A proposed tax abatement for an Uptown redevelopment project led Plain City Council to debate the larger question of whether the village is business friendly.
“It can be said we are not pro-business because we are not supportive enough,” Mayor Jody Carney said.
A Community Reinvestment Area (CRA) abatement application from Tim Dawson and Lisa Bonta, the owners of the former Rialto Theatre at 251 W. Main St., prompted council to debate whether development needs to be incentivized in the Uptown.
Council member Michael Terry said dilapidated buildings like the Masonic Temple and the old elementary school lead him to believe that prospective business owners still need help to redevelop Uptown buildings.
Council member Frank Reed, however, strongly disagreed.
He said “you could make a strong case” that allowing the Uptown to be designated a Community Reinvestment Area violates state code because it must be an area “where development is discouraged.”
On the flip side, Stanford said yes when asked by Reed if he feels development is discouraged in the Uptown.
“Talk to local businesses to see what it’s like to locate in Plain City,” Stanford said.
Since many existing buildings in the Uptown are centuries old, Stanford said the cost of bringing them up to current building codes can be prohibitive to prospective businesses. He added that construction costs are up 48% since the pandemic.
Stanford explained that there are two other CRAs in the village, along U.S. 42 North and U.S. 42 South, so development priorities will likely shift to those areas over time.
Still, he said he feels there is still work to be done to make the Uptown the community center that officials and residents desire it to be.
“It is getting much better in Uptown Plain City, but we aren’t done yet,” Stanford said.
In regard to the abatement requested by Dawson and Bonta, Terry noted that it is the “lowest CRA we’ve ever offered,” which he feels reflects the Uptown gradually becoming more desirable.
Approving the agreement would result in a 75%, 10-year abatement for a total investment of $1,650,000 and the creation of five full-time employees with an associated annual payroll of $300,000, according to a memo from Village Administrator Haley Lupton. The agreement was reduced from an initial request of 100% for 12 years.
Dawson and Bonta intend to develop the site into an event center for “plays, weddings (and) community events,” according to their application.
The abatement would affect the property taxes of the assessed valuation of the redeveloped structure.
“It just seems like a no-brainer,” Terry said, noting that the commercial development will not generate any new students.
Council member Jim Eudaily, though, said he was unsure why council would not agree with the recommendation of the Jonathan Alder School Board.
On Tuesday, Stanford explained that the Jonathan Alder Board of Education initially countered the 100%, 12-year abatement application with a 50%, five-year counter-offer.
After further discussions, the school board recommended a 75%, seven-year abatement.
During the meeting, Terry said he feels the difference in revenue generated between the school district’s seven-year recommendation and village staff’s 10-year suggestion would be minimal.
A 10-year, 75% abatement is the threshold at which the Board of Education is not required to consent to the issuance of the abatement, according to Ohio Revised Code.
Following the district’s recommendation, Stanford said the applicants provided more detailed construction costs, which led village staff to believe the 10-year abatement would be justified.
While he said he would like to partner with the schools, Terry said he has to rely on his personal evaluation.
“This is our decision, not theirs,” Terry said.
Moving forward, Terry said he feels it will be important to approve or deny CRA abatement requests in accordance with an Economic Development Incentive Plan (EDIP), which the village is currently creating.
He said using the EDIP as a framework will ensure that abatements are not granted or denied in an ad hoc fashion.
Stanford said Tuesday that the EDIP will be completed by early fall, likely by the end of August. He said he is appreciative of discussions with the school board and feels the EDIP will facilitate greater understanding in the future.
Ultimately, council voted 5-1 to approve the abatement requested by Dawson and Bonta, with Reed dissenting.