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Cincinnati will lose $1.4 million in annual tax revenue when Macy's closes downtown HQ

Region will lose "roughly 40" jobs in restructuring
Is Macy's in serious trouble?
Posted at 10:34 AM, Feb 14, 2020
and last updated 2020-02-14 10:58:01-05

CINCINNATI — The city of Cincinnati expects to lose $1.4 million in annual tax revenue when Macy’s relocates headquarters jobs from downtown to Springdale this year.

But the city might also recover $151,081 in tax credits that Macy’s received as part of a 2009 incentive deal.

Those are among the revelations in a memo to council by Cincinnati City Manager Patrick Duhaney.

Macy’s spokeswoman Andrea Schwartz said the company is “working cooperatively” with the city to resolve the issue.

Macy’s announced the closure Feb. 5 as part of a national restructuring that will eliminate 2,000 corporate jobs and reduce annual expenses by $1.5 billion. In an email to WCPO Thursday, Schwartz said “roughly 40” positions will be eliminated in Cincinnati, where its total employment now stands at 3,600.

The company is “actively seeking Cincinnati-based, qualified candidates to fill open roles in human resources, finance, legal and real estate,” she added. “Progress Place (in Springdale) will be home to more than 950 Macy’s colleagues.”

Macy’s signed a Job Creation Tax Credit Agreement with the city in 2009 to encourage the creation of 125 new jobs at 7 West Seventh Street and the retention of 656 existing jobs, Duhaney’s memo states. Macy’s could have received $587,598 from the arrangement but it didn’t generate enough local profits to take full advantage. Eligibility for the tax credits expired in 2015, but Macy’s agreed to maintain its expanded employment through 2020.

In 2018, Macy’s had 584 downtown employees and told the city it “would not be in compliance with its commitment through the remainder of the retention period,” Duhaney’s memo states. So, the city sent a notice of default to the company in November.