|
Thursday, 04 December 2008 |
By WILLIAM LANEY
Managing Editor
Two tax incentive programs should help spur revitalization and development in Wapak-oneta, a city business leader says, but first the initiatives must be approved by Wapakoneta City Council members.
Wapakoneta Area Economic Development Council (WAEDC) members Wednesday supported a presentation being made to Wapakoneta City Council members regarding the benefits of the creation of a Community Reinvestment Area (CRA) for the entire city and Tax Increment Financing District (TIF) for the downtown area.
“We believe these two programs should be seriously considered by city councilors to assist with economic development efforts within the city of Wapakoneta,” WAEDC Executive Director Greg Myers told the Wapakoneta Daily News on Wednesday after the meeting. “The CRA district would allow for tax abatements for existing and new commercial and industrial projects, and legislation could be drafted for tax abatements for improvements to existing residential properties.”
Myers explained city councilors would have to determine the criteria for qualifying residential properties.
He said municipal leaders typically research the housing in an area and establish residences built prior to a specific date qualify for the tax incentive.
Housing improvements raises property values and creates more desirable homes — which is linked to quality of life and economic development, Myers said.
“A TIF defines a specific district within a municipality and is based on an increase in property value which results in an increase in property tax,” Myers said. “After a district is determined, the increase in property tax is set aside into a special fund which is administered only for the purpose of infrastructure improvements that could benefit the district.”
Myers explained property owners in a TIF district would continue to pay their property taxes including any subsequent increase because of property value increases, but the increases in property taxes after the establishment of the TIF would be placed in a separate fund for infrastructure improvements.
The money could grow until it could pay for a project or the tax revenue could be used to pay debt service for a project.
Wapakoneta City Council President Don Jump, who chaired the ad hoc Tax Incentive Review Committee, is to make a presentation to city councilors at the Dec. 15 meeting.
“With the phase out of the tax incentives which were based on personal property taxes by 2010 and the whole tax reform at the state level, I think it is important that we have something in place within Wapakoneta to be able to offer new tax incentives,” Myers said. “CRAs are what most municipalities are doing and replacing the former tax incentive programs.
“Rather than doing the CRA program piecemeal, one little spot at a time as it would develop project by project — it made more sense to make the entire city a CRA district,” he said. “Then we could choose project by project what to do.”
The city has three CRAs — two industrial and one residential.
He said the residential aspect of the CRA program is more of a municipal government consideration than an economic development tool.
“The TIF program helps to provide specific dollars for benefits to a specific area of the city,” Myers said, noting the Job Ready Sites location is part of a TIF program. “A downtown TIF would provide a revenue stream for infrastructure improvements, such as additional municipal parking, more amentities including park benches or improvements to the river corridor project.
“There are a whole variety of improvements that could be made,” he said. “Committee members felt since it is an option under Ohio law, something that is becoming more common in Ohio communities — that it is something Wapakoneta should do.”
|
|
Last Updated ( Friday, 05 December 2008 )
|
