Mayfield Village Considers Grant for SKF

SKF, a company based in Sweden with 38 employees at facilities in Bedford and Mentor, is looking to consolidate local operations in , said Ted Esborn, village development director.

But lease negotiations hit a snag over the amount of work that is needed to the building at 600 Beta Drive, which was home to Philips and has been vacant since 2005.

"They contacted me because they are at a loggerhead over elements of the building that need more extensive repair than expected," Esborn told Village Council members at a caucus meeting Monday.

Village officials may solve that problem with a $50,000 grant, as was done through a partnership with Panzica Investments with QED in 2005.

"There were options that we looked at. One we've used a lot in the past was tax increment financing (used for infrastructure improvements), but that doesn't really address the need of the parties right now. There's also abatement – that has never really been an option that the village has preferred," Esborn said.

The landlord plans to invest $1.9 million in the building and SKF will add another $2.6 million, with part of the expense going toward making the building Leadership in Energy and Environmental Design compliant. LEED certification is given to buildings with "green" designs to save energy, water and other natural resources.

Councilman William Marquardt questioned why a company that is already investing $2.6 million in a property would need $50,000 from the village to enter into the lease.

Esborn said he asked that question and was told that project plans and costs had been submitted and it was difficult to ask for extra funds to close the gap when it was found that more work needed to be done than expected.

"They almost have an obligation to start looking at other sites," Esborn said.

Village officials have been working on the project with SKF since last October and were informed three weeks ago that village assistance might be needed.

Esborn said that as negotiations have progressed, village officials realized how much deterioration has taken place and the importance of having renovations done before the building becomes obsolete.