Kathy Taylor presents Beachwood economic development update, outlines incentives for 70-job manufacturer

Kathy Taylor, the city’s economic-development point person, told the Beachwood Economic Development Committee on July 15 that targeted marketing, a new digital inventory of available space and financial incentives are driving recent business activity and planned projects across the city.

Taylor said Beachwood is home to roughly 2,500 companies, about 25,000 employees and more than 100,000 daily visitors and described focused campaigns to attract manufacturing, retail and office users. "The intent is not to attract a storm of interest, but to really target key site opportunities," she said.

The presentation highlighted several recent and planned projects. Taylor said a targeted campaign for the north half of the City Service Garage (a 115,000-square-foot building) generated interest and that Millennium Corporation — a manufacturer specializing in automation — is expected to sign a 15-year lease there. The package before council includes an occupancy loan plus a job-creation tax credit Taylor described as "a 40% tax credit for a period of six years." She said the project is expected to bring $6,000,000 in initial payroll, an additional $3,000,000 over six years and about 70 jobs, with roughly $2,000,000 in building improvements still needed.

Taylor also reviewed local projects that have already moved forward: Antique at Italian Kitchen (an expansion that added about 30 employees), a new Skoda Dentistry medical building under construction (about 5,000 sq. ft., an anticipated $3,000,000 project cost and $225,000 in additional annual payroll) and Master Brands’ 15,000 sq. ft. headquarters build-out that added about 20 jobs and $2,000,000 in tenant improvements.

The city’s new One Stop Resource Center, Taylor said, has served nine companies this year and one new company is currently pursuing space after center assistance. She added that seven interns are supporting her office and chamber outreach work this summer.

Taylor described new program tools created this year, including a Community Improvement Corporation (CIC) with a revolving-loan committee and an innovation committee. She outlined a commercial office revitalization forgivable-loan program of up to $100,000 per project over three years intended to upgrade building envelope and mechanical systems to encourage new income-tax generation.

Council members pressed Taylor on risks and measurement. Council member Miss Taylor requested comparative rankings against neighboring cities (Mayfield, Solon and Independence) and asked for vacancy and absorption data; Taylor said she would provide those numbers and recent exit-survey findings. One council member asked whether forgivable loans create moral hazard, saying, "All I need to do is collect the rents... I can use that to take another vacation or buy another beach house." Taylor responded that owners must contribute matching funds or percentages and that forgiveness is tied to owner investment and project scoring.

Members also discussed the future of the mall and ongoing talks with Brookfield Properties about Beechwood Place; Taylor said the city is meeting regularly with Brookfield and expects to return to council with potential TIF (tax increment financing) agreement considerations.

The committee did not take a final vote on incentive agreements at the meeting; Chair moved to adjourn and Miss Jones called the roll to close the session. Taylor said staff will follow up with requested comparative data, vacancy figures and other details for council consideration.

Why it matters: The update bundles direct investment projects, new loan and incentive tools, and regional marketing intended to both retain existing tenants and attract new employers. Council members signaled they want more comparative data and explicit guardrails on forgivable loans before approving substantial incentive packages.