CHAPTER VII - Mantua, Ohio



CHAPTER 5 – ECONOMIC ANALYSIS

Businesses and industries are vital to the local economy of Mantua Village as well as to the surrounding townships. They provide employment opportunities to local area residents and tax revenues to maintain public services, including the Crestwood school system. In addition, a healthy local economy supports many types of businesses and provides goods and services for the local residents and the other businesses in the community. The tax money contributed by these businesses helps reduce the amount of taxes paid by local residents. In February of 2006, as part of the Comprehensive Planning process, an inventory of the businesses and industries located within the Village was conducted.

At the time the inventory was taken, there were 42 businesses operating within the Village. Forty-one of the businesses represented traditional companies engaged in commercial and/or industrial activities. Only one business in the Village, the Crestwood Local School District, represented an institutional type of business. The Crestwood Local School District is the largest employer in the Village with 302 employees (see Chapter 4, Section 4 Community Infrastructure and Facilities for more details).

The purpose of this chapter is to analyze and evaluate the commercial and industrial makeup of the Village. The findings should help identify economic programs and strategies that will encourage a healthy business climate and attract new investment, make available more employment opportunities for residents and create a more diversified local economy to serve the changing needs of the community.

Existing Commercial & Industrial Businesses

Table 15, Mantua Village Commercial & Industrial Businesses, lists the current individual businesses and industries located within the Village (with the exception of the Crestwood Local School District) in early 2006. Each is categorized as to whether it is engaged in manufacturing, providing a service or retail merchandise. Additionally, a general description of the type of product or service the business makes available is listed on the table. “NA” is used if information was not available.

| |TABLE 15 |

| |MANTUA VILLAGE COMMERCIAL AND INDUSTRIAL BUSINESSES |

| | | | |

| |Business Name |Type |Product/Service |

| | | | |

| |1. Advanced Rehab |Service |Physical Therapy |

| |2. Barkymart/Valero |Retail |Gasoline/Convenient Mart |

| |3. Benner Masonry |Service |Construction/Masonry |

| |4. Best Little Hair Hut |Service |Barbering |

| |5. Betsy’s Sidestreet Cafe |Service |Food, Legal Beverages |

| |6. Chase Bank One |Service |Financial |

| |7. Dee's Clip Joint |Service |Haircuts |

| |8. Dairymart/Circle K |Retail |Food, Misc. Products |

| |9. Dr. Roy Heaton, D.D.S. |Service |Dental Services |

| | 10. English Realty |Service |Real Estate Consulting |

| | 11. Extreme Pizzaria |Service |Food |

| | 12. F & S Automotive |Service |Towing, Auto Repair |

| | 13. Flower Nook |Retail |Floral Arrangements |

| | 14. Haylett's Foods |Retail |Grocery, Package Liquor, Misc. Products |

| | 15. Hunters 3 |Service. |Construction |

| | 16. Italiano's Pizzaria |Service |Food |

| | 17. K & K Meat Shoppe |Service |Food, Butcher |

| | 18. Kicam's Restaurant |Service |Food |

| | 19. Mantua Auto Body |Service |Auto Repair |

| | 20. Mantaline |Manufacturing |Gaskets, seals |

| | 21. Mantua Auto Parts |Retail |Auto Parts |

| | 22. Mantua Eye Center |Service |Optometry Services |

| | 23. Mantua Hardware |Retail |Hardware, lumber |

| | 24. Mike Ink Tattoo Studio |Service |Body Art |

| | 25. Northcoast Armory |Retail |Guns, Ammo |

| | 26. Suds Your Duds |Service |Laundromat |

| | |Cont. next page | |

| | Business |Type |Product/Service |

| | | | |

| |27. McDonald's Restaurant |Service |Food |

| | 28. Middlefield Bank |Service |Financial |

| | 29. RK Vinyl Graphics |Service |Printing |

| | 30. Rapid Electric Inc. |Service |Construction/Electrical |

| | 31. Saint-Gobain (Eaton)* |Manufacturing |Hydraulic Hoses |

| | 32. Sierra Trucking, Inc. |Service |Trucking Services |

| | 33. Skala Insurance Agency |Service |Insurance |

| | 34. Stamm Contracting |Manufacturing |Concrete |

| | 35. TL Express |Service |Trucking Headquarters |

| | 36. Tax Pro's |Service |Tax Preparation |

| | 37. Mantua Station Drug |Retail |Pharmacy |

| | 38. Village Tavern |Service |Food, Legal Beverages |

| | 39. Wolf & Pflaum |N/A |N/A |

| | 40. Signtist |Manufacturing |Signs |

| | 41. Mantua Vet Clinic |Service |Veterinary Services |

| | * Closed 2007 | | |

The commercial and retail types of businesses are primarily located along Main Street. Manufacturing businesses are primarily located in the southwest quadrant of the Village along Main Street south of the Cuyahoga River and in the Industrial Park south of Orchard Street. A few manufacturing sites are located in isolated areas along High Street east of Main Street and east of Prospect Street where it intersects High Street on the east side of the Village (Map 2, Mantua Village Land Use).

According to the information in Table 15, 64% of the businesses provide a service. Some of the types of services provided include meal preparation, medical, financial, personal (haircuts), auto repair and construction. Of the 28 service-related businesses, 7 are some type of restaurant or food preparation business. The 5 office-types of business include financial institutions, tax preparation specialists and real estate and insurance consultants.

Companies engaged in construction represent 11% of the service related businesses. The services provided by the construction companies range from new building construction to renovations. Various skilled tradespersons, such as masons, electricians and carpenters are employed in these businesses. Only 4 industries in the Village manufacture a product. They produce hydraulic hoses (data is prior to the plant closing), gaskets and seals, signs or concrete. Two businesses export their products outside the United States.

Eight (8) businesses in the Village are engaged in retail sales. Each merchant offers an exclusive primary item, including food (prime cuts of meat, grocery items), animal feed, gasoline, hardware, pharmaceuticals and auto parts. In the surveys and meetings completed as part of the visioning process, participants indicated the Village has a good mix of businesses, such as retail shops, restaurants and banks; however, participants also felt there is a need for more retail and general merchandising stores, such as a grocery store, clothing, hardware, and drug stores and service stations to meet the needs of local residents.

Most businesses have a small number of employees – 51.7% employ fewer than 5 workers (Survey of the Business Community, Appendix A). Only 3 businesses stated they employ more than 31 workers. Saint-Gobain Performance Plastics Corporation and Mantaline employed a combined total of 370 employees (in early 2006), but Saint-Gobain was bought by Eaton Corporation in 2005 and the Mantua plant closed in 2007, a loss of 193 jobs. Some employees were moved to Eaton’s factory in Aurora.

According to the Survey of the Business Community nearly 55% of the all of the businesses in the Village are family-owned. Over half (55.2%) have been in the Village for more than 10 years, and 62% currently lease their sites. The prevalence of leasing may account for the slow maintenance and renovations being completed on downtown commercial buildings. As expressed in the Assets and Critical Issues identification process, many of the respondents feel the downtown is unattractive and buildings are in need of repair. Revitalization of the Central Business District was the primary issue facing the Village based on the critical issue most often noted in the meetings. Most members of the business community are in favor of renovating downtown buildings, restoring or preserving the historic character, and improving the downtown’s streetscape by making sidewalks wider and adding benches, attractive lighting fixtures, trees and flower pots.

COMMERCIAL & INDUSTRIAL EMPLOYMENT

The marketplace, household incomes, employment levels, and investment opportunities are regional in nature. Therefore, a healthy business economy is especially important not only for the Village, but for the surrounding communities. The 2000 Census reported a relatively diversified Village workforce (Chapter 3, Table 5, Labor Force Characteristics – Occupation):

• 30% employed in sales and office types of occupations

• 26% employed in management or a similarly related profession

• 19% employed in production, transportation and material moving occupations

• 13% employed in the service industry

• 12% employed in construction, extraction or maintenance

However, employment opportunities in the Village are not plentiful. According to the last Census, 79% of the Village’s workforce is employed outside of the Village (Chapter 3, Section 8). Many economists predict a flat economic outlook for northeast Ohio with the continuation of job losses, especially in the manufacturing sector, coupled with a declining population for the foreseeable future as more northeast Ohio residents seek job opportunities in other parts of the United States.

In 2000, the Akron Metropolitan Area Transportation Study (AMATS) completed an inventory of the non-residential floor area in the Village. The results of the survey identified the total floor area utilized for the various types of non-residential land uses in the Village (Table 16). According to the findings of the inventory, the Village has a total of 445,600 square feet of business-related floor area, 263,000 (59%) of that used for manufacturing. According to the Portage County Office of Economic Development, the former Saint-Gobain Performance Plastics Corporation (Eaton) manufacturing facility has 178,549 square feet of finished floor area; Mantaline occupies nearly 90,000 square feet of floor area (these figures differ slightly from the manufacturing floor area calculated by AMATS). The floor area devoted to services and wholesale is much smaller than the manufacturing total, though the latter represents only 4 businesses in the Village.

The Survey of the Business Community revealed that the majority of the individual businesses in Mantua occupy relatively small spaces. Nearly 67% reported their total floor area was 2,999 square feet or less; 41% reported their business’s floor area was no larger than 1,499 square feet. Commercial businesses with a total floor area no larger than 1,499 square feet most often employed 2 to 3 employees, while commercial businesses with a total floor area between 1,499 to 2,999 square feet of floor area typically reported 4 to 5 employees. In terms of land use, as reported by AMATS’ 2000 land use inventory (Chapter 4, Table 13, Land Use in Acres 2000), business-related uses occupying the greatest amount of land area, with wholesale facilities at 61.9 acres followed by manufacturing at almost 34 acres. Retail businesses occupy about 7 acres of land and service related businesses occupy about 14 acres of land.

Manufacturing businesses employ more people per acre or square foot than retail/service uses typically do and according to the Portage County Office of Economic Development, the manufacturing sector employs the greatest number of people in the Village. Investments in industrial development could provide significant benefits for the village in terms of employment. However, one major problem affecting the Village is that the industrial park in the southwest quadrant needs a bridge over the Cuyahoga River to provide better access for semi-trailer traffic. Orchard Street is currently used to access the industrial park. This roadway is narrow for tractor-trailer traffic and passes through some residential areas of the community. Consequently, the industrial park sites are less attractive for businesses requiring shipments by large trucks.

The bridge extension of Mats Road would provide the 30+ acres of vacant industrial land in this industrial district with direct access to State Route 44. Improvement of the industrial sites could provide from 50 to 480 manufacturing jobs. Additional industrial employees would help to stimulate the overall economy of the Village and attract additional commercial businesses to the downtown. A greater number of workers in the downtown would provide store and restaurant owners with a steady customer base, increasing their sales revenue and potentially stimulating investment in new businesses in the downtown area and reinvestment in existing buildings.

COMMUNITY INTIATIVES & ECONOMIC DEVELOPMENT PROGRAMS

A. Downtown Mantua Revitalization Corporation

A local initiative to improve the aesthetics and business atmosphere of Mantua Village was started in 2007 with the formation of the Downtown Mantua Revitalization Corporation, a non-profit corporation dedicated to empowering “the people, organizations, businesses and property owners to develop and implement a consensus-based plan to improve the appearance of downtown,” according to their articles of incorporation filed in April 2007. The Village received a $15,000 Comprehensive Downtown Revitalization Tier One grant in August 2007 for planning. E.G. & G., Inc. of Akron, a landscape architect, planning and engineering firm, was hired to produce a series of conceptual drawings for the downtown area. They presented architectural renderings in a public meeting in November 2007 showing Main Street from the north and south and the Main and Prospect intersection with streetscape improvements such as an arched entrance, decorative street lamps, and landscaping elements. The Downtown Revitalization Committee continues to meet on a regular basis.

B. Economic Development Programs

The Village of Mantua is involved in two programs that are designed to enhance economic development in the community – the Ohio Enterprise Zone program and the Community Reinvestment Areas program. These programs are designed to provide a reduction in real property and personal tax as compensation for capital investment and job creation by new and expanding businesses. Several other programs enable sharing the benefits of economic development projects and central services between adjoining political units or assist with the rehabilitation of existing buildings.

1. The Ohio Enterprise Zones allows property tax exemptions of up to 75% for both real and personal property taxes for up to 15 years. In exchange for the tax savings, a business must agree to retain or create a certain number of jobs and establish, expand, renovate, or occupy a facility in the Village’s Enterprise Zone. The Village’s Enterprise Zone was certified by the Ohio Department of Development July 25, 1989. It encompasses all of the land that is zoned industrial from the southern boundary of the Village north to Prospect Street. To date, there have been no applications filed by a business/industry within the Village for the tax benefits of the Enterprise Zone.

2. The Community Reinvestment Areas program provides an exemption of up to 100% on the value of improved real property for a period of up to 15 years. This program requires a negotiated agreement that must be approved by the Crestwood Local Schools. In exchange for the tax exemption, the business must guarantee the creation or retention of jobs. The program may also be used to encourage residential property improvements, either new construction or rehabilitation. This could be of particular value with an older housing stock or to encourage infill residential development. The Village’s Community Reinvestment Area, which was designated by an ordinance in October 2005 (amended in 2006) and confirmed by the Ohio Department of Development in April 2006, encompasses all of the land within the Village. No formal applications have been filed to date for this program.

3. Another incentive program offered by the State of Ohio is the Ohio Job Creation Tax Credit. The State allows for a tax credit or a refund against its corporate franchise tax based on the state income withheld on new, full-time employees. The amount of the tax credit can be up to 75% for up to ten years. The tax credit can exceed 75% upon recommendation of the Director of Ohio Department of Development when there is an extraordinary circumstance. This program allows Mantua to provide a similar arrangement with their local employee income taxes.

4. The Village can also enter into Joint Economic Development District (JEDD) agreements with surrounding townships to assist economic development and cooperation on projects in neighboring communities. Typically municipalities extend central utilities into a neighboring community to create economic opportunities within that community. The municipality and the neighboring community enter into a contract to share the fiscal benefits from an economic development project. A JEDD can be used for commercial or industrial projects but cannot be used for residential development projects. The law encourages participating governments to engage in joint planning and land use and building regulation.

Other items addressed in JEDD contracts include:

• Any proposed annexation, merger, or consolidation of unincorporated territory with a municipality within a JEDD is generally prohibited for at least three years after the contract creating the JEDD is approved by a majority of the electors. The contract that creates the JEDD may prohibit any such proceedings beyond the three-year period.

• The JEDD exists for the terms of the contract and any subsequent amendments.

• The municipality is obligated to provide certain services that are agreed upon with the neighboring community, such as sewer and water. A Board of Directors of the JEDD is created and this Board can levy an income tax within the JEDD area. The income tax may be levied based on the income earned by persons working in the JEDD and on the net profits of the businesses located within the JEDD or income or net profits from the portion of the JEDD where the income tax is levied. The contracting parties, based upon the terms of the contract may share the income tax revenue.

• Property tax may be shared.

• The contracting parties may grant tax exemptions as per Enterprise Zone Law on property within a JEDD. In this case, they are not required to enter into a tax sharing agreement with the Board of Education.

5. Cooperative Economic Development Agreements (CEDA) allow a county, municipality, and/or a township to contract together to provide government improvements and services in order to promote and share the benefits of economic development. A CEDA may provide for the joint provision of services and permanent improvements within incorporated or unincorporated areas. The agreement may stipulate that services and improvements will be provided by a municipal corporation in the unincorporated areas or by a county or township within municipal territory. Improvements include but are not limited to sewer, roads, public utilities and land acquisition. The agreement may include provisions under which a municipal corporation pays service fees to a township or county, or a township or county pays service fees to a municipal corporation. Any party may issue notes, bonds, or other debt obligations for the purposes authorized under a CEDA. The agreement may provide for the allocation of payment of the principal, interest and other charges and costs of issuing and servicing such debt repayment.

A CEDA may allow a municipal corporation to earmark for its general revenue fund a portion of the utility charges it collects in the unincorporated territory covered by a CEDA if the CEDA does not include any matters related to annexation. Plus, a CEDA may provide for application of tax abatement statutes within the area covered.

6. Additional economic development incentives to encourage private sector reinvestment in historic structures are the Ohio and Federal Historic Preservation Tax Credit Programs. The Ohio Historic Preservation Office reviews applications for both programs to determine whether work complies with the U.S. Secretary of the Interior’s Standards for Rehabilitation.

For the Ohio Program, once approved, the owner of a historic building receives a refundable tax credit certificate from the Ohio Department of Development. Only 100 certificates are issued each year in a two-year period. The credit is equal to 25% of the owner’s rehabilitation costs and can be applied to franchise tax, personal income tax or the dealer-in-intangible tax liability of the owner. In order to qualify the owner must meet the following criteria:

• The applicant is the fee simple owner of the building described in the application

• The building is listed on the National Register of Historic Places, is located in a registered historic district and is certified by Ohio’s Preservation Officer as being of historic significance to the district or is listed as a historic landmark by a certified local government.

• The rehabilitation work as described in the application is consistent with the United States Secretary of the Interior’s Standards for Rehabilitation.

• The issuance of an Ohio Historic Preservation Tax Credit is a major factor in the applicant’s decision to rehabilitate the historic building or to increase the level of investment in the rehabilitation of the historic building.

• Rehabilitation of the historic building will result in a net revenue gain in state and local taxes once the historic building is used.

Federal tax law offers a 20% tax credit for the rehabilitation of historic buildings and a 10% tax credit for the rehabilitation of non-historic buildings built before 1936. The credits are dollar for dollar reductions of taxes owed. The 20% rehabilitation investment tax credit equals 20% of the qualified expenditures in a certified rehabilitation of a certified historic structure. The 10% rehabilitation investment tax credit equals 10% of qualified expenditures for rehabilitation of a non-historic building built before 1936. For both credits, the building must be depreciable and the rehabilitation must be substantial.

For the 20% credit, a building must be listed in the National Register of Historic Places or be located in a registered historic district and certified as being of historic significance to the district. For the 10% credit, a building must have been built before 1936. For both credits, the building must be income-producing.

7. The Community Development Block Grant (CDBG) program is a federally funded program that provides funds to the Ohio Department of Development, who in turn awards funds to counties and eligible communities. Portage County Board of Commissioners may make applications for the CDBG Formula Grant, Economic Development Grant and Community Housing Improvement Grant programs, all of which may include activities that benefit the Village. The Village may make applications for Downtown Revitalization Grants, Discretionary Grants, Sewer and Water Grants, and Imminent Threat Grants. The CDBG funds are intended to promote projects that help communities by providing decent, safe housing and living environments, as well as expanding economic opportunities within the community. CDBG activities must meet one the following national objectives:

• Benefit low to moderate income persons

• Eliminate slum and blight conditions

• Address urgent community development needs

CDBG activities typically include:

• Rehabilitation of owner-occupied structures

• Public facility improvements such as storm sewers, drainage improvements, water facilities, sanitary sewers, fire protection, etc.

• Public service activities including hospice care for terminally ill, senior citizens activities, emergency shelter service, etc.

• Down payment assistance for low-income homebuyers

• Addressing the needs of the homeless through a continuum of care

• Economic development activities

The $15,000 Downtown Revitalization grant mentioned at the beginning of this section was a Community Development Block Grant that required local matching funds.

8. Additionally, the State of Ohio and the County administer a variety of loan programs that may be utilized by the community and/or by an individual business. For example, the Ohio Enterprise Bond Fund provides loans for land and building acquisition, construction, expansion or renovation and equipment purchases for terms of up to 20 years. The 166 Direct Loan program provides loans for land and building acquisition, expansion and renovation, and equipment purchases. This loan program is very flexible with the State Development Director having the authority to authorize a higher loan amount or modify the interest rate or the term of the loan, providing the applicant can address a unique and demonstrated economic development need. The Research and Development Investment Loan Fund Program is intended to help promote economic development, business expansion and job creation by encouraging private-sector R&D investments. The Fund provides assistance in the form of a low-interest loan partnered with a tax credit.

When the County makes an Economic Development grant application to the Ohio Department of Development on behalf of a new or expanding business or industry, job creation/retention is required and the funds are loaned to the company at lower interest rates than conventional business loans. Loan funds must be paid back into the Portage County Revolving Loan Fund, which are then loaned to other businesses. The County Revolving Loan fund is administered by Neighborhood Development Services.

ECONOMIC DEVELOPMENT OPPORTUNITIES

Mantua Village has ample assets and opportunities to stimulate sustainable economic development. One large potential economic opportunity for the Village is to capitalize on is its recreational amenities. According to the Survey of the Business Community, nearly 89% of the respondents were in favor of promoting tourism to attract more visitors to the downtown. The Rails-to-Trails Conservancy states that bikeways provide excellent recreation and transportation opportunities and can be used to stimulate economic development in a community. As referenced in Franklin Township’s Shared Use Feasibility Study (2000), Nancy Burns, Iowa’s Bicycle and Pedestrian Coordinator, stated that “originally trails and bikeways were initiated in an effort to preserve and conserve abandoned rail lines. Eventually tourism and economic development flourished as trails became a highly desirable destination for increasing numbers of people. Various types of businesses, such as, restaurants, lodging facilities, bike shops, specialty clothing shops and equipment stores opened up near the trails to meet the growing demands of trail users.”[1]

The Cuyahoga River and the Portage Park District’s Headwaters Hike & Bike Trail are unique, notable features that pass through the Central Business District of the Village. The Marsh Wetlands State Nature Preserve and the Village’s Buchert Park provide natural and recreational places close to the Central Business District. In combination these amenities could be utilized to promote economic activity in the downtown area. According to the Survey of the Business Community, nearly, 93% of those surveyed were in favor of improving the riverfront area and enhancing trail and park connections to downtown. Of those surveyed, 62% were in favor of improving and expanding the Headwaters Hike & Bike Trail to connect to Cleveland and Youngstown in order to increase the trail’s patronage that passes through the Village.

Well developed parks and recreational facilities are recognized for improving the overall quality of life for the residents and the citizen workforce within a community. If the Village’s recreational and natural amenities are properly enhanced and marketed, Mantua could become a desired year-round destination for recreation, stimulating economic activity, attracting many new visitors, and enhancing the community as an attractive place to live and work. The promotion of various festivals and other annual events, which may include street fairs, could further boost tourism to the Village.

A successful example of economic revitalization related to recreation is the town of Lanesboro, a small town of 788 people in southeastern Minnesota, located along the Root River. Lanesboro’s economy was so depressed and so many buildings along its main streets were vacant, many residents feared the town was going to fold. Other residents feared that the school system would fail. In 1985, the abandoned Milwaukee Railroad bed was converted into the Root River State Trail. As soon as the bike trail started attracting visitors, business leaders began to invest in activities throughout the town including a movie theater, restaurants, specialty shops (i.e. art galleries), bed and breakfast establishments and recreational attractions (i.e. canoe, kayak, inner tube rental, etc.). Now, during the summer weekends, the town’s population doubles and sometimes triples in size as visitors stop in Lanesboro to enjoy the amenities, spending nearly $1.5 million dollars annually.

The historic downtown can benefit from the above focus on green economic development. However, by itself, the historic downtown is another key opportunity to capitalize on and market. Communities across the country are trying to re-create the form, look and vitality of historic Main Streets and traditional neighborhoods that are walkable, bikeable and people friendly. Whether or not Mantua Village chooses to participate in the “Main Street” program, it already has the framework for making a great village even greater with some investment and promotion. Building façade and streetscape improvements, unified signage, outdoor café’s, and encouraging mixed uses can help to boost the Village’s attractiveness to its residents and to others outside the Village. The Village can pursue Downtown Revitalization construction funds and businesses can apply for other programs mentioned under Section 3 of this Chapter to help meet their needs.

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[1] Shared Use (Bikeways & Pedestrian) Feasibility Study, Franklin Township, Portage County, Ohio – Portage County Regional Planning Commission, 2000.

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TABLE 16

BUSINESS FLOOR AREA

|Business Type |Total Square Footage |

|Retail | 26,200 |

|Services | 93,600 |

|Wholesale | 60,200 |

|Manufacturing | 263,000 |

|Transportation Terminals & Utilities | 2,600 |

|Total | 445,600 |

Source: Akron Metropolitan Area Transportation Study

View looking south on Main Street

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