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) – Pre-1994

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/

Enterprise Zone (EZ)

 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 a designated EZ area within the City of North Olmsted.  Please refer to the EZ maps for a description of the EZ geographic boundaries.

          Enterprise Zone NE  /  Enterprise Zone SE  /  Enterprise Zone West

• Commercial, industrial and office properties are eligible for EZ tax abatement benefits.  Retail operations are prohibited.
• Commercial, industrial and office projects must be approved for EZ benefits by City Council before construction begins.
• Expansion projects must make investments that equal at least 10% of the value of the existing facility.  In addition, the law permits EZ incentives for a business to renovate an existing facility if the renovations exceed 50% of the facility's value.
• The real property tax abatement is based on an increase in the assessed value of the property as a result of the renovation or new construction project.  The EZ abatement cannot reduce current real property taxes.

 EZ Program Benefits:

For more information, go to http://www.development.ohio.gov/edd/ez/

Job Creation Grant (JCG) 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.

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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

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 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 usually set at 30% of the project cost to a maximum of $1 million and a minimum loan amount of $350,000.  The rate is fixed (currently at 3%).  Eligible projects must involve significant job creation or retention.

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.

Rapid Outreach Grant:  Funds are for on or off-site infrastructure improvements, including water, sewer, road, and rail improvements.  Funds are often used for the acquisition of machinery and equipment.  These funds are given to companies primarily engaged in manufacturing, R&D, high technology, corporate headquarters, and distribution.  Given the demand for limited grant funds, qualified projects must involve substantial job creation or retention, and all other public and private sources of financing must be considered before the availability of Rapid Outreach funding is determined.

Workforce Guarantee Program: Under the umbrella of the Ohio Workforce Guarantee, the Ohio

Department of Development Workforce and Talent Division provides a customized training grant program aimed at creating and retaining jobs via the improvement of worker skills and abilities in expanding industries and emerging technologies.  The Ohio Workforce Grant accomplishes this goal by providing technical and financial assistance directly to employers engaged in worker training.  While the Ohio Workforce Grant has been used in a wide variety of economic incentive packages aimed at attracting and retaining Ohio jobs, the program's focus is on targeted industries, and funding training that results in transferable skills, as evidenced by portable credentials.  Targeted industry sectors include Logistics, Information Technology, Advanced Manufacturing, Bioscience, Advanced Energy, Agriculture/Agribusiness, and Healthcare.

Job Creation Tax Credit:  A refundable tax credit to companies creating at least 25 new full-time jobs

(within 3 years) in Ohio.  The credit may also be available for certain high-wage industries creating 10 or more new full-time jobs within 3 years.  The refundable 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.  Should the amount of the credit exceed the company's Commercial Activity Tax liability for any given year, the difference is refunded.  Approved projects generally range between a 25% and 55% credit for a period of 5 to 7 years.  The business must apply for the credit before committing to the project.

Research and Development Investment Tax Credit:  The Research and Development Investment

Tax Credit is a non-refundable Ohio commercial activity tax credit for all investment in qualified research expenses incurred in Ohio.  Qualified research expenses are based on Section 41 definitions in the United States.  Internal Revenue Code and include expenses for both in-house and contract research expenses.  The amount of the credit is based on 7% of the amount of all qualified investment in a specific year.  The credit can be carried forward for up to 7 years.

Advanced Energy Stimulus for Ohio and Conduit Financing:  Administered by the Ohio Air Quality

Development Authority, the Bipartisan Job Stimulus Package created a $150 million advanced energy jobs stimulus fund.  The OAQDA has the ability to issue conduit bonds for projects that improve the air quality of the State of Ohio.  Such projects include, but are not limited to, air pollution control, air pollution prevention, energy efficiency, advanced energy technologies, and the manufacturing of those technologies.  The OAQDA can convey significant tax benefits to eligible projects.

For more information about state business incentives, go to:

http://www.development.ohio.gov/cms/uploadedfiles/Root/Quick_Navigation/EDD_Incentives.pdf

Ohio Department of Development, Regional Economic Development Office:  216-787-3471