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Norwood council advances Factory 52 CRA and TIF measures amid school district objections
Summary
Council approved second readings for multiple Community Reinvestment Area (CRA) agreements and a tax-increment financing (TIF) agreement tied to the Factory 52 development after extended discussion and a public letter from the Norwood City School District urging renegotiation and procedural changes.
Norwood City Council moved forward on several economic incentive measures tied to the Factory 52 redevelopment on second reading Tuesday after discussion that included a public request from the Norwood City School District to delay approvals and renegotiate terms.
The Norwood City School District, represented at the meeting by Brandon Atwood, asked council to withhold approval of current CRA agreements, revert the city’s CRA ordinance to its February 2009 language, and form a 2-by-2 committee of council members and school board members to negotiate future agreements. “We respectfully request that council motion not to approve these agreements as presented,” Atwood said, speaking on behalf of the school district and the board of education.
The requests followed a joint meeting March 19 where the district highlighted how state law and differing tax-code definitions have allowed some developments to receive residential tax abatements while remaining classified as commercial on tax rolls. Atwood said the mismatch stems from ambiguities in the housing statute of the Ohio Revised Code compared with TIF and enterprise zone (EZ) statutes.
Council members discussed those concerns at length. Councilmember Semar Moore, who attended the March 19 joint session, said the district felt excluded from parts of the negotiation: “The district very much feels like however it shook out, the district very much feels like they were cut out prematurely from the proceedings,” Moore said. Several council members said they want additional data and direct briefings from administration before final votes.
City staff described the Factory 52 applications. A city staff member, Mr. Skelly, said the Factory 52 site includes a multi-building plan with a 9–10 story apartment building (with ground-floor retail), a roughly 125-room hotel and associated parking; several CRA applications cover separate parcels or condominiumized components of the site. Mr. Skelly and an administration financial analyst, Andrew Broussard, told council they had run preliminary financial forecasts to inform the administration’s recommended terms.
Council handled multiple related ordinances on second reading. Votes recorded in the meeting minutes were: - Ordinance authorizing a CRA agreement with Factory 52 LLC for 14,700 square feet of ground-floor commercial space at 4580 Bicycle Boulevard — motion to have the second reading carried 4–1 (mover: Mrs. Hoover; second: Mrs. Franzen). - Ordinance authorizing a CRA agreement with Factory 52 LLC for a 100–125 room hotel at 4580 Bicycle Boulevard — motion to have the second reading carried 4–1 (mover: Mrs. Franzen; second: Mrs. Hoover). - Ordinance authorizing execution of a TIF agreement with Factory 52 LLC and related documents — motion to have the second reading carried unanimously (mover: Mr. Braden; second: Mrs. Franzen). - Ordinance establishing priority of property tax exemptions for parcels in Norwood — motion to have the second reading carried unanimously.
Multiple council members said they support economic development but want clearer, district-informed terms. Councilmember Gordon (recorded in the transcript as concerned about school funding) said he opposed the immediate passage of the CRA in question because of its effect on school revenues; Councilmember Guertin voted against some of the second-reading motions.
Separately, council considered a proposed temporary moratorium on processing residential CRAs for projects with three or more units above $125,000 construction cost; Councilmember Hoover moved to remove that moratorium ordinance from the agenda, and the motion carried unanimously.
Why it matters: The Factory 52 project occupies a large redevelopment parcel in Norwood; the shape and duration of CRA and TIF agreements will determine when property tax revenues flow fully to the city and school district. School officials say the current ordinance language and practice have reduced the district’s expected revenue, and they asked for renegotiation and structured collaboration before council approves final agreements.
What’s next: Council set follow-up requests for administration to present more detailed financial analyses and to coordinate with the school district. The items that passed second reading remain subject to future readings and final votes; council members emphasized that those future actions should incorporate additional data and consultation with the district.
Ending: The communication from the Norwood City School District was received and filed; councilmembers agreed to place further discussion on the committee calendar and to consider a standing 2-by-2 ad hoc process to improve city–school coordination.
