Council approves tax abatement

The City Council approved a resolution to designate a piece of property owned by Buyers Only Real Estate on the south side as an Economic Revitalization Area (ERA). This and the rejection to return to an issue regarding the proposed bike path on the north side were two key areas of business at Wednesday night's meeting.\nThe ERA label opens the door to proceed with a 24-unit townhouse project. The resolution also proposed a 10-year tax abatement on the property, located at 2305 Rockport Rd.\nAn Economic Revitalization Area is designated when an area is determined as unlikely for normal development. Because of the lack of development to this area, and its proximity to an adjacent mobile home, the council agreed that this area should be designated an ERA.\nNathan Hadley, executive assistant for Economic Development, affirmed the need for this land to be an ERA.\n"The surrounding area and the zoning gives us the clue there are problems," Hadley said.\nLarry Scites, the representative of Buyers Only Real Estate, proposed the tax abatement, but admitted it was not necessary that the agency's Technology Park Crossing project to materialize.\n"Whether we get the tax abatement or not, we will proceed, but the tax abatement will keep this project owner-occupied," Scites told the council.\nUnder the tax abatement, the owners will save an estimated $7,000 in property taxes over the entire 10-year period.\nThe council approved this resolution unanimously, and many members were very excited about the project's potential.\nCouncil member L. David Sabbagh called the tax abatement a "generally accepted social good" and thought the project would be a tremendous asset to the community.\n"We have a real opportunity to make a difference," council member Tim Mayer said.\nCouncil member Anthony Pizzo supported the resolution but differentiated between low cost and affordable housing. He said there were only 18 homes in the city worth under $50,000.\nWhile this project is to create affordable housing, there is still a group of citizens who could only afford low-cost housing, another problem entirely.\nScites elaborated on the project after the meeting. He said initial grading has begun, and the project will receive final approval at the June 19 council meeting. He anticipated the project would be done by the time school starts in the fall and has already sold 10 of the units.\nHe also revealed that some of the units would be marketed to students, specifically graduate students. These units are advantageous to students because after they finish their time at the University, they can sell their unit. With rental properties, after the lease expires, the tenant has come away with only lost rent payments.\nScites also recognized the need for this type of development and said he was looking at other possible sites for development.\n"We're hoping to do more of these projects. There's a market (for them)."\nPath route still unclear\nThe council struck down a resolution sponsored by council member Jason Banach to revisit the issue of a installing a path on North Dunn Street. The council approved this area to be considered for a path but never thoroughly discussed the specifics of the installation of the path.\n"This resolution doesn't mandate anything, it encourages dialogue," Banach said.\nBanach also felt that how this path installation is handled will affect other paths in the future.\nIt is unclear if the path will travel from the 45/46 Bypass all the way to Lake Griffy or stop at a neighborhood on Dunn Street. Banach said he felt that the path was not valuable if it did not travel to Lake Griffy.\nCouncil President Chris Gaal, who voted against the resolution, thought that even if the path does not connect to the lake, it will be useful since it connects the neighborhood to the rest of the city.\nIn the end, the council expected the city to move ahead and begin constructing the path in the near future.