Grandview Heights City Council's economic development committee Thursday reviewed various public funding mechanisms the city might use for the Grandview Yard development.

Grandview Heights City Council's economic development committee Thursday reviewed various public funding mechanisms the city might use for the Grandview Yard development.

The meeting, which also was attended by other council members, is one of a series the committee will hold to help prepare council for addressing various issues relating to Grandview Yard.

City attorney Joelle Khouzam and Andy Frederico, an attorney with Carlile Patchen & Murphy, presented the committee with an overview of the funding tools the city could use.

Ohio law allows municipalities to designate an area as a Community Reinvestment Area.

A CRA allows up to 100 percent abatement of property taxes for up to 15 years for building improvements or new construction in the designated area, Khouzam said.

Grandview has two CRAs in place now, she said.

Two or more municipalities can create a Joint Economic Development District (JEDD) located in the territory of one or more of the parties. In a JEDD, the municipalities reach agreement on sharing the costs of improvements and operation, and on the distribution of income tax revenues from the district, Khouzam said.

A JEDD agreement for Grandview Yard will be created between Grandview and Columbus, Mayor Ray DeGraw told the committee.

The city could offer a municipal income tax incentive, in which it agrees to give up a portion of its municipal income tax revenue to encourage a business to locate in the project area, Frederico said.

A Tax Increment Financing (TIF) agreement allows a city to fund public improvements in a designated area by recapturing, for a time, all or a portion of the increased property tax revenue that may result from a redevelopment, Khouzam said.

A municipality can exempt from property taxes the value of public improvements up to 75 percent for up to 10 years under a TIF agreement, or up to 100 percent for up to 30 years with school board approval, she said.

For more details about the economic development committee meeting and discussion of the potential funding mechanisms, check out the March 5 edition of ThisWeek Grandview.