With readings and city council votes pending, Beachwood's Job Creation Incentive Program is not a certainty just yet.
Still, Economic Development Director Jim Doutt has already defined requirements and regulations for the city's first-ever legislated incentive program.
READ: Beachwood Considers Job Creation Incentives
Eligible companies would receive an annual grant based on a percentage of the annual payroll withholding taxes generated by new jobs created in the city. The maximum level for a grant would be for five years and 50 percent.
Companies would be deemed eligible if they create 30 new full-time jobs within a three-year period
Grants based on new payroll projections would follow this schedule:New Payroll by End of Year Three Grant Length Award Rate $1 million to $3 million Three years 30% $3 million to $6 million Four years 35% $6 million to $8 million Four years 40% $8 million and above Five years 50%
Grant agreements are for specific locations, but a company can meet requirements through multiple sites in Beachwood. Each agreement will specify a date by which first-year job projections must be met.
Here's how grants would be awarded:Percentage of Payroll Projections Met Percentage of Grant Awarded 90-100 Full grant or credit 85-89 Reduce grant/credit by 5% 80-84 Reduce grant by 10% 75-79 Reduce grant by 15% Less than 75 No grant for the year
Preliminarily, application forms will cost $750. The city will require an annual report documenting payroll and new employment.
If a company does not meet 75 percent of its payroll or employment projections in three consecutive years at any time during the term of the agreement, council will rescind the agreement. Companies that don't meet projections because their projects or occupancies began in the third or fourth quarter of the year might be able to consider the following year as the first full year of occupancy. Retail and food service businesses will not be eligible.
City council will have its second reading of the program on Feb. 4.