New Findlay subsidy legislation in motion

FINDLAY — Legislation that will make new public subsidies available for commercial and industrial development within Findlay's corporate limits was introduced to city council during its regular session on Tuesday. The proposal would establish a new, citywide Community Reinvestment Area to replace the city's pre-1994 CRA, which can no longer be amended under state law. A Community Reinvestment Area, or CRA, is an economic-development tool in Ohio that lets cities offer property-tax exemptions on new investment. The subsidy applies only to the value of improvements — such as new construction or major remodeling — and not to the underlying land. Cities use CRAs to encourage development by reducing the property taxes a project would normally pay on the new value it creates. In return, the city negotiates terms with the developer, including the length of the abatement, the percentage of taxes exempted and any compensation agreements with the school district. Vision Companies, Columbus, is expected to seek a 75% property‑tax abatement for 15 years under a post-1994 CRA. City officials say the project would still generate about $200,000 a year. The company is planning a 480‑unit project on the former Shady Grove Golf Course along U.S. 224 on the city's east side. Because the site is being annexed after the city's final pre‑1994 CRA map update, it is not eligible for the older automatic program and would require a negotiated agreement under the new framework. Findlay City Council voted Tuesday to approve both the annexation of the Shady Grove Golf Course and the M-2 Multi-Family High Density zoning needed for the project, despite heavy public opposition. The vote was 7-2 in favor of each measure. Councilmen Rodney Phillips, R-6, and Danny DeLong, R-7, opposed both actions. Councilwoman Nichole Coleman, R-1, was absent. The 40-acre, high-amenity apartment development includes a six-year, two-phase buildout totaling 480 units, with construction costs of about $44.5 million and $50 million for each phase. Plans include multiple pools, ponds, courts and other recreational features, with green space between the creek and the Brookstone subdivision. Rents are projected to average $1,400 to $2,000. Under the new CRA legislation introduced to council, tax exemptions would apply only to the value of improvements and not to land. Terms would be negotiated case-by-case before construction or remodeling begins and must be approved by council in a written CRA agreement. The ordinance allows up to 15-year, 100% abatements for both new construction and remodeling projects, with a minimum $5,000 investment required for remodeling. Commercial properties include those with five or more residential units. The legislation does not set any terms for how the city will negotiate with the schools. Under state law, school district participation is handled later, during the negotiation of each CRA agreement. Any project seeking more than a 50% exemption for more than 10 years requires written approval from the school board or a compensation agreement between the city and the district. Council's Strategic Planning Committee, which voted May 22 to recommend development of the CRA to council, has said it will develop a policy for how the city evaluates subsidy requests and how it negotiates with the schools. Members agreed that the city still needs clear criteria for when subsidies are appropriate, how terms are set and how compensation to the schools will be handled. The Strategic Planning Committee is chaired by Councilwoman Heather Kensinger, R-at large, and includes council members Nichole Coleman, R-1; Brad Wagner, R-at large; BJ Preston, R-2; Carol Smith, R-3; and the mayor. Matt Cordonnier, director of the Hancock Regional Planning Commission, and Auditor Jim Staschiak serve as ex officio members. The legislation designates Service-Safety Director Rob Martin as the city's housing officer, responsible for administering the program. A seven-member CRA Housing Council would be created to conduct annual inspections of abated properties and hear appeals. Members of the housing council would be appointed by the mayor and confirmed by council, according to the ordinance. The body must include two residents of the CRA, two members appointed by the mayor, two members appointed by council and one member appointed by the City Planning Commission. The city's existing Tax Incentive Review Council would review compliance annually and recommend whether agreements should continue, be modified, or be terminated. An annual monitoring fee would apply to any CRA agreement, though the mayor would have discretion to set or waive the fee based on financial need and the city's interest in equitable development.