ANNOUNCEMENT 01 Apr 2011

In April 2011, a US state government announced .

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 2 neutral
  • 0 liberalising

SOURCE



Main data from Good Jobs First at http://www.goodjobsfirst.org/sites/default/files/docs/Megadeals_February2015.xlsx.
Janet H. Cho, "American Greetings to stay in Ohio, with state aid," Cleveland Plain Dealer, March 7, 2011; available online at: http://www.cleveland.com/business/index.ssf/2011/03/american_greetings_to_stay_in.html. The local subsidy package is taken from: Michelle Jarboe, "American Greetings plans to build new headquarters at Crocker Park Westlake," Cleveland Plain Dealer (May 21, 2011)


Inception date: 01 Apr 2011 | Removal date: open ended
Still in force

Tax or social insurance relief

In 2011 state and local governments in Ohio provided a $146.1 million subsidy package to prevent American Greetings (a producer of greeting cards) from relocating to Illinois. The company agreed to stay in Ohio (retaining 1,750 jobs) but relocated within the Cleveland area.
 
The state level package included up to $75 million ($5 million per year for 15 years) in refundable job retention tax credits; a $15 million low-interest state loan; a $2.5 million state grant to pay for construction costs; and a $1 million grant for infrastructure improvements.
 
The local community Westlake offered to create a 30-year Tax Increment Financing district that would divert 75 percent of property tax revenue growth to pay for about $41 million in infrastructure improvements at the American Greetings site. The city also offered the company tax credits worth about $11.6 million over 15 years. 
 
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.
 
As no official source could be obtained, this measure is coded "amber".

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 01 Apr 2011 | Removal date: open ended
Still in force

State loan

In 2011 state and local governments in Ohio provided a $146.1 million subsidy package to prevent American Greetings (a producer of greeting cards) from relocating to Illinois. The company agreed to stay in Ohio (retaining 1,750 jobs) but relocated within the Cleveland area.
 
The state level package included up to $75 million ($5 million per year for 15 years) in refundable job retention tax credits; a $15 million low-interest state loan; a $2.5 million state grant to pay for construction costs; and a $1 million grant for infrastructure improvements.
 
The local community Westlake offered to create a 30-year Tax Increment Financing district that would divert 75 percent of property tax revenue growth to pay for about $41 million in infrastructure improvements at the American Greetings site. The city also offered the company tax credits worth about $11.6 million over 15 years. 
 
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.
 
As no official source could be obtained, this measure is coded "amber".