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

Cleveland Metro School District leading meetings on proposed property tax deal

The Cleveland Metropolitan School District is soliciting public feedback on a proposed tax-increment financing deal that would support a private real estate project in the downtown area, Cleveland.com reports. The district’s Board of Education is “considering the role the public school system will play in financing for nuCLEus, a $540 million development” in the Gateway District, according to the article. The project would replace older buildings and a parking lot with “hundreds of apartments and, possibly, some condos, plus offices, shops, restaurants, a hotel and structured parking.” School district representatives and the developer “have negotiated a proposal under which the district would forgo new property-tax revenues created by the project for 30 years, in exchange for receiving an up-front payment of $18 million.” Residents can attend meetings across the city to hear a presentation from a district official, or they can respond to a survey or email feedback. For more, read the full article.

Financial Incentives, Regional Updates, State Updates

Columbus offers White Castle incentives for $65M mixed-use development

The site of White Castle’s headquarters near downtown Columbus could get a drastic makeover if plans for a $65 million mixed-use development fall into place, Columbus Business First reports. Columbus City Council is considering “creating a tax-increment financing district [TIF], in which White Castle pays the city for infrastructure in lieu of taxes,” according to the article. A new corporate office for the family-owned burger chain “would be among users of 150,000 square feet of Class A office and 300 apartments on 15 acres.” White Castle Vice President Jamie Richardson said, “[o]ur hope is to increase the commitment and size of our operation in Columbus,” saying the TIF is one of the first steps in the process of redeveloping the site. For more, read the full article

Financial Incentives, Regional Updates, State Updates

Commercial buildings in NOPEC member communities eligible for PACE financing

Many commercial buildings have outdated lighting, windows, doors, HVAC or other features that, if updated, would dramatically reduce energy costs.  But how do you finance these improvements? If your project is in one of NOPEC’s 219 member communities, NOPEC may be able to help.  

Whether your project involves less expensive smaller improvements (like lighting) or more expensive larger improvements (like HVAC systems), property owners can access financing through the Property Assessed Clean Energy (PACE) program for a single property or multiple sites. NOPEC provides the upfront financing to complete the improvements based on project costs and an energy assessment/audit that identifies savings opportunities.

The borrower repays the loan through an assessment that’s been placed on the now-improved property. It’s paid twice a year and is listed on the tax duplicate as an assessment. The assessment period will be based, in part, on the projected savings and useful life of the assets financed.

This fixed-rate loan program is available for many types of commercial property: for-profit (including retail and office) and non-profit, industrial, commercial housing and government facilities. Eligible facilities can be owner-occupied, rental properties or vacant, if future tenants are secured.  And there are no job creation requirements. This financing solution is available for projects from $100,000 to $500,000 in NOPEC’s member communities.

If you’re interested in learning more about NOPEC’s energy efficiency financing, contact Norma Fox Horwitz, Special Projects Manager, at nfhorwitz@nopecinfo.org or call 440.249.7829.

Financial Incentives, Regional Updates

Whitehall approves tech park CRA in return for $8M investment and 75 jobs

Construction on a new industrial building at the Airport South Commerce & Tech Park in Whitehall is expected to begin soon, after City Council approved the site as a community reinvestment area (CRA), ThisWeek Community News reports. The 260,000-square-foot building is “a second phase of a collaboration with developers Mark F. Taggart and Fed One Dublin,” according to Whitehall Development Director Zach Woodruff. The CRA is a 15-year, 100 percent property tax abatement; Whitehall will reimburse the city’s school district “50 percent of the amount of income-tax revenue the city receives during the term of the CRA,” Woodruff said. Developers are “expected to invest $8 million to $12 million in the second phase of the development” and are required to “create at least 75 jobs with an annual payroll of $2 million within three years.” For more, read the full article.

Financial Incentives, Regional Updates, State Updates

Hall of Fame Village could get more public funding

Ohio’s proposed state budget could result in an increase in public funding for the Johnson Controls Hall of Fame Village in Canton, CantonRep.com reports. The bill “clarifies how a Tourism Development District can provide revenue for construction, particularly as it relates to lodging tax and contributions from Stark County government,” according to the article. The special tourism district, the only one in Ohio, was created specifically “to help Village developers pay for the $700 million project.” The possible changes outlined in the state budget bill include increasing the permitted size of such a district, and allowing county lodging tax to be used not only for the stadium but for “tourism facilities.” Additionally, the bill specifies that “[a]ny lodging tax collected from hotels” with the district “must go toward promoting tourism.” For more, read the full article.

Financial Incentives, Regional Updates, State Updates
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10