CLEVELAND — Following Sherwin-Williams’ decision to build a new world headquarters in Cleveland, city officials announced on Thursday the incentives the company was offered to stay in Northeast Ohio.
According to a news release from the city of Cleveland, the proposed incentives include the following:
- 30-Year Non-School Tax Increment Financing (TIF): The City of Cleveland would provide a 30-year Non-School TIF for the project site.
- Economic Development Construction Grant: The City would provide a grant of up to $13.5 million to support construction of the facility, which would help offset an estimated $300 million invested in site development by Sherwin-Williams. The grant would ensure the Company retains 3,138 jobs in Cleveland, resulting in more than $8.6 million in annual income tax in Cleveland.
- Job Incentive Grant: The City would provide a grant equal to 50% of the new income tax generated by Sherwin-Williams through employment in the City of Cleveland for 15 years. This incentive is capped at $11.5 million. With Sherwin Williams’s projection of 140 new jobs, they anticipate an additional payroll of $12.53 million. This projection would amount to an annual grant of $156,000 for a total of $2.3 million over the term.
“Sherwin-Williams has been a part of the fabric of our community for 154 years. A new global headquarters in Cleveland lays the foundation for the next chapter for both Sherwin-Williams and our city’s history,” said Mayor Frank G. Jackson. “Cleveland has two of the largest business districts in Ohio, with world-class health care and arts and entertainment options, all connected to our thriving residential neighborhoods. The robust and vibrant quality of life here attracts the world’s best and brightest talent, as does our proximity to 25 colleges and universities in Northeast Ohio. Sherwin-Williams recognizes these important strengths of Cleveland.”
Economic Benefits of Agreement
- Retention of 3,138 Cleveland jobs
- Creation of 140+ new jobs
- Retention of otherwise at-risk $8.6 million with additional $313,250 in annual employment income tax
- More than $300 million in construction, which includes construction jobs — MBE/FBE/CSB and Fannie Lewis resident employment requirements apply
- Generation of tax revenue for Cleveland schools – preliminary estimate is over 4,000,000 annually
- Development and elimination of several long-term vacant parking lots
- The Company will execute a Workforce Development Agreement with the City
“There is, without question, longterm value to providing Sherwin Williams with incentives to retain its headquarters in Cleveland,” said Chief of Regional Development Edward W. Rybka. “The City of Cleveland looks forward to the Company’s continued success and the benefits that brings to City residents.”
The company is finalizing plans to build a new global headquarters in downtown Cleveland just west of Public Square between St. Clair and Superior avenues. The new world headquarters will be approximately 1,000,000-square-feet in size.
The planned new R&D Center will be located in Brecksville, located off I-77 at Miller and Brecksville roads. The center will serve as the corporate anchor for a new mixed-use development project and would be approximately 500,000-square-feet in size.
The transition to the new faculties is not expected to happen until 2023, the company said.
Preliminary plans show Sherwin-Williams will invest a minimum of $600 million to build both facilities. The two facilities will house more than 3,500 employees. Sherwin-Williams estimates it would add 400 jobs at the facilities over time.
Cleveland has been home to the Fortune 200 company for more than 150 years.