ASHLAND — The Ashland City Schools Board of Education approved a Community Reinvestment Area tax incentive agreement with the city regarding the Pump House District at its meeting Monday night.
The agreement, approved unanimously by the board, would give Pump House Hospitality, LLC, a 100% tax abatement over the next 15 years, according to district treasurer Kyle Klingler.
Steve Paramore, Ashland City Schools’ superintendent, said that abatement will only apply to the hotel project. Last March, a Columbus-based developer agreed to purchase the Pump House office building for $400,000, with plans to turn it into a hotel.
“That is the only project being given an abatement at this time,” Paramore stated via email.
Ashland Mayor Matt Miller said the hotel renovation project is expected to amount to a $21 million investment.
“This is a poster-child project for a CRA,” Miller said, adding the project’s financing depended largely on it and the multi-million dollar investment wouldn’t be feasible without the incentive.
He acknowledged the sacrifice to tax revenue, but noted the property has sat vacant for several years.
The abatement, he explained, kicks in as soon as the developer obtains an occupancy permit. He did not provide a timeline for construction. Pump House Hospitality LLC does not own the property yet, according to county real estate records.
According to the Ohio Department of Development, the terms of CRA agreements are negotiated on a project-by-project basis.
But, the Department of Development’s website states that, “If the proposed exemption exceeds 50%, local school district consent is required.” That does come with some stipulations.
Klingler told the board there is “a PILT — payment in lieu of taxes — for the district.”
According to the Department of the Interior, a payment in lieu of taxes aims to offset property tax losses for local governments thanks to nontaxable lands in their boundaries.
What’s happening with the Pump House District?
The Pump House District, located on Fourth Street, has seen several efforts toward development.
Those efforts have been lauded by Ashland mayor Matt Miller in his most recent State of the City address. He also emphasized the Pump House District development efforts at a recent Ashland Area Economic Development breakfast.
At that breakfast, Miller said moving those efforts forward comes thanks to unity. He said economic development comes easier when city, county and state government can all work together.
In addition to the hotel project that received the abatement, another Columbus-based developer plans to build up to seven buildings on 19 parcels in the so-called Pump House District. The buildings could include up to 150 apartments and other commercial spaces, according to previous Ashland Source reporting.
More recently, in December, the city accepted a $150,000 grant from the Ohio Department of Natural Resources to create an “Urban Meadow Park Connector Trail.”
The Urban Meadow is expected to be surrounded by the seven buildings featuring apartments and other commercial spaces.
The city also recently accepted a $1 million grant to remove an unused railroad crossing at Union Street.
Still, Miller has emphasized the projects will take time to come to fruition fully.
