Daimler Group to build $19.2M office building at Hamilton Quarter

The Hamilton Quarter mixed-use development is adding a new $19.2 million office building to its offerings; Daimler Group will “build the five-story 141,000-square-foot building” on Dublin Granville Road, Columbus Business First reports. The speculative office building “has flexible capabilities with larger scale floor-plates” and “will have prominent frontage right on Route 161 with signage potential,” according to the article. Columbus City Council approved a “10-year, 75% property tax abatement for the cost of the building,” saving the developer $4.2 million over 10 years, “while Columbus City Schools would receive an estimated $4.9 million over a 20-year period.” For more, read the full article.

Economic Development, Financial Incentives, State Updates

Lame duck results in energy-efficiency deductions for public buildings and airport development districts

New legislation enacted during the recent lame duck session of the General Assembly may alter the allocation of the federal income tax deduction granted for the design and installation of energy-efficient commercial building fixtures. Substitute Senate Bill 259, signed by Governor DeWine on January 9, 2021, requires public entities to allocate the energy-efficient buildings tax deduction to designers of public buildings upon such designers' requests. (Note that public entities are prohibited from accepting fees, payments, or any other consideration for allocating the deduction.) After receiving an allocation request, the public entity has 15 days to respond, otherwise, the request is treated as though it was approved. For more, read the full article.

Economic Development, Energy Efficiency, Financial Incentives, State Updates

New “transformational mixed use development” state tax credits

Taxpayers can now access a new, nonrefundable insurance premium tax credit for capital contributions to certain “transformational mixed use developments” (TMUDs). Amended Substitute Senate Bill 39, a piece of legislation finished during the recent lame duck session and signed into law by Ohio Governor DeWine on December 29, 2020, allows property owners or insurance companies to apply to the Ohio Tax Credit Authority for certification and preliminary approval of tax credits against taxes imposed on insurance companies under R.C. Section 5725.18 or R.C. SECTION 5729.03. The Tax Credit Authority is limited to awarding $100 million per year (with individual projects capped at $40 million each). Rural areas received a set-aside under the legislation of $20 million per year in available tax credits. Once awarded, the tax credits may be sold or transferred to raise capital for certified projects. To be eligible, projects must meet four requirements. For more, read the full article. See our post from January 7, 2021 for more on Senate Bill 39.

Economic Development, Financial Incentives, State Updates

Municipal port authority would expand Middletown’s economic development options

Middletown City Council is planning to dissolve its Community Improvement Corporation (CIC) and create a municipal port authority to “enable the city to address its unique economic development needs,” the Journal-News reports. Port authorities have the same powers as CICs as well as additional powers including creating sales tax exemption programs, loan funding at competitive rates, directly incentivizing specific community needs such as additional infrastructure, and facilitating job creation projects, according to the article. City Economic Development Director Chris Xeil Lyons “said the tax-exempt status of port authorities has the advantage of passing savings on to private economic development projects, thus making complex projects possible that might not otherwise happen.” For more, read the full article.

Economic Development, Financial Incentives, State Updates

Bricker & Eckler, with national and state partners, to host PACE market update webinar

Bricker & Eckler, along with national and state partners, will host a webinar Tuesday, January 12, 11:00 a.m. - 1 p.m. EST, to recap significant PACE industry developments from 2020 and preview what’s on the horizon for 2021. The webinar will focus on the Ohio, Kentucky, Michigan and Pennsylvania markets. Special guest Colin Bishopp, Executive Director of PACENation, will share a national perspective of the PACE landscape. More information >>

Energy Efficiency, Federal Updates, Financial Incentives, Project Finance, State Updates

New law could “dramatically change” Ohio’s downtown skylines

Governor Mike DeWine recently signed into law a bill that “is intended to incentivize insurance companies to invest in Transformational Mixed Use Development projects in Ohio’s downtowns,” which could dramatically change downtown skylines, Columbus Business First reports. Senate Bill 39 “authorizes a capped tax credit for insurance companies” to invest in the construction of new buildings “or the redevelopment, rehabilitation, expansion or other improvement of vacant buildings or structures” that “have the potential to have a significant economic impact,” according to the article. To be eligible, projects must exceed $50 million in cost and be either 15 stories in height or be 350,000 square feet or more in size. For more, read the full article.

Economic Development, Financial Incentives, State Updates

2,000-acre site in Delaware County to become Berlin Business Park

Berlin Township leaders “have positioned a 2,000-acre swath of county land for business use” to become the Berlin Business Park, which they anticipate will bring “a massive boost to the growing Delaware County economy,” Columbus Business First reports. Bob Lamb, economic development director for Delaware County, said, the business park “is going to bring thousands of new jobs” to the county. Lamb’s office will begin seeking tenants and will consider incentives including “a 15-year, 50% tax credit for locating in a community reinvestment area; a 20-year, 75% tax increment financing district; a 50% sales tax exemption and access to bond financing.” For more, read the full article.

Economic Development, Financial Incentives, State Updates

Cleveland City Council grants 30-year TIF extension to $500M Flats East Bank project

Cleveland City Council granted the Flats East Bank project a rare 30-year extension of tax deferments, which will now last until 2070, “to help relieve some of its debt burden and open the door to more growth,” Cleveland.com reports. The $500-million development on about 25 acres along the Cuyahoga River’s east bank includes a hotel, the Ernst & Young office tower, apartments and retail and entertainment sites, according to the article. David Ebersole, the city’s economic development director, said the move is important “because it should stabilize the project and clear the way for its next phase,” noting, “the income taxes for the project are more substantial than whatever the forgone property taxes are.” For more, read the full article.

Economic Development, Financial Incentives, State Updates

Tax incentives for $260M downtown Cleveland housing project approved by panel

Cleveland City Council’s Development, Planning and Sustainability Committee signed off on tax incentives and aid for Phase I of a project that “would overhaul the former Huntington Building” and provide affordable housing downtown, Cleveland.com reports. Cleveland-based Millenia Housing Development is expected to invest about $263.5 million in Phase I to create more than 850 one- and two-bedroom apartments with rents ranging from $712 to $1,370 per month, according to the article. Phase II “would add another 380 residences,” and bring the total project cost to $450 million. For more, read the full article.

Economic Development, Financial Incentives, State Updates

Middletown adds 10 years to downtown TIF district

The original tax increment financing (TIF) district in downtown Middletown that was set to expire at the end of this year will now extend another 10 years, the Journal-News reports. Middletown City Council unanimously voted to extend the TIF and increase the exemption from 50% to 100% for those years, according to the article. Chris Xeil Lyons, city economic development director, said extending the current TIF instead of creating a new one after it expired “will retain all of the base values at the time of origin of the original TIF. With all of our work to revitalize the downtown and riverfront, we want to capture this new investment.” Property owners within the district make payments in lieu of property taxes, “with the revenues going into a fund that is used for infrastructure improvements.” For more, read the full article.

Economic Development, Financial Incentives, State Updates
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