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Council approves CRA agreement to abate construction taxes for new Dairy Queen
Summary
Council moved forward with an agreement authorizing a 10-year, 100% construction-cost abatement under the city's CRA program for a proposed Dairy Queen on East Main Street; Attorney Fortunato said the project cost was cited as $3.2 million and the school board approved because abatement exceeded a 75% threshold.
Canfield City Council advanced an ordinance authorizing an agreement between the city and Canfield DQE, LLC to include the new Dairy Queen project in the city's Community Reinvestment Area (CRA) program, allowing a 10-year, 100% abatement on eligible construction costs.
Attorney Fortunato explained the CRA program and said abatements apply only to the construction portion of a project's value (not land acquisition or equipment). He said the application lists total project costs of $3,200,000, a figure that includes land and equipment; Fortunato emphasized the abatement calculation is limited to construction costs, the difference between property value before and after construction.
Fortunato said the applicant expects to employ in the range of "about 40 to 50 employees," and that because the proposed abatement exceeded 75% of construction, the school board reviewed and approved the agreement prior to council action. The attorney characterized the CRA program as successful in attracting commercial construction to the city.
Council used procedural motions under Section 4.05 of the charter to dispense with full reading and to advance the ordinance; roll-call responses recorded assent by council members present.
Next steps: the ordinance will proceed through the remaining adoption steps required by the charter and the agreement will be filed with the county auditor as required for CRA abatements.
