Loss of Janesville will create ripple effect

Last year, the company provided Norwalk with $226,719 in income tax.
Scott Seitz2
Sep 3, 2013

The eventual loss of the Janesville Acoustics plant will leave gaping holes in local budgets.

On Wednesday, Janesville officials announced the Norwalk facility will begin phasing out workers later this year, with the plant scheduled for total shutdown by the end of 2014, leaving nearly 300 employees jobless. The company said it will build a facility in Kansas, Missouri or Nebraska -- closer to its customer base.

The closing of Janesville will dramatically affect the city of Norwalk's revenue stream.

In 2012, Janesville produced $226,719 in income tax receipts, according to Michelle Reeder, assistant city finance director.

A story about this subject was published in Friday's Norwalk Reflector.

Comments

Contango

$226,719 annually or almost $2.3 million over 10 yrs. Quite a budgetary hole to fill.

With family finances, you either cut back on expenses and/or earn more.

IMO, the City Admin. needs to go line-by-line over the budget with a sharp pencil, eliminating personnel and programs that are deemed non-essential.

Since it's track record has been proven dismal at best, I'd suggest axing the NEDC and realize a savings of around $100K annually, while working closer with the HCDC.

The NEDC? As Benjamin Franklin said:

"He that lives upon hope will die fasting."

2sense

Sounds like you should run for mayor.

Contango

Re: "you should run for mayor."

LOL.

Based on my platform of fiscal austerity, privatization of city services and the sale of public assets, I wouldn't be elected.

Happy hope and grandiose promises tend to win office.

deertracker

Moderators have removed this comment because it contained Personal information.

2sense

The secret is out now

JudgeMeNot

What secret?

Contango

Actually, expanding liquor sales in Norwalk from a single state store would IMO, add a few jobs and tax revenue.

That is however, a state issue.

Now The Rest of...

Do we really need a Safety Service Director, why doesn't the Mayor take on that role as many other communities has done, he can't be that busy with his jobs, jobs, agenda.

swiss family

interesting... it seems like both of those suggestion were mine about 5 or 6 years ago, and, at that time I was told how "dumb" the ideas were??? well better late than never I guess...with that being said.. I think that we need to take a clear and honest look around here and face some serious truths

We can no longer count on the auto industry to carry our economy.. Detroit , "the motor city" has collapsed.. so we ned to see where we fit into or can create our new direction...I think that if you have been paying attention, our local Judge seems to be sending almost every criminal to a "halfway house" outside of our area.. So why don't we build our own "halfway house" so we can stop supporting areas outside of ours, but so we can possibly get income from other areas, in the same way that we are shelling out money to take our criminals

I also think that we should consider buying up a lot of land now, and building a multi- leveled jail, right here.. to not only house our people , but to do like Mansfield and Marysville have done, and base nearly all of their revenue and reputation on being known for their incarceration facility.Now imagine if we had done this years ago, and had built a structure like Kalahari.. to be used as a jail.. think of all of the jobs generated from the planning and construction of the jail, plus the sustainable jobs from all of the staff to clean, feed, and house all of the "guests".. It would be a win, win situation here.. now we can stop paying other communities to house our criminals, but we could also create a lot of jobs, with a future, for our local people..

Contango

Re:

"So why don't we build our own 'halfway house,'"

"...consider buying up a lot of land now, and building a multi- leveled jail, right here,"

And the revenue for these "public works projects" will come from where?

swiss family

it is very possible that especially with President Obama in office and his vision of rebuilding the infrastructures in our nation and get the economy rolling again.I would pretty much bet that he would be willing to give grants to fund this project, especially in a state in a county with such high unemployment rates...YES there would be some work involved in getting the grants, but most good things that are worth pursuing come with a couple of set backs... if you are going to give up, before you even get started because you have a question, then maybe you should become a local politician yourself...

Contango

Re: "...his vision of rebuilding the infrastructures in our nation,"

Again: And the revenue for these "public works projects" will come from where?

FYI: Economics and finance are about the allocation of limited resources. You can't spend the same money multiple times.

44846GWP

Yes, Mansfield is such a nice place to live and prosper. lol!

Now The Rest of...

Mansfield and Marysville are part of the Ohio Department of Corrections for felons, not municipal facilities. Mansfield is for men, Marysville women, Huron County jail has space and in the past has rented out cell space to other counties. The high cost of construction to meet state standards for a new facility, added liability and transport cost has to be considered.

WASP71

The tech world is where it is now. Maybe the mayor could look into getting some tech-type jobs here in the empty space that we have all over the town. Try to move in computer parts manufacturers or the like. I don't know. Have to start thinking outside the box. This town is only going to get worse. Without the taxes coming in the police and fire will get cut. Think drugs are bad now, just wait. I would suggest lock everything up now and buy some type of protection. Going to need it. Most people wouldn't be able to leave because no one will be buying houses here. Looking bad....real bad...

Contango

Re: "Have to start thinking outside the box."

Agreed.

At least Mayor Lesch gave the "appearance of action" with a couple city-wide idea forums like "Restarting our Engines."

http://www.egovlink.com/public_d...

The results of which are probably sitting on a shelf somewhere collecting dust.

Mayor Duncan merely appears to be blind-sighted by each negative business and/or fiscal event.

earlduck

moving a computer manufacturing company into norwalk is not thinking outside the box!!!!!! norwalk and every other one horse town in the country dreams about.
maybe the UAW mindset has something to do with everybody abandoning northern ohio
thinking outside the box should have occured long ago,too late now

WASP71

Really-not thinking outside of the box? Your suggestion is to just forget it, it's too late now..wow..good thinking there. And why not try to move a computer tech manufacturer here? Don't you think that those little "one horse towns" out in Silicon Valley had high hopes? So instead of just saying too late now, what would YOU suggest? I think all options should be laid out on the table. People like you just giving up and that's why little towns like us fail. I hope our mayor doesn't think it's too late..If he does, maybe you two can find an old broke down one horse town and by each other a beer to cry in. Or is that too "inside the box" for ya? We as a community need to restructure and revamp our outlook. It's never too late. Find a different road. It's there. Just have to find it.

earlduck

silicon valley didn't bring the factories there genius,the scientists went there for a host of reasons,no dreamer of a mayor or citizen brought them there or inspired them to come.

WASP71

We don't need "a host of reasons" genious. We need one. And the scientist went why? Because someone had an idea or a place for them to work. Bring a tech company and we may get a few scientists. Was Plum Brook always in Sandusky? No. Someone had and idea, good location, tax breaks or something. So there GENIOUS...maybe you should actually think how things could/can come about and quit being so negative...Go to AA... that's where quitters like you go. Obviously you don't want to think grand things can happen to little places. Happens all the time. Need positive people and not downers and nay-sayers like you. We don't need to build it so they will come..We have buildings here that can be revamped possibly. As for the tech company, that was 1 idea..how about you throwing something out there?

SeƱor Clown

A tech company didn't bring scientists to Silicon Valley - quite the opposite. A prestigious, private research university (Stanford) brought tech companies to Silicon Valley, or graduated students that went on to start up tech companies in the area.

Plum Brook came to the area because the NASA facilities in Cleveland didn't have room on their campus for the large-scale, hazardous testing they wished to pursue, and the government had a 9,000 acre hazmat site from the former Plum Brook Ordinance Works, only 50 miles away, that had been abandoned for nearly 20 years.

The unfortunate reality is that while we have buildings here that could possibly be revamped, we are not in a unique or advantageous situation in that regard. The death of the manufacturing sector has left us with an overabundance of industrial buildings all across the country, and the few prosperous companies that are looking to expand are a cost/benefit analysis away from deciding that they're better off to build a new facility that best suits their needs.

What unique strength does our area workforce have to offer? We have people qualified for service sector and low-skill manufacturing in abundance, as do nearly all other geographic areas of any moderate population density. We don't have a Stanford, but we have colleges that train for service jobs. I see no real strategy to build an industry on nurses, medical billing clerks, teachers, and beauticians. Our area schools graduate a fair number of bright, capable young people, most of which dream of going off to college, moving to the big city, and only coming back to visit for the holidays.

So what's the path forward? Do what we did before the boom-and-bust automotive manufacturing: till the ground and plant corn.

earlduck

rah rah wow

WASP71

Good comeback. Obviously you see how stupid you really are. Ya..GENIOUS. Pathetic. 'nuff with you...

earlduck

mister wasp,you're so awesome,thats why norwalk is prospering,thanks for
all your help,smart people like you who think out of the box,who would have thought a tech factory?

Really are you ...

Outside of the box thinking. I gotcha, been thinking that way for years now. A new way, a new idea, a new concept. are you ready for change? I got it. Change is not for everybody. I have had to reset my thought process and after I get past a few road blocks... A new beginning.