Monday, November 3, 2008

Cincinnati considers CRA tax exemption for DeSales second phase

Cincinnati City Council's Finance Committee will consider a Community Reinvestment Area tax exemption agreement for the second phase of DeSales Plaza at this afternoon's meeting.

The $6.4 million DeSales Plaza Phase II will consist of three multi-family apartment buildings containing 76 units at the corner of Woodburn Avenue and Chapel Street.

Excalibur Development/DeSales Properties LLC has registered the development with the U.S. Green Building Council as a LEED NC 2.2 project and is pursuing basic certification.

Last year, council passed an ordinance providing for a real property tax exemption on all commercial new construction or rehabiliation built to LEED standards, subject to the approval of an agreement by council.

If the agreement is approved, the developer will receive a 75 percent exemption on the increased tax value of the real property investment for a period of 15 years.

Although the agreement would represent a nearly $15,000 net loss in the City's annual portion of property taxes, City administration justifies the agreement due to the creation of new environmentally-friendly housing options in East Walnut Hills.

Excalibur/DeSales will pay $38,470 annually to Cincinnati Public Schools.

In September, council created a Planned Development District (PD-56) to facilitate development of the 2.45-site.

Each of the three buildings will be three stories - two of 24 units and one with 28 units, a management office, a fitness center, and a club room.

Eighty percent of the units are expected to be one-bedroom units, with the remainder containing two bedrooms.

By terms its agreements with the City, the project must be completed by December 2009.

Previous reading on BC:
DeSales' second phase gets go-ahead (9/30/08)
Second DeSales phase seeking City approval (9/19/08)
Glaser seeking ordinance for 75-unit DeSales addition (6/12/08)