BEACHWOOD, Ohio –- Two Beachwood investment firms have called off plans to buy new office space, leaving a $2 million Cuyahoga County loan and a promise of city income tax breaks on the bargaining table.

The county in December approved the loan for The Ancora Group and Fairway Sports Management LLC to buy a 40,000-square-foot building at 24755 Highpoint Drive.

But Beachwood officials announced the deal was off during Monday night's City Council meeting. Company representatives could not be reached for comment, but they released a written statement saying, "For a variety of reasons, we are not moving forward with the proposed project." And they have found a location outside the city.

City Council voted to remove emergency legislation from the agenda that would have given the companies up to $500,000 in income tax breaks over five years and a $150,000 grant to help pay for improvements to the building located in the Commerce Park area.

The legislation introduced in March angered some cleveland.com readers, who commented on a story last month, saying the city shouldn't offer economic incentives to the companies.



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Another reader, said she didn't believe the deal would happen.

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Ancora has $2.7 billion in assets, according to the company's website, and it is unclear how much the city will lose in income tax revenue. The move would've allowed the companies to retain 48 current workers and create 12 new jobs, according to county documents.

Ancora has been in the city since 2003 and FSM since 2007.

Economic Development Jim Doutt said the city is disappointed the two businesses – that have offices at 2000 Auburn Drive – will not be staying and expanding in Beachwood.

"The city negotiated in good faith to accommodate the companies and their growth plans," Doutt said. "In the end, the companies selected a different location."

Read a statement from company representative Highpoint LLC below.