high-tech equipment because of fast-changing improvements in the field, Kristofco said not at the present time, but only because planners had waited until the last possible second to order such devices in order to get the newest equipment possible.

But, he noted, new high-tech equipment already has come on the market in the intervening months, and it won't be long until replacement of technology does become an issue.

Also still planned for installation are three or four individual computer access stations in the eating area. Both campus buildings already have free Wi-Fi.

Summers said enrollment at Wayne College is approaching 2,300 students. She said the college had projected an enrollment of 2,500 student by 2012, so it is slightly ahead of schedule in that regard.


Orrville Schools construction ahead of schedule

February 25, 2010

By PAUL LOCHER
Staff Writer

ORRVILLE DISTRICT -- The year 2009 saw the schools barrel past the halfway point in the implementation of its master plan, which was proposed several years ago and has moved forward ever since.

After opening a new middle school in 2007, voters granted the district funds to move forward with building an elementary. Construction on that project started early in 2008.

Although the $12 million building was planned to open at the start of the 2010-11 school year, a combination of good weather, falling materials costs and availability of labor pushed the project well ahead of schedule. As a result, administrators have decided to open the building to third- and fourth-grade classes May 10.

Treasurer Mark Dickerhoof said while the kids will enjoy getting a chance to experience the new building -- especially the fourth-graders who will be moving on to the middle school in the fall and would not otherwise have the experience -- putting students there will give administrators an opportunity to learn some things about the building as well. These will include the use of technology, traffic patterns and how parents will pick up and drop off their children.

Superintendent Jon Ritchie said it will transform the third-graders -- who will be fourth-graders next year and the oldest students in the school -- into mentors for the younger students in terms of directing them to the various spaces in the school.

The interior of the elementary in a number of ways resembles that of the middle school, located a scant stone's throw away -- but more colorful.

Colored tiles in the floors -- red, green, blue and yellow -- match the wall treatments in the classrooms, the checkout desk at the library, and other features throughout the building.

"When you have young kids, you try to give them more stimulation, and part of that is through the use of color," Dickerhoof said.

Like the middle school, the elementary has a "cafetorium" -- a combination of cafeteria and auditorium -- because the Ohio School Facilities Commission does not fund auditoriums or performing arts centers. In between the cafeteria and the gymnasium is an elevated stage area, which is constructed so that it can be used for programs or productions for either venue.

The new cafeteria is larger than that of the middle school, and the food serving line is raised so young students can see what is being served for lunch.

Dickerhoof said the gymnasium, now ready for use, is the same size as the one in the middle school, and the décor is the same in both.

The library, which has large windows to allow in a lot of natural lighting, has a unique area in front of a set of bay windows. A carpeted "pit" area recessed into the floor allows students to sit in a circle to hear speakers who will be in the middle. Another interesting element of the library is the acoustic ceiling tiles, some of which have impressed "tracks" across them, making it look like some sort of large animal has walked upside down across them.

The new building will have all the energy-saving technologies of the middle school -- including motion sensors that shut lights off when no one is in the rooms. In addition, it will incorporate 32 computerized SmartBoards, thanks to a $21,000 gift from the Parent-Teacher Organization.

Completion of the elementary school brings the district two-thirds of the way in its transitioning from five old outmoded and inefficient structures scattered throughout the city, to a three-building centralized campus that will have new and efficient structures.

The final piece of the centralized campus will come with the complete renovation of the present Orrville High School. It is envisioned that the $18 million project -- to be built with OSFC funds -- will go out to bid as early as this fall and be completed in time for the start of the 2012-13 school year.

Reporter Paul Locher can be reached at 330-682-2055 or e-mail plocher@the-daily-record.com.


Smucker's growth continues to be 'beacon' to Orrville

February 25, 2010

By PAUL LOCHER
Staff Writer

ORRVILLE -- The largest building to be developed on the Orrville campus of the J.M. Smucker Co. in its history is beginning to take shape, swiftly moving from blueprints to reality.

Steel framing is going up with the help of a huge crane for the 137,000-square-foot, four-story office complex that will connect to the nearby Legacy Building and Founder's Building. Ground was broken in late October for the project, which will allow Smucker's to move to Orrville about 160 employees that came with its purchase of Folgers Coffee in 2008 from the Procter & Gamble Co.

Due to lack of office space at the Orrville operation, those employees have been temporarily housed in the Fairlawn/Ghent area in Summit County. In addition, the project will allow more than 80 employees from Cincinnati to move to Orrville.

Currently, Smucker's has about 5,000 full- and part-time employees, 1,200 of which are on the Orrville campus.

Maribeth Badertscher, company spokesman, said the building will contain 500 offices and conference rooms. In order to accommodate the new employees, the corporation's cafeteria will be expanded to allow for food service expansion.

Badertscher said 2009 was a busy year for Smucker's as it laid the groundwork for the changes to come. During the year the Paul Smucker Auditorium in the Legacy Building was expanded from 108 seats to seating for 194. In addition, the auditorium's stage area was expanded.

Also, what Badertscher characterized as "significant parking" was developed on the campus, increasing the number of vehicle spaces from 300 to 800.

Smucker's bought the nearby Orrville Bronze plant, which it plans to demolish in the spring for future campus expansion. It also purchased Central Court and demolished all the structures thereon, in addition to numerous other residential structures on streets adjacent to the campus.

Badertscher said Smucker's also moved its consumer call center from the Renewal Building to the Discovery Building, where a 45,000-square-foot addition is planned to get under construction in the spring. The building also contains the company's various test kitchens and labs for the myriad of brand names it now owns, including Pillsbury, Martha White, Hungry Jack, Jif, Crisco and Eagle Brand condensed milk.

As part of the construction process for the office complex, Mill Street has been closed for about a year. Eventually, Badertscher said, drivers on Mill Street will pass underneath the new office building.

Eventually the company will close Clark Street located just south of the historic Jerome M. Smucker home. Arch Street, open from Main to Walnut Street, will eventually close between Walnut and Mill streets, because that is now part of Smucker's drive. Strawberry Lane will be open from Main Street to Mill Street, but will be closed at Mill since the new office building is constructed over Strawberry Lane.

Like its latest structure, the new office building will be LEED certified, meaning it is designed to minimize its impact on the environment in every way possible, from a variety of energy-saving systems to the type of furniture and carpeting used.

Due to the loss of many trees from the campus as a result of its sprawling outward, the company has made the commitment to plant two trees for every one that was lost.

Some of the trees were transplanted to other part of the campus. Smucker's has said that beautification of the 90-acre campus is a priority after construction is completed.

Mike Hedberg, director of the Office of Orrville Industrial Development, called the expansion "an awesome project for the city," saying that Smucker's continues to be "a beacon" for the community.

Reporter Paul Locher can be reached at 330-682-2055 or e-mail plocher@the-daily-record.com.


Infrastructure component of Orrville industrial park in place

February 25, 2010

By PAUL LOCHER
Staff Writer

ORRVILLE -- After two years of planning, the city's second industrial park started to take shape late in 2009 with the construction of the supporting infrastructure.

Mike Hedberg, director of the Office of Orrville Industrial Development, said the park at the north end of Dairy Lane -- billed as a business and technology park -- saw the installation of infrastructure valued at about $1 million during the summer and fall.

Work on the project had been scheduled to start in the spring, but the project was delayed while researchers contracted to the Ohio Historical Society conducted a cursory archaeological investigation of the unspoiled 80-acre site that lies just west of state Route 57 north of the downtown. The researchers reportedly found little of significance at the site and did not delay construction.

The city purchased the acreage two years ago for $960,000 to facilitate the creation of a second industrial park, since the space in its first industrial park on Collins Boulevard was mostly developed.

Hedberg said the city needs to have an assortment of shovel-ready industrial sites available if it is going to continue to attract new industry.

Because the city lacked the money to finance the needed infrastructure, it applied to the Ohio Department of Development for a $640,000 grant, which it received. The money went not only to pave the half-mile stretch of roadway that bisects the park, but also for the installation of sanitary sewer, water, storm sewer and natural gas lines.

Because of the condition of Ohio's economy, some of the amenities that had been on the drawing board for the project -- such as sidewalks for employee exercise, benches and some green spaces -- had to be scrapped.

As the park is configured from a conceptual standpoint, Hedberg said, there are 11 industrial sites that range in size from four to eight acres, but that number is flexible, and the early incoming industries could have more or less land if they need it. He said land prices in the park will range somewhere between $25,000 and $30,000 per acre.

"There's a lot of flexibility built in, depending on the size of the company and its site needs," Hedberg said.

While Hedberg said he is hopeful the park will be able to focus on technology-related industries, he noted the city would be content to attract any "good-paying manufacturing jobs."

The new industrial park will give the city 13 marketable, shovel-ready sites, in addition to three vacant industrial buildings in the Collins Boulevard park. The latter includes a plant completed in 2008 by the Round Top Windows company, which closed without ever having moved into the new building.

Round Top Windows, based in Canada, had planned to ally itself with American Weatherseal, window manufacturer, but the demise of the latter company -- which itself had built a $9 million structure it barely used prior to closing because of a dearth of activity in the home building market -- resulted in its failure.

Hedberg said with spring around the corner, the city is just starting to aggressively market the industrial park and is working closely with the Wayne Economic Development Council in that regard.

He said having the park positions the city very well to take advantage of any rebound in the economy.

"We're hopeful more industries will come our way," he said, adding Orrville is not trying to steal existing industries from other counties, but hopes to be in a position to have a desirable site if such businesses choose to expand their operations.

"We're developing marketing materials and we plan to provide information through both direct mail and virtual marketing," Hedberg said.

Reporter Paul Locher can be reached at 330-682-2055 or e-mail plocher@the-daily-record.com.


Smith Dairy shares 100 years of success with Wayne County

February 25, 2010

By PAUL LOCHER
Staff Writer

ORRVILLE -- In what was a celebration truly worthy of a century in business, the Smith Dairy Products Co. pulled out all the stops in 2009 and treated its employees and the Wayne County community to a yearlong observance of its success.

Through a series of events that got rolling in late 2008, the multi-generation family-owned company celebrated the progress that has taken it from serving solely the Orrville community with its horse-drawn carts of the early 1900s, to a huge corporation that has a presence throughout Ohio and surrounding states, and is growing constantly.

Penny Baker, director of marketing, said the celebration kicked off in December 2008 with the annual Christmas banquet for the company's associates, both past and present.

"Our new Web site was launched in January," Baker said, "and featured a DVD about our history."

The DVD featured historical photographs of the company drawn from its archives, and many employees recognized friends and family members shown working at the dairy in decades past.

In February, Baker said, the company put the finishing touches on the renovation of Schmid Hall in Orr Park. The structure, which was expanded and given a facelift inside and out in a partnership endeavor with the city, is a popular place for family reunions and other community gatherings, and is used by service clubs for a wide variety of fundraisers such as pancake breakfasts.

With the coming of spring, Baker said, the dairy put into action plans for the renovation of its plant between North Main and Vine streets, which it had been working on for some time. The company attractively renovated the brick facade of the building that faces onto Main Street. In addition, it constructed a brick enclosure for the first of what will be several high-rise milk storage tanks for its new line of organic products.

Along with the extensive renovation of its Vine Street entrance and alterations made to its facade along both Vine and West Church streets, the company hired an artist to paint murals on the buildings reflecting the company's heritage.

California artist Michael Gearhart arrived in May and embarked on what would be a six-week odyssey of creating the colorful masterpieces. One depicts an early home delivery being made by horse and cart to a grateful customer.

The other recreates the appearance of the original Smith Dairy on Vine Street, precisely where the building was integrated into the present-day dairy structure. It shows employees and customers enjoying an old-fashioned ice cream parlor setting.

Baker said she hopes the community is "enjoying the murals as much as we are."

June 19 marked the single biggest community event associated with the dairy's 100th anniversary celebration as Smith's put on a huge ice cream social for whoever wanted to attend -- and thousands did.

The afternoon-long celebration featured a wide variety of activities for both young and old. In addition to free samples of various Smith's products, there were displays of company memorabilia and its various historical vehicles, games for children, a special breakfast gathering and open house for customers, suppliers and associates, and much more.

"It also served as a Schmid family reunion, as many relatives came from around the country to mark the milestone event," Baker said.

Throughout the afternoon, President Steve Schmid and Vice President John Schmid roamed the sprawling array of tents set up at the Dairy Lane facility, greeting friends, customers and associates.

In October, said Baker, "We were fortunate to be the first stop on the Wayne County Farm Tour."

Baker said during the weekend, more than 3,000 visitors stopped by to get a mini-tour of the ice cream plant and sample frozen treats right off the production line. In addition, Smith's had milk and other drinks available free of charge to cool off thirsty farm tour-goers.

Baker said the event closed out the public aspects of the celebration, but she noted, "We have been blessed to have great customers, loyal consumers and dedicated associates who have supported us for the last century. As we close out this year, we look forward to 2010 and the start of our second hundred years."

Reporter Paul Locher can be reached at 330-682-2055 or e-mail plocher@the-daily-record.com.


Wayne's job picture a little brighter

February 25, 2010

By BRYAN SCHAAF
Staff Writer

WOOSTER -- Listing 22 significant projects that saw new investment and/or created or retained jobs in Wayne County in 2009, Wayne Economic Development Council President Rod Crider said, despite a down economy nationally, things certainly could've been worse.

In fact, Crider said based on the local activity, he anticipates the Wayne micropolitan area to be ranked high once again in this year's Site Selection Magazine listings.

Crider pointed to large expansion projects at Orrvillon (formerly Holtec), Scotts Miracle Grow and the J.M. Smucker Co. in Orrville, as well as Tyler Grain and Fertilizer, Tekfor and Wooster Community Hospital as a huge reason for the area's stability. In addition, new companies Quasar and ABS Materials, along with a relocation of Riceland Cabinet to Wooster were contributing factors.

"We had quite a few projects when you sit back and look at it," said Crider who noted 2008 saw only 15 such projects come across the WEDC radar. "I don't want to minimize all the pain some people in the community have felt as a result of the bad economy, but on the other hand, that economy was due to national conditions, not because of anything distinctly unique to Wayne County or even Northeast Ohio. Based upon our diversity, we felt the impact of that on a lesser level than did other regions."

All totaled for Wayne County in 2009, businesses retained or created 954 jobs and made more than $118 million in new investments to the area.

In Orrville, Smucker's is in the process of constructing the largest facility on its campus with a 137,000, four-story office complex that will connect with both the nearby Founders Building and Legacy Building.

Orrvillon moved into the vacant American Weatherseal facility over the summer with the promise of creating a minimum of 200 jobs over the next 36 months.

Scotts, which similarly moved into a building vacated by Spectrum Brands, has committed to bringing 63 new jobs to its operation.

Tyler Grain and Fertilizer, one of the oldest industries in Wayne County with nearly 150 years in business, built a $1.5 million, 91,000-square-foot, 43-foot high, bulk fertilizer storage facility onto its Smithville campus earlier this year.

Wooster Community Hospital is nearing completion of a $13 million, 46,000-square-foot, two-story patient tower expansion above the Women's Pavilion that will allow the organization to offer 100 percent private patient rooms.

Tekfor, which started in Wooster in 2002, recently doubled its employment base to 230 and is seeking a 40,000-square foot expansion onto its facility to help meet a huge influx of demand from automakers. In addition, the company committed more than $6 million to new equipment in 2009.

Riceland Cabinet successfully relocated 74 jobs and an annual payroll of more than $3 million into the former Buckeye Corrugated facility on Hillcrest Road.

In addition, other companies in the area saw growth last year. Global Body and Will-Burt signed military contracts that will ensure their viability for years to come, while ABS Materials, which manufactures a silica-based material that absorbs toxins in water, and Quasar, which converts plant and animal waste into electricity, laid their foundations for the future a year ago.


Orrville invests in future with new projects, jobs

February 25, 2010

By PAUL LOCHER
Staff Writer

ORRVILLE -- Talk about progress in Wayne County during 2009 and the word becomes virtually synonymous with Orrville.

In the midst of the nation's most dismal economic times in recent memory, the city recorded some $70 million in new investment, bringing with it the potential for as many as 700 new jobs -- and that's not even figuring a new elementary school into the equation.

Mike Hedberg, director of the Office of Orrville Industrial Development, said that level of investment may well be an all-time record for the city, which in 2006 boasted $50 million in new investment, which it also considered a record.

"As a community we have a lot to be thankful for," said Hedberg, who noted coming into 2009 the city's prospects appeared gloomy.

"We had nothing, at least on paper," Hedberg said. "We thought we would be in the same situation as everyone else, seeing more closures than gains. But then we started seeing potential projects, and they just kept coming. It was all exciting news for Orrville, and would have been in any economic climate, but we were blessed with a good year."

Hedberg said he credits the city administration, City Council and schools with banding together to ensure many ambitious goals were achieved.

"When you have everyone working together, it makes the process easier, and ultimately makes for success," he said.

The first big opportunity for the city came early in the year when Scotts began looking at the former Spectrum Brands plant near Crown Hill and Schrock roads after the sprawling facility -- with one of its buildings having more than 8 acres under roof -- had stood empty for months.

Hedberg said he had felt because the facility was so unique, it would be difficult to find a buyer for it, even in the long term. In the end, however, the plant proved what Hedberg characterized as "a perfect fit" for the Scotts company, which is using the facility to ship millions of pounds of product to customers through the northeastern part of the United States.

"We are excited to welcome a world-renowned company like Scotts and very fortunate Scotts could acquire these assets," said Hedberg, noting the company brought aboard the former Spectrum Brands management team, as well as some Spectrum employees. The company eventually expects to hire 50-60 employees.

Hard on the heels of the Scotts acquisition came an effort by Holtec -- now Orrvillon -- to acquire the former American Weatherseal manufacturing facility on Dairy Lane.

Hedberg said Orrvillon's acquisition of the nearly new $9 million facility that had been vacated by American Weatherseal only a short time after it was constructed, took about 10 months from contract to closing.

The good thing, he said, was it provided an opportunity for the city's newly revamped and younger administration to cut its teeth and realize what it could do.

"They got to work through the entire process," said Hedberg, "and it was exciting to watch them go through a project like this. It was exciting to see everyone working together toward a common goal. The learning curve was minimal and everyone was supportive.

"We're excited about welcoming a company like this to Orrville," said Hedberg, noting it plans to hire 300 employees in the long term. Currently it is adding 80,000 square feet of manufacturing space onto the plant.

"It was a long process, but the end result was a huge, huge win for the community," Hedberg said.

Orrville Mayor Dave Handwerk said, "We are looking forward to a lasting relationship with Scotts and Orrvillon much like we have had with our longtime industries such as Smucker's, Smith Dairy, Quality Castings, Will-Burt and Schantz Organ."

While the Orrvillon project moved forward, the J.M. Smucker Co. announced it would build its largest building to date on the Orrville campus. The company, which in 2008 acquired Folgers Coffee, had been unable to bring more than 200 employees associated with that merger to Orrville, simply because there was not enough office space. Those employees have been housed in the Akron-Fairlawn area since the acquisition.

"Smucker's continued investment is tremendous news," said Hedberg. "It is one of the premier companies in the world, and to have them here and investing in the city is a continued blessing for Orrville."

Looking out his office window at city hall from where he can watch the crane constructing the Smucker's building, Hedberg said, "It's always exciting to see that kind of activity along Main Street."

Jennie Reusser, president of the Orrville Area Chamber of Commerce, noted, "All these people had options, so their choice to grow in Orrville is a very important thing to understand and to appreciate. A definite key to our success is citywide teamwork -- and we're good at that. But we are also just plain fortunate to have been blessed by good people, good facilities and good businesses."

Other highlights of the year, Hedberg said, were the Smith Dairy Products Co., which marked its 2009 centennial not only with several community celebrations, but also by renovating its building along Main Street north of city hall to make it more attractive. In addition, the dairy revamped the appearance of its Vine Street plant's entry, created historical murals on its building, and constructed storage tanks for its organic milk products.

Hedberg called the various improvements "a testament to the Schmid family and its leadership in the city."

In addition, Hedberg noted, JLG Industries moved one of the production lines from its McConnellsburg, Pa., operation to Orrville.

"This represents a potential to add a significant number of jobs over the next three years," said Hedberg, adding, "With JLG moving a line here, it continues to develop and expand its presence in Orrville."

In 2002 when Gradall -- the predecessor of JLG -- closed, its manufacturing lines were moved from Orrville to McConnellsburg.

Still other major improvements cited by Hedberg were the creation of the infrastructure for the city's second industrial park, the construction of a new Student Life Building at Wayne College, and the construction of a new elementary school.

"You cannot underestimate the value of schools when it comes to economic development," said Hedberg. He said attractive schools invariably translate into both new business and industry and, along with that, new residential development.

Hedberg, who confesses he used to steer representatives of potential industries away from the city's aging schools, now says he shows them off first, calling them "the gem of the community."

Reusser called the change to the campus concept "one of the most exciting things I have seen in my lifetime in Orrville. The forward-thinking attitude of the school administration and the community backing definitely aid our efforts to make Orrville a community of choice for families seeking a great place to live."

"This would have been a good year anytime, but we are especially pleased with 2009, given the general state of the economy," said Handwerk. "I'm hoping 2010 will also prove to be successful as we continue to partner with the Chamber of Commerce and Main Street to bring quality business and industry to Orrville."

Hedberg said that unlike 2009, which the city entered with nothing up its sleeve in the area of potential projects, there are already some things shaping up on the drawing board for the year ahead.

"We're off to a better start than 2009," Hedberg said. "We're going to continue the positive momentum."


Holtec incentives approved

October 29, 2009

By PAUL LOCHER
Staff Writer

ORRVILLE — The effort to bring Holtec Engineered Aluminum Systems to the city moved a step closer Wednesday as the Orrville City Schools board voted unanimously to approve a 15-year, 50 percent abatement on real estate taxes.

Mike Hedberg, director of the Office of Orrville Industrial Development, said the abatement would apply only to a 72,000-square-foot addition Holtec plans to build onto the north side of the 192,000-square-foot American Weatherseal plant at 1400 Dairy Lane.

Hedberg said Holtec will receive a 13-year continuation of a 15-year tax abatement that was on the property when Weatherseal built the $9 million structure two years ago.

According to Hedberg, Holtec, an international company, will make an investment in the facility estimated at between $2 million and $3.5 million, and initially will employ a work force of 300 people, with positions paying in the $12 to $14 per hour range.

Hedberg said the company plans to break ground as soon as an incentives package is approved. He noted the city has extended to Holtec its economic development electric rate for two years. That is a 10 percent reduction in the company’s electric rate.

Eventually, Hedberg said, it is anticipated Holtec will be one of the top five customers of the electric utility.

Hedberg noted if Holtec’s 87 employees in Mount Eaton and 24 employees in Campbell all elect to relocate, the company will still have available 150 new jobs. He said the company hopes to be in production in Orrville by spring, and reach full production capacity within 24 months.

Hedberg told the board the schools were “a huge selling point” for getting Holtec to locate here, saying, “The district is top-notch.”

Superintendent Jon Ritchie said the district would like to hold an open house to show prospective Holtec employees what the schools are like inside.

“This is fantastic. It is great for our community. We’re very fortunate.” said Ritchie.

Hedberg said he regarded the effort to bring Holtec to Ohio – at a time the company was considering moving out of state – as “saving Ohio jobs.” He said Orrville has been having a “very good year” in 2009, with between 600 and 700 industrial jobs announced to be added in the community.

The school board also voted unanimously to approve a resolution authorizing acceptance in the Ohio School Facilities Commission Classroom Facilities Assistance Program.

Treasurer Mark Dickerhoof said the resolution puts the district on track to receive funding for the $18.5 million renovation of Orrville High School, starting as early as next year. Documents show the state will pay about $18.1 million toward renovating the high school, with the district’s share being $403,651.


Industry bringing 300 jobs to Orrville

October 27, 2009

By PAUL LOCHER
Staff Writer

ORRVILLE — An international company intends to relocate and consolidate its Ohio operations in Orrville, bringing with it 300 jobs and occupying the former American Weatherseal manufacturing plant.

Monday’s announcement by Mike Hedberg, director of the Office of Orrville Industrial Development, capped more than eight months of negotiations to bring Marlton, N.J.-based Holtec to Orrville. Hedberg said the deal remains contingent upon the approval of various tax incentives at the state and local levels, which are expected to be approved later this week.

Holtec is an aluminum extrusion and fabrication manufacturer for the automotive, recreational, building and construction and medical equipment fields. Holtec operates two facilities in Ohio – one in Mount Eaton (formerly Pro-Fab) with 80 employees and the other in Campbell, with 20 employees. The company’s Ohio employees have been given the opportunity to relocate to the Orrville facility.

Hedberg said Orrville had its first contact with Holtec in March, with the company looking for about 200,00 square feet of industrial space. At the end of March, Holtec officials visited the former American Weatherseal plant, which offered 192,000 square feet.

Over the next eight months, Hedberg said, the company made six site visits and held numerous meetings with Orrville officials.

He said earlier this month Holtec signed a purchase agreement contingent on a tax incentives package. One of those is state job creation tax credits. Another is the transfer of the remaining 13 years of the 15-year American Weatherseal tax abatement of 50 percent to Holtec along with the property.

Orrville Schools Superintendent Jon Ritchie said the board will meet in special session Wednesday to consider the abatement request.

In addition, Hedberg said, there is a package of “small fringe incentives” from the city used to sweeten the deal. He characterized Holtec as a large user of electricity, and he predicted the company would be one of the top five customers of Orrville’s municipal power plant.

Hedberg said during the next six months, Holtec will modify the American Weatherseal building to meet its needs. He said the company plans to add on another 72,000 square feet of floor space and reinforce the structure in order to add overhead cranes.

Over a 24-month period, Hedberg said, Holtec anticipates building its employment in the Weatherseal building to 300.

Hedberg characterized the negotiations to bring Holtec to the city as “difficult,” largely because the Weatherseal building was in bankruptcy proceedings and local officials had to deal with the bank that held it. On the other hand, he said, the “condition of the building,” which was nearly new, proved overwhelmingly attractive to Holtec.

“This is tremendous news, that in this kind of an economy we are able to attract an international company like this to Orrville,” said Hedberg. “Bringing 300 jobs to the city is a blessing to the community, and we’re excited.”

Mayor Dave Handwerk said it is “an understatement to say we’re thrilled that we’re able to make the deal. It’s a huge positive for the Orrville area.”

Noting this was a big first project for the city’s new administrative team, Handwerk said its members were “wonderful to work with,” having an unrelenting determination to make the project a reality. Handwerk also praised the efforts of Hedberg, Rod Crider of the Wayne Economic Development Council and state Sen. Bob Gibbs who stepped up to help move the effort forward.

Hedberg said Monday’s announcement “builds on the positive momentum of the recent Smucker’s and the Scott’s announcements.” He said he looks forward to Holtec “becoming a community partner.”

J.M. Smucker Co. plans to construct a 137,000-square-foot office complex on its campus to house about 240 employees that came with its Folgers Coffee acquisition last year.


Orrville-based manufacturer plans its largest building

October 23, 2009

By PAUL LOCHER
Staff Writer

ORRVILLE — The J.M. Smucker Co. broke ground this week for what will be its largest structure yet on the Orrville campus, providing facilities that will allow hundreds of employees currently housed in offices in Fairlawn and Cincinnati to be integrated into the company’s local work force.

Heavy equipment was moving dirt at the very heart of the Smucker campus at Strawberry Lane, which will eventually dead end into the new 137,000-square-foot, four-story office complex that will connect with both the nearby Founders Building and Legacy Building. The portion of the structure that connects to the Legacy Building will be elevated, allowing regular traffic on Mill Street to drive through to Orr Street.

According to company spokesman Maribeth Badertscher, the new building will have 500 offices and conference rooms and be completed in the spring of 2011. She said it will enable 160 employees that Smucker’s acquired when it bought the Folgers Coffee brand last year from Procter & Gamble, and who are currently housed in leased offices on Ghent Road, to move to the Orrville campus. It will also allow more than 80 employees from Cincinnati to come to Orrville.

Badertscher said Smucker’s currently has 5,000 full- and part-time employees, 1,200 of which are on the Orrville campus.

In order to accommodate all the new employees, Badertscher said, the cafeteria facility in the Renewal Building will be completely renovated to allow for food service expansion.

Badertscher said the company has already completed an enlargement of its main auditorium, allowing for the seating of 194 instead of 108 in another location.

Like its latest building – the Renewal Building constructed in 2008 – the new office complex will be LEEDS certified, meaning that it is designed to minimize its impact on the environment in every way possible. From the exterior, visitors will notice special awnings and window treatments designed to help save energy.

With the campus sprawling outward from its traditional core and surrounding parking spots growing from 300 to 800, Badertscher said many trees have already been lost during the construction process. In many cases, she noted, trees were dug out and transplanted to other parts of the campus, but she said the company plans to replant at least two trees for every one that has been lost.

She said beautification of the 90-acre campus is a major priority for the company, which since 2001 has aggressively acquired numerous major food brands to add to its universally known lines of jams and jellies. Those brands include Crisco, Jif, Pillsbury, Martha White, Hungry Jack and Eagle Brand condensed milk.

The company’s philosophy has been to acquire companies that offer products that bring families together around the table, and which are leaders in their respective fields.

Richard Smucker said this is “an exciting time” for the company, which has its roots in Orrville, starting when Jerome Smucker began making apple butter from an old family recipe, then branched into making jams, jellies and preserves with locally grown fruit.

Mike Hedberg, director of the Office of Orrville Industrial Development, called the announcement by Smucker’s “an awesome project for the City of Orrville,” adding, “The J.M. Smucker Company continues to be a beacon.”

“I’m excited about the company’s continued growth in Orrville and its long-term commitment to this community,” Hedberg said.

In addition to the new office complex, Badertscher said Smucker’s has other plans moving forward on its Orrville campus as well. She said it is in the process of acquiring the Orrville Bronze Company to make way for a major expansion of its Discovery Building along North Main Street. She said a 45,000-square-foot addition to that structure is planned, although no details are available.

The Discovery Building houses the company’s various test kitchens, labs and consumer call center.

Badertscher said after the office project is completed, Strawberry Lane will be open from Main Street to Mill Street. It will be closed at Mill, since the new building will be constructed over Strawberry Lane.

Eventually, Badertscher said, the company will close Clark Street, located just south of the historic Jerome M. Smucker house. Arch Street, open from Main to Walnut Street, will eventually close between Walnut and Mill streets as that is now part of Smucker’s drive.

Badertscher, who noted final cost estimates for the construction project have not been finalized, said it is "an exciting time to be involved with the company" because of the growth and many different projects going on there.


Scotts’ tax credit OK’d; move-in expected soon

July 31, 2009

By PAUL LOCHER
Staff Writer

ORRVILLE — A special meeting of City Council paved the way for the Scotts Co. to open a facility at what had been the Spectrum Brands plant, near the intersection of Back Orrville, Schrock and South Crown Hill roads.

Council voted unanimously to approve a job creation income tax credit of 10 percent for six years for the Scotts Co. and its subsidiaries. In return, Scotts agreed to hire at least 63 employees over the next three years.

The terms of the tax credit require Scotts to remain at the site for two years for each year the incentive is granted for.

Council’s vote Wednesday comes on the heels of similar action taken at the state level Monday, where Scotts was awarded a job creation tax credit of 40 percent for six years.

Mike Hedberg, director of the Office of Orrville Industrial Development, said the state had to extend its portion of the tax credit before it came to Orrville. Council had been prepared to vote on the measure Monday, but the unforeseen absence of two members forced the cancellation of that action.

Hedberg said the city became aware of conversations between Scotts and Spectrum Brands about the plant before that facility closed its doors at the end of 2008. Spectrum Brands eventually filed for Chapter 11 protection and Scotts obtained the plant’s machinery and equipment through Chapter 11 proceedings.

Eventually Scotts was able to negotiate a lease with Spectrum Brands through the Chicago-based Insite realty firm.

Hedberg said Scotts approached the city about possible tax incentives between two and three months ago.

In addition to the state and city tax incentives, Hedberg said Scotts is working with the Wayne County commissioners to have transferred to it the remainder of a 50 percent, 10-year tax abatement that had been in place for Spectrum Brands. Hedberg said about seven more years remains on that uncompleted agreement. That abatement applies to one building on the site, which had to be renovated in the wake of a fire several years ago.

About three years ago the city extended the new wastewater line to the Spectrum plant under an agreement in which Spectrum expanded its facility.

Hedberg said Scotts has told the city it expects to be a good corporate citizen and participate in a variety of aspects of life in Orrville.

The Orrville facility is reportedly one of only two Scotts had nationwide that acts as both a manufacturing and distribution facility. The company will mix specialty soils and fertilizers at the Orrville plant, using some 500,000 square feet, including one structure that has about eight acres under roof.

Also, the Orrville plant – which will serve all of the eastern United States, will be Scotts’ second largest facility, behind only its Marysville plant that has 800,000 square feet.

Mayor Dave Handwerk called the finalization of arrangements with Scotts “such good news. A year ago we learned that Spectrum would be leaving, and now we have this very good news for the community.”

Hedberg said getting Scotts into the community defied a lot of odds. He said his office knew the vacant Spectrum plant with its specialized equipment and design “didn’t lend itself to just any kind of manufacturing,” and was likely to be a hard sell. He characterized Scotts as “the perfect tenant. It’s the only company I can think of that is suited for that type of manufacturing.”

Handwerk added, “The neatest part is that because it’s the same type of business, it has allowed some people who worked for Spectrum to get their same job back.”

Safety-Service Director Steve Wheeler said the company expects to do a full move-in within the next couple weeks. He said there has been a flurry of preparatory work going on at the plant for some weeks, and noted the warehouse area has never actually completely closed down since Spectrum ceased operations.

The mayor credited Hedberg with doggedness in pursuing a tenant for what could have become the city’s biggest white elephant.

“Mike has done an excellent job staying in contact with everyone involved and keeping the facility in the forefront in terms of getting someone in there,” Handwerk said.

“We’re excited,” said Hedberg. “It’s great news for Orrville.”


Orrville library ranks fourth in Hennen’s ratings for 2009

July 30, 2009

By PAUL LOCHER
Staff Writer

ORRVILLE — The Hennen’s Public Library Ratings for 2009 has again ranked the Orrville Public Library near the top of its list, placing it fourth in the nation among libraries serving populations between 10,000 and 25,000.

The ranking improves the library’s standing by one step, after it was placed fifth in the nation last year. The library has been ranked in the nation’s top 10 for a decade.

“We’re very thrilled,” said Director Leslie Picot. “This rating is a wonderful affirmation of our hard work during tough economic times, and we’re very honored.

“The rating system looks at not only how a community uses its library, but how the library uses its resources, its staff and materials to best effect,” she said.

Hennen’s American Public Library Ratings includes 15 factors for rating libraries, focusing on circulation, staffing, materials, reference service and funding levels. It also looks at traditional data for print services and book checkouts. The data has been collected on a consistent national basis since 1981.

Picot said what has boosted the Orrville Public Library to its high ranking is “our really high usage; our per capita circulation. A circulation of a half million with a population in our school district of 11,300 is pretty remarkable.”

Her sentiments were echoed by Cheryl Kirkbride, president of the library board, who said, “I’m so pleased to see that circulation is at an all-time high, and that the Orrville Public Library continues to serve her community so well.”

But Picot, who is marking her fifth year as director, said achieving the ranking at the present time of having to do more with ever-fewer resources borders on the bittersweet.

“The consequences of the (state financial) cuts have been difficult, but the library’s administration and board of trustees planned well in advance,” she said. “We began to make significant cuts last summer when we looked at economic projections for 2009.”

She noted, “While no library employee has been laid off or lost their job, all departments have been affected. Every full-time employee has taken a 6.25 percent pay cut and part-time employee hours have been reduced.”

The book budget has been reduced by more than $20,000, employees who have retired or left for other jobs have not been replaced, and hours of operation have been reduced by 28 percent. This includes the elimination of hours of service for Sunday afternoons and Wednesday evenings starting in August.

Beginning the week of Aug. 24, the library’s hours will be 9 a.m.–8 p.m. Monday, Tuesday and Thursday; 9 a.m.–5 p.m. Wednesday and Friday; and 10 a.m.–2 p.m. Saturday. The reductions, Picot said, total a 29 percent cut in expenditures over 2008 levels.

Picot vows, however, the library will continue to maintain its story time schedule, which fills 12 weekly sessions.

“We have a commitment to service to children to support literacy and language skills development,” said Picot. “Some day the economy will be better, but in the meantime – to coin a phrase – we want no child left behind.”

Picot admits to being disheartened by the necessary financial cutbacks the library faces.

“Sometimes,” she said, “it’s difficult not to take the funding reductions to our library as a negative judgment from state government on the value of the work we do. But seeing the Orrville Public Library come out fourth in the nation when compared to thousands of libraries across the country says we serve an exceptional community and we're doing very good things.”

Picot said she is especially thrilled with the success of the library’s summer reading program, which has enrolled some 600 children who have already read their way collectively through more than 15,000 books.


Scotts tax incentive OK’d

July 28, 2009

By MARC KOVAC
Dix Capital Bureau

COLUMBUS — A state board has signed off on tax incentives for a new Scotts Co. location in Orrville.

The Ohio Tax Credit Authority OK’d a six-year, 40 percent tax credit for the project.

In return, Scotts would commit to creating 63 full-time jobs and maintaining operations at the site for at least 12 years.

The project involves the lease of the 550,000-square-foot former Spectrum Brands facility.

The company would use the space “for manufacturing of growing media soils and mulch, and fertilizer products while serving as a regional warehouse and distribution hub,” according to documents.

Scotts would make a fixed-asset investment of at least $1.4 million in the site, and new hires would include some Spectrum employees who were laid off, according to documents.

The state incentives are refundable tax credits against what the company would pay in corporate activity or income taxes, based on the state income taxes withheld on new, full-time employees.

For example, a company paying $100 in state income tax withholding for a new worker would be credited with $40 toward its other state tax obligations (commercial activity, state income or insurance premium tax liabilities), based on a 40 percent credit.

According to documents, the incentive “is a major factor in the Scotts Co.’s decision to locate in Ohio. This project is a major investment by (Scotts) and the incentives being requested are an integral part of the return on investment projection and the feasibility of project as the company is considering sites in Indiana and Kentucky for this expansion.”

The Orville incentive was one of two approved for Scotts Monday.

The Ohio Tax Credit Authority also OK’d a 10-year, 50 percent credit for a Scotts project in Marysville that will result in the creation of 33 jobs and the retention of another 303, according to documents.


Scotts may go to Orrville, bringing 63 jobs

July 22, 2009

By PAUL LOCHER
Staff Writer

ORRVILLE — After months of grappling with industrial layoffs and plant closings, the city got a welcome breath of good news Monday with an announcement the Scotts Co. is considering moving to Orrville, bringing 63 jobs.

City Council heard a resolution authorizing the safety-service director to enter into a contract with the company to provide a job creation income tax credit for the Scotts Co. and its subsidiaries.

Mike Hedberg, director of the Office of Orrville Industrial Development, said earlier Monday Scotts is in the process of negotiating the purchase of the Spectrum Brands plant near the intersection of Back Orrville, South Crown Hill and Schrock roads. The plant, which closed at the end of 2008, has buildings containing more than eight acres under roof, which had previously been used to mix custom fertilizers and specialty potting soils for several major manufacturers.

Hedberg said Scotts is seeking a job creation tax credit of 10 percent for six years. The credit would save the company about $1,900 a year for six years. Hedberg said the company would have a $1.9 million payroll locally and would contribute $19,000 in additional income tax revenue to the city.

Hedberg said Scotts’ decision to purchase the Spectrum plant is contingent upon the approval of incentives packages at the local and state levels. He said the state is expected to announce its approval of the incentives package Monday. The state is being asked to transfer a tax abatement that had been held by Spectrum on the manufacturing facility, to the Scotts Co. That abatement was 50 percent for 10 years.

At Monday’s meeting, council had hoped to adopt the job creation income tax resolution on an emergency basis, but was prevented by doing so due to the absence of council members Rick Aspiras and Julie Leathers. The absence of two council members prevents the suspension of rules.

Council has called a special meeting for Monday to consider the job creation tax credit. The meeting will be held at 7:30 p.m.

“This is great news. We’re excited. We’re ecstatic to have a company with Scotts’ reputation coming to the community,” said Hedberg. “It’s awesome, and it adds to all the other exciting projects taking place here like the new schools, the multipurpose facility, the huge Smucker’s project and the South Main Street paving. It’s all good.”

Council members asked Safety-Service Director Steve Wheeler when the 63 jobs would be created. Wheeler said, “I suspect it’s in the next few months, based on the company’s tracking. We’re still working with Scotts on the timing.”

Councilman Paul Vance said he is “excited to have the opportunity to be partners with them (Scotts). They are certainly one of America’s oldest yard maintenance companies.”


JLG callback won’t have big impact at Orrville plant

July 17, 2009

By PAUL LOCHER
Staff Writer

ORRVILLE — In the middle of some rough economic times, JLG Industries received a shot of good news in the form of a U.S. government contract that could allow a substantial number of its laid off workers to return to their jobs.

But exactly how many of those jobs would be at the Orrville facility where there have been a couple rounds of layoffs since last fall remains unclear.

Ann Stawski, vice president of marketing and communications at Oshkosh Corp. in Wisconsin, JLG’s parent company, said Thursday the company landed a U.S. Department of Defense contract valued at $1.05 billion on June 30 to produce 2,244 M-RAP -All-Terrain Vehicles for the military.

Earlier this week JLG announced the contract would enable it to call back between 550 and 650 of its employees. But Stawski said it appears most of those callbacks will be taking place at a facility in Pennsylvania. She said she thought “small numbers” of employees would be called back at the Orrville facility, but the company would not make that decision until the end of the month.

Stawski, who said half of the company’s work force is furloughed, said some workers will be called back immediately, while others will be phased in as needed.

The order Oshkosh is working on is for the innovative new M-RAP-ATV, manufactured specifically for military use in Afghanistan. She said the ATV, which has a gross vehicle weight of 25,000 pounds, is “more mobile and maneuverable” than any other vehicle used by the military, thanks to a newly patented independent suspension system.

Stawski characterized the M-RAP as “a medium tactical vehicle replacement” that will be used “in situations where it is a difficult mission to move troops.”

The new contract, Stawski said, requires fulfillment of production and shipping by the end of the year, so, without major new orders, those called back to their jobs could find themselves again laid off later in the year.

Stawski said she is “pleased with the additional opportunity to call back employees,” calling it a “positive note” for the company in particular and the economy in general.

Mike Hedberg, director of the Office of Orrville Industrial Development, called news of the contract and callbacks “tremendous news for the community,” adding, “Any time one of your largest employers calls any people back to work, it’s good news.”


Visual changes start to happen at Orrville’s new school

March 22, 2009

By PAUL LOCHER
Staff Writer

ORRVILLE DISTRICT — Another new building – this one privately funded – will be added to the school campus, with construction to start as early as next month, Superintendent Jon Ritchie said at Thursday’s board meeting.

Ritchie said a multi-purpose building will be constructed between the high school and the middle school, thanks to the efforts of a private group that set out about a year ago to raise $1.3 million. Ritchie said the group is so close to reaching its goal it has committed to the construction.

The structure, according to Bob Ellis and Dean Reusser who have served as co-chairmen of the fund drive, will contain athletic training facilities, but can be used for academic activities and community functions.

“It’s really neat to live and work in a city like Orrville where people just pitch in for the common good,” Ritchie said. “The kids will be the beneficiaries of this.”

He said the project will be “ready to move dirt in three weeks.”

The board voted unanimously to approve a resolution accepting the gift of the building, and also voted unanimously to approve a permanent improvement gift policy.

The board heard construction reports on the elementary school from Tony Ignazio Jr., project manager for Cleveland-based RP Carbone Co., and architect Byron Manchester.

Ignazio said the building has begun to see “a significant amount of progress.” Red brick veneer is being laid on the west side, and block work will be completed over the next two months.

Ignazio said starting next week, the concrete floor slabs will start to be set into place. He said about one-sixth of the school’s square footage will have the floor placed by early April.

If the project gets dry weather, Ignazio noted, “the north side will go up very fast, and most of the walls will be up in a month, with their brick veneer.”

He said the utility rough-ins are being installed and the roof trusses will arrive mid-April. The structure should be under roof by July, allowing for interior work to begin.

Manchester said his office is keeping busy reviewing the shop drawings, working three to four weeks ahead of the construction process.

Steve McCumber, director of business services, said the interior color scheme has been worked out, and it will be considerably more colorful than the middle school. He said the next step is to order the loose furnishings and playground equipment.

McCumber said he is working to fill a sinkhole that opened north of the high school when a water pipe burst this winter, as well as revising bus routes for next year.

In other action the board voted unanimously to approve the high school Earth Science Club’s spring break trip to the Missouri Ozark Mountains; approved the 117-member OHS graduating class of 2009, approved an interdistrict open enrollment policy, and approved a memorandum of understanding between the University of Akron Wayne College and Orrville City Schools for dual credit. The board voted to go into executive session to discuss personnel matters and adjourned without transacting further public business.


State stamps Smucker tax incentives

January 27, 2009

By MARC KOVAC
Dix Capital Bureau

COLUMBUS — State officials have signed off on tax incentives valued at an estimated $1.8 million to facilitate an expansion of the J.M. Smucker Co. in Orrville.

The Ohio Tax Credit Authority approved the 10-year, 65 percent incentive during its business meeting Monday. The company, in turn, would commit to creating 115 jobs and retaining another 372 at its Orrville headquarters. The jobs will carry an average wage of upward of $36 per hour.

The incentives are refundable tax credits against what the company would pay in corporate activity or income taxes, based on the state income taxes withheld on new, full-time employees. For example, a company paying $100 in state income tax withholding for a new worker would be credited with $65 toward its other state tax obligations (commercial activity, state income or insurance premium tax liabilities), based on a 65 percent credit.

The expansion would include the construction of a 120,000-square-foot facility at Smucker’s existing Orrville campus to accommodate the company’s acquisition of the Folger’s coffee brand from Procter & Gamble.

Smucker’s would make a fixed-asset investment of at least $15.6 million, including $12 million for machinery and equipment and $3.6 million for building renovations, according to documents.

Smucker’s is considering the Orrville site and another in Kentucky for the project.

“Tax credit assistance will help improve the company’s business case for locating the expansion in Ohio,” according to documents. “Smucker states in its application materials the Kentucky option is favored by a lower cost of doing business and larger incentives package.”

In addition to a company representative, Monday’s meeting was attended by Mike Hedberg, director of the city’s office of industrial development, and Steve Wheeler, incoming director of safety services.

“We’re excited about this project and potential for it to go forward,” Hedberg told authority members.

The city is providing additional incentives to bring the project to fruition.

The company hopes to complete the building and hiring objectives in the next two to three years.


With a $20 million plan, it has to be good

January 22, 2009

By PAUL LOCHER
Staff Writer

ORRVILLE — The J.M. Smucker Co. told City Council on Tuesday it plans to undertake a $20 million project that will bring a minimum of 115 jobs to the city – and possibly many more.

Maribeth Badertscher, media spokeswoman, said the project is tied to Smucker Co.’s acquisition last fall of the Folger’s coffee brand from Procter & Gamble, which has brought more employees into the company’s fold. The sudden influx of employees resulted in the company having to lease office space in Fairlawn for 150 workers because adequate room was not available on the Orrville campus.

But now, Badertscher said, building plans are in the works to create space for at least 115 workers – and perhaps as many as 215 – in Orrville.

Badertscher said Smucker’s plans to invest $2 million in building costs and an additional $18 million in equipment and machinery. She said the 115 jobs will have an annual payroll of $8.6 million, with most of them being corporate positions in marketing and logistics. She said the jobs will pay an average of $36 per hour.

The objective of the building project, she said, would be to move as many of the employees temporarily working in Fairlawn to Orrville as quickly as possible.

Badertscher said, however, building plans are not yet finalized.

“There has been no decision as to whether a new building will be constructed or an existing building will be added onto. We’re exploring the options,” Badertscher said, adding whatever is decided upon will likely be under construction by mid-summer.

Mike Hedberg, director of the Office of Orrville Industrial Development, said he was thrilled with the announcement by Smucker.

“In this economy, the J.M. Smucker Co. is already a pillar of the community, and here they are making another major investment in Orrville,” Hedberg said. “It’s not entirely a bricks and mortar investment, it’s putting people to work.

“Every day," Hedberg said, “we read about downsizings, and here we have a company that is growing.”

Before its regular meeting, council held a workshop to alter language in its Job Creation Income Tax Credit Program, which was adopted May 20, 2002.

The main purpose of the meeting was to discuss a clause that stated “the maximum term of credit granted under this program shall be five years, but no longer than the period allowed under the State of Ohio Tax Credit Agreement with the participant.”

Council agreed the city’s maximum term of credit should be changed to 10 years, the same as that granted by the state.

In addition, council agreed the criteria should be changed to allow refundable income tax credits authorized by council resolution, rather than by an ordinance.

Mayor Dave Handwerk encouraged council to make the changes that had been requested by Smucker, saying, “It’s a company that has given this community an awful lot.”

Safety-Service Director Becky Jewell said council’s action on the income tax credits would “show whether this community wants them (Smucker’s) to be here.” She said passage would illustrate “this is a business-friendly community. It’s a city that is willing to pay these costs.”

During its business session, council voted unanimously on first reading to adopt a resolution authorizing the safety-service director to enter into a contract to provide a job creation income tax credit for the J.M. Smucker Co.

Following the vote, Badertscher said the cooperation from the city “is what makes Orrville a unique community. We’re thankful to the city for its support.”

Smucker operates a store 2 miles south of Orrville that offers items from all its various product lines and has an in-house restaurant.


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