Business Incentives

The City of North Olmsted offers a number of incentive programs to encourage business growth and investment. Incentives are considered on a case-by-case basis.

Application for Assistance

Community Reinvestment Area (CRA)


Program Purpose:

  • To facilitate business retention and expansion in the City of North Olmsted.
  • To foster the retention and creation of jobs.
  • To stimulate economic diversification and growth.
  • To reduce development costs associated with the renovation of existing or construction of new buildings.


Eligible Properties
:

  • Property must be located within the City of North Olmsted; the entire City is designated a CRA.
  • Commercial, industrial, office and multi-unit housing properties are eligible for CRA tax exemption benefits.
  • CRA applications must be submitted to the City and individual exemption terms must approved by City Council before construction begins.
  • The real property tax exemption is based on an increase in the assessed value of the property as a result of the renovation or new construction project. The CRA exemption cannot reduce current real property taxes.


CRA Program Benefits
:

Commercial/Industrial/Office/Multi-Family
Dwellings of 10+ Units
Residential Dwellings > 2 Units Residential Dwellings < 2 Units
Exemption Level: Up to 100% as negotiated 100% 100%
Term:
New Construction Projects Up to 15 years as negotiated 10 Years 12 Years
Renovation Projects Up to 12 years as negotiated 10 Years 12 Years
Requirements: All exempted properties are monitored against building code violations, non-payment of property tax, and conformance to CRA contract terms.

For more information, go to http://www.odod.state.oh.us/edd/cra/

Job Creation Grant Program

The JCG program is an annual grant payment based on a portion of payroll taxes on employee payroll new to the City of North Olmsted. The grant program is a tool that can be used to help businesses expand or establish operations in the City of North Olmsted. Grants must be negotiated and approved by City Council before the project begins. All grants are negotiated and approved on a case by case basis.

Eligibility:

The program is available to office and industrial businesses. Retail businesses may be eligible on a case by case basis, depending on the strategic importance of a prospective project. A company must create a minimum of $500,000 of additional payroll over three years in order to qualify for the incentive.

Application Procedures:

The Economic Development Representative will meet with interested businesses as required to understand their proposed expansion project and determine their need for assistance. An interested business must file an application with the City. The Economic Development Representative/ED Committee will review the application and make recommendations to the Planning Director and Mayor regarding terms, percentages and eligibility to participate in the process. All grants must be approved by City Council. Offers will be made in writing to the applicant. An agreement will be entered into between the applicant and the City outlining the terms of the agreement and project parameters.

Grant Offer Guidelines:

The length of the grant and the annual percentage will be determined on a case by case basis. The maximum term is up to 10 years. Projects will be evaluated based on the overall impact to the City, including direct and indirect economic and fiscal impacts to the community, type of industry, project fit with community plans, ownership vs. leasing, the lease terms, etc.


Key Cuyahoga County Business Incentives Programs

Economic Development Loan Fund:  The fund provides fixed-rate loans (typically 4.25%) for the acquisition of land, buildings, machinery and equipment as well as for new construction, renovation, expansion and/or conversion of facilities.  Loans generally range from a minimum of $35,000 to a maximum of $350,000, up to 40% of total project cost. Loan terms are up to 7 years on equipment and up to 15 years on land and building.

Grow Cuyahoga County Fund:  The fund provides loans ranging from $100,000 to $1 million. The loans will generally be at rates of prime minus 2% to prime plus 2%, for terms up to 25 years depending on the proposed use of funds. Loan proceeds may be used for any legitimate business purpose, including working capital, machinery and equipment, acquisition of land and building, construction, renovations and tenant improvements. The program provides economic development incentives that are not currently available in the community including working capital financing and the financing for retail and restaurants.

For more information about county business incentives, please visit:

http://development.cuyahogacounty.us/en-US/home.aspx

Cuyahoga County Department of Economic Development:  216-443-7260


Key State Business Incentives Programs

Job Creation Tax Credit: JCTC is a refundable tax credit to companies generally creating at least 10 new jobs (within 3 years) with a minimum annual payroll of $660,000 that pay at least 150% of the federal minimum wage. The tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s commercial activity tax liability. Any amount of the credit that exceeds the company’s commercial activity tax liability for any given year is refunded. A business must apply for the credit before committing to the project. Applicants must be approved through the Ohio Tax Credit Authority before hiring begins.

JobsOhio Workforce Grant: The JobsOhio Workforce Grant promotes economic development, business expansion, and job creation by providing funding for the improvement of Ohio worker skills and abilities.

Grant decisions are based on a number of project factors such as job creation, additional payroll, fixed asset investment, project return-on-investment, and project location.

The program requires job creation and training of employees within a specified period of time and may consider the amount of proceeds per job created and employee trained. JobsOhio may consider providing assistance for eligible projects that improve operational efficiencies or production expansion, along with the retention of jobs. Excludes retail and “other population driven businesses.”

JobsOhio Economic Development Grant: The program promotes economic development, business expansion, and job creation by providing funding for eligible projects in Ohio.

Grant decisions are based on a number of project factors such as job creation, additional payroll, fixed asset investment, project return-on-investment, and project location.

JobsOhio Growth Fund Loan: The program provides capital for expansion projects to companies that have limited access to capital and funding from conventional, private sources of financing. Loans typically range in size from $500,000 to $5,000,000. Projects should typically receive 50% or more of their total financing from other private capital sources. Loan terms are up to 15 years for real estate and 10 years for machinery and equipment.

Roadwork Development (629) Account: Available for public roadway improvements, including engineering and design costs. This fund is available for projects primarily involving manufacturing, R&D, high technology, corporate headquarters, and distribution activity. Projects must typically create or retain jobs. Grants are usually provided to the local jurisdiction and require local participation.

166 Direct Loan: Direct, low-interest loan financing is available to help finance manufacturing and other eligible facilities. Eligible uses for funding including: new building construction, building acquisition, and acquisition of machinery and equipment. Amounts of financing are up to 40% of the project cost to a maximum of $1.5 million. Companies must create jobs within a 3-year period, with typically 1 new job created for every $35,000 – $75,000 of proceeds from State.

Innovation Ohio Loan Fund: Provides loans for acquisition, construction, and related costs of technology, facilities and equipment purchase. The fund was created to assist existing Ohio companies develop next-generation products and services within certain Targeted Industry Sectors. The Innovation Ohio Loan Fund provides competitive financing terms on loans to finance projects that will positively impact Ohio by creating high-value jobs, increasing tax revenues, and improving the economic welfare of Ohio.

Research and Development Investment Loan Fund: Direct loan financing of between $1 million and $25 million is available for projects primarily engaging in R&D activity. Rates are fixed (currently at 3%). Companies receive a dollar-for-dollar, nonrefundable Ohio commercial activity tax credit for all principal and interest payments during the year.

Data Center Tax Abatement: The program provides a partial or full sales tax exemption on the purchase of eligible data center equipment. Projects must meet minimum investment and payroll thresholds to be eligible. Final approval of the tax exemption is contingent upon the approval of the Ohio Tax Credit Authority.

For more information about state business incentives, go to: http://jobs-ohio.com/why-ohio/incentives/ or contact Christine Nelson, Jobs Ohio Regional Office: 216-363-5414, cnelson@teamneo.org