An Akron-headquartered architecture and engineering firm plans to expand its downtown footprint and commit to staying in the city.
GPD Group, which began in Akron in the 1960s with 10 employees and now boasts more than 900, intends to purchase the building it is in, the historic Goodrich Building 25 at 520 S. Main St., as well as Goodrich Building 24 next door and the nearby Spaghetti Warehouse restaurant.
Legend Easley, a Spaghetti Warehouse manager, said Monday evening that he did not know what the restaurant’s future would be. No one from GPD responded to an email seeking more information about the company’s plans for the buildings they intend to buy and a message left after normal business hours was not returned Monday.
The company intends to add at least 118 employees in the next five years as it builds out a downtown campus, said Suzie Graham Moore, Akron’s economic development director. Already, GPD has more than 450 employees who work out of its downtown Akron office.
Moore said the additional hires would expand GPD’s payroll to an expected $61.5 million, from $50 million. GPD also intends to invest $11 million in building renovations.
“This is a great story,” Akron City Council Member Jeff Fusco said at a Monday committee meeting as Moore described the company’s plans. “They’re here and they’re staying here and that’s a great story, I think, for our city.”
Resurfacing a street, replacing a downtown water line
To help incentivize GPD to stay in Akron, the city plans to resurface South Main Street between Cedar and Bartges streets as well as replace a water line that dates to 1881. The city will also repave a parking lot between the Goodrich buildings and Spaghetti Warehouse and give GPD a 20-year license to use the lot. And it will close a skybridge over West Falor Street that connects the office building to a residential building, as well as assist with an upgrade to the Akron Energy Systems steam system.
The development will also receive tax increment financing, which will help pay for the investment. Under the terms of the deal, which must be approved by City Council, the city would exempt the improvements from taxes, then redirect money that would have gone to taxes to both GPD and the city to pay for the improvements. The city will get 25% of what is left after entities that still collect taxes, such asAkron Public Schools, have done so.
Moore said she did not know the costs of the planned improvements and a copy of the agreement between GPD and the city was not immediately available.
If Akron does not fulfill its promise to make the improvements in the timeframe required by the agreement, Moore said — 2028 for the road repair, according to a news release — GPD will have the ability to receive an economic development grant worth 1% of its payroll for 10 years, or until the improvements are complete. Similarly, GPD has pledged that its payroll will not drop below the existing $50 million figure.
The infrastructure the city has committed to improving is in “significant disrepair,” Moore said.
“It’s time for this investment to be made,” she said. “It needs to be done.”
In addition to helping GPD, the improvements will make a difference for GOJO, which has its headquarters nearby, and for the Bounce Innovation Hub.
Within one block, Moore said, there are 2,300 jobs — and still more people who are working to recruit businesses to other spaces in that area.
The work, she said, is “essential to have an environment that is appropriate for the businesses and success that is happening there.”
A commitment to Akron
GPD has employees across 14 offices, but Moore said buying a building, and establishing a campus, is a commitment to Akron. She said the company had to decide whether to invest in one location or consider other options and made a “definitive choice” to invest in downtown Akron.
“It’s a really big deal,” she said. “It’s a significant opportunity to the city.”
City Council is scheduled to vote on the matter Dec. 15; it has been added to the consent agenda, which receives no debate before a decision is made.
In a statement announcing the plan, GPD Group President Darrin Kotecki said he was excited to solidify the company’s presence in Akron and continue to support the community. JobsOhio President and CEO J.P. Nauseef said in the statement that the company’s expansion “will further develop downtown while creating more capacity for future success.”
The company will use 260,000 square feet, the statement said, with plans to expand. Akron Mayor Shammas Malik said in the statement that the company’s decision to stay underscores a confidence in Akron’s potential, and it’s incumbent on the city to match GPD’s commitment.
Moore said the employee-owned company’s decision to set a flag in Akron “means everything for the city.” She said she hopes the improvements will further help the city attract and retain businesses downtown.
“For them to choose to stay in Akron, it’s huge for our community,” she said. “They are leading by example in downtown.”