Parma considering TIF for Midtown Plaza redevelopment

Akron-based LRC Realty is asking Parma City Council to approve a tax increment financing (TIF) agreement to help finance the “transformation of Parma’s Midtown Plaza into the modern-looking Quarry Square,” an $8.5-million project, Cleveland.com reports. LRC is hoping to use the TIF “to borrow money and pay it back to the lender via a property tax assessment,” according to the article. The TIF “is covering $2.5 million in loan payments over 30 years,” but does not include “the $48,204 in property tax Parma City Schools receives annually from Midtown Plaza or Quarry Square going forward.” Parma Mayor Tim DeGeeter said, “[w]e want to invest in our city using this economic development tool that allows us to keep the schools whole.” For more, read the full article.

Economic Development, Financial Incentives, Project Finance