Ohio Tax Credit Authority approves $1.1 million in job creation tax credits for two Cleveland projects

LabConnect and Cleveland Kitchen Co. will create nearly 250 jobs and millions in economic development 

October 31, 2023 — Cleveland — Yesterday, Tennessee-based laboratory services company LabConnect and local fermented foods producer Cleveland Kitchen Co. were approved for a combined $1.1 million in state job creation tax credits.  

LabConnect was approved for an eight-year credit estimated at $850,000 and expects to create 167 full-time positions, generating $8 million in new annual payroll.    

“LabConnect’s decision to choose Cleveland for its new operations demonstrates how the region’s thriving healthcare sector serves as a magnet to attract cutting-edge, global companies in this space,” said JobsOhio President and CEO J.P. Nauseef. “This investment from LabConnect further strengthens Ohio’s global leadership in advancing efficiencies for world-class pharmaceutical companies, research institutions and more while bringing 167 new jobs to Northeast Ohio.” 

The company, which provides laboratory and functional outsourcing for biopharmaceutical, pharmaceutical, and contract research organizations, is the latest to join the region’s rich healthcare and biomedical sector that includes 700 biomedical businesses and 270,000 biomedical and healthcare workers.  

In July, Cleveland Clinic Laboratories and LabConnect announced a strategic alliance to accelerate clinical trials and connect patients to new medicines for improved patient care. JobsOhio, ODOD, Team NEO, and the City of Cleveland also came together to support the competitive project.  

“This is a win for our workforce, for the advancement of discoveries that save lives, and for the continued growth of Cleveland’s thriving biomedical sector,” said Cleveland Mayor Justin M. Bibb. “I have every confidence that LabConnect will find support, success and growth here in Cleveland.” 

LabConnect’s Cleveland facility is expected to open near the Cleveland Clinic Main Campus in 2024 as part of the Cleveland Innovation District.

Cleveland Kitchen Co., a family-owned fermented foods company that started in 2014 under the moniker Cleveland Kraut, has grown into a national brand over the last few years and is ready to expand again.  

Cleveland Kitchen was approved for a seven-year tax credit with an estimated value of $300,000, adding 80 new positions to their current staff of 58 at an estimated $3.6 million in annual payroll. 

JobsOhio, ODOD, Team NEO, Project Management Consultants, the City of Cleveland, and Cuyahoga County collaborated with Cleveland Kitchen Co. to help bring the project to fruition. 

The City of Cleveland is also providing Cleveland Kitchen Co. with a 50 percent job creation tax credit on income tax withholding for new employees for a period of five years. Legislation for the local tax credit is currently being drafted.  

“Cleveland Kitchen is an incredible story of homegrown success and a true taste of Cleveland,” said Cleveland Chief of Integrated Development Jeff Epstein. “We are thrilled to play a small part in helping this brand grow.”