City Council and Mayor Ginther Announce Proposed Changes to City’s Tax Incentive Policies
City Council and Mayor Andrew J. Ginther announced a proposed overhaul to
the City’s tax incentive policies that would make significant changes to
support affordable, mixed-use housing development and create a new wage
standard for business developments.
and incentives are public resources. They are one tool the City has to
influence development and encourage affordable, mixed-use housing development
in areas that need it most,” said Mayor Ginther. “Based on research and input
from the community, we have put together new policies that will benefit
neighborhoods and residents by spurring development of affordable housing and
living wages -- real and long-lasting changes for the people of Columbus.”
new incentives policies are designed to support affordable, mixed-use
neighborhoods in the City’s existing post-1994 Community Reinvestment Areas.
These neighborhoods will be placed in three categories based on the following
criteria: population growth, median household income growth, poverty
rate, growth in median rent, housing vacancy, rate and mortgage foreclosure
rate. Click here for an overview of incentives by
forward, the City will only provide incentives for jobs paying at least $15 per
2016, Mayor Ginther tasked the Department of Development to commission a
first-ever study to better understand the City’s use of incentives. The
consulting firm of HR&A presented recommendations to the City last summer.
As the Chair of the Development Committee from 2016-2017, Councilmember
Elizabeth Brown held four hearings to receive public feedback on the recommendations
to help guide the formulation of the proposed policy changes.
policy updates are an important step towards maximizing the benefits Columbus
residents receive from our incentive policies. When used properly, these
incentives help encourage smart growth and attract quality jobs in our
neighborhoods,” said Councilmember Brown.
Department of Development will produce and make public an evaluation tool
showing how Jobs Growth Incentive and Job Creation Tax Credit rates and terms
are determined. The length and terms of those tax incentives will be determined
by average hourly wage, number of new jobs, retained jobs and payroll and
length of lease/ownership status of the facility. Special consideration will be
given to companies locating in Opportunity Ready neighborhoods, locating on
former brownfield sites, and companies encouraging employment of difficult to
am excited to serve as the new Economic Development Chair and stand ready to
continue working with the Department of Development to implement the policy
recommendations,” said Councilmember Jaiza Page. “As chair of the Housing
Committee, I have been working diligently to increase access to affordable
housing and believe the study results indicate the necessity of that work."
City Council approval, the new policies will take effect summer 2018.