CLEVELAND, Ohio – In a notable win for Cleveland’s working families, the city’s $108 million Project Scarlet redevelopment has signed the first Community Benefits Agreement that obligates the developer to pay the city’s fair employment wage of $16.85 per hour for select positions. The agreement, announced by Tyson Mitchell, director of the city’s Office of Equal Opportunity, reflects the administration’s commitment to ensuring that public‑funded projects lift residents out of poverty.
City policy drives higher wages
Cleveland’s fair employment wage, often called the living wage, is set at $16.85 an hour—well above Ohio’s $11 minimum wage and adjusted each year for inflation. While the wage is optional for private employers, any developer receiving city subsidies must honor it under a legally binding Community Benefits Agreement (CBA).
Project Scarlet leads the way
Project Scarlet will transform the historic Rose Building at 2060 E. 9th St. and the Sloan Building at 823 Prospect Ave. into a luxury hotel and residential units, with completion slated for 2028. The developer, Green Harvest Capital, pledged in writing that workers in housekeeping, front‑desk, maintenance and food‑service roles will receive the fair employment wage for the first two years of operation. The agreement does not extend to tipped positions such as servers and bartenders.
Gregg P. Cramer, senior vice president of government affairs and business development for Green Harvest Capital, said, “We believe work should be rewarded and are committed to expanding the circle of opportunity for the residents of the City of Cleveland.” He added that paying a fair wage is essential to attracting and retaining skilled staff, which in turn supports the project’s long‑term success.
City support and oversight
The project is receiving at least $13.3 million in city financial assistance, including a loan, tax‑increment financing and future tax abatements. Under the CBA, the city will monitor compliance and ensure that the wage commitment is honored. Mitchell emphasized that developers who accept public funds have a responsibility to pay workers at least a living wage, noting that low‑wage jobs disproportionately affect Black women and other historically marginalized residents.
Council Member Richard Starr, whose ward includes many low‑income neighborhoods, championed the wage provision, stating that residents deserve “real opportunities, meaningful employment, fair employment wages and pathways to financial stability.”
Broader impact on Cleveland’s economy
Since 2023, Cleveland has executed 52 community‑benefits agreements, each designed to create quality jobs, support local small businesses, and provide apprenticeship or mentorship opportunities. The Project Scarlet agreement also requires outreach to residents of the nearby Winton Manor senior‑housing complex.
Local labor advocates, such as Yanela Sims of SEIU Local 1, praised the agreement as a step toward setting higher standards for newly created jobs. While the fair employment wage of $16.85 is below the MIT Living Wage calculator’s estimate of $21.14 for a single adult with no children, it still exceeds the average hourly pay for many service positions in Cleveland, according to job‑board data.
Looking ahead
Project Scarlet’s developers have not disclosed the exact number of positions covered by the wage provision, but city officials expect the agreement to benefit a meaningful share of the construction and hotel workforce. The city will continue to track compliance and report on the outcomes as the project moves toward its 2028 opening.
By tying public investment to a fair employment wage, Cleveland’s administration demonstrates a practical approach to breaking the cycle of poverty and strengthening the local economy—an effort that aligns with the city’s broader mission to uplift its families and uphold the dignity of work.
Original reporting: Signal Cleveland — read the source article.
