Findlay Council committee OKs Casto plan

FINDLAY — Findlay City Council's Finance Committee has voted to recommend approval of the Casto agreement, despite confusion over the reimbursement of developer contributions to the project. The committee voted 4-1 on July 7 to make the recommendation, with Councilman Dan DeLong, R-7, opposed. The Finance Committee is chaired by Councilman BJ Preston, R-2, and includes council members Dan DeArment, R-4; Rodney Phillips, R-6; Reed Needles, R-at-large; and DeLong. Auditor Jim Staschiak told the committee that the agreement requires that any money developers contribute must be reimbursed in full before the city can use revenue generated from its Tax Increment Finance (TIF) plan for future improvements. Casto's 374‑unit development, planned east of Wellness Way near the Interstate 75 diverging‑diamond interchange, includes townhomes and one‑, two‑ and three‑bedroom apartments with rents expected between $1,300 and $2,000 per month. Construction is expected to take 24 to 28 months. Casto has agreed to pay $1.4 million over 10 years, and the Sunshine Hospitality Group, with plans to construct a hotel nearby, would contribute $500,000 upfront. According to site plans filed in September 2024, the hotel would be located at the intersection of Mardic Drive and County Road 99. "Any dollar that comes out of their pocket is going to be reimbursed in full," Staschiak said, adding that the city cannot invest "one dollar" of TIF revenue until debt and infrastructure costs are repaid and developer reimbursements are complete. Mayor Christina Muryn said Casto's "minimum service payment" is designed to stabilize early-year revenue because Community Redevelopment Area (CRA) abatements will reduce taxable value. If the TIF produces less than $140,000, Casto must pay the difference — and those additional payments are also reimbursable later if the district generates surplus revenue. CRAs let the city reduce property taxes on new development. A TIF works differently: it keeps the growth in property-tax value created by new development. The money is then used to help pay for roads, utilities and other public improvements. Terms for the Casto CRA subsidy have not yet been approved. Preston said the layered structure was difficult to follow, noting he felt he had "heard two different things" before the auditor restated the repayment sequence. On June 18, council voted 6–1 to add the Casto legislation to its agenda, despite Staschiak's warnings that the development agreement still contained errors, unresolved blanks and unreviewed bond‑financing language. He said moving ahead without completing the statutory fiscal review risked exposing the city to improper reimbursement and noncompliant bond financing. DeLong again cast the lone dissenting vote, citing both the rushed timeline and concerns about business tax volatility. The legislation authorizes the mayor to sign separate agreements with Casto and Sunrise. Those agreements commit the city to building public infrastructure — including Mardic Drive, improvements to Midwest Court and County Road 99, and related utility and drainage work — to support both projects. It also authorizes the city to buy 21.5 acres from Mardic Investments Inc., Sylvania, the landowner. The appropriation covers the purchase and related closing, title, survey and professional costs. The ordinance appropriates $1.05 million from the General Fund for the purchase and related closing, title, survey and professional costs. The legislation also allows the city to front the cost of infrastructure and reimburse itself later. The city expects to initially pay for the road, utility and infrastructure work, about $1.9 million, using the General Fund, Water Fund, Sewer Fund, Capital Fund, or other available accounts. The ordinance preserves the city's ability to reimburse those funds later using TIF revenues, developer payments, or the proceeds of future bonds. It also authorizes the auditor to track and process those reimbursements. It also sets up the framework for future bond financing. The ordinance declares the city's "official intent" to issue bonds at a later date to reimburse eligible costs. It does not authorize any borrowing now, but it directs the mayor, auditor and law director to begin preparing a future bond resolution. One section includes a blank for the maximum principal amount, which would be set in later legislation. Finally, the ordinance also declares the infrastructure work and parkland purchase to be a public purpose and includes an emergency clause so it would take effect immediately upon passage. Emergency language bypasses a 30-day stay on legislation approved by council to allow for public review and a possible citizens' referendum. The legislation is expected to receive its third public reading and a vote of council at its next regular meeting on July 21. In February, the Finance Committee was told that the Casto Communities project cannot advance until the land purchase and infrastructure issues are resolved. The development relies on both the land purchase and the construction of a north–south connector road to open access across multiple privately owned parcels.