Making development pay for itself

FINDLAY — Four new tax increment financing districts have been proposed to Findlay Council which could help pave the way for new development in the city — literally. Legislation was introduced to city council that would create the financing districts or TIFs during regular session Tuesday. If approved, the TIFs would enable the city to recoup its investment in infrastructure for the Sheetz distribution warehouse and would fund infrastructure for a project on Hancock County Road 236, a new roadway and utilities to Midwest Court and pay $10 million towards the cost of creating the proposed downtown recreation area. Mayor Christina Muryn said the money would help give the development a good start. "Tax increment financing districts are a tool that has been used around the state of Ohio to help development pay for development," said Muryn. "By establishing TIF districts in key areas of opportunity, the city will be able to help offset the cost of infrastructure investments which may be necessary to ensure well thought-out development in these areas." Ohio allows for the redirection of real estate property taxes generated by a development project to pay for public infrastructure and in some cases private improvements. Property tax revenue is shared by public entities, including the schools, Hancock County, the city, park district and library. These entities would continue to receive tax revenue based on current valuation; however, any gains in the property taxes due to the development would be diverted to the TIFs. As proposed, no funds will be diverted from Findlay City and Van Buren schools. The city of Findlay invested about $1.6 million in infrastructure for the Sheetz project. In October, Sheetz broke ground on its $169 million building for warehousing, production and offices for its convenience stores at the north edge of Findlay. The 511,704-square-foot building, at the northwest corner of County Road 212 and Township Road 230, will house new food preparation and distribution services. The Sheetz TIF would generate $3.35 million over 30 years, reimbursing the city the cost of the infrastructure, with additional money for improvements to the Hancock Road 99 corridor to support future projects, safety and aesthetics. According to city officials, Findlay Machine and Tool, 1700 Fostoria Ave., is looking to invest $50 million in a new facility to be built over the next five years at the corner of Hancock County roads 236 and 212. The company has asked Findlay to extend a waterline to the site, at an estimated cost of $150,000. The proposed TIF would generate about $4.85 million over 30 years. Additional revenue again would be used to invest in more improvements in the area. A total of about $1.5 million would be needed to extend a new roadway from Hancock County Road 99 south to Midwest Court. Midwest Court would then be extended east to connect parcels closer to Interstate I-75. A waterline and sewer line would be added. It's estimated that the Midwest Court TIF, along with developer payment, will reimburse the city for the cost of the infrastructure in nine years. Over 30 years, the TIF would generate $7.78 million, and allow for additional investment. So far, there are no estimates on how much the TIF for the proposed downtown recreation area would generate because no projects have been planned yet. In December, council appropriated $1.5 million and authorized city administrators to enter into a contract with Strand & Associates, Inc., of Columbus, to begin design and engineering services for the park. Known as the "Downtown North River Development Project," the recreation area would be designed to exist within the Blanchard River's flood zone and would include a skate park, gardens, shelter houses, picnic areas, a playable fountain area and an amphitheater, based on initial designs. Early estimates put the cost of the park somewhere between $10 million and $40 million. A price tag of about $30 million is now expected. Findlay's investment is expected to be about $10 million, with grants and donations making up the balance, Muryn has said.