Shady Grove tax break heads to council

FINDLAY — A tax abatement offer to Vision Companies, Columbus, for construction of a 480-unit housing development on the former Shady Grove Golf Course is already moving towards a vote by Findlay City Council. The Strategic Planning Committee voted Thursday to place the agreement on council's agenda, even though council's Finance Committee must still review the offer. Council's next regular meeting will be held at 6 p.m. July 7 at the Findlay Municipal Building, 318 Dorney Plaza. All council meetings are open to the public and are livestreamed on the city's YouTube channel: Findlay Ohio. Vision Companies is seeking a 75% property tax abatement for 15 years under the city's proposed post-1994 Community Reinvestment Area program. If the Vision abatement is placed on council's agenda for July 7, the agreement will come right on the heels of legislation creating the CRA in the city. That legislation is expected to receive its third reading and a vote of council at the meeting. 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. The Strategic Planning Committee voted on May 20 to recommend the development of the new post-94 CRA legislation. Members said they will work to 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 ordinance would replace Findlay's pre-1994 CRA, which can no longer be amended under state law, and would allow the city to negotiate property-tax exemptions on new construction or major remodeling. Terms would be set case-by-case in written CRA agreements requiring council approval. Thursday's committee discussions focused specifically on the Vision subsidy. Because the site on U.S. 224 East was annexed after the city's final pre-1994 CRA map update, it is not eligible for the older automatic program and requires a negotiated agreement under the new framework. 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. Vision Development has cited rising construction costs and financing challenges as justification for the abatement. On Thursday, the committee reviewed revenue numbers for the CRA. With both phases being completed, the development would still generate about $1.1 million in property revenue over 15 years to be split among the city, Van Buren Schools, Hancock County and seven county taxing authorities. Over 30 years, the projections reflect every revenue stream the development would generate, including $23.9 million for Van Buren Schools from income tax and post-abatement property tax revenue, $11.4 million for the city from income tax, property tax and water, sewer and stormwater revenue, and about $5.1 million for Hancock County and county agencies through their millage distributions. On Thursday, there was some pushback on the projections, including questions about the early years of the CRA straining Van Buren Schools before income tax and post-abatement property tax revenue ramp up. The "additional" income tax projections also raised questions because tenants may already live or work in the city and already be paying the city tax. There was also skepticism centered on the 30-year totals, which rely on full build-out, full occupancy and stable earnings over three decades. Throughout the discussion, Mayor Christina Muryn framed the project as a necessary investment in the city's long-term economic health, arguing that employers are already struggling to recruit workers because prospective hires "look at it and can't find somewhere they want to live." She said the development helps stabilize the housing market, supports business growth, and avoids new infrastructure costs because the developer will build and maintain all internal utilities. Muryn acknowledged concerns about early-year school impact and income-tax assumptions but said there is no practical way to isolate only "new" workers. She said the city must continue expanding housing options to remain competitive — that supporting this project now means "reaping the benefits for generations to come." 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 Muryn. Matt Cordonnier, of the Hancock Regional Planning Commission, and Auditor Jim Staschiak serve as ex-officio members.