Solon Schools Help Pave Way For Swagelok Expansion

SOLON, OH — The Solon Schools have accepted a revenue sharing agreement with the city that will pave the way for Swagelok Manufacturing to build its $30-50 million Global Headquarters in the city. As part of the agreement, the city has designated a Community Reinvestment Area that will be needed for tax abatement.

“Many communities do not involve the schools in the negotiation process for these types of important abatement programs,” said Joseph Regano, Solon Schools superintendent. “We often say things are different in Solon and this is a significant example of that collegial culture. Working together, we achieve better agreements for all the parties involved. There is no question we believe this agreement is in the best interest of the city Solon and the Solon Schools.”

Effectively, the agreement between the three entities outlines that Solon Schools will get approximately 53 percent of the taxes abated within the Community Reinvestment Area over the next 15 years. That should equate to about $4,457,450. The city will share $3,457,450 in income tax revenue with the school district over that same 15-year period.

For its part, Swagelok has agreed to make annual donations of $250,000 to the school district over the first four years of the agreement.

“The total amount abated by the schools is about 47 percent,” Regano noted. “To be clear, the Board's decision was never about whether the district would accept a reduced amount in real estate taxes or try to retain the full amount. Rather, the decisions made during the long and complex negotiations were always centered on how much the Board could reasonably abate as well as what the continued presence of Swagelok means to Solon versus the loss of this corporate presence to another community.”

Swagelok announced in mid-September that it would be expanding its presence in Solon and adding its Global Headquarters to the city. The new campus is expected to have more than 120,000-square feet of new space and state-of-the-art technology. The business will house 300 to 350 associates, with space for additional job growth. Construction should start in 2019, with a goal of completing the headquarters by the end of 2020.

The company embarked on a competitive bid process looking at other possible cities as locations, but ultimately settled on staying in Solon.

“The Solon Schools and the city have worked cooperatively for many years to provide a unified public partnering in these types of decisions,” said Regano. “Significant expansion and development projects such as this cannot happen with support from the public sector. Swagelok has been a great corporate citizen. Keeping Swagelok and this important project in the city will benefit the entire community.”

The school district noted that it has a long history of working with the city on these types of public-private agreements. Most of these decisions are made through the Enterprise Zone Committee, where two Board of Education Members currently serve.

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