ONTARIO — At-large city councilman Kyle Webb said he wants the City of Ontario to incentivize housing development, but in the right areas.
City Council voted Wednesday to table an ordinance indefinitely that proposed turning the entire city into a community reinvestment area (CRA), offering tax exemptions for housing and other developments.
Webb said the city should focus on incentivizing housing that’s accessible for low- and middle-income residents.
“There’s a housing shortage, so obviously we want to encourage development, but we should focus on where our real shortage is,” he said.
“If someone builds a half-million dollar home, I don’t think that’s necessarily where we want to focus on with this legislation. Maybe if it’s under a certain amount or list price, we could consider a tax incentive then.”
The proposed legislation followed broad rules and language from the Ohio Department of Development, but could allow CRAs to be granted to single-family homes.
Mayor Randy Hutchinson said the city planning commission and council had previously discussed the possibility of designating the entire city a CRA zone after agreeing to grant Moment Development one.
Moment Development is building a Home2 Suites by Hilton Hotel at 2577 Walker Lake Road and has hinted at possible restaurants, green spaces or mixed-use developments.
Tax breaks would still need to be approved by council members even if the whole city were to become a CRA.
“It is for distressed properties and improvements to those properties. If this passes, anywhere in the city could get those benefits,” said at-large councilman Dave Rehfeldt.
“Granted, it has to come here first, but I don’t want to have to vote on a $2,500 addition on a normal house. I think it should be kept for distressed properties.”
Fourth Ward City Councilman and economic development committee chair Josh Bradley said he preferred to see what the city’s comprehensive plan reveals before determining what projects to incentivize.
“This feels a little like putting the cart before the horse,” he said. “Let’s wait and see what the plan says and see what we should focus on.”
Bradley said the Comprehensive Plan Steering Committee hopes to complete the 20-year comprehensive plan by the end of this year.
What’s the difference between a CRA and enterprise zone?
Both CRAs and enterprise zones offer property tax exemptions for companies or developers that agree to bring a certain number of jobs and/or community development projects to an area. Tax exemptions can be up to 100% for different periods of time.
Enterprise zones must be decided by county officials and agreed upon by the affected local municipality and school board. This usually only applies to non-retail projects and focuses on job creation.
According to the Ohio Department of Development, local governments can determine what types of development to support with tax breaks “by specifying the eligibility of residential, commercial and/or industrial projects.”
Council members voted to continue their current CRA agreements with Ontario Hospitality and Charter Next Generation. Hutchinson said Ontario Hospitality is complying with its job agreement, having hired 7 part-time and 15 full-time staff members at the new Holiday Inn Express.
CNG has filled about 100 of the 300 jobs it promised at the Ontario plant.
Job descriptions formally established for service departments
Council also passed an ordinance establishing new job descriptions for four department heads in the service department.
The ordinance established job descriptions for the sewer department head/ project manager, water department head, streets department head and parks department head.
These four service departments may have a total of 16 employees including department heads and parks foreman.
“The job descriptions previously had the same things listed,” Mayor Randy Hutchinson said. “We made them more specific and structured.”
The ordinance also allows for additional positions as council deems necessary. All department heads report directly to the service safety director.
Service safety director Kris Knapp said the legislation will help to clearly outline each sub-department’s role and to avoid overlapping responsibilities.
Also in Wednesday’s meeting:
- Council members passed the $19.7 million permanent appropriations for 2024. The largest appropriations include the total general fund, employee pay and benefits, and the capital projects fund. It’s about $200,000 larger than the budget for 2023.
- Knapp said the city will offer brush cleanup for residents starting next week through April 12. The city asks for residents to cut branches and limbs into manageable pieces.
- Knapp said construction crews have placed all the needed water lines on Lexington-Springmill Road. The water needs Environmental Protection Agency approval before crews place tap connections.
- Council approved a request from council present Eddie Gallo to move the May 15 meeting time and place. City Council will meet at 8:30 a.m. that morning in the Ontario High School auditorium and invite middle and high school students to observe the meeting.
- Council read legislation that would renew a lease agreement with Vasu Communications on the Park Avenue West water tower. Vasu Communications has had an antenna on the city’s water tower since 2003. If approved, the resolution would charge $170 a month for five years. Vasu has previously been paying $100 a month.
- Council approved its adoption of the Richland County Final 9-1-1 plan, which is designed to improve communication among emergency services across the county.