In her report, Chris Xeil Lyons, city economic development director, said the current downtown TIF district was adopted in June 2000 and set up as a 20-year district offering exemptions at 50%.
Lyons said state law allows a maximum period for TIF districts of 30 years, and the maximum exemption is for 100% on real property.
Property owners in the TIF district make service payments in lieu of paying property taxes with the revenues going into a fund that is used for infrastructure improvements in that district.
Under the school compensation agreement between the city and Middletown City Schools, the school district receives an amount equal to 25% of the amount of the real property taxes that would have been payable to the school district if the improvements had not been subject to the tax exemption.
“We have an opportunity to extend the exemption another 10 years if done so before the end of the year,” she said. “Extending it versus creating a new one will retain all of the base values at the time of origin of the original TIF. With all of our work to revitalize the downtown and riverfront, we want to capture this new investment.”
Lakeside Redirection Project
Council approved an emergency ordinance to contract with Ulliman Schutte, LLC for the second phase construction of the Lakeside Redirection Project to reduce the amount of storm water from entering the combined sewer system from the Lakeside drainage area.
The proposed project will collect storm water from this 291-acre drainage area and convey the flow via a new pump station to the Hydraulic Canal. Streets affected by the construction project will be repaved curb to curb upon completion. The $12.16 million guaranteed maximum price for the second phase was negotiated between the company and city.
City officials said the project construction will begin in January and is required to be operational by the end of 2021 under the terms of the federal consent decree.
Bike lane improvements
Council also approved entering into an agreement with the Ohio Department of Transportation (ODOT) to improve and extend bicycle access from Lafayette Avenue to Water Street in 2021.
The 100% federally funded project will rehabilitate the existing bike path along Verity Parkway from Lafayette Avenue to Girard Avenue; improve pavement and stripe bike lanes along city streets from the intersection of Verity Parkway and Girard Avenue to the intersection of First Avenue and Water Street.
City staff will design, bid and administer the construction contract under ODOT’s Local Public Agency program and requires the city to follow all federal guidelines.
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