Get AI Briefings, Transcripts & Alerts on Local & National Government Meetings — Forever.
Cleveland approves Chapter 380 sales‑tax reimbursement to bring 7 Brew drive‑through
Loading...
Summary
Council approved a Chapter 380 tax‑reimbursement agreement to support construction of a 7 Brew drive‑through on a small city parcel; the deal reimburses up to 65% of sales tax receipts for up to 10 years or until $275,000 is reached. Council cited job creation and activity while members asked about effects on local mom‑and‑pop coffee shops. Vote: 3–0.
The council voted 3–0 to approve a Chapter 380 economic‑development agreement that would reimburse the developer up to 65% of sales‑tax receipts for a maximum of $275,000 or no longer than 10 years to support construction of a 7 Brew drive‑through on a 0.56‑acre parcel along South Washington.
Emilio Liberio summarized the proposal and said the EDC board had recommended approval. Jack Berger, a BCS Capital partner, said the developer has owned the parcel for several years and is seeking to place a 7 Brew quick‑service drive‑through that the developers expect to generate strong sales volume. Berger said the tenant’s average‑unit volume benchmarks are about $2.4 million a year, and that the company hires many local high‑school workers. "We're bringing an amenity to the city. We're creating jobs, and we're creating sales tax," Berger said.
Council members asked for clarification on projections, property‑tax impacts and local competition. Councilmember Rachel Hall pressed whether local coffee shops could be harmed; developer representatives said impact varies by market and that 7 Brew locations skew toward drive‑through customers and nontraditional hours. Councilmembers also noted the small size and constrained footprint of the subject parcel and the city's limited alternative uses for that lot.
The motion to approve the Chapter 380 agreement (motion by Councilman Julius Buckley, second by Councilmember Rachel Hall) passed 3–0. Council and staff emphasized the agreement is performance‑based: if the business does not generate sales tax, no reimbursement is paid.
Why it matters: The incentive is designed to convert an underused small parcel into taxable economic activity and to create local jobs, but councilmembers asked staff to weigh the potential competitive effects on existing local coffee businesses.
What’s next: Staff will finalize the Chapter 380 agreement and the developer plans to start construction in early March; staff will file required 3‑80 documentation to the state comptroller's database as required by law.
