GENERAL QUESTIONS

Driven by our need to serve our customers at the highest level, a new R&D center and new global headquarters provide the opportunity to improve collaboration, productivity and efficiency, enhance technology and innovation and support recruitment and retention. We currently operate out of a 90-year-old HQ building. In addition to being nearly out of space, the building would require major, significant capital investments to meet future needs.

Due to current building codes, safety requirements, transportation needs and other Company requirements, the Company could not find a suitable location to co-locate the R&D center and the global headquarters downtown. The Brecksville site will provide a large R&D footprint with flexibility for future expansion and will be only a 20-minute drive to our new global headquarters building. Collaboration will not be an issue given today’s communication technology.

As part of the exploratory process, Sherwin-Williams conducted a national search and considered sites in several other states. We aren’t providing specifics out of respect for the process and those other states. After a detailed analysis, the proposals from the State of Ohio, JobsOhio, Cuyahoga County, the City of Cleveland and the City of Brecksville were proven to be competitive and attractive.

Our plans provide Sherwin-Williams the best, most cost-effective long-term solution to enhance our ability to serve customers and attract and retain top talent. We are remaining in Cleveland and Northeast Ohio in order to build on our 156-year legacy as a one of the region’s top employers and drivers of economic activity.

 

Our new headquarters symbolizes an investment in the future of our Company and the future of Cleveland. Our new Research & Development will be the global innovation epicenter for our architectural and many of our industrial coatings and will be crucial for the growth of our Company around the world.

While we took a brief pause in 2020 with the onset of the COVID-19 pandemic, Sherwin-Williams and multiple suppliers are fully engaged and making considerable progress. The Company remains fully committed to building a new global headquarters and a new global R&D center designed to foster our strong culture of community, collaboration, innovation, employee development and engagement.

We worked with several state and local partners on this project, including the State of Ohio, JobsOhio, Cuyahoga County, the Cleveland-Cuyahoga County Port Authority, the City of Cleveland and the City of Brecksville. We appreciate the support from these partners, and we have approvals for all of the economic development packages. Sherwin-Williams plans to fully meet or exceed the commitments it made to secure these incentives.

The total economic development package reflects the retention of approximately 4,000 jobs, the addition of a minimum of 400 new jobs over time, and the overall long-term economic impact of the projects on the region. The final value of the incentives depends on multiple variables. The incentives support leveling the playing field for Northeast Ohio compared to states where the property tax rates are roughly half of the rates in Northeast Ohio.

Yes, in a very positive way. The City of Cleveland estimates that when the buildings are completed and occupied, the Cleveland Metropolitan School District schools will receive approximately $4 million in additional annual revenue from Sherwin-Williams.

In Brecksville, the planned Sherwin-Williams R&D center would be a catalyst that should attract additional office, residential, hospitality and retail to a new mixed development project. The project is expected to drive ongoing economic activity for the City of Brecksville and generate incremental tax revenues for the city and the schools.

Our plans build on our 156-year legacy as a one of the region’s top employers and drivers of economic activity. Combined, the two facilities would house approximately 4,000 employees with room to accommodate future growth. Sherwin-Williams estimates adding a minimum of 400 jobs to these facilities over time, an increase of 11 percent to the Company’s current local workforce. Many of these jobs would be professional staff, engineers and chemists.

Our public and private partners estimate significant positive economic impact in Cleveland and the State of Ohio driven by jobs, payroll, tax revenue, incremental jobs created by companies supplying goods on the projects, and the recirculation of wages throughout the regional economy.

The size of the new global headquarters facility remains at approximately 1,000,000 square feet and the size of the R&D facility remains at approximately 600,000 square feet. The overall scope of both sites has not been reduced as a result of changing trends in workplace strategies.

 

It is important that we bring our teams together to reinforce our culture of community, collaboration, innovation, employee development and engagement. Access to our coworkers and resources in the workplace supports our sense of employee connection and well-being in a way that prolonged, constant remote work and isolation cannot achieve.

 

These elements reflect our strength as a Company and are essential to making us more productive as we continue to win with our customers and retain top talent. As a result of our learnings during the pandemic, we have implemented an updated flexible workplace policy that supports remote work, flex-hours and summer hours.

The Sherwin-Williams culture is built on trust, respect, execution and inclusion, which guide our commitment to take care of our customers, respect our employees and the environment, and support the communities in which we live and work. In Cuyahoga County, we have generated over $5 billion in employee payroll, more than $180 million in tax revenue and invested over $23 million in charitable endeavors over the last 10 years in Northeast Ohio. Our people are a force of good, collectively volunteering at hundreds of non-profit organizations, including more than 100 employees who serve on local non-profit boards.

 

We care deeply about supporting and being active in our communities while demonstrating our commitment to inclusion, diversity and equity (ID&E). We have extended this commitment to our Building Our Future (BOF) project, which includes building a new global headquarters in Cleveland, Ohio, and a new global research and development (R&D) center in Brecksville, Ohio. 

 

Sherwin-Williams is proud to invest in the future of our company and the future of the region, which has been our home since 1866. Our community impact commitments represent our support of underrepresented communities in Cleveland and surrounding areas through health, education, vocational training and the BOF project.

 

To learn more about our community impact commitment, click here.

No. The Valspar site is the home of the Company’s industrial coatings business and will continue to be an integral facility in our ongoing success. The Minneapolis site offers talent, innovation and expertise that is key to achieving the Company’s business goals.


BUILDING AND CONSTRUCTION QUESTIONS

The design, base building and interior architects, as well as the project and construction management firms are as follows:

 

  • Pickard Chilton Architects, Inc. – Design architect for the global headquarters
  • HGA Architects and Engineers, LLC (HGA) – Base building architect for the global headquarters; Design, base building and interior architect for the R&D Center
  • Vocon Partners, LLC – Interior architect for the global headquarters
  • Welty Gilbane, a Joint Venture – Construction manager
  • Mark G. Anderson Consultants, Inc. (MGAC) – Project manager, project controls and owner’s representative

The preliminary designs for both projects have been approved and the renderings are available at the following links:

As a strong community partner, we understand the impact our new headquarters facility will have in enhancing the heart of downtown Cleveland and spurring adjacent economic growth. Collecting community feedback is important to us and we have completed a multi-tiered approach. This included gathering input from an advisory group made up of representatives from key, local organizations with a strong interest in our Building Our Future project; hosting several small input sessions with local residents, downtown businesses and building managers; and gathering feedback through one-on-one meetings with government, business and community organizations.

The Company worked with our partners to reconfigure the proposed site so that it is now comprised of 45 acres of the Veterans Administration (VA) site and 74 acres of an adjacent site commonly known as the Dalad site or the Crowland site. This change more than doubles the available VA site property (to 69 acres) for other development opportunities for the mixed-use project.

We are a sustainable company, and we expect our new facilities to reflect that commitment. The Company is targeting LEED certification, but the levels have not been finalized given the current stages of the project and multiple pending considerations.

We are including any required remediation as part of the overall construction process at the Cleveland and Brecksville sites. We are working closely with the Ohio EPA to address any issues that are identified.

The designs for the Building Our Future headquarters and research & development center are continuing to evolve and be further developed as part of the project process. As the design work progresses, the associated costs of construction are also being refined. As of October 2022, Sherwin-Williams updated its project cost of construction to $750M to better reflect the updated design work related to the project. We will provide updates as the design work advances.

The Company conducted a ceremonial groundbreaking at the R&D Center site on October 22, 2021. You can view the event replay here. A celebration announcing the official start of construction for the new headquarters campus was held on January 28, 2022. You can view the event replay here.

The transition to the new facilities is likely to begin by the end of 2024.

Our current construction and real estate partners estimate several thousand construction workers are required.

Sherwin-Williams has been and will continue to be a proud supporter of our local communities. We are committed to and value inclusion, diversity and equity (ID&E) in our workforce. This ID&E commitment is being extended to our Building Our Future project. We have been working proactively with the cities, community leaders and trade partners to ensure this project positively impacts the local economy by providing workforce opportunities for the community.

 

This process has already resulted in the awarding of multiple contracts to diverse firms totaling in the millions of dollars. Sherwin-Williams will continue to provide many more opportunities for diverse firms to participate in the weeks and months ahead as additional construction, design and services decisions are made. We expect these future awards to also be in the millions of dollars. We are confident our approach will continue to create significant opportunities for multiple minority-owned, women-owned and small businesses to flourish, now and in the future.

 

To view the total contracted dollars to date, click here

 

To view the list of minority, female and small business firms involved on the project, click here.

 

For the global headquarters project, we plan to meet the standard set forth in Cleveland’s Fannie Lewis Law. The Company continues to explore in collaboration with our partners how we can apply our ID&E approach to a broad spectrum of project activities.

The following represents the economic inclusion criteria associated with the Building Our Future project.         

 

Business Enterprise Inclusion Requirements*

Contract Percentage

Contract Amounts**

Minority Business Enterprise (MBE)

15%

$112M

Female Business Enterprise (FBE)

 7%

$53M

Cleveland Small Business Enterprise (CSB)

 8%

$60M

Total

 

$225M

Workforce Project Goals

Workforce Percentage

 

Minority

16%

N/A

Female

 7%

N/A

Cleveland residents (HQ only)*

20%

N/A

 

*Required as part of the approved economic development packages.

** Based upon project construction costs of $750M.

 

 

In addition, Sherwin-Williams is committed to keeping in Northeast Ohio the majority of the project profits and labor.

Sherwin-Williams selected five firms for the minority construction management (MCM) role for the Building Our Future project. The companies awarded this role are:

 

  • Adrian Maldonado & Associates
  • The AKA Team
  • Ozanne Construction Company, Inc.
  • R. L. Hill Management Services, Inc.
  • Regency Construction Services, Inc.

 

These firms are providing construction management services, including setting direction, overseeing operations, augmenting staff and making decisions that significantly impact the project’s budget, schedule and quality. Four of the five are providing skilled trades employees that are able to perform activities such as carpentry, millwork and painting. The firms are based in Northeast Ohio and are either minority-owned or female-owned.

Sherwin-Williams has awarded the outreach and compliance specialist role to Brownstone-Grey. The firm will be responsible for supporting the Building Our Future inclusion, diversity and equity strategy. This includes leveraging community partnerships and ensuring maximum participation by identifying strategic engagement activities. The firm will track business and workforce compliance, as well as provide ongoing reporting of the progress made toward all project goals, requirements and opportunity areas. In addition, the firm will Implement appropriate systems, tools and processes for data input and tracking for integrated project delivery (IPD), contractor and subcontractor information, payroll and other components to capture and house workforce and business data that best satisfy the monitoring needs of the project in concert with the IPD Team acceptance.

Yes, we continue to award contracts to multiple, diverse firms. As of February 2022, the following minority-owned, female-owned and small business firms have been added to the project.

 

To view the list of minority, female and small business firms involved on the project, click here.

We welcome the participation of union labor in the construction of our new facilities. We will work with our construction partners to pay state prevailing wages on the construction components of the project.

Sherwin-Williams has entered into an agreement to sell its current headquarters facility and its Breen Technology Center (BTC) to Bedrock Management Services. The headquarters facility is located at 101 West Prospect Avenue and BTC is located at 601 Canal Road, both in Cleveland, OH. Both facilities will be integral to the new Bedrock master plan, and we are pleased to support this significant investment in the City of Cleveland. The Company’s current headquarters sits on nearly three acres and consists of three buildings totaling approximately 1,300,000 square feet. BTC sits on just over nine acres and includes a building totaling approximately 145,000 square feet. The sale is expected to be completed during 2023. The purchase price has not been disclosed. Sherwin-Williams will continue to operate out of both sites until the Company’s new facilities are complete. 

 

In addition, Sherwin-Williams has entered into an agreement to sell its current Warrensville Technical Center (WTC) to Cleveland Warrensville Center LLC. The Company facility is located on Warrensville Center Road in Warrensville Heights, OH. The site will be redeveloped to support new industrial business in the community, and we are pleased to support this significant investment in Warrensville Heights. The Company’s WTC site sits on 105 acres and includes seven primary buildings, various outbuildings and structures totaling approximately 435,000 square feet. The sale is expected to be completed in December 2023. The purchase price has not been disclosed. Sherwin-Williams will continue to occupy the WTC facility until the Company’s new facilities are complete.

 

The transition to the new facilities is likely to begin by the end of 2024.

Sherwin-Williams understands that the design of our new headquarters complex may negatively affect migratory bird behavior. To better understand the potential implications, the Company has engaged an avian consultant, BirdMaster, to assist us in assessing how our campus design may affect migratory and resident bird welfare. In addition, the consultant will provide us with recommendations and strategies to ensure we balance our campus design and operational needs with those of the migratory bird population.

 

While it is still early in the consultation process, Sherwin-Williams, in concert with our consultant, has established an initial strategy which takes a tiered approach to minimizing elements that attract birds to our campus and to our buildings. Over the coming months, our avian consultant will be developing a more comprehensive strategy.

No. There are no design work or construction plans underway for a second tower at the new global headquarters. The Company is still finishing construction of the first tower, with plans to begin taking occupancy by the end of 2024. Initial project plans included the option for a second tower to accommodate future growth of the Company if needed.

Preliminary discussions are underway related to a mixed-use development surrounding the garage with the goal of adding a combination of retail, dining, hotel, residential and other amenities that support our employees.  The mixed-use development is not planned to be available Day-1. Updates on these activities will be shared when available.

 

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