Benjamin Steel announces over 20 new jobs for Springfield

Benjamin-Steel-350

Benjamin Steel's Springfield Facility (taken by David Zak)

The Relocation Project

It went public on May 12, 2009 that Benjamin Steel would be bringing 21 jobs from Dayton to Springfield and retaining the 65 already here. 

Springfield Municipal Income Tax Credit

The City approved the granting of a three-year 60% income tax credit worth $27,000.  The average salary of the new jobs is about $36,000 per year.

The official name of the credit is the Municipal Income Tax Credit, and is described by the City of Springfield this way: “This is a job credit toward a corporation’s municipal income taxes, which can be granted contingent upon the State issuing a State Job Tax Credit and which is structured similar to the State’s Job Creation Tax Credit. Very few communities in Ohio have utilized the municipal income tax credit. The City’s policy recommends a credit for 50% for five years, with exceptions available in the event of very significant job creation and investments into the State and City. The Springfield area generally offers a favorable tax position overall for most relocating firms; this factor is considered during discussions for the tax credit.  There is a non-refundable application fee due at the time of application. Springfield’s municipal income tax is 2%, which would typically be reduced to 1% for five years with the Municipal Income Tax Credit.”  (http://tinyurl.com/o3c377)

Company Profile

Benjamin Steel Company, Inc. is a steel-service center headquartered in Springfield, Ohio with other locations in Lima, Mansfield, and Dayton (plate processing).  They purchase large quantities of steel (carbon-based plates, shapes, bars and tube) from mills, process it (saw-cutting, shearing, oxyfuel, and plasma cutting) and sell it to large and small customers located primarily in central, southern, and southeastern Ohio.  The last publicly available annual sales figure was $75 million (http://tinyurl.com/pa7fs3)

The original business was known as Demana Iron and Metal Company, which was started by Dominick Demana in 1935.  The business grew, and in 1962 Vince Demana, Dominick’s son, purchased the company.  In line with Vince’s vision to expand, the company was renamed in 1970 to the Benjamin Steel Company.  It is now owned and run by the brother and sister team of Nick and Teresa Demana.

Recent Investment: $1.2M for Laser Cutter

In 2005, the company invested $1.2 million for a state-of-the-art laser cutting machine.  It received a $500,000, 3.25% interest loan (Direct 166 loan) from the Ohio Department of Development at the time (http://tinyurl.com/pc4d2x). 

PrimeOhio Corporate Park

The current 115,000 square foot Springfield HQ and service center was built in 1995 on 18.5 acres of the PrimeOhio Corporate Park, a 400-acre industrial park loacted at the intersection of I-70 and State Route 41 in Springfield, Ohio.  It was first developed by the Springfield-Clark County Community Improvement Corporation in 1984 and saw its first company, Teikuro, locate into a new facility in 1987.  There are just under 2000 employees at 14 company sites in the park.  The park is also located in a CEDA (Cooperative Economic Development Agreement) area, with the City of Springfield and Springfield Township both participating.

>> Benjamin Steel homepage: www.benjaminsteel.com
>> Springfield News-Sun on City grating Municipal Income Tax Credit: http://tinyurl.com/rc6g9a

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