By Ken Alltucker
The Cincinnati Enquirer
The city of Norwood wants a state financing board next week to reject Convergys Corp.'s request to cash in on part of a $144 million incentives package to establish a new headquarters in downtown Cincinnati.
If the state's Development Financing Advisory Council next Monday approves a $6 million low -interest loan for the billing and customer management company, Norwood says the deal would undermine three "enterprise zone" agreements that require the company to keep 1,051 full-time and 401 part-time jobs in Norwood.
"What the state is doing is providing incentives to break a local agreement," said Rick Dettmer, Norwood's economic development director.
Convergys wants the $6 million to help it consolidate its Greater Cincinnati work force at the Atrium One tower in downtown Cincinnati - a move that would shift 300 jobs from Norwood to Cincinnati.
Even though enterprise zones are established by the state, Ohio development officials say they have no obligation to ensure companies meet terms of existing zone agreements even if those firms ask for more tax giveaways to move elsewhere in Ohio.
Hamilton County oversees the Norwood zone.
The state must notify a city or a town that a company plans to relocate jobs. The state sent a letter Nov. 24 to Norwood Mayor Victor Schneider indicating that the Convergys move would mean a loss of 300 Norwood jobs.
Schneider, Dettmer and the city's law department this week sent a letter to financing advisory council members protesting the move.
Convergys spokeswoman Renea Morris said that the company has honored all agreements so far. She "didn't want to speculate" on how the planned job transfer would affect the Norwood agreements beyond 2003.
The bulk of the state's incentive package for Convergys comes in the form of $131.5 million in tax breaks for new and retained jobs over 15 years.
The city of Cincinnati also approved $52.2 million in incentives over 15 years.
E-mail kalltucker@enquirer.com.
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