City of Cleveland Investment Package for Sherwin Williams

Cleveland - Legislation tied to incentives to keep the Sherwin-Williams Company a part of the City of Cleveland’s economic landscape is set to be introduced Monday to Cleveland City Council.

Sherwin Williams has been a part of the fabric of our community for 154 years. A new global headquarters in Cleveland lays the foundation for the next chapter for both Sherwin Williams and our city’s history,” said Mayor Frank G. Jackson. “Cleveland has two of the largest business districts in Ohio, with world-class health care and arts & entertainment options, all connected to our thriving residential neighborhoods. The robust and vibrant quality of life here attracts the world’s best and brightest talent, as does our proximity to 25 colleges and universities in Northeast Ohio. Sherwin Williams recognizes these important strengths of Cleveland.

Proposed incentives, following months of collaborative discussions between City leaders and the company, include:

  • 30-Year Non-School Tax Increment Financing (TIF): The City of Cleveland would provide a 30-year Non-School TIF for the project site.
  • Economic Development Construction Grant: The City would provide a grant of up to $13.5 million to support construction of the facility, which would help offset an estimated $300 million invested in site development by Sherwin-Williams. The grant would ensure the Company retains 3,138 jobs in Cleveland, resulting in more than $8.6 million in annual income tax in Cleveland.
  • Job Incentive Grant: The City would provide a grant equal to 50 percent of the new income tax generated by Sherwin-Williams through employment in the City of Cleveland for 15 years. This incentive is capped at $11.5 million. With Sherwin Williams’s projection of 140 new jobs, they anticipate an additional payroll of $12.53 million. This projection would amount to an annual grant of $156,000 for a total of $2.3 million over the term.

Economic Benefits of Agreement

  • Retention of 3,138 Cleveland jobs
  • Creation of 140+ new jobs
  • Retention of otherwise at-risk $8.6 million with additional $313,250 in annual employment income tax
  • More than $300 million in construction, which includes construction jobs
  • MBE/FBE/CSB and Fannie Lewis resident employment requirements apply
  • Generation of tax revenue for Cleveland schools – preliminary estimate is over 4,000,000 annually
  • Development and elimination of several long-term vacant parking lots
  • The Company will execute a Workforce Development Agreement with the City

“There is, without question, long term value to providing Sherwin Williams with incentives to retain its headquarters in Cleveland,” said Chief of Regional Development Edward W. Rybka. “The City of Cleveland looks forward to the Company’s continued success and the benefits that brings to City residents.”

Sherwin-Williams was founded in Cleveland in 1866. It is a global leader in the manufacture, distribution and sale of paints, coating and related products. In September 2019, the Company announced that it was conducting a nationwide search for a new location for its global headquarters and a new research and development facility. The location of the latter has since been announced by the Company to be housed in Brecksville. The Company currently employs 3,138 employees in Cleveland at multiple sites. With an annual payroll of $347 million, it generates more than $8.6 million in income tax for the City.

The new facility is expected to be more than 1 million sq. ft. in Downtown Cleveland on the western end of Public Square. Construction is expected to begin in 2021 with projected completion by 2025.

Click here to view the ordinance executive summary.

© 2020 iHeartMedia, Inc.

Hear news updates at the top and bottom of the

Sponsored Content

Sponsored Content