Sherwin job cuts nearby won't affect Cleveland jobs-creation grant
The forthcoming closing of a Sherwin-Williams aerosol production plant in Bedford Heights, and the resulting loss of 51 jobs, will not affect an $11.5 million jobs-creation grant from the City of Cleveland.
Flashback: Sherwin-Williams, a Fortune 500 paint and coatings company founded in Cleveland in the 19th century, secured the grant in 2020 as part of a $100 million incentive package tied to the construction of its global headquarters downtown and a research and development facility in Brecksville.
Driving the news: A city spokesperson told Axios that the grant — which would reimburse Sherwin 50% of income taxes from new jobs created for 15 years, with a maximum payout of $11.5 million — "has nothing to do with any job losses or gains at facilities outside of the City of Cleveland."
Why it matters: The city's interpretation means that Sherwin-Williams could receive tax breaks for creating jobs in Cleveland even if it reduces the total number of jobs in the region.
- The new HQ will house the 3,100 employees who currently work in Cleveland plus additional positions the company creates.
- Sherwin-Williams had expected to add 140 new jobs, but the city's grant provided an incentive for further growth.
Catch up quick: The bulk of Cleveland's $100 million package was a 30-year tax increment financing agreement to help with project financing, now standard for big development projects in Cleveland.
- It also included a $13.5 million construction grant from its department of economic development.
- The $300 million 36-floor office tower is under construction on the parking lots west of Public Square.
State of play: A city spokesperson told Axios that Sherwin-Williams has received nearly $937,000 from the jobs-creation grant so far.
Meanwhile: Sherwin-Williams announced that it would close its aerosol plant in Bedford Heights on June 30.
- "With the reduced volume and corresponding reduction in capacity utilization, it no longer makes good business sense to continue operations at this site," Julie Young, Sherwin-Williams vice president of corporate communications, wrote in an April 28 letter to Bedford Mayor Stanley Koci.
What they're saying: Young confirmed to Axios that "the closing of the Sherwin-Williams Bedford Heights facility and subsequent job losses does not apply to the City of Cleveland incentives related to the Building Our Future project."
- In her letter, she said Sherwin-Williams was "committed to working with Bedford Heights employees during this transition."
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