Monday, July 14, 2014

GE incentive deal among richest in Cincinnati history

Staff reporter- Cincinnati Business Courier
In an incentive deal that could be the richest in Cincinnati history, General Electric will receive 85 percent of the city income taxes its employees pay for the next 15 years in order to locate its U.S. global operations center and its $142 million annual payroll at the Banks downtown, according to those familiar with the agreement.

The Cincinnati City Council and the Hamilton County Commission are expected to be asked to vote on the deal at a special joint meeting at 10 a.m. Monday at Great American Ball Park. The total monetary value was unclear.

The deal calls for:
  • A 100 percent property tax abatement for developer Carter and Dawson Co. for the office building it will build to house the expected 1,800 jobs.
  • A 15-year lease on the 10-story, 340,000 square foot, $90 million, LEED-certified building. The lease will have five, five-year renewal options.
  • 1,500 discounted parking spaces at the Banks for GE employees.
GE must stay in the city for the next 18 years.

Other than major bragging rights, the deal is not expected to give the city an immediate, major tax boost. But the combination of the 18-year length of the agreement plus the renewal clause in the lease will keep the multinational giant downtown for at least 20 years. More here.

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