DevelopOhio

Covington, Kentucky–based development firm Corporex recently celebrated the progress of its long-term riverfront commercial and residential project by placing a time capsule and holding a ribbon cutting ceremony for a completed pedestrian bridge, the Cincinnati Business Courier reports. Corporex “has invested $250 million so far out of the projected $1 billion sum needed” to complete the Ovation project on “the shore where the Licking and Ohio rivers meet,” according to the article. Ovation will “see the development of a variety of outdoor excursions and properties across its 25-acre site,” including “a concert venue, restaurants, office space, condominiums and apartments, a hotel and various entertainment sites.” Corporex Chief Real Estate Officer Tom Banta said the project “is centered around being a multifaceted development,” with “diverse building types and transportation methods.” Corporex Chairman Bill Butler said the project would not have been possible with tax increment financing (TIF) policies. For more, read the full article (subscription may be required). 

The Cleveland-Cuyahoga County Port Authority board recently approved bond issuances that will provide “about $3 million in upfront cash” for the 16-story mixed-use Bridgeworks tower in Cleveland’s Ohio City neighborhood, Crain’s Cleveland reports. The bond issuances “will allow the developers to save about $2.3 million in sales taxes on construction materials,” according to the article. The port “agreed to issue $4.13 million in taxable revenue bonds through its bond fund” that will be offered on the open market. The bonds are “tied to a tax-increment financing (TIF) arrangement, a 30-year structure that will redirect a portion of the new property-tax revenues generated by the development to paying off project costs.” Bridgeworks will include 140 apartments, 70 of which will be income-restricted “workforce housing,” a restaurant, a 130-room Motto by Hilton hotel, lower-level retail and structured parking. For more, read the full article (subscription may be required).

City officials in Kettering say creating a new Community Reinvestment Area (CRA) could spur economic development in an area on the city’s northeast end that includes about “900 homes and Miami Valley Research Park [MVRP] vacant land” by offering “long-term tax breaks” for improvements to properties, the Dayton Daily News reports. A state-required housing study says the area “includes ‘several properties with blighting influences’ in neighborhoods conceived during World War II that have lacked significant reinvestment,” according to the article. The CRA would provide 75% tax exemptions for 10, 12 or 15 years depending on the amount invested and types of properties improved. City Manager Matt Greeson said Kettering is trying to create a tool that would help residents in the area improve their properties and also “incentivize high-quality, market-rate apartments.” Cleveland-based Industrial Commercial Properties (ICP) owns about 50 acres at MVRP and “has expressed strong interest in building a 300-unit apartment complex” there. City Economic Development Manager Amy Schrimpf said she expects ICP to submit plans soon after a CRA is approved by the city. For more, read the full article.

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).