Auto supplier plans additional $73M investment, 204 jobs in Springfield

Topre America is expanding its previous plans for a new facility in Springfield (see our June 12, 2017 blog post), announcing it will invest an additional $73 million in the facility to meet increased production requests, the Dayton Business Journal reports. The additional investment in the 177,000 square-foot stamping and steel production plant will “create 204 assembly, research and development, stamping and light manufacturing jobs,” according to the article. The expansion is “contingent upon the approval of state and local incentives.” Jeff Hoagland, president and CEO of the Dayton Development Coalition regional JobsOhio affiliate, said the coalition understands the impact of more than 200 new jobs and “will continue to work with our partners in Springfield and JobsOhio to move this project forward.” For more, read the full article.

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

Dayton’s strategic use of CRA fueling growth in downtown, other areas

While home prices have been rising in downtown Dayton, Webster Station and other Dayton neighborhoods, property taxes don’t always immediately rise along with them, thanks to the city’s Community Reinvestment Area program, the Dayton Daily News reports. The program “incentivizes property improvements and new construction by exempting taxation on the value of the improvements,” the article reports. Dayton uses the abatements strategically by targeting “the neighborhoods that need it most,” said Karl Keith, Montgomery County Auditor. Keith said the city’s targeted approach will help reverse the trends of declining property values in areas that have experienced urban decay and blight. Some of the recent new homes in downtown Dayton have sold for prices that were “unimaginable to developers a decade ago.” As of 2017, “nearly $63 million was invested in Dayton properties” in the CRA program. For more, read the full article

Financial Incentives, Regional Updates, State Updates

Whitehall’s proactive economic development strategy producing big returns

Whitehall Mayor Kim Maggard had good news at her 2018 State of the City address: the city “now hosts 650 businesses,” and “$50 million in new payroll has been created” since she took office in 2012, Columbus Business First reports. When Maggard became mayor, Whitehall “shifted to a proactive stance to encourage business investment,” according to the article. Since that time, “incentives have drawn $60 million in business investment,” with 48 new companies, including large employers such as Wasserstrom Co. and Heartland Bank, moving to Whitehall. Of the 110 businesses that city staff members have visited, 75 percent “were maintaining or growing their employment,” adding $4.5 million in income tax revenue for the city. Additionally, the city is pursuing new development, such as the $50-million mixed-used Norton Crossing project, which will add 360 residential units as well as retail and restaurant space in 2019. For more, read the full article

Financial Incentives, Regional Updates, State Updates

Ohio recommends Opportunity Zones for federal tax breaks

The recently passed Tax Cuts and Jobs Act of 2017 created an opportunity for states “to identify up to 25% of low-income, high-poverty census tracts” for consideration for federal tax breaks for economic development, according to the Ohio Development Services Agency (ODSA) website. The U.S. Treasury “will make the final determination” of which tracts will be designation as Opportunity Zones, making them eligible for “‘Opportunity Funds’ (not yet formed) to invest in economic development to receive a 10-year federal tax break.” Ohio recommended its full 25% allocation, 320 census tracts out of the 1,280 that were eligible. According to the ODSA, tracts were prioritized by “[j]ob creation potential, history of public/private investment within the tract, future commitments of public/private investment, available land for development,” and other factors. For more, see the ODSA website.

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

Four companies bringing 475 jobs, $24M payroll and $41M investment to Ohio

Central Ohio will add 195 new jobs “as a result of state incentives” the Ohio Tax Credit Authority recently approved for three companies; the state also awarded incentives to another company bringing an additional 280 jobs to Western Ohio, The Columbus Dispatch reports. Sedgewick, a claims-processing company, will add 109 to its Hilliard location as part of an expansion due to “rapid growth of the company’s client base.” Information-technology company Veeva will create 46 jobs with a total annual payroll of $3.5 million “as part of its plan to set up its second North American operations and service center” in Dublin. Automotive supplier Veeva “plans to add 40 jobs with an annual payroll of $1.4 million in East Liberty to increase its capacity for strut manufacturing and bumper assembly.” Airstream, travel-trailer designer and manufacturer, “plans to add 280 jobs with $14.8 million in annual payroll in Jackson Center” as part of an expansion to add a new production facility. For more, read the full article

Financial Incentives, Regional Updates, State Updates

Economic development groups “doubling down” to keep expanding companies in Northeast Ohio

JobsOhio, Team Northeast Ohio and the Greater Cleveland Partnership want to make sure local companies who want to grow “do so here rather than elsewhere in the United States and beyond,” Crain’s Cleveland reports. The three groups will add up to a dozen staffers between them “who will be calling on companies” in Cuyahoga, Geauga and Lake counties “to identify those that are evaluating the long-term location strategies for their businesses,” according to the article. The organizations want “to be ready with financial incentives or sites available for expansion before the businesses decide to expand a plant at a location out of state, or leave the region altogether.” Kristi Clouse, executive director of operations for JobsOhio, said the increased involvement in retention and expansion is “because the bulk of the job creation, about 80%, comes from the expansion of existing businesses.” For more, read the full article

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

Local governments need more transparency for tax abatements, report says

New rules by the nonprofit Governmental Accounting Standards Board [GASB] “can encourage local governments to be more transparent regarding their tax abatements,” says a report by Policy Matters Ohio, according to a recent Gongwer article. The new accounting standards from the GASB “require more transparency regarding abatements in which tax revenue is reduced due to an agreement between the governor and a taxpayer,” according to that report. Policy Matters “looked at disclosures by 59 counties and 84 cities, villages and townships, with the 10 largest counties reporting a total of $25.8 million in abatements for 2016,” Gongwer reports. Zach Schiller, the author of the report, “said one of the concerns with the findings is that not all local governments are reporting their revenue lost to abatements.” Rep. Keith Farber (R-Celina), who is running for auditor, said, “[i]t’s important for local governments and their constituents to know if they are getting a return on investment from incentives.” 

Financial Incentives, Regional Updates, State Updates

County approves loan to complete financing for Cleveland Athletic Club redevelopment

Tenants may be able to move into new apartments in the former Cleveland Athletic Club by the end of 2018, as Cuyahoga County will provide a $2-million loan to complete the financing for the project, Crain’s Cleveland reports. Cuyahoga County Council’s economic development committee approved the short-term loan to developer CAC Project 2014 LLC “to complete a $56.3 million development package,” according to the article. The Council approved the loan during its January 23, 2018 meeting. The rest of the financing is provided through a $29.1-million construction loan, “an historic tax credit of $12.9 million, a $3.6 million Ohio Water Development Authority environmental cleanup loan and $3 million in Cleveland tax increment financing.” The completed mixed-use development will have 8,000 square feet of office space, 8,000 square feet of retail space, and 161 one-, two-, and three-bedroom apartments. For more, read the full article.

Financial Incentives, Regional Updates, State Updates

Changes to Columbus tax incentives would promote mixed-income housing development

City officials in Columbus want to change tax incentives “to encourage mixed-income housing development in fast-growing neighborhoods such as the Short North,” Columbus Business First reports. Current property tax incentives “treat the Short North the same as disinvested areas such as Linden — exacerbating disparities,” according to the article. The proposed changes would require developers seeking property tax abatements for “mid-rise multifamily housing in market-ready areas” to “make a portion of units affordable for those at and below Columbus’ median income.” City Development Director Steve Schoeny said economically diverse neighborhoods “are healthier.” Councilwoman Elizabeth Brown said, “[i]f we’re getting people living and working in nearby neighborhoods, then there isn’t an emptying out of the city after 5 p.m.” For more, read the full article

Financial Incentives, Regional Updates, State Updates

New U.S. tax law lessens federal historic tax credit, putting projects at risk

A federal tax incentive that “has helped revive more than 42,000 buildings” and “yielded about $30 billion in federal tax receipts” was “eroded” by the new U.S. tax law that President Donald Trump signed in December, Fox Business reports. The federal historic tax credit “provides reimbursement for 20% of certain costs” for renovations of historic buildings, but the tax-law changes mean the “payback is now spread over five years instead of one,” reducing its value to developers, according to the article. In Dayton, developer Cross Street Partners “rushed to complete long-term leases” on a project to “overhaul a long-vacant collection of buildings known as the Dayton Arcade” before the change took effect after the end of 2017. Senior development director David Williams said “the weakened version [of the incentive] could have threatened a carefully constructed financing plan that includes multiple tax incentives.” For more, read the full article

Federal Updates, Financial Incentives, Legal Developments
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