In the past decade, the city of Upper Arlington has averaged annual net revenue of $1.2-million from incentives it has provided to attract and retain businesses, according to a report prepared by Matt Shad, deputy city manager of economic development.

In the past decade, the city of Upper Arlington has averaged annual net revenue of $1.2-million from incentives it has provided to attract and retain businesses, according to a report prepared by Matt Shad, deputy city manager of economic development.

"The city has demanded accountability in offering public monies to businesses and expected to see their investment in business return net increases in tax revenues," Shad said in a staff report presented at city council's Oct. 20 conference session. "The city has wisely invested in growth without over-incentivizing, which often occurs in other communities."

During the past nine years, according to Shad's records, the city's spent an average $285,365 per year on incentive agreements while yielding annual net revenue of $1.2-million, a ratio of nearly 4 to 1.

In 2007, the city spent $383,808 on economic development, while net revenues totaled $1.2-million, gaining $3.20 for every $1 spent.

Since the city's Economic Development Program was formed in 1999, it has assisted 68 businesses -- 57 that were new to the community and 11 expansions of existing Upper Arlington businesses. In that time, it has entered into 43 incentive agreements. Through 2007, eight have been completed and two were terminated.

The remaining 33 active agreements include: 14 forgivable loans, three tax-increment financing (TIF) agreements, four annexation/miscellaneous agreements, and 12 Community Reinvestment Area tax abatements.

Highlights of the 2007 Economic Development Program include:

City tax abatements resulted in completion of 5009 Horizons Drive and 4030 Henderson Road and the beginning of construction of 5005 Horizons Drive in the Arlington Falls office park at the intersection of Henderson Road and Riverside Drive.

The Central Ohio Medicine practice moved into its new facility at 4026/4030 W. Henderson Road. The 2.57-acre site was the last piece of undeveloped land in Upper Arlington and was land-banked by the Upper Arlington Community Improvement Corporation, the city's nonprofit development arm, for the purpose of economic development.

Active incentive agreements generated $124,377 in income taxes from retained employees and $1.3-million in income taxes from new employees.

The city has also enacted the Kingsdale Area TIF to provide resources for public improvement in and around the Kingsdale area. The TIF captures the increased value of the land and new construction of the Walgreen's and Shoppes on Tremont mixed-use projects on Tremont Road. The TIFs are expected to generate a minimum of $15,000 a year for the city beginning in 2009.

Shad and city manager Virginia Barney said the city is willing to discuss tax incentives for Columbus-based Continental Real Estate's recently announced plan to redevelop the Kingsdale Shopping Center. Developers Frank Cass and Mark Catalano are expected to finalize their purchase of Kingsdale from Jacksonville, Fla.-based Regency Centers and present a site plan to the UA Board of Zoning and Planning early next year.