Vote on CRA map update delayed

FINDLAY — Findlay Council postponed its vote on updating the city's Community Reinvestment Area (CRA) map after questions arose about the phase-out of a long-standing incentive for commercial and industrial projects. A CRA is a program authorized under Ohio law that allows cities to offer property tax abatements as an incentive for development and reinvestment. These abatements apply to the increased property value resulting from new construction, remodeling, or rehabilitation of residential, commercial and industrial properties. For Findlay, the CRA provides tax exemptions ranging from 4 to 10 years for residential improvements and 2 to 10 years for commercial or industrial projects, depending on the size and type of investment. The goal is to encourage redevelopment in older neighborhoods, support infill housing and make new construction more financially feasible. The original reinvestment area dates back to before 1988, when it was first established to encourage reinvestment through property tax abatements. The program was amended in 2013 to include the Marathon Petroleum downtown project and was extended to the city's corporate limits. The expectation was that it would grow naturally with annexation. Since then, the city has continued to expand its corporate limits through annexation, adding 641 acres of land now slated for residential neighborhoods, mixed-use development and industrial sites. However, in 2023, state lawmakers added language to the Ohio Revised Code stating that any increase in the boundary of the CRA constitutes an amendment of the map, making the update necessary. Mayor Christina Muryn said the city has been advised to update the map to allow for use of the CRA by upcoming or current projects such as Sheetz, Horizon Point Villas and Casto, showing they are clearly within the city of Findlay limits. Sheetz is building a $169 million food preparation and distribution center on the city's north side near County Road 99 and Interstate 75, a project expected to create more than 700 jobs. Horizon Point Villas, located off Bright Road on Findlay's east side, is adding 85 upscale villas and townhomes with resort-style amenities. Casto Communities plans a 374-unit townhome and apartment development near the I-75/County Road 99 corridor, featuring a clubhouse, pool and fitness center. The proposed resolution also includes a sunset clause that would end automatic business abatements under the city's pre-1994 CRA on Dec. 31, 2026, while keeping residential incentives intact. Councilman Grant Russel questioned the move, calling the pre‑1994 CRA "a relatively unique economic development tool." "Why are we going down the path of sunsetting such a productive economic development tool?" he said. Russel credited the program with major wins, including Marathon Petroleum's campus expansion. He warned that removing automatic abatements could undermine Findlay's competitiveness. Council agreed to postpone the vote until its regular meeting on Tuesday to allow for further review of the legislation. The vote at the Dec. 2 meeting was 7-2 in favor of the postponement, with council members Holly Frische, R-1, and Jim Niemeyer, R-6, opposed. Council will meet at 6 p.m. on Tuesday in the Findlay Municipal Building, 318 Dorney Plaza. All council meetings are open to the public and are livestreamed on the city's YouTube channel: FindlayOhio. CRAs before and after 1994 Pre‑1994 CRAs operate under older state rules that allow cities to grant automatic, standardized property tax abatements — typically 100% for up to 10 years — without negotiating individual agreements. Developers know exactly what they'll receive, which removes uncertainty and speeds projects. These zones can only be amended twice, making boundary changes limited. Post‑1994 CRAs, created after legislative reforms, require project‑specific agreements between the city and the developer. Terms such as abatement percentage, duration and additional incentives (like income tax credits or infrastructure support) are negotiated case‑by‑case basis. This approach gives cities more flexibility to tailor deals based on community benefit, but it introduces public scrutiny and longer approval timelines. Under the post‑1994 CRA rules, every incentive package must be negotiated and approved through a formal agreement, which is typically reviewed in public meetings and subject to input from stakeholders like schools, taxing authorities and sometimes residents. Unlike pre‑1994 CRAs — where abatements are automatic and predictable — post‑1994 deals require council votes and often involve disclosure of terms, performance metrics and community impact. This transparency can slow the process and expose projects to debate or opposition, because the details aren't "by right" but negotiated in the open. A review of city records shows 91 total projects certified under the program, with roughly 59% classified as commercial or industrial and 41% as residential. Yet nearly 99% of all investment — about $488 million of $492 million total — came from business and industry projects, including major expansions by Marathon Petroleum, Campbell Soup and the Hancock Hotel. Residential projects, while numerous, account for only about $4.1 million in investment, primarily for infill and rehabilitation. Among active projects today, the pattern holds: 65 projects remain in effect, representing about $461 million, with business and industry making up more than 99% of that amount. Muryn said she requested the sunset provision, arguing Findlay is "in a position to be a little more choosy" after a decade of strong growth. "Moving to a post‑94 CRA allows us to negotiate individual projects based on overall community benefit," she said, adding that residential benefits would remain and the city could adopt a transparent scoring matrix to guide future deals with schools and other taxing entities. Muryn said she is open to removing the sunset clause if council prefers, but stressed the need to adopt an updated map to keep annexed properties eligible for incentives. Auditor Jim Staschiak urged caution, calling the mechanics "complex" and suggesting council consult outside CRA counsel before changing a long‑standing incentive that has underpinned major projects. The amendment will incorporate the newly annexed land into the CRA. It also modernizes program rules while preserving Findlay's grandfathered status under Ohio law. This is the second and final amendment permitted for pre-1994 CRAs, Muryn said. On the residential side By extending CRA eligibility to newly annexed land, the city can also use it to encourage builders to create single-family homes, townhouses and multifamily units while supporting reinvestment in aging neighborhoods. According to a housing report developed by DiSalvo Development Advisors, Dublin, Findlay is averaging only about ten new homes per year, but the demand is for hundreds of new units over the next five years. No new residential plats were developed this year. The study projects that Hancock County will need between 849 and 945 for-sale homes, 519 to 688 rental units, and up to 110 assisted-living units over the next five years — levels not seen since before the Great Recession in 2007-2009, according to the report. Rental occupancy rates have also climbed to 99%, and rising construction costs and high interest rates have further constrained new development. These conditions have driven up home prices and limited options for first-time buyers and working families, according to DiSalvo. The report says housing patterns in Findlay reflect decades of growth from a historic downtown core outward into suburban neighborhoods. Older homes near downtown have often been converted into duplexes and triplexes — about 900 conversions were identified during a 2019 zoning update. Multifamily housing is concentrated near downtown, major corridors like Tiffin Avenue and Bright Road, and around the University of Findlay, while suburban subdivisions dominate the north, east and southwest. The CRA legislation being considered by council expands eligibility for residential rehabilitation from one- and two-unit buildings to include up to four-unit dwellings. It also raises the minimum investment threshold for residential projects from $2,500 to $5,000.