Public/private partnerships fueling economic development surge in Painesville

Painesville is experiencing a “surge in economic development” largely due to public/private partnerships, according to City Manager Doug Lewis, Cleveland Magazine reports. Lewis said “the city is laying the groundwork to attract developers” by “creating concept plans for available properties, passing more business-friendly legislation, making infrastructure improvements and establishing an economic development fund,” according to the article. The city has also used tax increment financing (TIFs) in strategic districts. “Working together benefits everyone. . . .[i]n the 13 years I have been with the city, I have not seen as much interest in development as we have seen recently,” Lewis said. One of the biggest projects is the redevelopment of a former Chase Bank property into dormitories for Lake Erie College, “funded through a $14.5 million investment from the developer, along with several outside grants.” For more, read the full article.

Economic Development, Financial Incentives, State Updates

Downtown Cincinnati apartment project gets initial approval for tax incentive

The Fourth and Pike Apartments project across from Lytle Park “received a vital show of support at City Hall” as the budget and finance committee voted in favor of a 15-year, 52% tax abatement, reports. The city “projects the development will cost more than $19 million” and “would bring more people Downtown who would also contribute to the income tax base,” according to the article. Developer Eagle Realty Group is “remodeling the building into 30 refurbished apartments and making several other improvements to the 50-year-old property.” David Nevers, vice president of public relations for Eagle’s parent company, Western and Southern Financial Group, said the tax revenue the project will bring to the city “is going to grow and it’s going to grow significantly.” For more, read the full article

Economic Development, Financial Incentives, State Updates

ARPA Final Rule - The "B-sides collection": Affordable housing development

With the U.S. Treasury’s January 2022 release of its Final Rule in the use of American Rescue Plan Act (ARPA) funds, we began publishing this series of articles reviewing the lesser publicized aspects of that guidance (hence, the “B-sides” moniker). In this edition, we address the Treasury’s presumed eligible use of federal stimulus funding in the development of affordable housing, and the limited scope under which private, for-profit entities may receive transfers of ARPA funds to carry out such ends.  

For more, read the full article.

Economic Development, Federal Updates, Financial Incentives

ARPA cash: Demolition and capital expenses related to vacant and abandoned buildings

Much ballyhoo has accompanied the U.S. Treasury’s publication in January 2022 of its Final Rule in the use of American Rescue Plan Act (ARPA) funds. Local governments across the country are scrambling to deploy their stimulus funds in response to the pandemic, pay essential workers, provide government services, and invest in water, sewer and broadband infrastructure. Buried in the Final Rule and its 403-page clarifying guidance is an express authorization to use funds to address vacant and abandoned buildings, including commercial and industrial structures.  

For more, read the full article

Economic Development, Federal Updates, Financial Incentives

TIF plan for Carnation Mall in Alliance moves forward

Alliance City Council recently “took the first step in moving forward with a tax agreement for the Carnation City Mall redevelopment project,” The Alliance Review reports. The city plans to “place the mall property into a tax incremental financing (TIF) program that will exempt the owners from real property taxes for 30 years,” according to the article. The TIF setup is “rather complicated,” Mayor Alan Andreani said, because it requires the city, property owner, and developer to sign an agreement transferring the land between those three entities. City Council reached an agreement between the city and Marlington Local School District that will ensure the school district will “receive an amount equal to 25% of what it would have gotten if not for the TIF.” For more, read the full article.

Economic Development, Financial Incentives, State Updates

Dayton: tax incentives supported $200M in new investment in 2021

New construction or renovation projects approved for property tax abatements in Dayton last year will “result in more than $200 million in new investment,” the Dayton Daily News reports. Dayton has 17 Community Reinvestment Areas (CRAs), which provide property tax breaks of up to 100% for as long as 15 years for developers or owners who “construct new buildings or renovate existing structures,” according to the article. Among the projects approved in 2021 for tax incentives was a new AC Hotel by Marriot, with an estimated project value of $23 million. Another approved project, the redevelopment of the Mendelsons liquidation outlet building into a mixed-use development, is expected to generate more than $82 million in investment. Dayton City Commissioner and Tax Incentive Review Council member Chris Shaw called the incentives for development “a very important tool,” saying, “[w]here we do have to use these tools, we want it to be effective and we want to see a return on investment — and we’re really seeing that.” For more, read the full article.

Economic Development, Financial Incentives, State Updates

Tax incentive helps bring Buckeye Sports Center to Huron

Huron City Council members recently approved a tax abatement for Buckeye Sports Center’s new brick-and-mortar location; the agreement “forgives 100% of all property taxes for new development for a 15-year period,” the Sandusky Register reports. As part of the deal, Buckeye Sports Center “agreed to provide payment to Huron Schools and EHOVE Career Center for the amount of taxes they normally would have received if there wasn’t an agreement in place,” Huron City Manager Matt Lasko said in the article. Lasko commented, “[w]e believe that it’s critical for local communities to look for ways to incentive companies to help offset their construction costs to ensure the long-term viability of the company after opening.” For more, read the full article

Economic Development, Financial Incentives, State Updates

Insurance company’s $8M expansion will create 150 new jobs in Cincinnati

Great American Life Insurance Co. will invest $8 million in an expansion that will add 150 new jobs with an average annual salary of $85,000 and move most of its 633 local employees to “empty space in the GE Global Operations Center at the Banks,” reports. The State of Ohio offered $3.4 million in development incentives for the project, and Cincinnati “is expected to chip in a forgivable loan and local tax credits,” according to the article. Ohio competed against Kentucky and Massachusetts for the project. Company President Mark Muething said in a press release, “[w]e appreciate the partnership with the State of Ohio, JobsOhio, the City of Cincinnati and REDI Cincinnati as we continue to grow our business in the Queen City.” For more, read the full article

Economic Development, Financial Incentives, State Updates

State offers incentive for $900M manufacturing project that would bring 1,200 jobs

The Ohio Tax Credit Authority approved tax incentives for Semcorp Manufacturing USA’s $900 million investment in its “first North American manufacturing plant to support the electric vehicle battery market,” ColumbusCEO reports. Ohio is competing with Texas for the project, which would bring 1,200 jobs with a payroll of $73 million, according to the article. Semcorp is a “large producer of separator film used in lithium-ion batteries,” with a focus on “electric vehicles along with consumer electronics and energy storage systems.” A JobsOhio spokesperson said the project “is critical to the U.S. supply chain as more (original equipment manufacturers) shift away from the internal combustion engine supply chain and toward electric vehicle production.” For more, read the full article

Economic Development, Financial Incentives, State Updates

Staq Pharma Inc. to add $50M Columbus-area plant, bring 300 jobs

A Denver-based pharma packaging startup, Staq Pharma Inc., that “compounds custom pharmaceuticals and prepackages them for hospitals” plans to “open a $50 million facility just west of Columbus and add 300 jobs,” ColumbusInno reports. Rev1 Ventures, Cincinnati Children’s Medical Center and Nationwide Children’s Hospital “were repeat investors in a $43 million” Series C funding round that was led by “several hospital systems,” according to the article. CEO and co-founder Joe Bagan said One Columbus leaders pointed out Central Ohio’s strategic advantage: Columbus is “within a day’s drive of half of the U.S. population and corporate headquarters,” and that “sealed the deal.” Franklin County Commissioners approved a “50% property tax abatement on newly added value for 10 years,” and the facility site is within “a broader west side Community Reinvestment Area [CRA] the county created a year ago to bring back manufacturing.” The tax incentive agreement calls for 150 new jobs in the first three years. For more, read the full article

Economic Development, Financial Incentives, State Updates
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