Columbus plans to give a tax break to the developer behind Easton in exchange for money that would be used to build up the city's struggling Linden neighborhood.

The city would give a 10-year, 100 percent property-tax abatement worth about $68 million on new housing that targets millenials and empty-nesters who would live and work at Easton.

In exchange, The Georgetown Co., Easton's lead developer, would pay the city about $5.75 million, most of which would then be repaid to the company over 30 years by a tax-increment financing district, also known as a TIF. The city plans to announce the deal on Thursday.

The shopping center and mixed-use development that L Brands founder Leslie H. Wexner assembled has grown into the city’s second-largest income-tax center, with more storefronts and office buildings on its perimeter seemingly always in the works.

New York-based Georgetown hasn’t released plans or renderings of the housing development yet, but company officials said the first phase of rental units is planned for an open area near Stelzer Road. Construction should start in the spring.

“We wanted to have the opportunity to do a well-thought-out, high-density, almost urban-type plan in addition to all of the great amenities (at Easton),” said Adam Flatto, Georgetown's CEO. “This is the alternative to living in an otherwise suburban subdivision in some rental unit.”

Under the deal, Georgetown would have broad authority over where it decides to build residential developments around the sprawling Easton complex, and each building would receive a separate 10-year abatement once built.

In all, Columbus Development Director Steve Schoeny said he expects Georgetown to build about 1 million square feet of new residential space.

“It’s designed to give us the flexibility and them the flexibility to adjust to the market,” Schoeny said.

As part of the deal, Georgetown also must create 250 permanent, full-time jobs outside the retail sector at Easton by the end of 2021, and a total of 500 jobs by the end of 2028. Those jobs are in addition to commitments from other agreements.

Should Georgetown not meet that requirement, the company would be on the hook for $100,000 a year until it creates those jobs.

“This is not about the retail center at all,” Schoeny said. “This is about the office park.”

Flatto said the availability of housing at Easton will make it easier to attract jobs to the area. Employers have told Georgetown that their employees want a more urban “live, work, play” environment.

Though the new development is abated, Columbus City Schools still would receive about $400,000 a year in taxes on the land. Once it is built out and the abatement ends, Schoeny said, the development conservatively should generate about $2 million a year for schools.

Property taxes account for only about 5 percent of city's general fund revenue.

City council will consider the economic development agreement and creation of the TIF for the first time on Monday.

Georgetown would make an initial $2.5 million payment toward improvements in Linden within six months of the TIF's creation. It would make a second $1.75 million payment by the end of 2021. The district would reimburse Georgetown for that $4.25 million over 30 years.

After that, money deposited with the TIF would be used to make improvements near Easton.

Georgetown also would make a $1.5 million donation to the city to help revitalization efforts in Linden within three months of receiving its building permit. The company and its partners would provide in-kind services for development in Linden as well, such as real estate consulting and planning services.

Schoeny said the city is still planning how it would spend that money in Linden, a focal point for Mayor Andrew J. Ginther since he was elected. Columbus is bringing in others to help revitalization efforts there, too, including Ohio State University.

A plan for Linden likely will trickle out and not come in the form of a large document, said Greg Davies, Ginther’s chief of staff. And progress will be slow, as it was in other city projects.

“You’re talking five or six years before you begin to see real progress,” he said. “None of these neighborhoods turned around on their own. There is always a catalyst.”

Since January 2015, Georgetown principals, their political action committee and the Wexners have given Ginther’s campaign at least $80,500, according to campaign finance reports.

“Political contributions have nothing to do with policy issues in the Ginther administration,” Davies said. “The mayor’s top priority is neighborhoods. This agreement allows us to lift up one of our target neighborhoods.”

rrouan@dispatch.com

@RickRouan