Beachwood City Council authorized a transfer from the city's General Fund to the Eaton Corp. Tax Increment Financing Fund, but the money will soon be reimbursed.
The Eaton TIF fund Fund will receive a $300,000 transfer for the time being as a result of a vote by city council. Finance Director David Pfaff recommended the transfer because the year will end without the county providing money owed to the city.
Pfaff said the city had two issues related to the Eaton TIF. First, the county's valuation of the Eaton headquarters site did not match the $21.9 million figure expected by the city. Pfaff said the county had only been allocated 41 percent of the increase in land value to the TIF.
"Both of these issues have been resolved, however I have not received the additional funds due to the City of Beachwood from the county," Pfaff wrote in a memo to Mayor Merle Gorden. "I am currently working on coming up with what I feel we are owed, but doubt that I will receive these monies by year end."
The transfer prevents a negative balance in the Eaton fund.
"These monies will be returned to the General Fund upon receipt of the additional monies due to the city," Pfaff wrote.
Eaton broke ground on the $170 million project in 2010.