Plain City Council unanimously rejected what would have been the village’s first Tax Incremental Financing (TIF) agreement, and may have rejected a new residential development in the process.
“This may have eliminated this project entirely,” said Dwight McCabe, with developer the McCabe Company, following a 5-0 vote on Monday to deny the TIF.
The McCabe Company planned to construct a 67-unit residential development, known as the Hamlet on Darby, on 9.23 acres off of Fairfield Drive. The neighborhood was branded as a senior living community in which 80% of the households were required to have at least one occupant who is 55 years of age or older.
The property was rezoned to accommodate a residential development in 2018 and the final development plan for the neighborhood was approved last year.
In order to offset the cost of public infrastructure improvements, developers requested a non-school, 30-year TIF agreement.
If it were approved, the increase of the true value of the property, following development, would have been exempt from taxation for thirty years.
While TIFs generally affect public service entities that rely on property tax revenue, the McCabe Company agreed to make “make-whole payments” to the Jonathan Alder and Tolles school districts, the Pleasant Valley Fire District and to the village for the sake of the Plain City Police Department levy.
Still, a number of individuals representing public entities spoke out against TIFs.
Director of the Plain City Public Library Chris Long spoke during the public comments portion of the meeting about the adverse effects TIFs may have on the library.
“It might seem like a small amount of money but for a small organization, it is a big impact,” she said.
Long said she understands that the village must consider tax incentives to promote development, but urged officials to involve the entities affected in any discussions. She said she learned of the potential TIF through the newspaper (Journal-Tribune).
Property taxes are the primary revenue stream for the library, aside from a small allocation from the state’s public library fund, Long said.
Likewise, Pleasant Valley Fire District Chief Mark Kidd previously cautioned the village against approving residential TIFs.
While the agreement for the Hamlet on Darby would not adversely affect the fire department, Kidd earlier emphasized that his agency, like the library, is “100% property tax driven.”
During the first reading of the ordinance surrounding the TIF, several council members expressed hesitancy to approve residential TIF agreements.
Council member John Rucker, who was not present for the second reading and vote Monday, said he feared approval of the TIF for the Hamlet on Darby would open the door to other residential tax incentives that may have a stronger negative impact on public service entities.
The vote Monday appeared to echo his sentiment.
The action taken by council prompted McCabe to question the village’s process. He asked why a public hearing was not held on the topic, as he felt he would have an opportunity to respond to comments from those in opposition.
“We’re completely confused,” McCabe said.
However, Doug Holthus, filling in for Law Director Paul Lafayette, said a TIF ordinance does not require a public hearing, as each reading served as an opportunity to comment.
Council President Michael Terry agreed.
“This is, for us, a very normal process,” Terry said.
Council member Frank Reed told McCabe that he should “think about something different” and request an altered agreement is added to a future council agenda.
McCabe said that is unlikely to happen, as the developer’s contract on the property expired Monday.
“I’m really quite surprised,” McCabe said. “I don’t think you’ll be seeing this again.”
In other business:
– Mayor Jody Carney presented a proclamation recognizing lifelong Plain City resident Bob Converse.
She noted that Converse has been involved in the community in various capacities, and served on the parks committee, pool committee and Jonathan Alder school board. Carney said he is also an accomplished artist and athlete.
– Council unanimously approved resolutions authorizing the sale of impounded vehicles and authorizing the sale or disposal or village property.