Economic Development Toolkit Toolkit 2014
CityBof Hamilton U T LER COU N T Y OHI O
Ohio Job Creation Tax Credits
Tax Increment Financing
The Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within 3 years) with a minimum annual payroll of $660,000 that pay at least 150% of the federal minimum wage.
Tax Increment Financing (TIF) is an economic development mechanism available to local governments in Ohio to finance public infrastructure improvements. 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.
Local Job Creation Tax Credits The City of Hamilton Local Job Creation Tax Credit Program offers eligible companies a tax credit against their local corporate earnings tax. This program is similar to the Ohio Job Creation Tax Credit, with the exceptions that the tax credit is granted at the local level and it is a non-refundable credit. Currently, by State law, eligibility for this credit is dependent upon the State of Ohio granting a tax credit through the Ohio Job Creation Tax Credit Program.
Interstate Warehousing of Ohio is part of one of Hamilton’s TIF districts
Payments derived from the increased assessed value of any improvement to real property beyond that amount are directed towards a separate fund to finance the construction of public infrastructure defined within the TIF legislation. Hamilton has enacted legislation to utilize TIF financing and often works with potential development to allow parcels to benefit from TIF financing.
Tax Incentives Community Reinvestment Area
Enterprise Zone
The Community Reinvestment Area (CRA) provides property owners a tax exemption for investing in property improvements. The goal of the CRA is to incentivize revitalization where barriers to investment exist. The CRA tax exemption will be available for both residential and commercial development and can be utilized throughout Hamilton.
The City of Hamilton may grant property tax incentives to enterprises that agree to establish, expand, renovate, or occupy a facility within a designated enterprise zone and agree to retain or create employment at the project’s location. A business must finalize an agreement prior to project commencement.
Commercial
The maximum allowable benefit to be extended to qualifying companies that does not require local school board approval is a 75%, 10-year real property tax exemption. Real property tax exemptions greater than 75%, 10 years, require local school board approval.
• • • •
New construction Expansion Building improvements Commercial or industrial
Applications will be considered on a case-by-case basis for investment dollar and job creation potential. Final exemption value is determined by the Butler County Auditor.
Residential
% of New Value Exempt 25-49 year old structure 50+ year old structure
Assumptions: 70,000 S/F building at $50 per S/F, total property investment $3.5 million, 75% tax abatement
Total Possible Property Tax Abatement
• Can be used for renovation • The abatement is for ten years
0-24 year old structure
Enterprise Zone Example
Min. New Investment
50%
$5,000
75%
$5,000
100%
$5,000
Groundbreaking at Bethesda Butler County’s new Emergency Room, which is part of an Enterprise Zone
Annual
$54,384.92
10 Year Total
$543,849.19
Final abatement value will be determined by the Butler County Auditor’s Office
Financing Programs Revolving Loan Funds
Ohio Enterprise Bond Fund
Brownfields Cleanup RLF
The enterprise bond fund provides revenue bond financing through an S&P rated fund, whereby proceeds from the sale of bonds are loaned to companies for fixed-rate, long-term capital asset financing.
Use of Brownfields Cleanup Revolving Loan Fund (BCRLF) dollars is limited to sites that have an actual release or substantial threat of release of a “hazardous substance” into the environment. BCRLF funds may be used at sites that are either publicly owned, either directly by a municipality or indirectly through a quasi-public entity; or privately owned and with clear means of recouping BCRLF expenditures.
Commercial RLF The City of Hamilton’s Revolving Loan Fund (RLF) provides low interest loans for expansion projects by private, for-profit businesses occurring in Hamilton. Loans are made primarily for the purchase of machinery and equipment, although purchase, renovation and/or construction of buildings are also eligible.
Butler County Revolving Loan Fund The Butler County Department of Development offers affordable financing through its Revolving Loan Fund. The minimum loan amount is $15,000 and typically requires a 10% down payment.
BEFORE
1400 South Erie Highway prior to the brownfield redevelopment
Ohio GrowNow Program When a business is approved for a loan at an eligible bank, GrowNOW provides an additional three percent discount on the loan’s already negotiated interest rate. The program can be used by businesses that are organized for profit, have less than 150 employees and are headquartered in Ohio. The maximum loan is $400,000 and there is no application deadline.
Ohio Minority Business Direct Loan Program The Ohio Minority Business Direct Loan program provides fixed, low-interest rate loans to certified minority-owned businesses that are purchasing or improving fixed assets and creating or retaining jobs.
AFTER
1400 South Erie Highway after the brownfield redevelopment
Regional 166 Direct Loan The Regional 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. Local economic development agencies administer the program. It provides low-interest loans up to 75% collateral value, not to exceed $500,000.
SBA 504 Loan The SBA 504 loan offers long-term financing at a below-market rate. Possibilities with this loan include real estate acquisition, new construction, renovation of existing buildings, machinery and equipment acquisition, and project-related soft costs.
166 Direct Loan The 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. The program provides low-interest loans up to $1.5 million.
Butler County Port Authority (BCPA) The BCPA provides alternative financing options for medium and large-scale projects in Butler County. The BCPA collaborates and partners with executives, economic development professionals, financial professionals, and the business community to encourage economic development in Butler County and Southwest Ohio. Ohio Revised Code Section 4582 provides the Butler County Port Authority with a number of tools to finance and manage projects in Ohio, including capital lease arrangements and sales tax exemption.
The Historic Mercantile Lofts redevelopment has both a TIF and a Utility Development Agreement
Other Tools Utility Development Agreement
Design Assistance Program
With municipally owned and operated utilities, the City of Hamilton is not only one of Ohio’s lowestcost providers of electricity, natural gas, water & wastewater, but is also widely acknowledged for its superior quality. The City of Hamilton is committed to working with your company from the beginning to ensure that service to the site is ample and will explore ways to control and lower utility costs as you grow.
The program provides business owners interested in renovating an existing or constructing a new building with a grant of up to 5% of the project investment to be used for professional architectural/technical services. Design services eligible for funding include those that provide the following:
Butler County Land Reutilization Corp. Through the “Moving Ohio Forward” grant program, the Attorney General allocated a total of $75 million to all 88 counties in Ohio to facilitate the reclamation, rehabilitation, and reutilization of vacant, abandoned, tax-foreclosed, or other real property. The Land Bank provides the City an opportunity to demolish nuisance properties and to promote economic and housing development. The Land Bank will be an important tool to make Hamilton a more livable, more economically vibrant community.
This building’s facade (home to Riverbank Cafe) utilized the Design Assistance Program
• Floor plans showing existing and/or new construction; • Building façade improvements; and • Preliminary building, zoning and safety code analysis.
Business Development Team
Workforce One
The Hamilton Business Development Team is a cross-functional team comprised of Economic Development staff representatives with the goal of providing efficient and effective communications to businesses that are considering expanding, relocating, or starting-up in the City of Hamilton. The Business Development Team concept will serve as a single point of contact and direct one-onone communication to businesses throughout the process rather than requiring businesses to navigate a maze of multiple departments and individuals. The team streamlines the process on the City’s end as well ensuring expediency through the business review process.
Workforce One of Butler County is a “one-stop” career center for employment and training needs. Workforce One works with Butler County employers to assist them with their staffing needs. All services offered at the Workforce One of Butler County are free.
Job postings
Ohio Means Jobs, a statewide electronic jobmatching system, allows employers to post job openings and search online for resumes. Employers may also post jobs in Workforce One’s Resource Room where job seekers visit to look for employment and/or training opportunities.
Employment application assistance
Workforce One will maintain a supply of your company’s employment applications on site so that candidates can apply at our single, convenient location.
Applicant screening
Workforce One has widely-used assessment materials, which measure basic skills, aptitudes, interests, etc.
Pease Warehouse Grand Re-Opening, one of the Business Development Team’s recent success stories. Photo Courtesy of Greg Lynch, Hamilton Journal-News
Economic Development 345 High Street Hamilton, OH 45011 OFFICE TELEPHONE: TOLL FREE: FAX NUMBER: GENERAL INQUIRIES: BUSINESS DEVELOPMENT TEAM:
(513) 785-7070 (800) 755 6403 (513) 785 7067 econdev@hamilton-oh.gov startmeup@hamilton-oh.gov
STAFF Jody Gunderson, Director of Economic Development, gundersoj@hamilton-oh.gov Stacey Dietrich-Dudas, Economic Development Specialist, dietrichs@hamilton-oh.gov Liz Hayden, Business Development Specialist, haydenl@hamilton-oh.gov Karen Bowling, Office Manager, bowlingk@hamilton-oh.gov
CityBof Hamilton U T LER COU N T Y OHI O