Cuyahoga County Executive Armond Budish Announces $7 Million in Economic Development Loans
Media Contacts: Jeane’ Holley: (216) 698-254, (216) 640-0821 or jholley@cuyahogacounty.us
4 PROJECTS SHOULD RETAIN OVER 800 JOBS & CREATE OVER 700 NEW JOBS
Cleveland, Ohio – Cuyahoga County Executive Armond Budish submitted his first proposals to provide incentives from the Executive’s newly created Job Creation Fund. Four separate proposals were submitted to Cuyahoga County Council totaling $7 Million in loans to add jobs, rehab existing industrial facilities and revitalize commercial areas.
“We worked with Council throughout the budgeting process to increase economic development resources and create the county’s Job Creation Fund. These proposals will add jobs, retain home-grown businesses and revitalize buildings that are close to residents’ neighborhoods,” said Cuyahoga County Executive Armond Budish.
These four projects combined are expected to retain over 800 jobs and create over 700 new jobs within Cuyahoga County.
The Executive seeks $3 Million towards the retention and expansion of Dealer Tire and their future in the Victory Center Building in Midtown. After working with the county and other partners, Dealer Tire recently made a contingent commitment to make their new world headquarters at the Victory Center Building. Among those conditions is the county’s participation in a 650 space parking deck. The project will create approximately 100 jobs and retain 450 jobs as Dealer Tire had outgrown their current facility and was contemplating leaving Cuyahoga County.
“The County’s support is critical to redeveloping this historic building and its surrounding vacant lots in the heart of Midtown,” said Jon J. Pinney, Managing Partner of Kohrman Jackson & Krantz and counsel to owner and developer, Victory Midtown, LLC. “We are excited to build this public-private partnership and construct a new world headquarters for Dealer Tire in Cuyahoga County, creating new jobs and new private investment in an important development corridor.”said Jon J. Pinney, Managing Partner of Kohrman Jackson & Krantz and counsel to owner and developer, Victory Midtown, LLC.
“We are extremely grateful to have the County’s support on our pending move to Victory Center,” said Scott Mueller, CEO of Dealer Tire. “We’re excited to remain in the city because our company can trace its roots in Cleveland to the founding of my grandfather’s tire business in 1918. We anticipate adding approximately 100 new jobs in the next few years, and we hope that our growth is just one small part of the continued revitalization of Midtown, Cleveland and Cuyahoga County.”
Budish seeks a $2 Million loan towards the redevelopment of a project located on the NW, SW & SE corners of West 25th Street and Detroit Avenue. The project will convert several sites, a surface parking lot, located on the NW corner of W. 25th & Detroit, the existing historical building located on the SW corner of West 25th & Detroit and the parcel located on the SE corner of W 25th & Detroit into a mixed-use transportation oriented development including: commercial space, apartments, parking spaces and community park improvements for the betterment and connectivity of the neighborhood. This project will create 55 jobs in addition to 447 construction jobs during the construction phase and will redevelop a blighted underutilized area.
“The County has been great to work with,” said Peter Snavely, Jr., Vice President, The Snavely Group. “Securing this loan is very important to the project’s capital stack and is a great example of a public private partnership.”
The administration is also pursuing with Council a $1.5 Million loan to assist with the acquisition and renovation of the former Ohio Farmers food terminal located on East 55th Street. HEC Properties is a food warehouse and distribution company established in 1974. HEC has outgrown its current space on E. 40th Street and with this larger facility, will be able to continue its impressive growth. This project will create 50 jobs in addition to retaining 130 jobs.
“The County loan is a critical financing component that allows us to purchase the vacant Ohio Farmers facility at 2700 E. 55th,” said James Romano, Chief Financial Officer, Hillcrest Foods. “With the acquisition, we will retain all our existing employees as well as create new jobs over the next 3 years.”
The Executive is seeking a loan in the amount of $1,077,092 for Kanan Enterprises Inc., the holding company for King Nuts. The loan will assist with purchasing equipment to expand its operation at their manufacturing plant in Solon, Ohio. This project will create 30 jobs in addition to retaining 285 manufacturing jobs and will keep the business from relocating out of Cuyahoga County.
“This loan will provide 40% of the funds needed for new equipment which will be utilized for additional business, thus creating 30 new jobs in Cuyahoga County,” said Mike Kanan, Chairman, Kanan Enterprises Inc. “We could not have done this without the County’s assistance.”
Cuyahoga County’s Job Creation Fund is structured as a self-sustaining revolving loan fund that provides gap financing to job creating and job retaining projects in the county, while contributing to economic growth.