Mayor Announces Major Deal With Cincinnati Bell
June 9, 2014
Mayor Cranley announces major deal with Cincinnati Bell
Company will move 600 jobs to downtown over next three years
Cincinnati Mayor John Cranley announced Monday a proposed deal with Cincinnati Bell Inc. (CBB) to expand the company's presence downtown and remain there for the foreseeable future.
Cincinnati Bell has signed a letter of intent to lease approximately 220,000 square feet of office space in the Atrium II building at 221 E. Fourth St. in the Central Business District.
Under the deal, Cincinnati Bell will maintain its Seventh Street operations center downtown. The company has about 3,000 employees in Greater Cincinnati, with an estimated 652 workers currently based downtown.
Also, Cincinnati Bell will agree to move 600 employees who currently work outside the City to the Atrium II location during the next 12 to 18 months.
"We are excited to partner with Cincinnati Bell to bring jobs to Cincinnati," said Mayor Cranley. "The addition of 600 Cincinnati Bell jobs will be a boon for our City. There has been tremendous growth downtown recently, and this will help continue the momentum."
The City is offering a Property Investment Reimbursement (PIR) incentive to Cincinnati Bell. The PIR is a cash payment from the City designed to offset a portion of the company’s net profits tax obligation.
- The PIR would be equal to 80 percent of the earnings tax generated from the 600 net, new employees, relocated or hired to the City within the first three years on the first $50 million of new payroll generated.
- The City would provide payments for a period of 10 years. The maximum payout for this PIR will be $840,000 a year for each of the 10 years -- for a maximum total of $8.4 million.
- Additionally, the City will extend the PIR offer so it can be applied to up to an additional $20 million of new payroll (beyond the initial $50 million of new payroll).
- The extra PIR would be equal to 50 percent of the earnings tax generated from net, new employees relocated or hired to the City within the first three years. The City would provide payments for a period of 10 years. The maximum payout for this PIR will be $210,000 a year for each of the 10 years – for a maximum total of $2.1 million.
The combined PIR as packaged above has a total value of up to $10.5 million.
To qualify for the incentives, Cincinnati Bell will need to commit to retain its current employment count of 652 jobs and bring 600 net, new jobs into the City within the next three years.
The company will be required to maintain these jobs within the City of Cincinnati for an additional five years beyond the term of the incentive, for a total of 15 years.
City Council will now review the deal and decide whether to approve it.
Cincinnati Bell had been exploring a number of locations throughout Greater Cincinnati and Northern Kentucky, before selecting downtown.
"We are first and foremost a Cincinnati company," said Ted Torbeck, president and CEO of Cincinnati Bell. "We’re proud of our 140-year Cincinnati heritage and even prouder that we are able to centralize more of our employees in one location while remaining in the City. This move reinforces our commitment to our hometown and enables us to play an even bigger role in making Cincinnati a more vibrant place to live, work and play."
For more information, contact Kevin Osborne, Director of Communications, at 513-516-1966.