N E W S R E L E A S E
May 4, 2012
FOR IMMEDIATE RELEASE
Russell Seymour, Economic Development Director
Performance Based Agreement benefits business and community
What happens when a major County business and local government combine investments and incentives to keep the business moving forward during difficult times? Increased revenue and future growth! This is the result of an innovative incentive program between James City County and Owens-Illinois (O-I), a Fortune 500 company in Toano that manufactures glass containers for beverages and pharmaceutical products.
In 2009, O-I identified an opportunity to broaden the markets its Toano plant is able to serve. Through its partnership with James City County, the company initiated a series of equipment upgrades that enhanced the plant’s flexibility and helped to secure its continued operations in the County.
In 2009, the County’s Economic Development Authority (EDA) entered into Performance Based Agreements (PBAs) that offered O-I performance-based incentives to upgrade and expand their plant, which in turn increased the County’s Machinery and Tools (MT) tax revenue. In return, O-I will receive payments totaling approximately $650,000 over a six year period. These payments are based on approximately $43 million in O-I plant investments and generated tax revenue. Incentive payments are expected to be about 50 percent of the MT revenue collected by the County for the three years following the investment. In 2016, 100 percent of the MT tax will stay in the County’s General fund.
“James City County has a strong commitment to the success of its existing businesses,” Russell Seymour, James City County Director of Economic Development, explains.“The County understands the importance of existing companies, such as O-I, that continue to be the cornerstone of our solid local economy.”
Miguel Escobar, President of O-I North America, said, “O-I has been pleased to be part of the Toano community as an employer, neighbor and partner for more than thirty years. O-I Toano is a key part of O-I’s North American manufacturing network, and we are proud of the high quality glass containers we manufacture in Toano. Our agreement with James City County reflects our commitment to this region and is an example of how manufacturers and government can work together in support of our common goals.”
To highlight the partnership and O-I’s increased investment, the County’s Office of Economic Development issued the first incentive check for $307,808 on May 3.
PHOTO CAPTION: Presenting and receiving the incentive check are from L to R: Robert C. Middaugh, James City County Administrator; Mary K. Jones, James City County Board of Supervisors Chair; Robert K. Young, O-I Plant Manager, Toano; Paul W. Gerhardt, JCC Economic Development Authority Chair; Michael J. Smaha, O-I Manager, U.S. Government Affairs; Russell Seymour, JCC Economic Development Director; and Telly Tucker, JCC Economic Development Assistant Director