East 8, Ltd., an affiliate of North American Properties, requested the extension for its 45-unit East 8 Lofts at 317 E Eighth Street after concluding that it will not be able to generate enough income to pay the increase in real estate taxes, which would have taken effect this year.
The project received a 12-year CRA tax exemption in 2000. According to the Hamilton County Auditor's website, its 2013 property taxes were scheduled to rise from nearly $22,000 a year to approximately $110,000 a year.
The tax exemption will reduce the development's property tax liability by $879,000 over the life of the agreement.
North American Properties manages six other properties in Greater Cincinnati, including Downtown's Sycamore Place Lofts, Centennial Station in Madisonville, Olde Montgomery, Gettysburg Square in Fort Thomas, Water's Bend in South Lebanon, and Sky Harbor in Burlington.
Ohio Revised Code allows for a ten-year CRA tax exemption extension if the project is in a structure of historical or architectural significance, is a certified historic structure, and has units leased to individual tenants for five consecutive years.
