Toledo City Council is considering two ordinances that would provide tax incentives to keep the Libbey Glass factory operating in the city.
The glassware manufacturer, which filed for Chapter 11 bankruptcy in June, 2020, had to choose between closing down manufacturing operations in either Toledo or Shreveport, La., ultimately choosing the latter. The Shreveport factory closed its doors at the end of 2020.
Each ordinance is part of an incentive package put together in partnership with the city and JobsOhio to ensure that Libbey would maintain operations in Toledo for the foreseeable future. Both were topics of discussion at Tuesday’s council agenda review for the scheduled March 15 meeting.
The package would help offset an estimated $33 million in capital investment needed to upgrade the Toledo factory. The ordinance states that Libbey, one of the world's largest glass tableware manufacturers, is in the process of consolidating its Shreveport operations to Toledo.
The first ordinance is a Municipal Jobs Retention Tax Credit of 10 percent for the next 10 years. The other is an amendment to the Toledo Expansion Incentive that would extend its agreement with Libbey through the end of 2030. The incentive program provides performance-based grants to companies that have committed to creating jobs in Toledo.
“As we looked at our competition in Shreveport, Louisiana, they did not have a local net profits municipal tax,” said Brandon Selhorst, city director of economic development. “So we’re always looking at how we can be the most competitive in that instance.”
Several councilmen joined the discussion to speak up on the importance of keeping Libbey in Toledo at 940 Ash St.
“It’s like when we tried to keep Jeep in Toledo, this is one of those stalwart things about us,” Councilman Nick Komives said. “We are the Glass City. Without Libbey Glass, where does our identity fall?”
A company representative was not in attendance Tuesday. The Libbey plant, which has been operating on Ash Street for more than 134 years, employs about 844 people, representing $46 million in annual payroll and approximately $1.15 million in income tax collections for the city.
Councilman George Sarantou pointed out that Toledo has a history of embracing the companies that have become a part of its identity, such as Jeep, Owens Corning, and ProMedica, through economic incentives.
“Libbey has a rich history here, and I hope that we can do everything we can to keep them, keep them productive,” he said. “Like a lot of companies, they’ve had to pay a terrible price with the pandemic. This is the time that we have to look at that big picture.”
Council is expected to vote on the ordinances as soon as next Tuesday.
In other business Tuesday, council will also consider an expansion of Toledo's ShotSpotter program. The latest expansion would cover a four-square-mile radius that would cover all of East Toledo, Toledo police Lt. James Brown said.
The investment in more of the gunshot detection equipment would cost $840,000 and come from the local recovery fund, which is made up of Toledo’s $180.9 million in American Rescue Plan federal funding.
Lt. Brown also said that the program has been an effective tool for the police department thus far.
“It’s very effective,” he told council. “We get notifications immediately, versus someone having to call 911.”
He went on to say that even with the effectiveness of the equipment, residents should still call 911 if they suspect that they’ve heard gunshots.
“I didn’t notice how effective ShotSpotter is,” Councilman Katie Moline told Lt. Brown. “Right when I got on council, I did a ride along with your police force, and you can see it working immediately, identifying exactly what you just said, people who don’t call in.”
Lt. Brown said that continued expansion of the program is expected and Police Chief George Kral’s ultimate goal is to have the entire city of Toledo eventually covered by ShotSpotter.
First Published March 9, 2022, 3:00 p.m.
