AVON – Selectmen in this tiny town are worried that the impending closure of Lauri Enterprises will cost more than the loss of its 22 jobs.

Lauri is a major taxpayer. Without its contributions, people could see tax bills climb to offset the toy factory’s lost revenue.

“A lot of people are concerned how this will affect their taxes and the people who are out of work are wondering how they are even going to pay their taxes,” said first Selectperson Joyce Potter on Tuesday.

Smethport Specialty of Pennsylvania bought Lauri Enterprises in late September. Smethport is scheduled to close the Avon factory this summer.

Lauri produces 165 educational products geared to youngsters between the ages of 2 and 8, including more than 30 different types of rubber puzzles.

Smethport offered jobs in Pennsylvania to Lauri workers, but so far only one has agreed to make the move south.

Tax collector Steve Weiner said Lauri paid $17,372.72 in property taxes in 2003. Of that, $14,220.96 was for the 18,000-square-foot factory and the 39 acres of land the business owns. The rest, $3,152.76, was for personal property such as equipment.

Lauri’s taxes represent more than 10 percent of Avon’s $140,888 municipal budget. The rest is paid by other businesses and property owners. The town has 504 residents.

Avon also paid $295,004 toward the SAD 58 school budget in 2003 and $27,951 to Franklin County.

“We’re losing a lot of jobs, but we’re also losing a lot of tax base,” said Selectmen John Calloway. In 2003, Mount Blue Builder’s Supply in Avon shut its doors and several area loggers scaled back their workforces.

Future bleak

“Right now, we’ve got nothing left in town anymore, save for a few general stores. And, I don’t see anything on the horizon that’s going to help us back up,” Calloway said.

“Over the years, we’ve been building and doing great things and all of a sudden, ka-boom. It’s like the rug got pulled out from under us. I don’t feel optimistic about the economy in this area,” he added.

Weiner said he doesn’t know the exact tax impact of Lauri’s closure. Once the business goes, the building and land will be reassessed, and its owner will pay taxes on what personal property remains as well as the real estate. Former Lauri owner Mal Sibulkin still owns the building and property. He’s leased it to Smethport through September.

“Any loss like that is a noticeable impact,” said Weiner, “and will have to be made up by the taxpayers.”

Potter and others in town are hoping that another industry will move into town. With recent factory closings nearby like Forster in Strong, she isn’t sure businesses looking to relocate to the area will pick Avon first.

“It’s not like you leave this factory and go to another factory in the area. There aren’t any,” Potter said. “It’s definitely not a good thing, and there is nothing we can do to stop it. It doesn’t paint a pretty picture.”

No easy answers

Calls to Smethport were not returned Tuesday and Wednesday. It wasn’t clear if the 22 displaced workers will be given a severance package by the company.

Calloway says his heart goes out to the workers. He’s thankful they were at least given a year’s notice before their jobs run out. It doesn’t cushion the blow though, he said.

Selectmen met Tuesday night to discuss the closing and what can be done to help workers or to attract more jobs.

With a growing exodus of manufacturing jobs, Calloway said the only economic future for the area might be in recreation. But those jobs are often seasonal and don’t pay well, he said.

“There is no place I would rather live because of the quality of life here,” he said. “But if I were a young man, I don’t think I would, or could, stay here.”

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