BEACHWOOD, Ohio — The city of Beachwood is expanding a community reinvestment incentive to open the door for new investments and redevelopment.

What You Need To Know

  • Beachwood has expanded it's Community Reinvestment Area to nearly all the commercial property in the city

  • The mayor hopes it will make the city more competitive to businesses and developers

  • Only one city council member opposed the measure 

 When it comes to community redevelopment and attracting business, Beachwood Mayor Martin Horwitz wants to stay competitive. 


"We are competing against other fine cities around northeast Ohio that have areas that need redevelopment that are also vibrant commercial areas,” Horwitz said.

The community reinvestment area or CRA has been used in Commerce Park since 2018.

Horwitz hopes that expanding the community reinvestment area to nearly all commercial land in the city, can provide tax incentives and encourage developers to come to Beachwood.

"We’re hoping to get developers that will come in and look at these buildings and say, ‘we can adapt these to newer uses,' but it will take several million dollars. So this tax incentive gives a property tax break to those developers.”

The CRA, which has been approved by the state, allows council to authorize a 10-year, 50% tax abatement for a commercial building as long as there’s been at least $250,000 spent. 

Industrial properties have the same guidelines, but spending has to be over $500,000.

"In some cases, it’s been the deciding point between us and another community. Because this is, in many circumstances, how much can you do for me in order to get me into your community?” Horwitz said.

While city council voted overwhelmingly in favor of the CRA, one councilman opposed it.

"I think we’re in a position that if we wanted to award any type of economic development, that we’re in a position where we can fund it,” Councilman Mike Burkons said.

Burkons argued at a city council meeting that the money is coming from the schools and the CRA should be funded through the city's general fund, which he says greatly exceeds the revenue of the school district.

"The city of Beachwood is very unique in the fact that our tax revenue for our city has tremendously outpaced our school district. In 2009, the city had $29 million in general fund revenue and last year it had $46 million. That compares to the schools, who in 2009 had $36.4 million and until last year was hovering around $32 million and last year when the levy mills kicked in, finally got above the level they were at in 2009,” Burkons said.

But Horwitz, who is a former school board president, said future developments would lead to more money for schools.

“These are developments that right now, the school district gets nothing from. For instance, if there is a building that’s worth $2 million and the developer comes in and proposes a project that’s worth $12 million if he’s coming here because we have this incentive, the school district is still going to get 50% of the tax.”