Monday, October 13, 2008

Cincinnati council to consider CRA tax exemption for 18 W Seventh

Cincinnati City Council is considering granting a Community Reinvestment Area tax exemption that could lead to the rehabilitation of 18 W Seventh Street into seven floors of Class B office space and ground-floor retail.

Building owner TBMG Properties is seeking an eight-year CRA agreement that would be equal to a 75 percent exemption on the increased property tax value.

TBMG estimates that the project will create up to 14 jobs with an annual payroll of over $400,000.

In giving up $10,400 in property taxes over the life of the agreement, the City hopes to gain $73,360 in earnings taxes.

According to City administration, much of the building has not been suitable for commercial tenants since the 1930s and currently has no running water.

Renovations, estimated at $880,000 and scheduled for completion by July 2009, would include new mechanicals, elevators, and tenant improvements.

Each floor would contain approximately 2,600 square feet of rentable space.

An ordinance to execute the agreement was introduced before council last Wednesday, and will need to be discussed in council's Finance Committee before further action is taken. The next meeting of council's Finance Committee is October 20.

The earliest the ordinance could appear before the full council is October 22.