Trustees paved the way for construction of 140 senior apartments as well as about &25 million in future community improvements by implementing a (TIF) Tax Increment Financing agreement August 8.
“So, the TIF is a means of raising funds by taking the future increase in taxes and making the schools whole,” Sagamore Hills Township Attorney Jeff Snell explained.
About $1.7 million will be used on road and trail improvements.
According to Snell, as part of the TIF Grey Fox Capital will construct the 140 unit 55 and older apartments on a 30 acre parcel of land , owned by Cleveland Clinic, at the corner of Carter Road and Route 82.
The property currently houses a medical building which was constructed in 1990. Due to the condition of the building, it is not viable, Snell said.
One resident asked if the building could be reused by the township. According to the trustees it cannot be.
Cleveland Clinic had been asking more than $2 million for the building, Snell said. However, as part of the agreement, the clinic will sell the building for $1 million.
The TIF will purchase the building and tear it down with part of the financing.
“But a larger portion of that building is exempt from taxes,” Snell said. “So, you’ll still get those taxes. But 25 percent of those taxes will be paid in payments to the school district and the balance is going to be used in the TIF.”
“So, the TIF is a means of raising funds by taking the future increase in taxes and making the schools whole,” Snell explained.
Snell broke down the payment plan for the school district and vocational school.
“So that is, from year 1 through 10 the schools will earn the taxes they would earn,” Snell said.
Snell said in years 11 through 30, 100 percent of the taxes are going to be TIF, but the school and the vocational school will receive payments, through the TIF, of 100 percent of the taxes they would have received, based on the valuation of the property.
Other legislation included:
A resolution passed to create the Ohio One fund and accept $1,954 for future use.
A resolution passed to accept a matching $5,000 grant for creation of a trail plan.
