Community Real Estate Development Incentives
Real property incentives are among the most utilized tools to assist growing companies. The City of Warrensville Heights understands the critical role of these programs and have them available for businesses looking to locate and expand within the City.
TIF allows local governments to invest in public infrastructure and other improvements up-front. Local governments can then pay later for those investments. They can do so by capturing the future anticipated increase in tax revenues generated by the project.
The Transformational Mixed-Use Development Program provides a tax credit against Development costs incurred during the construction of a project that will be a catalyst for future development in its area. A Development includes new construction and/or improvement of vacant buildings that will have a major economic impact on the site and the surrounding area. This Development must be a combination of retail, office, residential, recreation, structured parking, and other similar uses into one mixed-use Development.
Community Reinvestment Area
Community Reinvestment Areas (CRA) are areas of land in which property owners can receive tax incentives for investing in real property improvements. The CRA Program is a direct incentive tax exemption program benefiting property owners who renovate existing or construct new buildings.
The local legislative authority with jurisdiction over the designated area determines the size, the number, as well as the term and extent of the real property exemptions.
Local municipalities or counties can determine the type of development to be supported by the CRA Program by specifying the eligibility of residential, commercial and/or industrial projects.
Opportunity Zones (OZ) - Watch the OZ video
The OZ program provides a deferment or write off of capital gains taxes on earlier investments and there is no cap on the amount of investment. There are many different types of projects that are eligible such as real estate, an investment in a startup, and mix-used development that is located in an OZ. The tax law provides that the investor can write off against taxes 10% of the capital gain, once the investment is held for five years. Another 5% of the capital gain can be written off if the investment is held for at least seven years. The greatest tax advantage would come if an investor holds the investment for at least 10 years. Then the investor will not have a taxable gain for any appreciation in value in the OZ investment when the investment is sold. View full description For Opportunity Zone FAQs, click here.
The Vibrant Community Program recognizes that distressed communities may not have adequate resources to develop and implement economic development projects that can attract private investment and create new jobs. The program was established to assist distressed small and medium sized communities with the implementation of catalytic development projects that fulfill a market need and represent a significant reinvestment in areas that have struggled to attract new investment.
The JobsOhio Revitalization Program offers loans and grants to bridge the financial gap between the appealing cost of brownfield sites and the cost of site redevelopment. This program mitigates financial risk and accelerates projects, returning land and buildings to productive use more efficiently.
To learn more, email our Economic Development team.