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Hilliard council approves 12-year CRA tax abatement for Riggins Court industrial project over dissent
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Summary
Council approved a 12-year, 75% community reinvestment area (CRA) tax abatement for a proposed 72,000-square-foot industrial building at Riggins Court, citing job creation potential; two council members voted no, questioning whether taxpayers should subsidize private development.
Hilliard City Council voted 5–2 on April 27 to approve a 12-year, 75% community reinvestment area tax abatement for a planned 72,000-square-foot speculative industrial building at the end of Riggins Court.
City staff told council the project represents roughly a $12 million investment with a minimum commitment of 75 jobs; staff also said the city expects more payroll and job growth as tenants lease space. The resolution authorizes a tax-abatement agreement with Riggins Court Holdings LLC and delegates execution authority to the city manager.
At the meeting, a council member raised a procedural and policy objection, asking who ultimately owns the project and whether wealthy investors would receive taxpayer subsidies. “I feel like cities are very quick to automatically give tax abatements,” a council member asked, noting that an attorney had formed the LLC and asking who the investor would be. Staff responded that the developer on the project is Accel and that the abatement is required to make the site financially viable in current market conditions. “If you don't provide an abatement, you're not gonna be able to charge the lease rate in order to get the project off the ground,” a staff member said.
Staff added that the developer assumes the project risk: if the project does not proceed or the developer does not meet job targets, the incentive can be terminated. Council questions also sought comparisons with prior approved projects and whether actual job and payroll numbers had met earlier expectations; staff said reporting on recently approved projects is forthcoming and that several earlier sites exceeded their job-creation requirements.
The vote was recorded by roll call: Miss Parker Jones — yes; Mister Teeter — yes; President Emily Cole — yes; Mister Betts — yes; Miss Vermillion — no; Miss Rasul — no; Vice President Catone — yes. The two “no” votes were recorded as Miss Vermillion and Miss Rasul.
The resolution passed and will take effect at the earliest date allowed by law.
What’s next: The agreement will be executed by the city manager and the city will monitor job and payroll reporting per the CRA agreement terms.
