Council revokes tax break after business fails to meet payroll promises

by Melissa Martin

Sept. 17 city council meeting

Brecksville City Council voted unanimously to amend and restate an economic incentive and job preservation agreement with Physicians Ambulance Service Inc. that was enacted to create new jobs in the city.

According to Monica Bartkiewicz, director of planning and community development, the agreement was approved by council in October 2022, prior to the company’s move to its current location at 9200 Noble Park Drive.

At the time of the agreement, Bartkiewicz said Physicians Ambulance Service had 285 employees with plans to increase that number by 35 and maintain an annual payroll of $8.75 million. In exchange, the city offered company owner Jason Hess $180,000 in down-payment assistance to purchase a building and a 30% income tax reimbursement for years four through seven of the agreement, if the company’s annual payroll exceeded $8.75 million for its first 10 years in the city.

“The actual payroll reported for the first agreement here was just over $4.9 million, which is short of their minimum level of operation required to receive the incentive,” she said.

Bartkieiwicz said she and other city officials recently met with representatives from Physicians Ambulance to discuss their noncompliance with the agreement. She said the city elected to amend the incentive agreement, which allows Physicians Ambulance Service to keep the $180,000 in down-payment assistance but removes the 30% income tax deduction from the agreement for years four through seven.

“Despite the differences in the original payroll reporting they had provided, they remain a viable business in our community,” she said.

Council member Beth Savage said she appreciated the administration’s efforts to enforce compliance of the agreement and council President Dominic Caruso agreed.

“This is a very fair compromise for a successful company that’s continuing to grow in the community, maybe not as robustly as they originally thought but still significant,” Caruso said. “I’d like to keep them here.”

Should Physicians Ambulance Service continue to fall short of the projected employee and payroll numbers contained in the agreement, the company will be required to pay back the $180,000 provided by the city, Bartkiewicz said.

Police gear purchases

Council approved the purchase of nine sets of body armor, including ballistic panels and shock plates, as well as outer carriers, for the police department at a cost of $15,792.

“Body armor is warrantied for five years and at the end of those five years, we replace it for the officers to keep them safe and make sure that it functions well and does its job,” police Chief Stan Korinek said, noting that the cost of the equipment will be reimbursed through federal grant funding.

Council approved the purchase of additional equipment needed to facilitate the department’s new body-worn camera policy. He said the original cameras the department purchased have been discontinued, and the manufacturer warranty expires in two years.

To replace those cameras, Korinek said the department will purchase nine upgraded cameras, 11 cameras of a different model, along with remote and storage of video footage, transfer stations, five desktop charges, warrantees, licenses, setup fees and more at a cost of $68,605.

Council authorized $36,165 to buy new routers and antennas used to operate mobile data terminals in police vehicles.

Korinek said officers have been reporting coverage issues north of Wallings Road and in the far corners of Riverview and Fizwater roads.

“We also have coverage issues down in the valley – on Riverview and Snowville Road – which is a common thing just because it’s so low,” he told council. “These things have been getting worse, and it could be a potential safety issue if our officers aren’t getting the information they need when they are making a traffic stop.”

Korinek said the department tested a router made by a new manufacturer, noting the new equipment “changed everything.”

“Our officers were able to connect throughout the city and in places that we weren’t connecting before,” Korinek said. “The returns were faster and both the MDTs and the programs work better.”

Funding generated by the clerk of courts computer fund, which can be used to purchase equipment that assists the court, will be used to pay for the equipment, Korinek said.

Council also approved:

• The purchase of 65 trees for $11,551, as part of the city’s annual fall tree-planting program. Some of the trees will replace trees that have been removed this year, and others will be planted around the community center.
• The hiring of full-time firefighter/paramedic Kyle B. Bauman, who also works part-time for the Hinckley Township Fire Department. He is the son of Brecksville police Sgt. Mike Bauman. ∞