SIDNEY — Sidney City Council heard an overview on local development incentives for industrial, commercial, and residential development in the city at it’s Monday evening meeting.
Barbara Dulworth, community development director, said the following incentives are available and currently used:
• Enterprise zone
— Available for industrial uses only and covers the entire city.
— Property tax abatement based upon investments in real property development.
— Up to a 75% exemption of the value of real property improvements for up to 10 years.
— Businesses must agree to retain or create jobs.
• Community reinvestment area
— Available for industrial, commercial, and residential uses.
— Program benefits property owners that renovate existing or construct new buildings.
— Designates specific areas where investment has been discouraged to encourage revitalization of existing and construction of new structures.
— Up to a 100% exemption of the value of real property improvements for up to 15 years.
• Municipal job creation tax credit
— Available for industrial or commercial uses.
— Must create 50 or retain 250 jobs with minimum payroll of $1.25 million for creation or $10 million for retention.
— Must make a substantial fixed asset investment.
— Tax credit up to 25% of the Sidney income tax up to $125,000 annually.
— The term of the tax credit cannot exceed 10 years.
• Municipal water rebate program
— Water rate rebate program for a high volume water user expanding or locating to Sidney.
— Water rates are discounted at a decreasing percentage over a period of four to eight years for water use increase/water use over 100,000 ccf for new business.
— Program front-loads reduction in business expenses when a business invests in real property and jobs.
• Community development block grant (CDBG) economic development grant/loan
— Funds are granted from the Ohio Development Services Agency to the local community to make a loan.
— Low-interest gap financing available to business expansion and job creation.
— Grants up to $500,000, maximum of $25,000 per job created.
— Must be used for fixed-assets.
— Repayment of loan is made to Sidney and funds are deposited in the revolving loan fund.
• Tax increment financing (TIF)
— Can be used to construct a public improvement that will benefit specific private parcels.
— Exempts the benefited parcels from increased real property taxation.
— Payments in lieu of taxes (PILOT’s) are used to pay costs of the designated public improvements.
— Improvements financed by the TIF may include street improvements, lighting, water and sewer lines, land acquisition, demolition, curbs and gutters, and landscaping.
• Neighborhood Pride Grant
— Residential incentive only.
— Grant to a group of residents to make improvements to their street-facing property.
— Grant up to $1,000 per household not to exceed 50% of project cost.
— First year for this program is 2021.
Dulworth presentation did not include incentives available through state or federal programs. Many different kinds of incentives are available at the state and federal levels that are based on a wide variety of variables making a comprehensive overview of those programs impractical, she noted. Dulworth said city staff regularly works with Dayton Development Coalition and Jobs Ohio for programs tailored to a particular proposed development.
Reach the writer at 937-538-4823.