An Ohio Tax Credit Authority meeting agenda last May identified snack food producer Shearer’s Foods, based in Massillon, as a company seeking a state tax credit to begin operations in the former GM plant.
According to city and Montgomery County documents last year, the manufacturer wanted to bring 250 jobs to the area, eyeing the former paint shop facility off Springboro Pike and Stroop for what was thought would be a $106 million project.
Because county and city leaders didn’t wish to identify the prospect at the time, they code-named it “Project Crispy.” The practice is not uncommon.
“We are proud to support the city of Moraine’s economic development plans through this (New Market Tax Credit) investment and welcome the new jobs it will bring to the community,” Dan Kane, president of CityWide, said in a statement Monday.
“The attraction of Shearer’s allows for nearly complete occupancy of the existing buildings at the former GM site,” Michael Davis, city manager for Moraine, also said. “The culmination of such success has been a public-private team effort that exemplifies collaboration. We look forward to welcoming Shearer’s as a new member of our business community and are excited about their future growth opportunities.”
Congress established the New Markets tax credit in 2000. Congress authorizes the amount of credit, which the U.S. Treasury allocates to qualified applicants. From 2003 through 2023, the program had parceled out credits worth $40 billion, according to the U.S. government.
Investors in the program provide capital to community development entities, such as CityWide and similar organizations, and in exchange are awarded credits against federal tax obligations.
Last May, the Ohio Tax Credit Authority approved its own state tax credit for Shearer’s, amounting to a 1.449%, eight-year credit for the project.
Shearer’s Foods has 11 U.S. snack food production plants, not counting the company’s plans for Moraine.
Construction in Moraine for the Shearer’s operation has not yet started, said Alexis Vaske, a community organizer and marketing coordinator for CityWide. Davis said the company has started to apply for permits related to internal building improvements.
However, renovation work at the 392,800-square-foot former paint facility had been underway for months, well before Shearer’s stepped forward as a prospective occupant.
In the spring of 2023, work included removing the entire second floor of the building, an executive with the property owner told the Dayton Daily News at the time.
Then efforts moved to new paint, lights, heat, docks and improvements to the building’s exterior.
In an interview Monday, Kane said CityWide deploys these tax credits to spur development. The credits are purchased by investors, typically financial institutions, who effectively write a check for the credit. This creates money to go toward a project, so the project doesn’t have to borrow as much debt. It also lowers the investor’s tax obligation over a defined time range.
CityWide has used the credits in more than 20 other Dayton-area projects, for Dayton Children’s, an expanded Kroger in Eaton, a medical facility in Darke County and elsewhere.
“You have to use the investment in low- to moderate-income communities or low- to moderate-income U.S. Census tracts,” Kane said.
The last SUV rolled off the plant’s assembly line two days before Christmas in 2008.
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