City-wide Community Reinvestment Area proposed by mayor

Wickliffe Mayor John Barbish has proposed an ambitious plan to City Council that, if approved, would incorporate the entire city into a Community Reinvestment Area.

The ordinance, first proposed at the Feb. 25 council meeting, states that it would encompass “all residential, commercial, and industrial addresses within the corporation limits of the City of Wickliffe.”

Essentially, a CRA allows property owners who meet the program’s criteria the ability to receive

tax exemptions on assessed valuation increases that result from any repairs and improvements made upon existing structures as well as new constructions.

According to the resolution it was done to offer “legitimate incentive measures to assist and encourage development in specific areas of the City of Wickliffe that have not enjoyed reinvestment from remodeling or new construction.”

The proposal is as farreaching as it was necessary, according to Barbish.

“When I was campaigning I heard Wickliffe wasn’t business friendly, it wasn’t easy to do business in Wickliffe,” he said. “I want to work very hard to change that.”

He feels the proposed tax abatements will keep the city competitive with neighboring cities.

“We need to level the playing field,” Barbish said. “If Willoughby has these abatements in place, we need to have them in place. This will hopefully be able to put our hat in the ring for more projects that come down the road for development.

“It’s going to help younger families stay in the city and invest in the city,” he added. “Hopefully it will bring people in that will buy property and fix it up and bring higher incomes. That tax base is going to grow as time goes on.

“It may take several years to do so, but I’m not thinking about just six months down the road. I’m thinking 10 to 15 years down the road as well.”

Single residential and multi-unit residential remodeling that qualifies will see a 50 percent exemption every year for the first 10 and 12 years, respectively. New construction on multiunit residential properties can receive their yearly 50 percent abatement over a span of 15 years.

Commercial/industrial properties seeking to remodel can receive up to 100 percent abatement spread across up to 12 years. Commercial/industrial new construction can also receive up to 100 percent abatement over and up to 15 years.

According to the proposed ordinance, the terms and percentages for both commercial/industrial remodeling and construction “shall be negotiated on a case-by-case basis.”

The mayor highlighted that “the abatement is only on improved value, so we’re not losing anything.

“We’re not taking away from anything that is currently being paid on,” he added. “This is just going to make it easier for a family to put money into their home when they know their taxes aren’t going to go up right away.”

A community reinvestment housing officer would be appointed by City Council to administer and implement the provisions of this resolution.

A CRA Housing Council will also be established to better manage the applicable properties. The Housing Council will have two members appointed by the mayor, two by council, and one by the Planning Commission.

A majority of members will then appoint an additional two members who are Wickliffe residents.

The proposed CRA zone will face more public readings before being brought before a vote of council on March 25.