DISTRICTS

oppose new homes, but they haven’t supported using TIFS and other financial incentives to spur market-rate housing projects. Plus, earmarking increased property tax collections to cover the costs to install and maintain roads and other infrastructure means less money for agencies that rely on property taxes for their annual budgets.

Law changes enacted more than a decade ago outline an objection process for certain TIFS, opening the door for negotiations between counties and local agencies. Since 2012, Franklin County has objected to nine suburban TIF proposals, most recently the Brown’s Farm project near the intersection of Orders and Haughn roads on Grove City’s south side.

As a result, officials have secured a share of the taxes generated from increased property valuations and worked to ensure the projects benefit their communities in other ways.

“That’s $1.3 million in additional revenue that otherwise would not have been collected but for the objection,” said Josh Roth, senior program director in the county’s economic development office.

Suburban cities and townships pursuing TIF districts involving exemptions greater than 75% or stretching longer than 10 yearsmust notify the county in advance, giving commissioners an opportunity to object and triggering negotiations. The TIFS direct tax dollars specifically for roads and other infrastructure that benefit the new development.

“We’re going to protect our agencies and at least voice our policy opinions,” said Alex Beres, the county’s assistant director of economic development. “We aren’t here to kill development. We’re here to get a fair deal for the residents, the taxpayers (and) our social service levy agencies.”

The two sides either work out a tax-sharing arrangement, or local officials opt to accept a statutory default outlined in state law (50% of new revenues to be paid to the county annually after the first 10 years of a new TIF district).

Absent such negotiations, the county’s human services agencies — which rely on property taxes to provide services for seniors, children, residents with

“We’re going to protect our agencies and at least voice our policy opinions. We aren’t here to kill development. We’re here to get a fair deal for the residents, the taxpayers (and) our social service levy agencies.”

Alex Beres, the county’s assistant director of economic development

developmental disabilities, addictions or mental health issues — would not receive a share of the increased tax collections.

But it’s not solely about the money involved.

Of the nine TIFS subject to the county’s objections since 2012, the commissioners negotiated compensation arrangements on five, in several casesaccepting less than thestatutory minimum because proposed developments involved redevelopment and better use of existing areas within communities.

Onfour other projects, residential developments in New Albany and Jefferson Township, local officials opted for the statutory minimum of 50% of new property tax revenues in years 11 through 30 of TIF agreements.

As a result of recent negotiations with Grove City, the county agreed to accept a little less in shared tax collections early in exchange for a commitment to build a multi-use pathway to connect the new neighborhoods, an adjacent senior center, a nearby park and the Grove City YMCA.

“That’s going to be thousands of people who have better pedestrian access to the parks and the YMCA now, just connecting the communities together,” Beres said.

For Jim Schimmer, the county’s economic development director, the process further illustrates the shift in efforts to bolster development, from a focus on jobs created and site selection when doling out incentives to increased consideration of other quality-of-life issues.

Cutting future funding for social service agencies through residentialtifs ultimately hurts the latter, he said.

“If you believe in economic development as a quality-of-life issue, then you are literally shooting yourself in the foot,” he said. “Those are quality-of-life issues, and they’re economic development issues.”

mkovac@dispatch.com @Ohiocapitalblog