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Draft outlines anti-compete policy that FitzGerald hopes to have in place by September
Cuyahoga County Executive Ed FitzGerald has touted the need for communities and Cuyahoga County government to work together for economic growth.
Toward that end, he promised to create a non-compete policy between communities that participate in his Fourth Frontier Program, an economic plan he proposed that would make use of a $100 million development fund to promote growth.
"Any local government in Cuyahoga County can participate in the Fourth Frontier program, as long as they agree to not provide tax incentives or other public resources to lure companies away from other cities also participating in the Fourth Frontier program," FitzGerald said in a position paper he posted online during the campaign.
FitzGerald presented a draft of an "anti-poaching protocol” to representatives from Cleveland and about 20 suburbs in June and said he hopes by September to have them sign on for the next three years.
Mayors and city managers who sign the agreement would be allowed to offer financial assistance to companies looking to move from another community in the county, but they would be required to notify the neighbor so that community could woo the business.
FitzGerald's financial carrot: cities that sign the deal would be favored for a slice of the economic development fund.
The proposal calls for a one-stop website listing participating cities' business resources and databases of available properties. It bans cities from initiating contact to encourage businesses to relocate. And it requires cities to tell businesses considering a move that county assistance may hinge on the consent of the affected city.
Long a proponent of regional collaboration, FitzGerald denounced competition among suburbs to land the American Greetings corporate headquarters this spring, when the company announced it would leave Brooklyn.
The move -- and the realization that Brooklyn stands to lose about $3 million a year in income taxes when the card company moves to Westlake -- has fueled talk about poaching.
The draft agreement suggests tax-sharing as a way to "mitigate the adverse impact of a relocation." FitzGerald said he decided not to require a community that gains a business to share a portion of the payroll taxes with the losing community, though he favors the idea.
FitzGerald"s proposal is a start toward fulfilling this pledge. On the Fitz-O-Meter, we move the dial to In The Works.
Our Sources
Ed FitzGerald, "The FitzGerald Jobs Agenda: The Fourth Frontier & Strategic Development Principles," campaign policy statement, Aug. 17, 2010
The Plain Dealer, "Cuyahoga County Executive Ed FitzGerald proposes business no-poaching agreement for communities,” June 9, 2011
Ed FitzGerald, "Cuyahoga County anti-poaching protocol,” draft agreement