Friday, June 21, 2013

Tax exemptions extended for OTR, Downtown projects

Two developments in Over-the-Rhine and Downtown have had their Community Reinvestment Area (CRA) tax exemption agreements extended in order to stave off debt.

Under the Ohio Revised Code, CRA tax exemptions can be extended for up to an additional ten years for any remodeled dwelling that is a structure of historical or architectural significance, is a certified historic structure that has been subject to certain federal tax treatments, and includes units that have been leased to individual tenants for five consecutive years.

To qualify, the developer or property manager must demonstrate financial need through profit-and-loss statements covering the past three years and a ten-year pro forma that details the financial outcomes likely with and without the extended tax exemption.

In Over-the-Rhine, Hale Justis L.P. will receive a ten-year extension of its 2001 agreement that allowed it to create Hale Justis Lofts, a project consisting of 32 market-rate apartments and two commercial spaces at the corner of E Central Parkway and Jackson Street. The tax exemption will reduce the tax liability associated with the development by $720,000 over the life of the agreement.

Downtown, 613 Race, LLC will receive a five-year extension of its 2001 agreement for its project at 617 Race Street. The tax exemption will reduce the developer's tax liability by $130,000.

Previous reading on BC:
Hale Justis sale approved (6/27/08)
Hale Justis could go condo (5/29/08)