Boston Heights approves compensation agreement with Arhaus Furniture

by Tim Troglen | reporter Published:

Boston Heights -- Village Council cleared another hurdle Jan. 28 in the move to bring the headquarters of Homeworks Inc, also known as Arhaus Furniture, to Boston Heights from Walton Hills.

Council voted 5-1 to allow Boston Heights Mayor Bill Goncy to enter into a Community Reinvestment Area Agreement with Homeworks, a compensation agreement with the Hudson City Schools Board of Education, and a development agreement with Premier Commercial Realty LLC and Boston Hills Property Investment.

The agreement will award Arhaus an 85 percent property tax abatement for 15 years for maintaining 230 jobs in Ohio and adding another 163 jobs by 2019. The annual payroll in Boston Heights will increase from an estimated $16.2 million in 2015 to $26.2 million in 2019.

Hudson School District's Board of Education approved the tax abatement and CRA in December. Boston Heights is in the Hudson School District.

According to the agreement, Boston Heights will pay the school district $500,000 on or before June 1, 2015, for construction of the Malson Athletic Center or other permanent improvement projects for the school district. The village also will make annual payments to the school district yet to be finalized.

"The village is excited to move forward with Arhaus on this project which is scheduled to begin this spring," Goncy said Jan. 30.

Plans call for the $35 million headquarters to be built on 64.3 acres on Hines Hill Road with construction starting in April.

The 64.3 acres being developed by Premier Development Partners LLC is part of 160 plus acres on the northwest corner of state Route 8 and East Hines Hill Road intersection that was the former Boston Mills Country Club.

The project is expected to bring 230 jobs to Boston Heights when the facility is completed and Arhaus relocates from Walton Hills in Cuyahoga County. It will be the largest employer in Boston Heights, which has a population of nearly 1,300.

The plans showed a 779,000-square-foot building with 250,250 square feet of room for future expansion. About 120,000 square feet will be dedicated to office space with the remaining space for warehouse.

Homeworks Inc. was also approved Jan. 27 for a 60 percent, eight year Job Taxation Tax Credit from the Ohio Tax Credit Authority. The credit is estimated to be about $800,000 over the eight-year period, according to Arhaus officials.

Walton Hills Mayor Kevin Hurst said the village "made several attempts to offer Arhaus with a competitive advantage to stay in Walton Hills."

However, the final decision to move was due to space for expansion, according to Greg Teed, Arhaus' chief financial officer.

The new facility will be "substantially larger to not only accommodate the growth we've experienced recently in staff numbers and product assortment, but continued success and expansion that we are planning for the next 10 years," Teed said.

The location was one of four being considered, according to Teed. The Boston Heights site was picked due to the size and accessibility to the expressway and the park system.

"We are right there on the turnpike," Teed said. "We have so many trucks running east and west, because we are now in 46 states."

Email: ttroglen@recordpub.com

Phone: 330-541-9435

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