The East 70s section of Carnegie Avenue in Cleveland has seen a lot of investment in recent years and more is coming. Cleveland Kitchen expects to increase the number of jobs threefold at its Midtown Cleveland food hub as a result of $10 million tax credit financing from the Cleveland Development Advisors (Google). CLICK IMAGES TO ENLARGE THEM.
CDA to boost jobs 3x at food incubator
Cleveland Development Advisors (CDA) has allocated $10 million in federal New Markets Tax Credits to Cleveland Kitchen, originally Cleveland Kraut, to consolidate and expand its production facility in the Central Kitchen Food Hub. The hub is a food incubator and accelerator on Carnegie Avenue in Cleveland’s Midtown neighborhood.
The expansion resulting from this investment is intended to create 80 new permanent jobs and retain 45 positions in Cleveland. The company is utilizing the tax credit financing to offset the costs associated with relocating equipment, expanding production lines and insulating 30,000 square feet of space to use as cold storage.
Cleveland Kitchen is a homegrown manufacturer and national leader in fermented foods. It was started in 2014 by brothers — Mac and Drew Anderson — and their brother-in-law, Luke Visnic. All three are from suburban Shaker Heights. Their facility now measures 137,000 square feet.
Their focus began on creating fresh, flavorful and high-quality sauerkraut. Since then, Cleveland Kitchen has grown to include a range of fermented foods, including kimchi, salad dressings, pickles, and pickled red onions, and now distributes to more than 20,000 stores nationwide.
The working side of Cleveland Kitchen is seen from East 77th Street, north of Carnegie Avenue. Construction on the Foundry Lofts apartments is visible in the background at far right (Google).
“Cleveland Kitchen’s products and growth are an inspiration to many other entrepreneurs here in Cleveland,” CDA President and CEO Yvette Ittu said in a written statement. “Financing this expansion will not only help grow the business but it will also provide much needed quality jobs accessible to residents in our community.”
Cleveland Kitchen representatives said they believe their most recent product addition — pickles — is the company’s biggest opportunity for growth and profitability. The investment in and expansion of the Cleveland facility will enable the company to conduct 100 percent of pickle production, packing and storage on site, creating necessary efficiencies.
“We very much appreciate the support from Cleveland Development Advisors,” said Drew Anderson, CEO of Cleveland Kitchen. “This kind of financial assistance is essential to our growth plan and provides more jobs to Cleveland-area residents.”
Cleveland Kitchen’s expansion is just one part of the story of a fast-growing food cluster on the city’s East Side. Last winter, International Food Solutions won millions of dollars worth of public incentives to support an expansion of a food production plant at 2275 E. 55th St. at Central Avenue, adding 225 jobs.
A banner along Carnegie Avenue in Cleveland’s Midtown neighborhood marks the Cleveland Food Town hub at right where Cleveland Kitchen has been growing for a decade. More growth is on the way (Google).
Miceli Dairy is planning a $129 million, multi-phase expansion and add 250 jobs on Buckeye Road at Opportunity Corridor Boulevard. Just to the west on the boulevard, an affiliate of the Orlando Baking Co. last year completed construction of a $32 million, 156,775-square-foot cold-storage warehouse.
The East 70s section of Carnegie is seeing a lot of new investment of all kinds. Across the street from Cleveland Kitchen, Container Homes USA is developing the Midtown Food Truck Park. Immediately west, construction is wrapping up on the $15 million, 82-unit second phase of the Foundry Lofts which started at 7240 Euclid Ave.
In February, The Lancer Motel at 7707 Carnegie sold to The Residency LLC. Public records show it may be affiliated with B-Trice Home Health Agency LLC of Bedford Heights. And while 2024 E. 70th St. was cleared last winter by Sabor Group USA for its proposed The 70th, a 64-unit apartment building, no construction has started. The site is across the street from the Dealer Tire headquarters that opened in 2017.
CDA, an affiliate of the Greater Cleveland Partnership, was established in 1989 to support and serve developers, businesses, and community groups in Cleveland and Northeast Ohio. It receives an annual allocation of federal New Market Tax Credits for redistribution to transformative projects to help boost investment and jobs in a low-income community.
Site preparations were just getting underway in September 2022 for the second phase of the Foundry Lofts apartments, just west of Cleveland Kitchen on Carnegie Avenue. This East 70s section of Carnegie has seen lots of investment recently (Google).
This is the third tax credit Cleveland Kitchen has won in less than a year to support its planned expansion. This federal tax credit adds to state and local tax credits provided to the planned expansion.
In November 2023, Cleveland Kitchen was approved for a seven-year state tax credit with an estimated value of $300,000. JobsOhio, Ohio Department of Development, Team NEO, Project Management Consultants, the city of Cleveland, and Cuyahoga County collaborated with Cleveland Kitchen Co. to help bring the project to fruition.
In January, the city of Cleveland provide 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. The city tax credit was co-sponsored by City Council members Blaine Griffin of Ward 6 and Anthony Hairston of Ward 10.
“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.”
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