“In response to some changes in technology and consumer markets, Schneider has approached the city about making substantial investment in the facility,’’ said Nathaniel Kaelin, the city’s economic development manager.
“We’re very excited to see a major Global 500 company that’s doubling down in Fairfield, adding 100 jobs, increase the wages of the existing employees.’’
Schneider has been leasing its 225,000 square-foot facility since 2018. Annual payroll is about $9.25 million annually. With the additional employees, payroll is expected to exceed $15 million.
Fairfield collects a 1.5 percent annual income tax from those who work or live in the city.
“We love to see existing companies continue to grow here in Fairfield – both in workforce and payroll, but also in technology and worker skillset,’’ Kaelin said.
Fairfield City Council on Monday approved its first Job Creation Incentive Grant Economic Development agreement with Schneider. The grant program was established by council a year ago.
“We did compete (for) this project with other communities,’’ Kaelin said. “I’m really pleased that they decided to do the project here in Fairfield, double down and continue to grow.”
Under the agreement, the city will provide an annual grant of up to 36 percent of the new income tax collected from the increased payroll tax at the site for eight years.
As part of the program, Schneider agreed to extend the lease of its facility 10 years and must create the 100 jobs within three years of completion of the building improvements and machinery/equipment installation. Those improvements should be completed by the end of 2025.
The city estimated it could pay out $280,295 in annual grants ranging from $13,195 to $40,801 over the eight-year agreement.
“I brag we’ve not raised our income tax of 1.5 percent since 1955 and it’s because of developments like this that are funding these good quality of life things in our city and keep it sustainable,’’ said Mayor Mitch Rhodus.
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