Even More Examples
Brian,
You should also understand a little on (Tax Incremental Financing) TIFs. The state has now allowed a tax diversion scheme using local tax dollars to improve local infrastructures. I think we have about five of these TIFs going on right as I write this note. TIFS must be used for commercial improved properties that have not been on the tax rolls before. As an example the new Holiday Inn Express at 204 and 256 is now TIFed. The school gets the tax revenue which is a little more than the vacant land was paying and the new assessed value of the building now goes to repay a loan made by the state to the city. This loan is based on future income of this commercial property. If the future commercial property never comes to be, then the debt repayment will come out of the city?’s general funds. Although these properties don?’t produce more children into our school system they also don?’t provide an offset for all the negative cash flow to our schools that these homes our causing.
TIFs can be up to ten years without approval of the schools. The one I mentioned above is a 75% TIF. So 75% of the new tax revenues go to the improvement of the roads. I understand they are going to build a road and a small bridge. This is to develop the property. Now is this the best way to attract commercial property? Let bring in our little sister the VILLAGE of Canal Winchester. She needed to have Gender road widened and a few traffic lights installed. Guess what the developer installed the lights and widened the road. I understand it was a $2,000,000 project. Canal didn?’t pay for any of it. If you consider that Canal doesn?’t give tax abatements to retail development, then you must realize that the Canal School system got a big boost in revenue when they put in the Kroger store. In addition Canal Winchester effectively used the rail line through town to attract a company that is in the packaging business. The real estate tax on that property was abated. You should ask our Mayor how Canal can do this and Pickerington can?’t.
I am using Canal as an example only because they are so close and they are easy to check out the information. Canal also slowed their residential growth down by using a condition of zoning when they allowed the 1400 new homes to be approved. The village only had about 450 homes in the mid-eighties. Yet they have only allowed a small percentage increase each year. Their strategy is not only condition of zoning but they also controlled how fast they made sewer and water available to the developers. I could give you many other examples but these pages only allow 600 words per posting. You can go around the outer belt and look at Grove City, Reynoldsburg, Groveport, Obetz, Dublin, and Gahanna. I leave out New Albany because we haven?’t found a Les Wexler yet, we only have Daryl Berry.
Brian,
You should also understand a little on (Tax Incremental Financing) TIFs. The state has now allowed a tax diversion scheme using local tax dollars to improve local infrastructures. I think we have about five of these TIFs going on right as I write this note. TIFS must be used for commercial improved properties that have not been on the tax rolls before. As an example the new Holiday Inn Express at 204 and 256 is now TIFed. The school gets the tax revenue which is a little more than the vacant land was paying and the new assessed value of the building now goes to repay a loan made by the state to the city. This loan is based on future income of this commercial property. If the future commercial property never comes to be, then the debt repayment will come out of the city?’s general funds. Although these properties don?’t produce more children into our school system they also don?’t provide an offset for all the negative cash flow to our schools that these homes our causing.
TIFs can be up to ten years without approval of the schools. The one I mentioned above is a 75% TIF. So 75% of the new tax revenues go to the improvement of the roads. I understand they are going to build a road and a small bridge. This is to develop the property. Now is this the best way to attract commercial property? Let bring in our little sister the VILLAGE of Canal Winchester. She needed to have Gender road widened and a few traffic lights installed. Guess what the developer installed the lights and widened the road. I understand it was a $2,000,000 project. Canal didn?’t pay for any of it. If you consider that Canal doesn?’t give tax abatements to retail development, then you must realize that the Canal School system got a big boost in revenue when they put in the Kroger store. In addition Canal Winchester effectively used the rail line through town to attract a company that is in the packaging business. The real estate tax on that property was abated. You should ask our Mayor how Canal can do this and Pickerington can?’t.
I am using Canal as an example only because they are so close and they are easy to check out the information. Canal also slowed their residential growth down by using a condition of zoning when they allowed the 1400 new homes to be approved. The village only had about 450 homes in the mid-eighties. Yet they have only allowed a small percentage increase each year. Their strategy is not only condition of zoning but they also controlled how fast they made sewer and water available to the developers. I could give you many other examples but these pages only allow 600 words per posting. You can go around the outer belt and look at Grove City, Reynoldsburg, Groveport, Obetz, Dublin, and Gahanna. I leave out New Albany because we haven?’t found a Les Wexler yet, we only have Daryl Berry.
