Beachwood Releases Guidelines for Job Incentive Program

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:

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:

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.