Mentor Considers Grant for American Metal Coatings

Mentor City Council on Tuesday will consider providing an incentive grant to a firm considering a move to the city.

American Metal Coatings is planning a move from to the vacant building at 7700 Tyler Blvd. The Cleveland-based company specializes in zinc, zinc alloy plating, phosphating and cleaning with six automated lines for customers like Honda, General Motors and GE Appliance.

AMC would purchase the building and invest in new machinery and building readiness costs for a total of $5.2 million. According a memorandum from Economic & Community Development Director Ron Traub, AMC would be eligible for a Mentor Incentive Grant that averages $12,800 per year over a 10-year term.

That amount is equal to about 30 percent of the payroll taxes AMC would pay the city over a decade. The company's projected 35-employee payroll for 2013 is nearly $2.2 million.

Mentor anticipates $359,500 in new payroll taxes during the agreement's term. AMC must maintain a $2 million annual payroll each year from 2014 to 2023 under the agreement.

City council will review the legislation Tuesday at its regular meeting, which begins at 7 p.m.