BEACHWOOD, Ohio -- City Council, on Monday night, approved legislation that will result in Penske Logistics adding jobs that will bring $2.1 million in new payroll to Beachwood.
City Council heard in a committee meeting in June a presentation from Penske leadership about the new jobs.
"This project is projected to bring 40 new jobs with $2.1 million in additional payroll," said Economic Development Director Jim Doutt at Monday's council meeting. "This speaks to new job creation and retention."
Penske Logistics, 3000 Auburn Drive at Two Chagrin Highlands, has been located in Beachwood for several years and, in conjunction with plans to expand, asked the city for incentives.
Doutt said the three-year agreement calls for Penske Logistics, which provides transportation services management for other companies, to hire 20 people in the first year of the agreement, 2017. In 2018, Penske has agreed to hire 10 employees, and then 10 more in 2019.
If Penske meets its commitments, the city will return to the company, in each year of the agreement, 30 percent of the new income tax money generated by the new, full-time hires.
The city has an income tax rate of 1 percent, meaning the $2.1 million would generate about $21,000 in income tax money.
When the 40 jobs are added, the company will employ about 348 people in Beachwood.
"Thank you for staying with us and growing with us," Mayor Merle Gorden told two Penske representatives who attended the council meeting.
In other Beachwood City Council news from Monday:
-- Council passed legislation by a 5-0 vote (Councilmen Brian Linick and Alec Isaacson were not present), that will allow the city to enter into a contract with the Geauga County Board of Commissioners so that Beachwood police prisoners can be kept in the 182-bed Geauga County jail in Chardon.
Beachwood police chief Keith Winebrenner said the Geauga County jail would be used as a backup space for his department's prisoners.
"We have a 12-day facility," Winebrenner said. "We can't hold prisoners who can't post bond for more than 12 days, and we need someplace to put them."
Winebrenner said Beachwood currently uses Solon's jail for the same purpose, and will continue to do so, with the Geauga County jail serving as a second alternative. The chief noted that the 13-cell Beachwood jail also holds prisoners from Orange and Pepper Pike.
Beachwood will pay the Geauga County jail, as it does Solon, $75 per day, per prisoner.
-- Monday's meeting included a presentation by Doutt outlining for council the work that has been done to welcome Republican National Convention attendees to Beachwood.
Doutt said Beachwood city employees and Beachwood Convention and Visitors Bureau members volunteered their time to contribute towards the effort of preparing packages for convention visitors. In all, 1,700 bags filled with information about the city and its 25 restaurants were prepared. In addition, volunteers, some from the Maltz Museum of Jewish Heritage, greeted attendees at Beachwood's eight hotels.
The hotels are filled during the convention with about 900 delegates, out-of-town media and other attendees.
Further, the city was granted Ohio Department of Transportation approval to add four steel pole signs showing the city's name at I-271 entrance and exit ramps. Flowers were planted around the base of the signs.
Beachwood flags were also placed on utility poles.
"You have volunteered to put Beachwood on the map," Gorden told those who helped, "and you have succeeded."
Gorden added, "This community does it one way, and it's first class all the way."
-- Building Commissioner William Griswold told council that at the Architectural Review Board meeting held earlier on Monday, the board approved the construction of six new homes in the city. The homes will sell for between $500,000 and $1.1 million.
The homes will be built at 2465 and 2530 Buckhurst Drive; 26605 North Woodland Road; 2451 Blossom Lane; 2485 Deborah Drive (where a home will be demolished and a new one built in its place); and 24626 Tunbridge Lane.