Developers seek tax break for new homes

SCOTT TRUXELL/independent writer

Discussion of a possible tax break for a new housing development dominated Monday night’s meeting of Van Wert City Council.

G 4 Partners, comprised of Chuck Koch, Andy Czajkowski, Scott Niswonger and Tom Turnwald have purchased 160 acres of land next to Van Wert High School with the intent to build The Landings at Dickinson Farms, a development of single-family homes and patio homes.

The proposed homes will be built in four phases, with the first one calling for 57 houses. The goal is to have homes for sale as soon as next spring.

The group is seeking a 30-year,100 percent Tax Increment Financing (TIF) agreement to fund $2.5 million worth of infrastructure, including roads, water and sewer lines, maintenance and more.

Nate Green, a consultant with Columbus-based Montrose Group explained to city council that the TIF is crucial to the success of the project.

“Without the TIF in place it makes it much more difficult to make the homes affordable,” Green said, adding that without the agreement, the cost of infrastructure would have to be added to the price of each home.

Van Wert City Schools and Vantage Career Center would need to sign off on a tax break, but Green said both would be compensated for the loss of exempted real estate taxes. He added that negotiations with Van Wert City Schools are underway.

City Auditor Martha Balyeat told council members such a TIF agreement with the developers could be beneficial to the city.

“We don’t really have a risk in it,” Balyeat said. “The only thing that we’re out is the additional property taxes that we would receive, but we only get $350,000 of property taxes now.”

“We’re going to benefit more from people living there and paying income tax, because income taxes are our big revenue generator,” Balyeat added.

Several council members asked various questions about a potential tax break but no decision was made. If council decides to move forward, the next step would include a public hearing and formal legislation.

During his report to city council, Mayor Jerry Mazur said Town Creek Live was a big success with no alcohol related incidents.

Safety-Service Director Jay Fleming told council members the city will receive $400,000 from Ohio Public Works, with the money to be used on a new blower at the wastewater treatment plant, along with a new coat on paint on the north water tower.

Fleming also noted the Jefferson Street bridge will be replaced during the summer of 2020, with the state covering 95 percent of the projected $800,000 cost, and he asked that city council approve collecting an additional $15 fee for water customers who bounce a check when paying online, a request approved by members of council.

During her report, Balyeat said a routine state audit is underway for years 2016 and 2017.

The next meeting of Van Wert City Council will be 6:30 p.m. Monday, August 123, in Council Chambers on the second floor of the Municipal Building, 515 E. Main St. in Van Wert.