Besides being Canon’s HQ, the 43,000-square-foot building will become a state-of-the-art imaging and research center, serving as the base for its medical product lines. The facility also will support research and development of imaging technologies.
Cleveland.com reported that the building’s first floor will house an imaging research center and outpatient clinic, while the second floor will house offices.
Crain’s previously reported in December 2022 that Canon Inc. was “gearing up” to make Cleveland the home of its U.S.-based medical imaging unit. Last year, Canon Medical opened the doors of its Canon Medical Academy USA in Mayfield Village, which is a high-tech health care training facility.
According to Canon’s website, the Mayfield Village location currently hosts the company’s HQ, but those employees will move to the new location once completed.
The facility will create 50 new full-time jobs with an average salary of $150,000 and an annual payroll of $7.5 million. The city has created a Job Creation Income Tax Credit Incentive Program in which it will provide a five-year, 50% payroll credit on the 2.5% income tax withheld by Canon.
According to a Department of Economic Development Summary for the legislative, the project is expected to generate $2.25 million in income tax, $1.533 million in real property tax, and an additional $469,000 in payroll taxes during the first five years.
The city also is amending the original tax abatement for the building, which will be transferred to Canon. The city will be extending the 60% tax abatement so it stays in effect for another nine years, which is estimated to be worth $2.3 million in tax credits, according to the legislation.
Canon Healthcare also will receive $300,000 in economic development grants, Cleveland.com reported.
Crain’s has reached out to Canon for additional comment.
