Marble Cliff Village Council voted Monday, April 16, to adopt a new contract for municipal services from the city of Grandview Heights. The contract must still be approved by Grandview City Council, which is expected to vote on it April 23.

Marble Cliff Village Council voted Monday, April 16, to adopt a new contract for municipal services from the city of Grandview Heights. The contract must still be approved by Grandview City Council, which is expected to vote on it April 23.

Instead of the usual three-year length, the proposed contract is now for five years.

In 2012, the village would pay the city $470,000 for police, fire, EMS, parks and recreation, solid waste collection, maintenance and other public services.

The fee would increase by 3 percent in both 2013 and 2014 and by 3.25 percent in 2015 and 2016.

In 2011, the village paid the city $494,000 for its services.

In other business Monday, the council gave representatives of Preferred Living "a yellow light" regarding the developer's proposal to build two high-end apartment buildings on the former Custom Coach property at 1400 Dublin Road.

Nick King, a vice president with Preferred Living, presented council with more details about the residential development.

The concept is to build a pair of four-story buildings with a total of between 200 and 250 studio, one-bedroom and two-bedroom apartments.

The apartments would rent for at least $1,200 per month, King said. A clubhouse and pool would be constructed inside the courtyard of the complex, he said.

A partially submerged parking structure is also planned, he said.

The company would agree to the village's suggestion that it transfer a one-acre section located toward the rear of the site to Preferred Living in exchange for keeping an acre at the front of the property available for commercial development, he said.

The property would have to be rezoned to allow the residential development to proceed.

Fiscal Officer Cindy McKay presented projections of the impact if the property were rezoned to allow the project.

The village currently receives about $803 in annual property taxes from the two parcels that make up the site, she said. This amount is based on the $2,295,000 combined market value of the two parcels and the village property tax rate of 1 mill.

King has estimated that the market value of the property would be $17 million if the apartment project proceeded, resulting in annual property taxes of $5,950 for the village, McKay said.

Based on King's statement that there would be five or six employees at the apartments with a total payroll of between $250,000 and $300,000, the village would receive between $5,000 and $6,000 in income taxes, she said.

That amount would be offset by the income taxes currently received for employees on the property, McKay said.

King also projected that between 3 percent and 5 percent of tenants would work from home and would have an average annual income of between $35,000 and $45,000.

That could result in additional income taxes to the village of between $4,200 and $11,250, McKay said.

If the village reduced the income tax credit for taxes paid to another municipality from 2 percent to 1.75 percent, the village could see an additional $17,500 to $28,125 in income tax revenue from the site, she said.

Several council members expressed concern about approving the residential development until further research is done to try to determine if there is a realistic chance for commercial redevelopment of the property.

"It looks like there will be some research on our end" regarding the potential for commercial use of the property as well as the one acre in the front portion of the site that would transfer to the village if the residential plans proceeded, Mayor Kent Studebaker said.

"We will take your yellow light and proceed as such," King said, adding his company will provide any information the village requires.