Cuyahoga County Executive Ed FitzGerald is asking the county's mayors to refrain from soliciting businesses to move from one community within the county to another.
Crain's Cleveland Business (subscription required) is reporting that Mr. FitzGerald is sending a document to the mayors of the 59 municipalities in the county called the “Cuyahoga County Business Attraction and Anti-Poaching Protocol.” The policy is being created to discourage communities from showering employers with tax abatements or tax credits for moves that do not add to the region's economic output. The agreement also lays out procedures for signatories to follow when they respond to requests from companies about possible relocations.
Under the protocol, when a company (or its site consultant) with 25 or more employees in the county, contacts a key public official in a new community about a possible move, that community is expected to notify the company's “home” community of the contact when the company has not already done so. No incentives will be publicly offered until that notification has been made. The community that could be losing the business has an opportunity to make a counterproposal.
By signing the pact, communities would also be agreeing not to pursue businesses that have not expressed an interest in relocating. The county executive hopes all the county's 59 mayors will sign the voluntary agreement. While voluntary, Mr. FitzGerald said cities that abide by the policy will have a better chance of receiving county financial help for economic development projects. This statement is significant as Mr. FitzGerald works to create a $100 million economic development fund that would boost the county's ability to help attract and keep businesses.
Mr. FitzGerald, who has been a strong advocate of regional collaboration, began his conversations with mayors in June. Although yesterday's agreement was not as robust as Mr. FitzGerald originally envisioned, he ultimately presented a proposal that could receive majority acceptance from the mayoral contingency in an effort to create a status quo throughout the county.
