DevelopOhio

Jersey Township Trustees recently unanimously approved the creation of a community reinvestment area (CRA) to ensure “they will have a say on any potential future tax abatements within the township,” the Newark Advocate reports. Township Administrator Rob Platte said “the action of creating the CRA does not approve any abatements at this time” but means “the township’s approval would be required for any future abatements,” according to the article. The township “wants to make sure it has a say in any future abatements” because it previously approved tax increment financing districts (TIFs) that allow it “to direct a portion of the new property tax toward infrastructure improvements” on new development within the TIF area. The CRA allows the township to “negotiate how much is abated or completely deny an abatement, allowing the township to have a say in how much taxes are collected for improvements.” The program also “sets up targets that businesses have to hit,” such as number of people they employ, to receive abatements. For more, read the full article. 

If you were living your life fully in late December 2022, you can be excused for having missed a big deal in the world of the American Rescue Plan Act. Your “B-sides” authors, however, grew excited at the prospect of new eligible funding categories (i.e., additional buckets of use) for recipients’ ARPA allocations. For more, read the full article.

Capital University is seeking to sell about a 3-acre site on Bexley’s Main Street, creating a rare opportunity in the land-locked Columbus suburb, one “that could translate to more affordable housing” in the community, Columbus Business First reports. Capital is selling the apartment property because the units are no longer needed and “would take about $10 million to renovate,” according to the article. Bexley Mayor Ben Kessler “said he personally would like to see a mixed-use, mixed-income development be built on the site” between Bexley City Hall and the Bexley Gateway shops, and that the city is “open to working with a developer on incentives to make the development happen.” Bexley’s Main Street “currently has a community reinvestment area, or CRA,” to provide tax abatements for developers; the “base incentive is a 15-year, 70% abatement, Kessler said, but if the average development cost per unit is less than $150,000, the abatement would be 100% for 10 years.” Kessler said the incentive was “an early take on an affordable housing incentive. . . . for building housing for a greater swath of the population.” For more, read the full article (subscription may be required).

Federal energy policy is making many new incentives available for local governments to fund energy-related assets. The Inflation Reduction Act (IRA), enacted in 2022, established a set of energy-related asset categories that are now being directly subsidized by the federal government. Under the IRA, nearly any advanced or renewable energy asset constructed by a local government is eligible for some kind of federal cash subsidy. For more, read the full article.

2023, the year of the rabbit in the Chinese zodiac, may well turn out to be the year of the CRANE (Community Reinvestment Areas in Need of Expertise) in Ohio. On January 2, 2023, Governor Mike DeWine signed Substitute Senate Bill 33, which, in large part, modifies not only the establishment and management of Community Reinvestment Areas (CRAs), but also the agreements for commercial and industrial projects that seek to take advantage of the property tax incentives the CRA program can offer. For more, read the full article. 

In the second round of the state’s new transformational mixed-use development tax credits, two local projects out of the eleven that applied (see our November 15, 2022 blog post) were awarded credits, Columbus Business First reports. Rockbridge’s North Market tower project known as The Merchant Building “won a $34 million tax credit for the nearly $345 million project,” according to the article. Thrive Cos.’s The Grandview Crossing development “was awarded $6.3 million for the $506 million project.” The two projects “promise to add nearly 1,500 apartments, hundreds of thousands of square feet of office and retail and several hundred hotel rooms to the region.” Both projects “scored high in the following categories: committed financing, end-use commitment, walkability, job creation and community impact.” A recent presentation at the Tax Credit Authority showed the state “had a preference for projects with more committed tenants or end users, projects in areas of walkability and those creating more payroll or economic activity.” For more, read the full article (subscription may be required). 

An area in New Albany “positioned for new development through economic incentives” could soon add another 500 acres, Columbus Business First reports. New Albany City Council is “considering a resolution to amend the Oak Grove II Community Reinvestment Area [CRA],” which if approved would expand the CRA by “about 527 acres,” according to the article. The resolution would also “expand the Oak Grove II Economic Opportunity Zone to include this area.” The CRA enables New Albany to offer property tax exemptions on construction of new commercial and industrial structures or remodeling of existing structures “consistent with applicable zoning regulations.” The city “also wants to expand the opportunity zone so that the boundaries of the CRA also apply” to the zone. City documents “state the goal of this expansion is to encourage commercial and industrial developments that would help generate economic stability, maintain property values and create new employment opportunities.” For more, read the full article (subscription may be required).

As the State of Ohio prepares to award a second round of tax credits designed to incentivize large mixed-use projects, 11 “high-profile Central Ohio projects are seeking about $107 million” to help make their projects possible, Columbus Business First reports. To be eligible for the transformational mixed-use development (TMUD) tax credits, projects are “expected to catalyze development and the economies in their areas” and must include “a combination of retail, office, residential and other uses,” according to the article. The tax credit can help bridge the gap between a project’s cost and its value. 

Local projects applying for TMUD credits include Rockbridge, requesting a $34 million credit for its nearly $345 million Merchant Building tower, while The Galaxy at Polaris developers are requesting a $12.3 million credit for the $156 million project. Direct Retail Partners requests $6.2 million in tax credits for the $140 million High North project in Worthington. Thrive Cos. is asking for $6.3 million for its $506 million Grandview Crossing project and $6 million for the $251 million redevelopment of the Mount Carmel West campus. Developers of the $70 million Golden Bear redevelopment are asking for $6.9 million in tax credits. The Bernstein Cos. is requesting $6.6 million for the $89 million Continental Centre redevelopment. Developers of the $145 million Kroger Bakery project are asking for $13 million. Continental is requesting $3.8 million for its $121 million Arlington Gateway project. For more, read the full article (subscription may be required). 

Bricker & Eckler has launched a Megaproject resource center on its website to showcase its experience advising clients on laws governing project finance, economic development and construction related to Ohio's growing number of Megaprojects. Visit the resource center >> 

Ford Motor Company will receive $205 million in combined incentives over several decades if the company’s plans to “build a new electric vehicle aimed at commercial customers” at its Ohio Assembly Plant bring an expected 2,000 jobs and $108 million in new payroll to the state, Cleveland.com reports. The Ohio Tax Credit Authority approved a performance-based “30-year tax credit worth $70 million,” meaning Ford will have to hit the $108 million in added payroll and “operate the assembly plant for at least 33 years to receive the full credit,” according to the article. JobsOhio is planning $135 million in grants for the project. Ford’s Avon Lake facility currently employs about 1,650 people. For more, read the full article.