DevelopOhio

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.

Mount Vernon City Council is considering adding a New Community Authority (NCA) to help fund the infrastructure needed for new development projects without adding to the existing community’s tax burden, Knoxpages.com reports. An NCA “is a separate government entity that has development powers,” that can “put in infrastructure and acquire land for development as well as levy a special tax in that development only to pay for the project,” according to the article. J. Caleb Bell of Bricker & Eckler spoke to council members, explaining that combination of powers “makes this tool very special,” saying, “it’s a way of getting an additional revenue stream from new development.” Bell “said the NCA tool targets new developments or undeveloped areas that are going to be developed and puts a charge or assessment on those properties only,” creating an “independent revenue stream that comes just from new development.” Assessments run for a specified period of time such as 20 years, the article reports, and NCA money “can be used for land acquisition, infrastructure, roads, sanitary sewer, a new fire station, and community facilities” including “day care centers, pools, parks, educational facilities, lighting, pedestrian underpasses, recreational facilities, and other amenities.” 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. 

Columbus City Council approved a request from Designer Brands Inc., owners of DSW, to dissolve a Jobs Creation Tax Credit agreement because of pandemic-related changes to its workforce, Columbus Business First reports. As part of the five-year agreement that went into effect in 2017, DSW agreed to “invest $3.6 million in improvements for an 82,000-square-foot space at 4314 E. 5th Ave.,” retain 840 jobs and create 100 additional jobs, the article reports. The company “exceeded the hiring goal in the incentive deal with its more than 1,000 local associates in 2018 and 2019, but it did not hit those goals in 2020 and 2021 due to the pandemic.” While DSW said it still employs more than 1,000 associates locally, a shift to more remote positions means a portion of those positions are “no longer at the facility that received the incentive.” For more, read the full article (subscription may be required).

The parking lot at JPMorgan Chase’s McCoy Center at Polaris doubles as “a giant solar farm” that includes “about 40,000 [solar] panels covering about 165,000 square feet,” making it the second largest commercial office solar installation worldwide, The Columbus Dispatch reports. The bank, the largest private employer in the Columbus region, previously installed solar panels on the roof of the McCoy Center; combined with the parking lot installation, the panels will “meet 75% of the electricity needs” of the building, “said to be the largest single-user office building in the U.S. after the Pentagon,” according to the article. The bank set a “target to finance and facilitate more than $2.5 trillion over 10 years — including $1 trillion for green activities — to advance long-term solutions that address climate change and contribute to sustainable development.” For more, read the full article.