Mayfield Heights Creates Grant Program for Expanding Businesses

The City of Mayfield Heights is prepared to show just how appreciative it is of businesses who bring new jobs to the city.

Mayfield created a job retention and grant program this week, following a unanimous vote by city council. The city created guidelines that will reward eligible businesses an annual grant based on a percentage of the annual payroll withholding taxes generated by new jobs.

"It's just another tool in our economic development bag that we could use to keep companies and maybe give them some incentive to come here," Mayor Anthony DiCicco said.

To be eligible, companies already located in the city and expanding its facility or to a new one must create at least 150 new or full-time jobs or a minimum annual payroll of $15 million new to the city while maintaining its current payroll. The same conditions apply to businesses opening new locations in Mayfield Heights.

A maximum grant rate is 50 percent for five years, for companies with a new payroll of $31 million or more by the end of the third year. The low end is 30 percent for three years for companies with $15 million to $20 million in new payroll by the conclusion of year three.

The money would come from non-tax revenue sources. The city has also created a sliding scale of grant reductions for companies who meet most of but not all of their payroll projections. However, companies who meet less than 75 percent of projections will not receive a grant for that year.

Retail and food service businesses will not be eligible. Approved applicants will be subjected to annual reviews by the the mayor, city city council and directors of finance and development.

Applications cost $750 are available at the department of finance at City Hall.