JEDDs face new reporting rule promulgated by the Ohio Department of Taxation

new state rule requires joint economic development districts (JEDDs) to report and file certain information with the Ohio Tax Commissioner by February 12, 2018. Communities that have used JEDDs to support economic development should carefully consider these new requirements to ensure compliance. For more, read the full article.

State Updates

Columbus one of 20 finalist cities for Amazon’s $5B HQ2

The only city in Ohio to make it through the first cut for Amazon’s $5-billion second headquarters is Columbus, reports Columbus Business First. “Unlike cities that offered plots of land, Columbus offered incentives to recoup partial land acquisition costs in the bid prepared by economic development groups Columbus 2020 and JobsOhio,” according to the article. Among those incentives are a “tax abatement on sites where Amazon opts to invest” and “a cash payment based on a portion of income tax withholding for new jobs.” Columbus also “pledged a dedicated transit and roadwork fund, also funded by reserving Amazon employee withholding tax,” according to Columbus Business First. Out of 238 proposals, Amazon selected 20 finalists; Columbus will compete with New York City, Chicago, Los Angeles and others, The Columbus Dispatch reports. For more, read the full Columbus Business First and Columbus Dispatch articles. 

Financial Incentives, JobsOhio/ODSA, Regional Updates, State Updates

Two major projects coming to Green in 2018: FedEx Freight, Chase Bank

More than 100 jobs will be coming to Green in 2018, as FedEx Freight and Chase Bank plan “major commercial construction projects” for the city, theSuburbanite.com reports. Green City Council “approved a five-year, 100 percent community reinvestment area [CRA]” for FedEx’s $16.5 million, 63,000-square-foot distribution center, according to the article. FedEx will relocate “74 full time and 34 part time employees” from its Killian Road, Akron location; those jobs represent an annual payroll of $3.9 million. The terms of the CRA include adding an additional 12 full time and 6 part time employees by December 2022. Additionally, Chase Bank “had site plans approved by the city planning commission for a 3,300 square foot location on the northwest corner of Boettler and Massillon roads,” Green Planning Director Wayne Wiethe said. For more, read the full article.

Financial Incentives, Regional Updates, State Updates

Columbus’s bid for Amazon’s HQ2 involves multiple parcels of land around city

Properties in Franklinton, the OSU campus area, Easton, and the Scioto Peninsula are all part of the bid by the City of Columbus to “land one of the biggest economic-development prizes ever,” Amazon’s $5-billion second corporate headquarters (see our September 20, 2017 blog post), The Columbus Dispatch reports. “Hundreds of pages of emails, documents and other records” released by the city show sites at Mount Carmel West hospital and the Ohio State Fairgrounds were also considered, but ruled out for now, according to the article. Columbus economic-development director Steve Schoney said some potential sites were redacted from the city’s documents “because they are privately owned and have not been identified previously as potential sites.” The “big challenge is piecing together the land that the internet giant says it would need”; Schoney said, “[i]t’s really tough to find 100 acres in an existing urban environment.”  For more, read the full article.

Regional Updates, State Updates

Tax credits bringing 1500+ jobs to Southwest Ohio, Fostoria, and Van Wert

Six companies recently won state tax credits for projects that will bring a total of more than 1,500 new jobs and millions in capital investment to Southwest and Northwest Ohio. The Journal-News reports the Tax Credit Authority approved Job Creation Tax Credits for: Deceuninck North America in Monroe, to create 85 full-time positions and make $2 million in capital investment; London Computer Systems, expected to create 150 full-time jobs with a $27 million capital investment; LISNR, to create 80 full-time jobs; and Ensemble Health Partners, to create 1,100 full-time positions. The Courier reports that French auto parts manufacturer Treves received a payroll tax credit to create 91 jobs by the end of 2020. The Lima News reports MEK Van Wert, a new machined parts manufacturer, received a tax credit to create 30 new full-time equivalent positions. For more, read the full Journal-News, Courier, and Lima News articles. 

Financial Incentives, Regional Updates, State Updates

State offers incentives to 3 projects that will create 204 Central Ohio jobs

The Ohio Tax Credit Authority recently approved state tax incentives for Pharmaforce, Cintas, and Owens & Minor Distribution for projects that will add 204 jobs in the Central Ohio area, The Columbus Dispatch reports. Pharmaforce, “a pharmaceutical research and development and manufacturing company,” will invest $145 million to expand its existing facilities in Hilliard and New Albany. The company will add 80 employees as part of the expansion. Cincinnati-based Cintas plans to spend $10.4 million “to open a distribution center in Groveport that will create 69 jobs,” according to the article. Columbus Business First reports those jobs will generate “$2.304 million in new payroll by the end of 2021.” Owens & Minor Distribution, “a company focused on health-care logistics and medical supplies,” plans to create 55 new jobs in Obetz, The Dispatch reports. For more, read the full Columbus Dispatch and Columbus Business First articles. 

Financial Incentives, Regional Updates, State Updates

Columbus council approves tax abatement for $16.6M Short North project

 The Pizzuti Companies will get a tax break from the City of Columbus for its $16.6 million plan to “transform a Short North antique marketplace and consignment shop into a commercial office and retail property,” The Columbus Dispatch reports. Columbus City Council approved a “10-year, 75 percent property tax abatement worth $3.1 million” for the project to create a “four-story, 59,000-square-foot mix of ground-floor retail and office space” with underground parking, according to the article. The project will create 25 new full-time jobs with a total annual payroll of $1.3 million by the end of 2022. Earlier this year, “the city released a study that found developers do not need incentives for residential construction” in areas such as the Short North (see our August 21, 2017, blog post), but Development Director Steve Schoeny “has said that the city’s incentives on commercial property” are “less generous than its regional competitors.” For more, read the full article.

Financial Incentives, State Updates

Liberty Township looking to expand its commercial footprint

The proposed 2018 budget for Liberty Township will prioritize “infrastructure planning and economic development to expand its commercial footprint,” the Journal-News reports. Township Trustee Tom Farrell “said one of his goals for next year is to better market what Liberty Twp. has to offer businesses,” according to the article. Farrell said the township in Southwest Ohio has many of the qualifications Amazon was looking for in bids for its second U.S. headquarters, including “nearby airports, qualified workforce, walkability, parks and other amenities.” Trustee Steve Schramm wants “to build into the budget an online feature that would allow developers to see things like the demographics and other information that would showcase the township,” saying, “I think we’re missing an opportunity to kind of shine in that world.” For more, read the full article

Regional Updates, State Updates

Conference agreement on tax reform: Private activity bonds, stadium bonds spared; Advance refundings and tax credit bonds axed

The Tax Cuts and Jobs Act (TCJA) was released on December 15, 2017. The Committee of Conference chose not to follow the House’s repeal of authorization for private activity bonds — a financing vehicle used to finance 501(c)(3) institutions, such as private universities and hospitals, as well as other projects, such as low-to-moderate income housing. Additionally, the prohibition on the use of tax exempt bonds for professional stadium financing was, likewise, not included in the TCJA, preserving that option for governmental issuers. Read more >>

Federal Updates, Financial Incentives, Legal Developments

Paper company bringing $310M investment and 300 jobs to Dayton area

Pratt Industries will invest $310 million in a new “100 percent recycled paper mill and corrugated box factory in Wapakoneta, Ohio,” the Dayton Development Coalition recently announced in a newsletter. The first phase of the project, the paper mill, will “break ground in March 2018 and be operational in late 2019,” and will “create 100 jobs with an average wage of $25 per hour.” Construction will begin on the corrugated box factory, phase two of the project, in spring 2020; that factory will “create an additional 200 jobs with an average wage of $22 per hour.” To read the full newsletter, click here.

Regional Updates, State Updates
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