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Gahanna tax-incentive review council recommends continuation of post-1994 abatements
Summary
The cityreported TERC found all current abatements in compliance and recommended continuing them unchanged for tax year 2023; staff provided summary job and payroll figures showing commitments were met or exceeded.
The Director of Economic Development reported to the committee of the whole on Aug. 11 that the Tax Incentive Review Council (TERC) recommended continuation of all post-1994 property tax abatements in effect for tax year 2023.
The director said, "All abatements were found to be in compliance by TERC. They recommended the continuation of all of the post '94 abatements in effect." The presentation summarized TERC's role as required by the Revised Code and noted TERC is composed of representatives of taxing entities in impacted areas.
Why it matters: Council must annually adopt legislation to continue, modify or cancel abatement agreements; TERC's recommendation is the staff and taxing-entity input the council traditionally uses as guidance.
Key facts presented: staff said reported job creation exceeded agreement targets by 202 jobs; retained-job targets of 710 were met; retained payroll exceeded committed amounts by about $9.7 million; new payroll exceeded commitments by about $15.7 million; and income-tax collections were projected to exceed agreement amounts by about $640,000. The director told council the city reports annually by March 31 and that staff begins outreach to companies and taxing entities well before TERC meets.
Council follow-up and process details: Council members asked for clarifications about retained vs. new payroll and about specific firms (for example, Premier Home Things). The director said staff had queried that company and learned that 90% of those jobs were employed in Gahanna and that Rachel (city staff) will take the follow-up information to TERC at its next meeting. The director also said the city is proposing to move the CRA Housing Council meeting earlier in the cycle so the housing council can vet projects before TERC meets.
What did not change: TERC recommended continuing all post-1994 abatements "exactly as they are in place," the director said. No council vote on abatements was taken at the Aug. 11 committee meeting; staff said the item would be placed on the Aug. 18 regular agenda for first reading and consent placement as appropriate.
Moving forward: Council members pressed staff on documenting follow-up responses noted in TERC minutes; the director said staff will present outstanding follow-up information to TERC at its next meeting and that the council will receive compiled reports to deliberate on legislation in August.
