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ZANESVILLE − City council is considering two new ordinances that could place new tax incentive districts on West Main Street and Sharon Avenue.
Named after the two arterial streets, the districts will allow residential, commercial and industrial properties to apply for abatements to make improvements on their properties easier.
“The goal is to encourage people to make improvements to their properties,” said Matt Schley, community development director. “While this is not a grant, a tax abatement would allow someone to, say, ‘My taxes are estimated to go up to X, will you loan me Y knowing that I will have additional capital to pay for the loan.'”
An abatement would offset the cost of the loan and allow residents to make improvements while lessening the burden of increased taxes. The redevelopment of a single-family home is what the abatement works best for, Schley added.
Freezing taxes on development would allow people to save a lot of money on renovations.
“We want people to take advantage of it more than they do,” Schley said.
Under these ordinances, single family homes would be guaranteed 15 years while companies would start with eight years and can negotiate up to 15 years. Up to 100% of the improvement value can be abated.
In order to receive an abatement, residents and businesses would need to apply and be approved by both council and the state prior to having work done.
Renovations must be on a fixed asset such as an addition to a house, new windows or new siding.
“We appreciate people taking the time and energy and resources to improve their properties,” Schley said. “And so, we are happy to offer these incentives to people who take advantage of this.”
Tax incentive districts are created under the community reinvestment act, or CRA.
A certain criterion must be followed in order to create them. The districts must be based on housing density with majority of the district being residential as well as have a historic anchor within it.
Zanesville currently has 5 CRA districts without the proposed new districts.
The ordinances also include Munson and McKinley school properties which are set to be redeveloped into workforce housing. The CRAs would aid the tax rates in the districts of both renovation projects.
The ordinances will be brought to city council for a second and third reading before being approved or dismissed.
Read the full article here
