The first phase of the Grandview Yard project is expected to open about Sept. 1, members of the Grandview Area Chamber of Commerce learned March 11.

Patrik Bowman, director of administration/economic development, mayor Ray DeGraw and Grandview City Schools superintendent Ed O'Reilly discussed the Yard's impact on the city and school district last week at the chamber's monthly luncheon.

The poor economy has slowed but not stopped the project, which is still expected to include between 1.5- and 2-million square feet of commercial space, between 600 and 800 residential units and more than $500-million in private investment, Bowman said.

The project is expected to ultimately create 5,000 jobs and bring $5-million in annual income tax revenue to the city, he said.

Public investment in the Yard will total $119-million, with about $77.4-million of that being onsite improvements, Bowman said.

Offsite public investment, including improvements to the railroad bridges, Goodale, Olentangy River Road, Northwest Boulevard and the state Route 315 ramp, are expected to total $41.6-million, he said.

All four components of the first phase, including the Urban Active Fitness Center, Hyatt Place hotel, office building and two-deck parking structure are expected to be open by Sept. 1, Bowman said.

The office building will include a Jason's Deli and a new, smaller version of the Buckeye Hall of Fame Grill, he said.

DeGraw said there are three things to remember about the Yard.

First, Grandview Yard will not be "the financial cure-all for the city, but it sure as heck is going to help," he said.

The 2.5 percent income tax levy on the May ballot is important for the short term and long term health of the city, DeGraw said.

And the city's financial health, quality service and desirability affect the business community.

Income tax from the Yard will be divided between the developer and the city at a 50-50 rate after phase 1, DeGraw said. Phase 1 is divided 70-30 up to a 2 percent income tax rate.

Based on Nationwide Realty Investors' projected build-out, with a 2.5 percent income tax rate, the city should receive nearly $16-million in income tax revenue from 2011 to 2020; nearly $46-million from 2021 to 2030; and $62.4-million from 2031 to 2040, he said.

The city will provide police, fire and street services for the project and in time will need to increase staff to service the area, DeGraw said. The estimated cost: about $1-million a year.

The city has seen a yearly loss of $1-million in income tax revenue from the area when compared to 2000, he said.

The city needs to make $2-million a year from the Yard to make up for the lost revenue and added service/maintenance costs, he said. With a 2.5 percent income tax this should occur in 2017. With a 2 percent rate, the break even point would not occur until 2020.

"In the future, the income tax from the Yard should generate about 20 percent of our revenue," he said.

City officials "were very upfront" from the beginning that without the school district's help, the Yard project could not work, O'Reilly said.

Last summer, the school board gave its permission for the city to offer various types of tax abatements. In exchange, the district will be compensated for any year the market value of the Yard and corridor properties is less than the base value of $47.3-million.

The district will also receive the first 11 percent of property taxes generated on the increased property valuation of the retail and commercial space and hotel, O'Reilly said.

The schools will also receive a minimum of 15 percent up to a maximum 70 percent of all taxes on residential development, based on the number of units, he said.

"In the long run, taxpayers will benefit," O'Reilly said. "In the interim, we are 'held harmless' during the construction period. That was important to us."

The health and well-being of the school district and city "are inter-dependent," he said.

It will be five to 10 years before the Yard will have a significant impact on school finances, O'Reilly said.

With the way school funding is set up in Ohio, the district will still rely on local taxpayers, he said. But in the long term, "you can expect a longer time between levy requests and shorter amounts."