MACEDONIA The city could gain up to $2.6 million in funds -- or close to $90,000 per year -- over the next three decades to help with road and infrastructure projects, thanks to Tax Increment Financing programs it is planning for three businesses.
City Council unanimously passed three 30-year TIFs for The Avenue at Macedonia, Aspen Dental and Maguire Properties, LLC. during the May 11 Council meeting.
Law Director Mark Guidetti said the TIFs are non-school TIFs, meaning the schools will not lose any funding. He said the city is simply taking the county's portion of the property tax revenue that would be generated from new construction by the three companies' developments.
Guidetti said the county still has to approve the TIF, but according to Finance Director Rhonda Hall, Summit County has the most active TIFs currently.
She added Mayor Joe Migliorini discussed the TIFs with each property owner, but it is not necessary to have them approve the arrangements.
Hall told Council during the May 11 work session she estimates the city will receive between $273,000 and $292,000 over 30 years from Aspen Dental, being built on Route 82 across from Macedonia Commons.
Maguire Properties, LLC is building a doctor's office next to the Goddard School and behind GFS on Route 82. The estimated receipts are $320,000 to $342,740 for the 30-year period but, like Aspen Dental is completely dependent on what the final appraised value will be when construction is all done.
"At this time it's still an estimate; we don't know what the final market value will be," Hall said. "My estimates are based on the market values I have now."
The Avenue, a skilled nursing facility, is nearing completion on Valley View Road near City Hall. It is expected to generate nearly $2 million over 30 years.
Hall said the three TIFs in all could bring up to $87,000 each year for the next 30 years with each TIF being accounted with its own fund, where the money will remain until used on areas designated in the ordinances for each property.
"Any time you have new construction, you should be doing this," Hall said of the TIF.
Migliorini said that until the county auditor's office actually comes out and does a physical appraisal of the properties, the tax on new construction can only be estimated.
He said money the city will earn from the program has to be spent on infrastructure close to the properties, such as adjacent roads.
"It could be any infrastructure in and around the area that benefits their parcel," Migliorini said. "The whole idea behind these TIFs is you are trying to enhance the site which is paying its taxes. Anything in and around the site, that would enhance it, is where these dollars will go."
Councilor Jan Tulley added the TIF allows funding to enhance roads around the respective businesses, which enhances a company's ability to do business.
Briana Barker: 330-541-9432