Plain City officials took the first step toward providing a tax abatement to a developer who would like to turn the former Rialto Theater into an event center.
On Monday, council approved a motion to certify a Community Reinvestment Area (CRA) abatement application for 251 W. Main St. The vote did not approve the abatement, but sends the request to the Jonathan Alder Board of Education for approval before it will come before council again.
Council member Frank Reed was the lone dissenting vote, though several council members voiced some support for his arguments.
The application was submitted by T&L Land and Cattle Company, whose principal owners are listed as Tim Dawson and Lisa Bonta.
In their CRA application, Dawson and Bonta write that they intend to create a “theater (event center)” at the property. They envision the space acting as a site for “plays, weddings (and) community events.”
They wrote that they will invest approximately $625,000 in the project, which will create one new full-time job and eight part-time jobs.
According to their application, they plan to begin the project in February and complete it in December.
The applicants wrote that they believe a tax incentive is warranted because they intend to “renovate (and) invest in the downtown to update the building and create space for the community to use – this brings the arts back to the community that it once enjoyed.”
Dawson and Bonta requested a 100% tax exemption for 12 years.
CRA abatements apply specifically to the property taxes of the assessed valuation of the redeveloped structure.
Reed said he does not feel it is appropriate to continue granting CRA abatements for properties in the Uptown district.
He argued that the Ohio Revised Code section that allows for CRAs notes that they are intended to incentivize development in “depressed” areas.
Reed said he doesn’t feel council needs to motivate developers when there is already a “fight” between a number of parties to purchase properties in the area.
“It doesn’t seem like a CRA would be worthwhile for these people because they’re buying up properties left and right,” Reed said.
Council member Jim Eudaily said he agrees with Reed’s point, noting that the applicant has already completed a number of projects in the Uptown area.
Likewise, Council member Michael Terry said he didn’t “disagree with the merits” of Reed’s arguments, but felt comfortable certifying the application so it could go before the JA Board of Education.
He noted that council will have several weeks to continue to consider the application before a vote is taken on the matter.
Additionally, he said he did not want to stall a property owner from beginning construction. Village Administrator Haley Lupton said Ohio Revised Code mandates that CRA applicants cannot begin work until the application is voted upon.
Still, Terry said, moving forward, he would like to see CRA applications go before a committee for review prior to appearing before council.
Council intends to establish an Economic Development Committee early this year, so Terry said he feels that should be the first stop for CRA applications in the future.
In the meantime, Lupton said Development Manager Jason Stanford did review the application regarding to 251 W. Main St. and created a memo for council.
Reed agreed with the suggestions shared by Terry, but urged council to wait to certify the application from Dawson and Bonta.
He motioned to send the application to the Personnel and Finance Committee but the motion failed on the floor.
Reed told council he feels that members need to reconsider when CRA applications are approved and to whom they are granted.
He emphasized that the specific type of abatement is not intended to be a “reward” for those who have already developed the area, but act as an incentive to invest in underdeveloped areas.
“I fail to see where we get a return on investment,” Reed said.
In other business:
– Council unanimously approved a number of motions to appoint residents to the village’s boards and committees.
Those appointed include: Todd Boyer and Robert Phillips to the Design Review Board, Chad Smith to the Board of Zoning Appeals and Katie Khoury and Justin Giaimo to the Parks and Recreation Committee.
– Council also agreed with Lupton’s suggestion to place a citizen recognition sign near the entrance of the Darby Station residential development on Route 161.
Council recently approved the first citizen recognition sign to honor Donnie Nickey.