Council panel holds off on Casto funding decision

FINDLAY — Funding for the public infrastructure tied to the Casto Communities development remains uncertain as city officials continue weighing how to pay for the road, utility and land-acquisition work needed to open the site. In a meeting held on April 7, Findlay City Council's Finance Committee continued to review the options, but said they need clearer cost estimates and decisions made on capital spending before making a recommendation to council. The administration is still assembling its capital spending plan for the year, and committee members said they cannot evaluate financing options for the Casto project until they know how the city's broader capital needs will be prioritized. In March, the committee voted to recommend that council approve the land purchase and infrastructure improvements needed to open the 374-unit housing development east of Wellness Way. The Finance Committee is chaired by Councilman BJ Preston, R-2, and includes council members Dan DeArment, R-4; Rodney Phillips, R-6; Dan DeLong, R-7; and Reed Needles, R-at large. The project includes a 21-acre land purchase for stormwater management, utility placement and future recreation space, along with roadway, water, sewer and utility extensions needed to open multiple adjoining parcels. Developers said the tract offered to the city is only partially usable because of wetlands and site configuration, but is well-suited for stormwater and other public infrastructure functions. City officials have said the Casto development cannot move forward until the land purchase is completed and the north–south connector road and related utilities are committed. Multiple landowners in the area have raised similar concerns, noting that without new roadway access, their sites cannot be fully developed due to fragmented property lines and limited access. Casto, a Columbus-based developer, plans a mix of townhomes and one-, two- and three-bedroom apartments, along with single-story options and amenities such as a clubhouse, fitness center, pool, coffee bar and internal sidewalks. Construction is expected to take 24 to 28 months. The city has not yet determined the total cost of the infrastructure package, which fund or combination of funds would be used, the benchmarks required for phased spending, or how the financing plan fits into the city's broader capital schedule. The administration is also expected to return to the committee with a draft agreement before any legislation is introduced. The city could pay for the project in cash, issue short-term debt, or package the costs with future capital borrowing. Early estimates put the combined cost of the land and infrastructure at roughly $2.75 million if financed through borrowing, with annual debt service of about $333,000 over 10 years at 3.75%. The Casto project lies within the County Road 99-I-75 TIF district, which captures the growth in property-tax revenue from new development and sets it aside for public improvements such as roads and utilities. At the April 7 meeting, there was also talk about using the city's CAST revenue to help cover the cost of the infrastructure package, but Auditor Jim Staschiak cautioned that CAST is not guaranteed long-term because the agreement can be revisited at any time and depends on continued development in the corridor. CAST is a separate revenue-sharing agreement among the city, county and township that gives Findlay an annual share of development-related income outside the TIF. Staschiak said any multi-year structure would require clear benchmarks — similar to a construction loan — with funds released only after specific milestones are met. Committee members agreed that benchmarks would be necessary, but did not identify which ones should be included. Casto and several neighboring landowners have already agreed to contribute toward the cost of the improvements through participation agreements tied to the County Road 99 corridor. Those agreements total about $1.1 million, including roughly $800,000 from Casto and about $300,000 from the other landowners. The contributions are intended to offset part of the city's cost, though the final amounts will depend on how the financing plan is structured. Editor's Note: The story has been corrected from an earlier version that incorrectly named members of the Finance Committee.