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

Grant and TIF package approved for Worthington’s High North project

Worthington City Council has approved “an economic-development grant and tax-increment-financing package to facilitate” the High North project proposal to “rebrand and redevelop the Shops at Worthington Place mall” into a mixed-use commercial space, The Columbus Dispatch reports. Council “earmarked a $2.5 million grant to help developer Direct Retail Partners with construction,” to be paid in “five installments of $500,000” toward the six-story, 75,000-square-foot class-A office building, according to the article. Economic development director David McCorkle said the grant is a payroll grant based on the expectation that the office building “would generate at least $30 million in annual payroll,” which would generate $750,000 per year in income-tax revenue for the city. Council approved a tax increment financing (TIF) package to divert a portion of the developer’s property taxes each year “to help pay for the [public parking] garage, which is expected to cost about $12.1 million.” For more, read the full article

 

Economic Development, Financial Incentives, Project Finance, State Updates

Developer seeks state tax credit for $107M downtown Cincinnati project

NewcrestImage LLC, the developer that wants to transform the three-building Fourth & Walnut Centre complex in downtown Cincinnati into a dual-branded hotel, is seeking a second $5 million Ohio Historic Preservation Tax Credit for the $107 million project, the Cincinnati Business Courier reports. NewcrestImage was awarded $5 million in tax credits for the project in December 2018, according to the article. Cincinnati City Council “unanimously approved a property tax abatement” for the project in January 2019. Fourth & Walnut includes a 19-story tower “designed by famed architect Daniel Burnham’s Burnham & Associates” that dates to 1903, “a four-story building built in 1937 and a six-story building built in 1961.” The state historic tax credit “would allow NewcrestImage to move forward with plans.” For more, read the full article

Economic Development, Financial Incentives, Project Finance, State Updates
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