Moving Out:

Cleveland, OH -

The following is a statement from Flats East Development LLC regarding Eaton's announcement about its potential new World Headquarters:

We have been aware since Eaton announced plans to relocate that it has been considering several sites that would accommodate a campus-like setting. We knew it would be a challenge to offer the scale of a suburban greenfleld site, but to be supportive of this community, we gave it our best civic effort to provide an alternative that could keep the company downtown.

We learned today that Chagrin Highlands is Eaton's leading headquarters site. Of course we, like the rest of the community, would prefer if Eaton stayed in Cleveland and located in the Flats, but we respect the company very much and if they ultimately choose Beachwood, it has no bearing on the future success of the Flats East Bank development efforts

The Flats East Bank project is proceeding regardless of where Eaton ultimately lands. This project was announced before Eaton expressed any interest in the site, and it will proceed without them on the exact same course we have been pursuing for the last three years - to create a dynamic new mixed-use neighborhood along the riverfront. While it would be an understatement to say Eaton would have been a welcome addition to Flats East Bank, there are so many other unique components to this project that will flourish and reenergize downtown. No other component & the project, or its tenants, is tied to Eaton locating on site.

We expect to make some exciting retail tenant announcements in the near future, and we believe our new riverfront neighborhood will provide much opportunity for business growth. We've been overwhelmed with the demand for office space in the Flats East Bank development, including inquiries from companies from outside of Ohio.

We. like the rest of the community, would be disappointed if Eaton were to leave the City of Cleveland. Sandy Cutler is a loyal Clevelander and one of this city's top civic leaders. We trust that they are exhausting every effort to remain in the central business district We will work with public partners should there be any opportunity to mobilize and keep this company in downtown Cleveland.

Statement from Mayor Frank G. Jackson on Eaton Corporation:

I have discussed the potential relocation of Eaton with Sandy Cutler a number of times. My intention was to have Eaton remain in Cleveland and I am continuing to work on retaining and growing Cleveland's and the region's economies.

In working with Eaton, my Administration worked with multiple governmental entities to prepare an unprecedented retention offer including:

  • Tax increment financing worth approximately $20-25 million;
  • A port authority land sale of 9 acres of prime port property in advance of its long-term relocation plan; and,
  • A multi-million dollar relocation of RTA's waterfront rail line.

In addition, I designated my Chief of Regional Development to quarterback the coordination of these incentives as well as discussions with the state to provide additional tax credits and direct investments.

Today's announcement by Eaton is not what we wanted. While disappointed, I can respect the decision because it was based on Eaton's unique business needs in order to remain competitive in the global marketplace. Eaton will continue to be a catalyst for growth for this region. Eaton is growing and will need to expand their operations over time. And, while the Flats East Bank site is a prime site on the lakefront, its nine acres simply wasn't enough to meet the growing needs of Eaton in the future nor was being located next to a working port compatible with Eaton's facility needs.

Eaton looked at several options and at this time has indicated its preference to move to Chagrin Highlands. If Eaton's negotiations regarding this location are successful, Eaton will become the long sought after anchor Fortune 500 Company that will allow Chagrin Highlands to reach its potential as a world-class office campus. By going to Chagrin Highlands - Eaton would help keep Cleveland's economy strong:

  • The City of Cleveland would receive proceeds from the sale of this city-owned land;
  • The City of Cleveland would continue to receive revenue from Eaton. The city would receive 50% of the income taxes generated by Eaton (including construction-related income) in perpetuity by virtue of a joint economic development agreement between Cleveland and Beachwood that has been in place since 1989; and,
  • Eaton's presence as the anchor would accelerate the quality and pace of development in the remaining 400 acres at this prime northeast Ohio site. In the end - this is a decision that benefits the region, as the Cleveland area would retain the world headquarters of a multi-billion dollar company for the long term. At the same time, the $500+ million Flats East Bank project will be going forward as the Midwest's premier office-retail-residential development. With major support from the City of Cleveland approved this summer, the Flats East Bank project has doubled in size since it was originally proposed.