Bowdeya Tweh

btweh@enquirer.com

Ahead of a Cincinnati City Council vote on creating new taxing districts, a group of residents is questioning the rushed nature of how they are being vetted.

Over the weekend, there was an online petition started asking council to vote against the districts.

At issue are at least two new tax increment financing districts – at Gateway West in Queensgate and around the Centennial office buildings, in the West End across Central Avenue from City Hall. The TIF districts, which would be in operation for 30 years, would allow future tax payments to support public infrastructure improvements at the project sites.

No formal plans exist for either project, but the city's administration has recommended approving the ordinances, which were introduced on an emergency basis. Both requests are up for consideration Monday during a special session of council's budget and finance committee.

Resident Kathy Holwadel launched a MoveOn.org petition over the weekend. The petition has received more than 70 signatures.

"I still don't understand what the city of Cincinnati expects its ROI on this should be except a vague hope for jobs," Holwadel said. "The projects aren't even there yet.… I think that's not good enough."

City officials say the taxing districts would assist in redeveloping two areas that need help. They're doing this now to get ahead of property value changes coming Jan. 1.

A bet on viability

The city is betting that Gateway West and land around the Centennial buildings would benefit from improvements to help attract jobs and investment from property owners and new tenants.

In January 2013, Evanston-based commercial real estate developer Neyer Properties bought the three-building former Holiday Office Park for nearly $2.6 million. Neyer Properties told the city it has already made improvements at the site near Linn and Eighth streets, but it is mulling more extensive renovations to attract tenants.

The site's signature 12-story, 192,926-square-foot office building is about 68 percent vacant, according to a leasing document on Neyer Properties' website.

Jon Juech, senior policy adviser to City Manager Harry Black, said the city is working with the Port of Greater Cincinnati Development Authority to revitalize Queensgate, and "these properties are critical to those efforts."

"This is a strategic use of TIF to give the city more options later," he said.

Officials from Neyer Properties couldn't be reached for comment on Sunday, and they didn't speak at Monday's committee meeting.

The area around the Centennial buildings has several property owners, including Neyer Properties. The proposed TIF district would cover nine sites on Central Avenue as well as Seventh, Ninth and John streets.

Cincinnati has two types of TIF districts – those for individual projects and those covering large swaths of property in an area.

TIF arrangements allow the diversion of property taxes into a separate account for a defined period of time, said Jeff McElravy, the city's deputy director of trade and development. The money can then be used by the city to finance the construction of roads, sewers and garages, land acquisition and defray the cost of the city's involvement in projects.

However, future draws on TIF money captured through a district would require council approval.

"These items give no incentives to corporate interests," Juech said.

Residents want to ensure scrutiny

The two new TIF district proposals aren't the only economic development projects council will consider this week. Tax exemptions for the Trevarren Flats project in Walnut Hills, The Banks mixed-use project Downtown and Rhinegeist Brewery in Over-the-Rhine are among projects being considered before the year ends.

Holwadel, who has spent more than 20 years as an investment adviser, said her interest is in ensuring the process for considering these types of deals is transparent. She said developers often rush to officials to complete incentive deals in June and December as council sessions are ending to avoid broader debates about the proposals.

"Every time the government gets involved in these real estate deals, what they are saying is the market can't work ... and in five to 10 years down the road, we can create demand," Holwadel said.

Holwadel said cities often rely heavily on claims from developers that incentives will create an intended impact in a community. She said it's difficult to support a project when there isn't clarity on where money would be appropriated.