News Summary

Economic development will be the focus of business at Tuesday's Middletown City Council meeting.

Among the items to be considered by council will be an emergency ordinance to establish an enterprise zone tax abatement as well as other incentives provided by the State Urban Jobs Program for the Middletown Coke Co. Inc., the operating company for SunCoke Energy of Knoxville, Tenn.

SunCoke is planning to build a $355 million heat recovery coke-making and electric generation plant. It also has a 20-year agreement with AK Steel Corp. to produce coke and electricity for the steelmaker.

The enterprise zone incentive would abate 75 percent for both real and personal property taxes for 10 years. According to a staff report written by Economic Development Director Bill Murphy, the investment of $3.35 million in real property will generate $17,475 in new property taxes before the abatement.

In addition, the approximate $5 million in new annual payroll from the 75 full-time jobs it would create would generate $87,500 in new payroll taxes before the abatement. If approved, the city will have six months to negotiate a revenue sharing agreement or the new taxes would have to be equally split 50/50 with the Middletown City School District.

SunCoke also is seeking a reduced water rate from the city. It estimates it would use about 1.6 million gallons of water a day in its operations. In addition, SunCoke also is seeking additional assistance from the state based on its investments in Middletown and in Haverhill, Ohio, in Scioto County.

Should plans in Middletown fall through, SunCoke said it also is considering a location in Kentucky.

Murphy's report also noted that SunCoke would like to make a final decision on a location and begin construction as soon as possible.

There are two lawsuits that have been filed in the past few weeks opposing the proposed project.

Middletown City Council will hold its work session at 5:30 p.m. Tuesday in the Council Chambers on the lower level of the Middletown City Building, One Donham Plaza. Council's business meeting will begin at 6:30 p.m.

Contact this reporter at (513) 705-2871 or erichter@coxohio.com.

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