Findlay has cash plan for Casto

FINDLAY — The city of Findlay is moving forward with negotiations on a cash plan with a Columbus-based developer to purchase the land and fund the infrastructure needed for a residential development on the city's west side to proceed. In February, Findlay City Council's Finance Committee was told that the 374-unit Casto Communities project, planned east of Wellness Way near the diverging-diamond interchange on Interstate 75, 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. The development would include 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. Rent is expected to range between $1,300 to $2,000 per month. Construction is expected to take 24 to 28 months. As proposed by Findlay administrators, the city will pay about $1 million from the General Fund to buy the 21 acres from Mardic Investments Inc., Sylvania, the landowner. About $1.9 million would be spent on the infrastructure for the Marty–Midwest Court roadway and utility extension, including: $800,000 from the city's Capital Fund, $450,000 from the Sewer Fund and $350,000 from the Water Fund. Developers would then reimburse the city for part of the expense. Casto would repay $1.4 million over 10 years, and the Sunshine Hospitality Group, Wausau, Wisconsin, 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. Mayor Christina Muryn said she expects the city to be able to fulfill the obligation within two years. She has been authorized by council's Finance Committee to spread the city's investment over five years during the talks. If a development agreement is reached and approved by council, the decision means Findlay avoids taking out debt for the project, but the expense is enough that it will reshape capital spending over several years - delaying other city projects and equipment purchases and lowering the Capital Fund balance. The Finance Committee voted April 20 to recommend council's approval of the proposed a $20.1 million capital budget for 2026, part of a 10-year spending plan developed by city administrators, with cash for the development built into the plan. The committee's report is included on council's agenda for Wednesday's regular meeting. Council's acceptance of the committee report will constitute approval of the capital plan, without further legislative approval. Actual capital spending will require a vote of council. The development agreement with Casto and the land purchase will return to council. Council will meet in regular session at 6 p.m. Wednesday 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: Findlay Ohio. Council's regular meetings are typically held on the first and third Tuesdays of each month, but are postponed to Wednesdays on election days. 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. During the committee's review of the capital spending plan on April 20, City Engineer Jeremy Kalb said the administration shifted both equipment purchases and project schedules to keep Findlay's capital plan balanced after the Casto development was added to the spending. Kalb said the first adjustments involved delaying equipment replacements — including pickups, mowers, dump trucks and backhoes — by pushing them into later fiscal years. He said those items can have their service life extended long enough to reach the next budget cycle. Several projects were also moved, he said. For example, rehabilitation of the Blanchard Street Bridge was postponed because the bridge remains in good condition, but work will be needed soon. Kalb said equipment and project adjustments occur in every capital plan, but the Casto development required a more strategic approach to annual spending. He said the goal was to maximize project outcomes, maintain overall capital stability and ensure department heads could continue delivering services while keeping projects on schedule. A full accounting of how the city reshaped its capital spending plan to free up cash for the Casto agreement has not been made public. The spending will also lower carry-forward balances in the Capital Fund. Kalb described the 2027–29 carry‑forward balances as "a small number that's manageable." The city typically carries forward a cash balance of about $400,000, intended as a buffer to start projects in the new year. Next year, the balance will drop to $200,000. The land purchase includes a 21-acre parcel, which city officials said would be used as green space for stormwater management, utility and infrastructure placement, and future recreation or park-related uses. Developers say 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. Infrastructure improvements include extending public roadway, water, sewer and related utilities to open up the adjoining development sites, which the administration says are otherwise difficult or impossible to build out due to fragmented property lines and limited access. City officials say multiple landowners in the area have raised similar concerns: without new roadway access, they cannot fully develop their sites. The proposed connector road would run from County Road 99 to Midwest Court, crossing several parcels. The entire area lies within the County Road 99/I-75 tax increment financing (TIF) district approved by council in 2024. It provides the city with another source of revenue to recoup development expenses. 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, the park district and the 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 TIF. Tax revenue for Van Buren Local Schools is exempt under the County Road 99/I-75 TIF. Over 30 years, the TIF is expected to generate about $7.78 million.