Two central Ohio projects win TMUD state tax credits

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). 

Economic Development, Financial Incentives, Project Finance, State Updates

Proposed $26M Springfield sports and event center could have major economic impact in Miami Valley

A proposed $26 million Big Four Sports and Event Center in Springfield that would “attract regional sports tournaments and other events” is expected to bring a 2-to-1 return on investment to the community, the Dayton Business Journal reports, meaning “the project could result in a $52 million economic impact” on the city. The 100,000-square-foot facility “would play host to youth and amateur athletic tournaments while also flexing to accommodate conferences, meetings and other special events” in addition to serving as a wellness center and “place for local sports teams to play,” according to the article. The Convention Facilities Authority of Clark County “is applying for $2.5 million in funding” through the Dayton Development Coalition’s Priority Development and Advocacy Committee. The center is “anticipated to create one to two dozen new jobs” while sustaining “up to 100 permanent jobs.” For more, read the full article (subscription may be required).

Economic Development, Project Finance, State Updates

Eleven large Central Ohio projects seek $107M in TMUD tax credits

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). 

Economic Development, Financial Incentives, Project Finance, State Updates

Bricker & Eckler launches Megaproject resource center

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 >> 

Economic Development, Financial Incentives, Project Finance

Study shows Granville could reap benefits from CIC, CRA, and JEDD

Officials in Granville are considering creating a community improvement corporation (CIC) and a joint economic development district (JEDD) as part of their plans to coordinate economic development efforts, the Newark Advocate reports. A coalition formed by Granville Township, the Village of Granville and the Granville Area Chamber of Commerce worked with Jim Lenner of Neighborhood Strategies, who presented an 80-page plan “to provide ways the Granville area can reap some of the benefits of the development coming to the central Ohio area” and diversify the local tax base to reduce public entities’ reliance on residential property taxes, according to the article. 

Lenner suggested creating a CIC specifically focused on the Granville area to “make it easier for businesses coming to the area because they would be working with one entity instead of going to the village, township and chamber all separately to get information about available spaces, infrastructure and other information.” A JEDD would allow the township to collect income tax on commercial properties to be used for water, sewer or other infrastructure improvements.” Granville Village Manager Herb Koehler said conversations about the CIC and JEDD recommendations are ongoing. For more, read the full article.

Economic Development, Project Finance, State Updates

New details of $500M Appalachian Community Grant Program released

The Ohio Department of Development’s Governor’s Office of Appalachia recently released new details for a program that will infuse up to half a billion dollars into the 32-county region (see our September 21, 2022 blog post), Gongwer reports. The Appalachian Community Grant Program, funded through the American Rescue Plan Act, is “part of Gov. Mike DeWine’s ‘Ohio Builds — Small Communities, Big Impact — A Plan for Appalachia,’” according to the article. Up to $30 million “will support project planning and technical assistance, and the remaining $470 million will be awarded to implement development projects” that “incorporate infrastructure, workforce, and healthcare.” Appalachian Technical Assistance Grants of $250,000 will be awarded to each county from the $30 million. Those grants “cover the county’s cost of helping lead applicants with planning and design of eligible projects and coordination.” In a statement, Governor DeWine said, “[t]here has never been a better time to live in Ohio, and we’re making sure that our Appalachian communities also experience the economic growth that we’re seeing across the state.” Applications for grants open November 2, 2022. 

Economic Development, Project Finance, State Updates

$500M in Ohio Appalachian grants provides “once-in-a-lifetime” opportunity

Governor Mike DeWine signed House Bill 377 into law this summer, providing “$500 million in funding from the American Rescue Plan Act (ARPA)” for transformative projects in Ohio’s 32 counties in the Appalachian region, The Daily Record reports. Ohio Mid-Eastern Governments Association (OMEGA) Executive Director Jeannette Wierzbicki said the program is not for “individual community development projects” but rather “projects that are transformative” or projects that partner with adjacent counties “to make a lasting difference for generations to come,” according to the article. Wierzbicki said the three primary areas the grants target are “Main Street or downtown redevelopment,” “workforce development such as public-private partnerships designed to build and coordinate technical, educational, clinical and workforce infrastructure,” and health care, especially investments in school or community-based services to address children’s physical and behavorial health needs.” For more, read the full article

Economic Development, Project Finance, State Updates

Central Ohio projects compete for new transformational mixed-use development tax credits

Developers for 11 Central Ohio projects have applied for the state’s new “transformational mixed-use development tax credits [TMUD]” program that “provides tax credits to help finance new construction or renovation of vacant buildings in mixed-use projects that are expected to catalyze development and the economies in their areas,” Columbus Business First reports. Teams behind 36 projects in Ohio applied for a combined $318 million. Among the Central Ohio projects, Thrive Cos. submitted for its Grandview Crossing project, seeking $6.3 million in credits, and also its redevelopment of the former Mount Carmel West site in Franklinton, asking for $6 million. Developers of the North Market tower redevelopment are seeking $34 million in tax credits. Arlington Gateway developers requested $3.8 million; Bernstein Co. asked for about $6.7 million for the Continental Centre downtown. Casto, the Kelley Cos. and the Robert Weiler Co. applied for $13 million for the Kroger Bakery project. Additional projects applying for the tax credits include the Front & Fulton project at the former L. Hoster Brewing Co. building, the Golden Bear redevelopment in Upper Arlington, the High North redevelopment of the Shops at Worthington Place, The Galaxy at Polaris, and the new Tru Hotel by Hilton in Delaware. For more, read the full article (subscription may be required).

Economic Development, Financial Incentives, Project Finance, State Updates

Columbus’s incentive strategy attracted $4B in projects in 2021

The City of Columbus “signed its largest-ever economic development agreement this year,” for the Ohio State University Innovation District project that is expected to create 12,000 new jobs, add 1,500 residential units and contract with minority- and women-owned construction companies, Columbus Business First reports. Columbus signed “24 incentive agreements with companies that pledged 13,800 new jobs and promised $4 billion in capital projects” in 2021, according to the article. For the Innovation District, City Council approved a 40% abatement on income taxes and a tax increment financing (TIF) district to fund infrastructure including water and sewer lines, sidewalks and green spaces. Michael Stevens, the city’s economic development director, said the city’s economic development strategy is to make sure “the right jobs are coming to Columbus, then invest in housing and infrastructure for people to get to those jobs.” For more, read the full article.

Economic Development, Financial Incentives, Project Finance, State Updates

Guernsey County Port Authority allocated $2M grant for economic development

A $2 million federal grant will help with the construction of development sites in a 45-acre parcel to help attract new businesses to Guernsey County, according to April 4, 2022 and June 14, 2022 articles in The Daily Jeff. Dr. Glenda Bumgarner, president of the Appalachian Partnership, sponsored the grant “and will work with the [Guernsey County Port Authority] in the application process” for projects to be funded, according to the June 16 article. The grant “will require an additional nearly $2 million in matching funds” from sources including additional grants and local dollars. Ten projects “have been identified and each will be fully researched to be included in a grant application that will enhance revitalization, cultural, and recreational areas throughout the county.” For more, read the full April 4, 2022 and June 14, 2022 Daily Jeff articles. 

Economic Development, Project Finance, State Updates
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