Apollo Manufacturing is making a move from Willoughby to Mentor with the help of a grant from the latter city.
The maker of precision components for the aerospace, energy and automotive industries will soon purchase and renovate 7911 Enterprise Pkwy., the former home of Fredon Corp. In all, the move will cost Apollo more than $2 million, but a Mentor Incentive Grant will return some funds back to the firm over the next several years.
Apollo will receive nearly $71,000 in seven years for choosing Mentor. The company expects to pay $257,440 in new payroll taxes to Mentor during the time period. Current payroll is just over $1.5 million and will increase to $2 million by 2018.
"Mentor just made a lot of sense, they've really been working well with us," Apollo's vice president, Justin Sandy, said. "Moving that kind of machinery is very cost-intensive, and they helped us with this new grant. They helped us find a great location."
The grant provides the company 20 percent of its new payroll in the first two years of the agreement, and 30 percent in the final five.
Apollo has 38 employees. Its new facility is about 38,000 square feet, or nearly twice the size of the Willoughby location.
"It's really going to present well to customers," Sandy said. "When we bring someone in, like Boeing, Parker Hannifin or any of these big companies, they're going to really respect you more ... they'll see this nice, great, clean environment."
Mentor City Council authorized the delivery of the grant Tuesday night at its regular meeting. Council unanimously voted to suspend the three readings to immediately pass the measure.
"In addition to the existing jobs and they payroll, the hope is, on their part and ours, that they continue to grow within our community," Mentor Economic Development Director Ron Traub said.