New Albany City Council on July 16 created a tax-increment financing district to capture increased tax values and pay for public infrastructure projects on about 43 acres north of state Route 161, between Smith's Mill Loop and Harrison roads.
Council members approved the legislation 4-0, with Stephen Pleasnick, Sloan Spalding and Chris Wolfe absent.
The land was annexed into the city from Jersey Township on June 18. It is zoned for limited general employment, similar to adjacent land in the city's Personal Care and Beauty business campus.
The land remains part of Jersey Township and Licking County, even though it now is within the city of New Albany's boundaries.
Jennifer Chrysler, New Albany's community development director, said the tax district would be a "non-school" TIF, which means the Licking Heights school district and the Career and Technology Center of Licking County would continue to receive their share of the property-tax revenue from any new businesses in the area.
A TIF is an economic development mechanism available to local governments to finance public infrastructure improvements and, in certain circumstances, residential rehabilitation, according to the Ohio Department of Development.
A TIF works by locking in the taxable worth of real property at the value it holds at the time the authorizing legislation was approved, diverting the incremental revenue to the designated uses.
City Manager Joseph Stefanov said the city needs to improve Beech Road and it is working with the city of Columbus to build a second water tower to serve the area.
He said TIF revenues could pay for those projects.
New Albany and Jersey Township officials signed an annexation agreement in November that provides Jersey Township with 50 percent of the incremental increases on the land's property-tax revenue for 15 years.
The incremental revenue will be tied to the TIF.
City Council on July 16 also voted 4-0 to extend the Oak Grove community reinvestment area to the 43 acres, which allows the city to offer tax incentives to businesses locating on the property.
The CRA allows a maximum tax abatement of 100 percent for 15 years.
Chrysler said abatements and other incentives are negotiated with companies on a case-by-case basis.
New Albany spokesman Scott McAfee said the CRA legislation incorrectly listed more than the 43 acres and might need to be amended at a future City Council meeting.