Subsidy Tracker Individual Entry

Company: 
American Greetings
Parent Company: 
American Greetings
Subsidy Source: 
multiple
Location: 
Ohio
City: 
Westlake
County: 
Cuyahoga
Project Description: 

corporate headquarters retention and regional relocation

Year: 
2011
Major Industry of Parent: 
miscellaneous manufacturing
Specific Industry of Parent: 
greeting cards
Subsidy Value: 
$146,100,000
Program Name: 
multiple
Awarding Agency: 
multiple
Type of Subsidy: 
MEGADEAL
Number of Jobs or Training Slots: 
1,750
Source of Data: 

The value and the breakdown of the state-level subsidy package are taken from: 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_t.... 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.

Notes: 

The $146.1 million subsidy package was assembled to prevent American Greetings 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. 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. After the deal was made, American Greetings laid off some workers and in November 2012 announced a delay in the construction of the new headquarters. The main Subsidy Tracker data includes the $75 million Job Retention Tax Credit entry and two entries totaling $15 million for the Facilities Establishment Fund.

Source Notes: 
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