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Mayfield Heights council extends CRA exemption term for corporate park to 10 years
Summary
Council approved amending the city's 1993 Community Reinvestment Area to increase tax-exemption terms for certain commercial and multifamily rehabilitation projects from five years to 10 years, citing aims to attract rehabilitation and leasing in the corporate park.
The Mayfield Heights City Council voted May 12 to amend the city's 1993 Community Reinvestment Area (CRA), increasing the tax-exemption term for certain multifamily and commercial rehabilitation projects from five years to 10 years.
City staff said the change is intended to make rehabilitated office and commercial space in the corporate park more attractive to tenants and developers, especially with recent building sales and potential renovations in the Landerbrook corporate area.
Mister Rowan, a department head who presented the ordinance, said, "the city passed a community reinvestment area back in 1993" and explained the CRA covers much of the corporate park "from North Of Cedar up to 271." He outlined technical differences between pre-1994 and post-1994 CRA designations under the Ohio Revised Code and said the city, as a pre-1994 CRA, can amend the geographic map and the exemption term. "The purpose of this legislation is to revise the term for the 3 family and the commercial rehab from 5 years. I put 10," Rowan said, noting council could choose up to the state-allowed maximum of 12 years.
Rowan provided examples of scale to show how property taxes change when buildings go on the tax rolls: Parker Hannifin's tax payments rose from about $185,000 in 2012 to $656,000 in 2013 after construction; Rockwell Automation rose from about $350,000 in 2010 to $1.46 million in 2011; Landerbrook Dental moved from roughly $23,000 to $165,000 between 2022 and 2023. He also noted the recently completed Apex Skin building begins its CRA reporting in 2026 (tax year 2025 collection). Rowan said the CRA applies to reinvestments of at least $5,000.
Council discussed whether to choose a 10- or 12-year term; Rowan said the administration proposed 10 because it commonly aligns with lease lengths but that 12 would be allowable. Council voted to approve the ordinance (Ordinance 2025-20) after prior committee discussion and review of Rowan's memo.
Council members and staff emphasized the amendment targets the corporate park area and is not a citywide expansion of CRA benefits. Rowan said he does not recommend expanding the CRA area at this time, citing a robust residential market and typical practice that CRAs are not applied to retail in stable markets.
The amendment passed on the council's vote and will take effect as prescribed in the ordinance.
