The company, now based in Downtown Cleveland, had beenconsidering another site in the city, in the planned$500-million-plus, mixed-use project called the Flats East Bank.However, the company two months ago announced its rejection of thatsite and the selection of the Chagrin location in the suburbs, offInterstate 271, as the preferred property.

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A total of $7 million was awarded to 10 companies to help createand retain jobs, said Lt. Gov. Lee Fisher. "Ohio's portfolio ofinnovative companies will expand as a result of their ability toresearch, develop and commercialize products and processes," Fishersaid in a statement.

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For the Eaton project, the state has also offered a $17 million,75% job creation tax credit for 15 years and a state income taxcredit of up to $30 million for 15 years. The Cleveland-CuyahogaCounty Port Authority, which would purchase the property for thecompany and lease the space, has been offered a direct loan for$15.5 million, and the Ohio Enterprise Bond Fund has promised aloan for $8.8 million, says a spokesman for the Ohio Department ofDevelopment.

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The state spokesman tells GlobeSt.com that the main concern waskeeping the large automotive supplier in the state, regardless ofthe location. "We're very happy to have a company like Eaton.There's the significant presence of the company, the namerecognition, the technology development that comes with thefirm…they're a worldwide company. Economic development begins withretention and job creation, and keeping them in Ohio and CuyahogaCounty was good enough for us."

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Eaton has not said when it would start construction. In a recentstatement, Alexander Cutler, chairman and CEO, said the companywould not move to a new location before mid-year 2011. "We had notbeen under any particular pressure to relocate because our leasehere at Eaton Center runs for the next several years and wasrenewable," said Cutler in the statement. "We are working with thepotential developer, the Richard E. Jacobs Group, to determine ifwe can reach a mutually advantageous agreement."

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Though Cleveland won't keep the firm in its limits, it willstill benefit, as it owns the Beachwood property. The specificlocation is north of Harvard Road and west of Richmond Road.Cleveland Mayor Frank Jackson, in a statement, said the company'smove will still provide Cleveland with revenue, in a deal thatgives the city 50% of the income taxes generated by Eaton, as wellas the proceeds from the sale of the property.

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Flats East Bank LLC, a venture of Fairmont Properties and theWolstein Group (led by Developers Diversified Realty CEO and boardchairman Scott Wolstein), said in a statement that its project willstill move forward without Eaton. "This project was announcedbefore Eaton expressed any interest in the site, and it willproceed without them on the exact course we have been pursuing forthe last three years – to create a dynamic new mixed-useneighborhood along the riverfront. We expect to make some excitingretail tenant announcements in the near future," said companyofficials in the statement. The officials also said they have beenoverwhelmed by the demand for office space, including fromcompanies from outside Ohio, but no specific firms werementioned.

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Eaton, with 82,000 employees around the globe, has been on thedevelopment move lately. It also recently opened an expandedElectrical Research and Development Center in Suzhou, JiangsuProvince, China; and purchased a new Asia Pacific headquartersbuilding in the International Business Park of Changning District,Shanghai, China.

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