Fallsnewspress.com - Falls Council OKs tax deal for Portage Crossing project

RPC File Photo Demolition of the State Road Shopping Center site took place last fall. This picture was taken in November. The plans for the Portage Crossing development on the site are moving forward after the Falls School Board OK’d a compensation deal between the district and the city May 3. On the same night, City Council OK’d legislation setting up a tax increment financing agreement for the area.

by Steve Wiandt

Reporter

Cuyahoga Falls -- A bump in the road to the development of the Portage Crossing project was officially smoothed over May 3. City Council unanimously approved legislation which sets up a tax increment financing (TIF) agreement, and authorizes the mayor to sign a compensation agreement with the city school district.

Council voted the same night the School Board unanimously approved the compensation agreement (see related story on Page 1).

According to Susan Truby, the city's community development director:

* Developer Stark Enterprises will pay its normal share of real estate taxes on the underlying land on State Road once it becomes the owner of the site;

* The agreement approved by Council stipulates that, for the improvements made on the land, Stark would pay PILOTs -- payments in lieu of taxes -- to the city in an amount equal to the real estate taxes the owner would have paid if the property improvements had not been granted the exemption.

The PILOTs would come to the city, which would send the school district 22 percent of the total taxes. The remainder would stay with the city to help recover all monies spent on the project, like the land purchase and public street improvements.

The TIF "will permit these particular public improvements to be paid off by the collection of property taxes specifically earmarked for this purpose," said Truby.

"We're relieved," said Mayor Don L. Robart following Council's vote. "It's unfortunate that the School Board held the project hostage for a couple weeks, but we're glad that's behind us and now we can get about the process of developing the project, which is really the exciting part."

"I am proud of Council," said Robart. "They've been behind us through thick and thin." He said plans to redevelop the plaza at State Road and Portage Trail began in 2007 when the city filed an eminent domain action to acquire the site.

"I think the fortunate part is even during this tough economic climate, we have a guy like Bob Stark ... he's excited about the project," said Robart. "It's risky for him and it's risky for us, but we've got to be about jobs -- job creation and tax base expansion."

What's next for the project

There are many "next steps" for the project, Truby told the Falls News-Press. Crews will continue back-filling basement areas on the former State Road Shopping Center site, she said. That will be followed by grading and seeding.

Work will also continue on all conditions of closing in the agreement between the developer and the city, Truby said, adding that the developer is working with potential retailers for leasing.

E-mail: swiandt@recordpub.com

Phone: 330-686-3915