Oregon votes for CRA for new apartments

Kelly J. Kaczala

         Oregon City Council on Monday approved an agreement for a Community Reinvestment Area (CRA) with Oregon Place Apartments that will provide real property tax abatement as part of the state Community Reinvestment Area Program.
        The city received an application from the Oregon Economic Development Foundation and Oregon Place Apartments, LLC, proposing to enter into a CRA agreement with the city. The agreement provides for construction of commercial multi-family housing apartments located at 1060 Town Central Blvd.
        It was determined to be in the best interests of the city to enter into the CRA agreement with the company, which includes a tax exemption of 30 percent over a 15 year period.
        :...This ordinance will allow us to close on the property in hopes that the construction of the apartments will start in the spring of 2023,” City Administrator Joel Mazur said at a committee of the Whole meeting on Dec. 5. “Right now, everything is scheduled, ready to go, just waiting on the approval of the CRA agreement that has already been in the works. Hopefully, we can close on this and start to see the vertical construction in the town center.”
TIF District
        Council also approved consider companion legislation that will allow the city to collect on the increased assessed property tax value on the parcel where the apartment complex will be constructed, according to Mazur.
        “The assessed property tax on this parcel is collected once the improvements are made. It wouldn’t be collected until the following year once construction is completed,” he said. “This is something that is necessary for a TIF district,” he said. Tax Increment Financing (TIF) is a public financing tool, available to local governments in Ohio to finance public infrastructure improvements. It captures the increase in property taxes, and sometimes other taxes, resulting from new development, and diverts that revenue to subsidize that development.
        “We have to file this with the state to make sure we can collect based on the increased property tax values of the project. We’re a little bit ahead of the game on this. There’s a certain point in time each year where we have to file with the state. Since we’re doing it now, we can be ahead of the game and get it filed so we don’t have to worry about it later.”
        Council also approved the following: 
       •Authorized Toledo Edison to install nine, 50 Watt LED acorn post top style luminaires on 20 ft. fiberglass poles with underground supply for Phase 1 of the Oregon Town Center. The city will issue a purchase order for the entire cost and expense of installation to Toledo Edison for $20,000. Operating costs will be assessed to the benefited property owners;
        •Authorized a change order with Midwest Contracting, Inc., Holland, in the amount of $46,640 for additional work related to the Oregon Central Fire Station 2021 project.


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