Grandview Heights City Council's economic development committee Monday voted to recommend that the full council accept the proposed school compensation agreement for the Grandview Yard project.

Grandview Heights City Council's economic development committee Monday voted to recommend that the full council accept the proposed school compensation agreement for the Grandview Yard project.

The Grandview Heights City School District will meet Thursday for its vote on the agreement.

The school compensation pact is part of the development agreement between the city and project developer Nationwide Realty Investors (NRI). Until it is approved, the development agreement cannot be finalized.

Andy Federico, an attorney assisting the city with issues relating to the Yard project, Monday reviewed some of the changes that have been made in the latest draft of the agreement, dated July 24.

The biggest changes that have resulted from continuing talks on the agreement come in the section outlining the district's approval of property tax exemptions the city will grant for the Yard project, he said.

"In the previous draft, the school district gave a blanket exemption of 100 percent for the CRA (Community Reinvestment Area) exemption," Federico said.

Now, what the district is agreeing to falls more in line with the CRA terms the city has negotiated with NRI, he said.

The latest draft states the district approves the city's granting of CRA exemptions of up to a 25 percent of the assessed value of commercial office buildings, 50 percent of the value of residential structures and up to 75 percent of the assessed value of a hotel building.

Under the proposed agreement, the district also will give its approval to Urban Renewal and Tax Increment Financing exemptions.

The district would be giving its approval for these exemptions that occur in the Grandview Yard property, which is defined in the agreements as the area north of Goodale Boulevard, west of the railroad tracks and up to the properties that border on Northwest Boulevard and Third Avenue, Federico said.

The compensation agreement also includes a recent addition that states the school district's approval of TIF exemptions and the CRA exemptions for commercial and hotel buildings in the corridor site, he said.

The city has agreed it will not provide additional residential exemptions in the corridor site, which includes parcels on the north and south sides of Goodale Boulevard west to Gladden Road from the eastern boundary of the city and north of the Conrail railroad tracks, Federico said.

The July 24 draft also includes a revision of the base property value of the Yard, he said. The total market value of all property is now stated as $47,333,900, he said.

The compensation agreement maintains the provision that the city will make an annual payment for up to 45 years to the school district in an amount equal to 11 percent of the base property value for all parcels used for non-residential uses.

The district will also receive a share of the real property taxes on the incremental increase in the value of property used for residential purposes on the Grandview Yard property based on a sliding scale.

For the first 400 residential units, the district will receive 15 percent for the first 15 years the parcels are exempt from property taxes. The amount will grow through the years until the district would receive 55 percent for years 41 through 45.

For the next 200 residential units (401-600), the district would receive 20 percent for the first 15 years growing to 60 percent for years 41 through 45.

For the next 200 units (601-800), the district's compensation would begin at 25 percent and grow to 65 percent for years 41 through 45.

For any additional units, the district would receive 30 percent for the first 15 year increasing gradually to 70 percent for years 41 through 45.

A provision has been added to the compensation agreement stating that the city agrees it will not issue any bonds above the $119-million limit that has been set for public improvements for the Yard project.