Editor’s Note: This story is part of a month-long series that highlights 31 ideas included in the “Mansfield Rising” plan. The 67-page document was created by 15 local leaders after attending the South by Southwest Conference last March in Austin, Texas.
Idea 6: Create a initiatives that encourage downtown development
MANSFIELD — Part of the ‘Mansfield Rising’ plan involves creating a design assistance initiative to encourage downtown development.
Similar to how communities commonly offer incentives for businesses bringing in new jobs, this initiative would provide incentives targeting new development in downtown Mansfield.
Stronger incentive packages could encourage developers to prioritize investment in downtown.
The plan notes that strengthening the urban core of an area has been demonstrated to be a successful component of economic development efforts in many communities from larger cities like Austin, Texas, to smaller communities like Hamilton, Ohio. In Hamilton, the incentive has been used to offer assistance to offset development costs through the design process, targeting small business development.
The city has limited the incentive to businesses with 30 employees or less. They also restrict the types of businesses allowed to access it, and it’s capped at a certain level.
The program often provides the owner with some or all of the funding for floor plans, zoning and safety code analysis and other design features. These elements assist the owner in setting renovation priorities and securing funding for the project.
The incentive would be reimbursed after a significant portion of the project is underway.
In Mansfield, a structured pilot program is recommended — in a smaller area with restrictions on the types of businesses that could access it. The money allocated would be released annually on a first-come, first-serve basis each year. But projects would have to meet a minimum scoring level to qualify.
Cost: There will be direct and indirect costs for this project.
Direct costs are the amount of money the city would put towards the incentive annually. We recommend $25,000 to $50,000 for the pilot.
Indirect costs would be in city staff time to create, evaluate and manage applications.
There is potential for the Richland County Foundation to match the city’s funding for an incentive.
Partners: City of Mansfield, Mansfield City Schools, Downtown Mansfield, Inc., Richland Community Development Group, North End Community Improvement Collaborative and the Richland County Foundation.
Timeline: If the Hamilton model is used, a draft of the proposed incentive could be put together within two months. This would be put in the budget and approved by City Council.
It is possible to think something could be in place within one year.
Enact a residential community reinvestment area
Another way to encourage investment in and around downtown Mansfield would be to enact a residential community reinvestment area (CRA).
This would be a direct tax exemption program benefiting property owners who renovate existing buildings or construct new ones in a certain area.
This program permits municipalities or counties to designate an area to encourage revitalization of the existing housing stock and the development of new structures.
The CRA provides property tax abatement for the increased value of the property for a term of 10 to 15 years depending on the project.
This would have to be enacted by the City of Mansfield in cooperation with the other entities that receive property taxes, such as the school district, library and health department.
Mansfield had a CRA from 1991 to 2007, but it expired due to proposed changes at the state level. There is a possibility of reviving a CRA, but it would come under new regulations.
The plan notes that a CRA would be beneficial to developers because it “gives them time to earn back their investment before they have to start paying taxes on the improved property value.”
“In a market with little housing investment in the last decade, this would be a key tool to encourage development in downtown Mansfield,” the plan states.
The proposed boundaries for a CRA would stretch beyond downtown Mansfield. As the plan states, the city has many areas that are in need of further development.
Many other cities have an active CRA program, including Shelby, Ontario, Akron, Wooster and Dayton.
Cost: There is no direct cost in enacting a CRA, but rather indirect costs in terms of staff time needed to develop the project.
In order to have a residential CRA, a housing market survey is needed, legislation needs to be drafted and enacted and time will need to be spent promoting the project.
Partners: City of Mansfield Economic Development, Mansfield City Schools, Downtown Mansfield, Inc., Richland Area Chamber of Commerce, Richland Community Development Group, Mansfield City Council, North End Community Improvement Collaborative, Richland County Housing and Homelessness Committee and Metro Housing Authority.
Timeline: There are several steps related to enacting a CRA that could be done within one year.
– Determine the geographic area for a CRA
– Conduct a housing survey
– Pass legislation at city council
– Post a public notice
– Petition for confirmation sent to Ohio Development Services Agency (ODSA)
– Send documentation to be reviewed by ODSA
– Receive confirmation, so tax incentives can be offered
Join us for a live discussion of the “Ideas of March” series and the “Mansfield Rising” plan on Thursday, April 4.
