Community Reinvestment Areas

City of North CantonThe City of North Canton promotes Ohio business development by offering Ohio business incentives through two Ohio community reinvestment areas within North Canton.

The City of North Canton has two Ohio Community Reinvestment Areas (CRA) within its borders.

There is an Ohio CRA application process governed by Ohio Revised Code Section 3735.67, which ultimately must be approved by the State. Successful applicants for Ohio commercial property are eligible for up to 100% abatement on the increased valuation as a result of their investment for a maximum period of 15 years, but the rule of thumb has been 50% of the increased valuation for a period of 10 years.


Main Street Community CRA

Process Outline

Community Reinvestment Area

Businesses
  1. Business must complete application and submit it and a $750.00 check made payable to the Ohio Department of Development, to the City’s Housing Officer (Director of Finance). If the abatement is not approved, the check will be returned to the business.
  2. Depending on the amount of abatement requested and whether the business is a new business or a relocated one, certain notification requirements must be met:Projects with abatement requested for < or equal to 50% or if payroll is expected to be < $1,000,000: We need to send a fourteen (14) day notice to the school district along with a copy of the application requesting tax abatement. We do not need an agreement with the school district, and they are not involved in this abatement in any way. Projects with abatement requested for > 50% or if payroll is expected to be > $1,000,000:We need to send a forty-five (45) business day notice to the school district along with a copy of the application requesting tax abatement, and we need an agreement with the school district. The school district can waive the forty-five (45) business day period or reduce the 45-business day notice.(If schools don’t enter into an agreement, we need to consider how much they will receive from real property taxes and make up the shortfall for the amount greater than fifty (50) percent of abated real estate taxes. We can write into the contract that this shortfall will be made up from the applicant.)
  3. Recommendation of the Housing Council is presented to City Council for legislative action.
  4. Once Council has adopted legislation approving the abatement and all parties have signed the CRA agreement, construction of project can begin.
Residential
  1. Application must be submitted within 6 months after completion of construction.
  2. 100% of tax abatement is authorized on remodeling of dwellings: for 10 years, if cost is at least $25,000.00; for 12 years, if cost is at least $50,000.00.
  3. Only a 14-day notice to the applicable school board is required. There is no negotiation involved when the residence meets the requirements of the Community Reinvestment Area.
  4. No notice needs to be sent to the Ohio Department of Development. They have no involvement in residential property.

Valley View CRA

Process Outline

Community Reinvestment Area

Businesses
  1. Business must complete application and submit it and a $750.00 check made payable to the Ohio Department of Development, to the City’s Housing Officer (Director of Finance). If the abatement is not approved, the check will be returned to the business.
  2. Depending on the amount of abatement requested and whether the business is a new business or a relocated one, certain notification requirements must be met:Projects with abatement requested for < or equal to 50% or if payroll is expected to be < $1,000,000: We need to send a fourteen (14) day notice to the school district along with a copy of the application requesting tax abatement. We do not need an agreement with the school district, and they are not involved in this abatement in any way. Projects with abatement requested for > 50% or if payroll is expected to be > $1,000,000:We need to send a forty-five (45) business day notice to the school district along with a copy of the application requesting tax abatement, and we need an agreement with the school district. The school district can waive the forty-five (45) business day period or reduce the 45-business day notice.(If schools don’t enter into an agreement, we need to consider how much they will receive from real property taxes and make up the shortfall for the amount greater than fifty (50) percent of abated real estate taxes. We can write into the contract that this shortfall will be made up from the applicant.)
  3. A meeting of the CRA Housing Council is scheduled to discuss the abatement.
  4. Recommendation of the Housing Council is presented to City Council for legislative action.
  5. Once Council has adopted legislation approving the abatement and all parties have signed the CRA agreement, construction of project can begin.
Residential
  1. Application may be submitted within 6 months after completion of construction.
  2. 100% of tax abatement is authorized on remodeling of dwellings with not more than 2 units for 10 years, if cost is at least $10,000.00.
  3. 100% of tax abatement is authorized on remodeling of dwellings with more than 2 units for 12 years, if cost is at least $50,000.00.
  4. 15 years for construction of dwellings
  5. Only a 14-day notice to the applicable school board is required. There is no negotiation involved when the residence meets the requirements of the Community Reinvestment Area.
  6. No notice needs to be sent to the Ohio Department of Development. They have no involvement in residential property.