TIFs for two Hillsboro development projects will generate revenue for the city

A new dental office and an Orscheln Farm and Home store under construction in Hillsboro “will bring revenue back into the area for infrastructure improvements through Tax Increment Financing [TIF],” The Times-Gazette reports. Hillsboro Safety and Service Director Mel McKenzie said “he is organizing TIF designation for the two properties” and that the TIFs “will be a good source of income for the city over the next 10 years,” according to the article. McKenzie said the dental office and Orscheln properties are expected to generate approximately $83,000 and $260,000 in new property taxes respectively over the next ten years, with 75 percent of that income to be used for public improvements that “could include roadwork, water and sewer line replacement, storm water collection and new sidewalks.” For more, read the full article

Financial Incentives, Regional Updates, State Updates

Cleveland approves TIF for Terminal Tower apartments project

The observation deck of Terminal Tower will be a lot closer for some downtown Cleveland residents, after twelve floors of that building are converted into apartments, Cleveland.com reports. Cleveland City Council recently “approved a tax increment financing agreement that will allow use of newly generated tax revenue that would have gone to the city to be used instead to help finance the project,” according to the article. Developer K&D Group plans to leave the upper floors as offices and convert the fourth through fifteenth floors to one- and two-bedroom apartments. The agreement “does not impact the tax dollars that would go to the Cleveland school district.” For more, read the full article

Financial Incentives, Regional Updates, State Updates

New Maumee mixed-use project will benefit city, school district

Maumee’s “biggest development” in 40 or 50 years will generate new tax revenue for the school district and create “a very substantial amount” of jobs for the area, The Toledo Blade reports. An “open field” will be transformed into a mixed-used economic development that “will likely include a hotel, restaurants, retail shops, independent living, and a 90,000-square foot medical office,” according to the article. The city, developer Joe Swolsky, and the school district collaborated on the agreement, part of which “states a tax incremental finance district will be formed, and the schools will receive 10 percent of all new taxes for 20 years.” That money “will be used to upgrade facilities the public uses,” such as athletic facilities, playgrounds and the performing arts center. Taxes generated from the project will help the city offset losses from the closing of The Andersons retail store earlier this year. For more, read the full article

 

Financial Incentives, Regional Updates, State Updates

Cincinnati considers extending VTICA program to promote more affordable housing

A new initiative could extend Cincinnati’s voluntary tax incentive contribution agreement (VTICA) program to areas beyond downtown and Over-the-Rhine to “inject money into affordable housing and to projects in the city’s 50 other neighborhoods,” the Cincinnati Business Courier reports. The proposal, from Mayor John Cranley, Vice Mayor David Mann and council members P.G. Sittenfeld and Kevin Flynn, would expand the program “that is used to pay for the operations of the Cincinnati Bell Connector streetcar to other neighborhoods, but it would pay for other priorities,” according to the article. Under the current policy, “known officially as [a] Community Reinvestment Area (CRA)” developers receive property tax abatements for improvements they make to properties and agree to give a portion of the taxes they save to Downtown Cincinnati Inc. to fund the streetcar operations (see our September 21, 2016 blog post). If the program is expanded, half of the proceeds would stay “in the neighborhood where the development occurs” and the other half would go into “a citywide affordable housing fund.” For more, read the full article.

Financial Incentives, Regional Updates

Study of incentives shows Columbus needs to offer more to compete with suburbs

A detailed study of the tax incentives Columbus offers shows the city needs to offer better incentives to compete with some Central Ohio suburbs, Columbus Business First reports. HR&A Advisors Inc. of New York conducted the study, which “found details ranging from the need for incentives in targeted areas to a revitalization fund developers pay into to help generate money for neighborhoods where development is lacking,” according to the article. While Columbus “is competitive with the abatements it offers . . . typically 10-year, 75-percent abatements for industrial and office projects,” some local cities “can offer abatements at 100 percent for up to 15 years.” Hilliard, Westerville, Dublin and Canal Winchester are among the cities offering larger incentives to attract companies to their communities. For more, read the full article

Financial Incentives, Regional Updates, State Updates

State approves tax credits for eight projects expected to bring $377M in total investments

The Tax Credit Authority recently approved tax incentives totaling approximately $17.7 million for eight projects that could bring $377 million in investments and 3,792 new jobs to Ohio, Gongwer reports. The “proposals brought forward by JobsOhio” include “two new warehouse sites for e-commerce giant Amazon (see our September 8, 2017 blog post)” in North Randall and Monroe that would create 2,000 and 1,000 new jobs, respectively, according to the article. Other recipients include Joseph Manufacturing Company, Inc.’s project that is expected to create “287 full-time positions, generating $7.8 million in new annual payroll,” and Workstream, Inc.’s project that would “create 45 full-time positions, generating $1.4 million in new annual payroll.” Silfex, Inc. “expects to create 400 full-time positions” totaling $20.7 in new annual payroll (see our September 7, 2017 blog post). Synova, LLC expects to add 20 full-time positions; Fresh Unlimited, Inc. plans to add 25; and Beach Communications, LLC expects to create 15.

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

Ohio offers $11M in tax credits as Amazon eyes two more facilities in state

Monroe and North Randall could be the newest Ohio locations for Amazon distribution centers, and the state is offering $11.6 million in tax credits to help make that happen, The Columbus Dispatch reports. Amazon “officially announced plans for the North Randall project” that includes a $100 million investment “to develop an 855,000-square-foot center employing 2,000 workers earning $55.4 million a year,” according to the article. Amazon would invest $30 million in the Monroe project, which is expected to create “1,000 jobs with an annual payroll of $26.7 million if the company goes ahead with the project.” The Dayton Business Journal reports that a JobsOhio spokesperson “said it will continue to work with the company” and that the combined $11.6 million tax credit from The Ohio Tax Credit Authority was “an important step.” For more, read the full Columbus Dispatch and Dayton Business Journal articles. 

 

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

State awards tax credits to Ohio-based Silfex for $223M Springfield project

The Ohio Tax Credit Authority approved tax incentives for Eaton-based Silfex’s expansion project that would “create as many as 400 new jobs and invest $223 million in Springfield,” according to a recent Dayton Daily News article. Silfex, formerly known as Bullen Semiconductor, “provides silicon products for the solar, optical and semiconductor equipment markets,” the Daily News reports. The company’s Eaton headquarters “is the world’s largest custom silicon-growing facility . . . and provides services including prototyping and manufacturing of low-volume components and assemblies.” The deal is “expected to create $20.7 million in additional payroll as part of a 12-year, about 2 percent credit” on Silfex’s Ohio employee payroll taxes. For more, read the full article.

Financial Incentives, Regional Updates, State Updates

Study says Columbus “has been too generous” with some tax breaks; developers disagree

A study of financial incentives in Columbus that found the city “has been too generous with tax breaks in the Short North,” but developers say those incentives are necessary for the kind of development that’s been happening in that area, The Columbus Dispatch reports. Mike Schiff of Schiff Capital said the reason “the Short North and the urban development in Columbus, Ohio is one of the hottest in the United States” is that “the city has been on board to help make that happen.” Tax incentives for “struggling areas such as the Hilltop, Near East Side and Linden,” however, “aren’t enough to make most residential developments profitable,” the study says. The study recommends dividing Columbus neighborhoods “into three tiers, with the city tailoring incentives for each one,” offering different incentives in areas such as the Near East Side than it does in the Short North. For more, read the full article

Financial Incentives, Regional Updates, State Updates

Columbus creates tax incentive legislation aimed at large companies

Columbus City Council voted this month to create a new tax incentive that may help the city land a project from Asian electronics giant Foxconn. The incentive, “equal to a percentage reduction in the annual net-profit tax due from the taxpayer” for a 30-year period is “aimed at attracting large companies that plan to invest heavily in jobs and operations,” The Columbus Dispatch reports. Any company pursuing the incentive “must generate annual revenue of at least $7 billion and have at least $45 million in annual payroll,” and must create “1,000 new, non-retail, full-time positions” that pay at least $15 per hour, according to the article. Foxconn has said it “plans to build multiple plants in the United States,” and has shown interest in Columbus as a potential location. Foxconn Chairman Terry Gou recently dined in the Short North after an event at the White House announcing plans to build a facility in Wisconsin. For more, read the full article.

Financial Incentives, Regional Updates, State Updates
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