The city of Beachwood already is home to 2,500 businesses, and the city has long taken pride in providing services and amenities that make the city an attractive place to locate. Now Beachwood is launching a grant program to further entice new businesses and encourage existing businesses to expand.

The Job Creation Incentive Grant Program offers annual grant payments to companies. The payments are based on a percentage of payroll withholding taxes generated by new jobs. Businesses that relocate to Beachwood must create a minimum of 30 full-time jobs or a minimum annual payroll of $1 million within three years. An existing Beachwood company that expands within the city also qualifies for the grant under the same rules. Retail and food service businesses are not eligible.

Mayor Merle S. Gorden and city council must approve each grant application.

“We know that expansion of business is very important to the wellbeing of the community,” says Beachwood economic development director Jim Doutt. “Payroll is subject to income tax. A company would be able to get back some of that tax if it locates here.”

The program is just the first step in a larger economic development plan recommended after Gorden commissioned a study last October to position Beachwood for future business growth. City council approved the program on Feb. 4.

“This is just one element of a larger incentive framework we’ll be putting in place,” Doutt says. He has no estimates on how many jobs the incentive program may create in the city. “It’s anyone’s guess; we just hope it spurs job growth.”

Source: Jim Doutt
Writer: Karin Connelly