- Mostly cloudy
CINCINNATI -- Ohio ranks third in the nation in economic development "megadeals," which delivered at least $75 million in public subsidies to expanding companies in the last three years, according to a new study by Good Jobs First, a Washington, D.C.–based nonprofit.
Ohio had a dozen such deals since 1997, tied for third with Texas. Michigan awarded 29 megadeals since 1986. New York had 23. Kentucky tied for seventh with 10 deals.
GE Aviation, Amylin Pharmaceuticals in West Chester, Toyota's Georgetown plant and Convergys Corp.'s downtown Cincinnati headquarters are among the Cincinnati-area deals listed in the report. It estimates the 240 megadeals cost state and local taxpayers an average of $465,000 for each job created or retained.
"These subsidy awards are getting out of control," said Philip Mattera, research director of Good Jobs First and principal author of the report. "Huge packages that used to be reserved for ‘trophy' projects creating large numbers of jobs are now being given away more routinely."
Good Jobs First compiled the list from media accounts, public records and its own analysis. The data shows Toyota received $146.5 million subsidy package this year for a 750-job expansion at its Georgetown plant. The same plant received $147 million at the time of its initial construction in 1985, when 3,000 jobs were created.
Automakers, oil companies and aerospace companies were among the biggest recipients of megadeals. Procter & Gamble Co. is also identified in the study for an $85 million subsidy package that led to its construction of a 1,000-employee distribution facility in Box Elder, Utah.
Copyright 2013 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.