Five Columbus-area developments get state tax breaks

Five Columbus-area developments are among 13 Ohio projects to receive new state tax breaks Wednesday that are designed to encourage "transformational" mixed-use developments.

The Ohio State Tax Credit Authority approved $99.65 million in tax credits for the 13 projects, which are expected to generate $1.4 billion in investment.

In Greater Columbus, five out of more than a dozen projects that applied for the credits were approved:

• Gravity, Phase II, the $175 million expansion of the Gravity mixed-use development in Franklinton, received $14.3 million in credits.

• Connect Housing Block, the $98.7 million renovation of the former Value City headquarters on Westerville Road into a manufacturing and housing development, received $7.1 million in credits.

• CoverMyMeds, the new $253 million Franklinton corporate campus, which includes outdoor recreation space, received $6.8 million in credits.

• The Mill on Flax, a $38 million residential and retail project in Delaware that includes a renovated 1863 factory, received $3.4 million in credits.

• Historic Newark Arcade, the $17.5 million renovation of the 113-year-old Arcade in Newark, received $1.56 million in credits.

By far the biggest development approved was the $465 million redevelopment of the Union Trust Company Building in Cleveland into 864 apartments and a hotel. The project received $40 million in tax breaks, the maximum allowed.

The smallest project approved was the $5.8 million new Liberty Beall apartment and retail building in Wooster, which received $527,479 in tax credits.

Among the Columbus-area projects that were not approved in this round are the North Market tower project, the renovation of the Continental Centre Downtown into residences and the High North mixed-use development in Worthington. The projects are eligible to reapply.

The tax credits, created last year, are intended for "transformational mixed-use developments" – projects that include different uses, such as residential and office, and are meant to spur surrounding development.

“The investments being made are large in both size and scale, and will have a catalytic effect on their communities,” Lydia Mihalik, director of the Ohio Department of Development, said in a news release.

“This program will help preserve our communities’ historical assets and create new opportunities.”

Projects were split into two categories: major city developments and others. A maximum of $80 million is available each year for major city projects. The state received 37 eligible applications for the tax credits, 28 of them from major cities.

The credits can be deducted from state taxes due, or sold.

Construction must start within 12 months of receiving the funds and the tax credit "must be a major factor in the completion of the project," according to the program's website. Construction is well underway on many of the projects and some, such as the CoverMyMeds development, are largely completed.

"This new program allows us to help local communities bring long-term change to underutilized areas by transforming vacant buildings, building new business and recreation spaces, creating more housing, and bringing in thousands of new jobs to Ohio," said Gov. Mike DeWine in a news release.

jweiker@dispatch.com

@JimWeiker

This article originally appeared on The Columbus Dispatch: CoverMyMeds, Gravity, among projects to receive new state tax breaks