Finance committee advances TIF ordinance for Dewey Road improvements to full council

The Amherst Finance Committee voted 6-0 to send ordinance A25-14 to the full City Council with emergency consideration, beginning the formal process to create a tax-increment financing (TIF) district intended to fund public infrastructure improvements related to the Dewey Road development.

The ordinance would authorize TIF financing for projects outside the private development footprint, including road widening, sidewalks to improve walkability, a lift station and sewer work, and potential park partnerships with Metroparks. Dean Spohr, of the law firm Thompson Hein, told the committee, “This is the beginning of the process to establish tax increment financing districts for this project. It's really the intention the is up for vote and considered for adoption.”

Committee members pressed for details on how the TIF will operate. Spohr said the ordinance is intended to give the city flexibility to deploy TIF dollars for eligible public improvements and described the draft as a 10-year, 75% residential TIF that permits school participation for up to 75% of the increment during the period. He explained the TIF captures the increase in taxable value (land and improvements) above a baseline set in the year the ordinance is adopted and that each district’s 10-year “clock” starts when taxable value first appears in that district (generally when a house is assessed or sold).

Spohr said districts are drawn to roughly match developer phasing and must be contiguous; in cases where large lots separate phases, the city may create multiple districts for a single phase. He also said the city may amend the list of projects later if needed, so long as they fit within statutory limits for public infrastructure.

Committee members sought clarity on revenue estimates and project lists. The mayor told the committee an initial value estimate of roughly $50 million exists but a firm revenue projection would be provided next week. A committee member stressed that without an expected revenue figure it is difficult to judge whether the list of potential projects would be fully funded. The mayor and Spohr said the council would approve specific projects and that financing questions — for example, whether project costs require additional borrowing — would be addressed before the city commits funds.

The ordinance references Ohio Revised Code §5709 and requires certification that public infrastructure serving the district is inadequate as described in the engineer’s letter included in the packet. Committee members noted the school district was notified; the superintendent of Amherst Schools and an administrator at the joint vocational school acknowledged receipt and had no positive or negative comments in the time provided.

Spohr said that if the city takes on debt to pay for improvements and later fully repays that debt, any remaining TIF funds would revert to the general fund after the TIF terminates. He also noted examples in which a city can enter cooperative financing arrangements with a township or county if improvements outside city limits can be shown to benefit the district, though such arrangements require additional legislative findings.

The committee recorded a motion by Mister Wockels to send A25-14 to the council floor; Mister Neiburg seconded. The motion passed 6 to 0. The ordinance is expected to return to council for readings and further questions; staff and counsel said they would provide additional revenue estimates and respond to follow-up questions by email if necessary.