ASHLAND — Ashland City Council approved a tax incentive Tuesday for a business that plans to construct what could be one of the largest warehouses of the city’s industrial complex.
Council unanimously passed a Community Reinvestment Area tax abatement for AIP LLC. The CRA will erase 75% of the construction’s property taxes for 10 years.
Ashland Mayor Matt Miller said AIP LLC plans to build a roughly $12.2 million 214,000 square-foot warehouse on speculation — meaning the business plans to sell it to a company that needs the space once completed.
If it doesn’t sell, Miller said AIP LLC’s owner — Scott Conery — has vowed to move his various companies into the space.
Conery, a local investor behind numerous businesses in Ashland, did not respond to a request for comment.
“One way or another we know it will be occupied,” Miller said. “And … the bottom line is no matter what there will now be a $12 million building sitting out in the industrial park which eventually we will be collecting taxes on.”
He then corrected himself. Actually, the city will begin collecting property taxes as soon as the building is constructed. That’s because there is no building on the city-owned property currently.
“But 10 years from now, it will be a significant sum,” the mayor said.
AIP’s application for a CRA with the city states the project will begin July 1, with an estimated completion date of Dec. 30, 2026.
Miller said business leaders regularly ask him and other officials about available space in older buildings. Sometimes the buildings aren’t large enough, or are missing other nuanced needs like taller ceilings, he said.
The new warehouse will be located on 11 acres of property situated behind SJE Rhombus and Barbasol. AIP LLC purchased the property for $0 from the city in March, according to county real estate records.
Is this common?
Such deals are common in Ashland and surrounding communities, officials said.
In Mansfield, for example, Adena Corp. in June 2024 secured a 50% property tax abatement for 15 years to build a $5 million addition to its Fourth Street site.
Mansfield requires CRA tax incentive beneficiaries to give employment and tax revenue forecasts.
But those kind of requirements vary by entity, said Cindy Funk, Ashland County’s auditor.
“It’s up to the city themselves what they require for a CRA,” she said.
But the city utilizes another tax incentive: enterprise zones. (There are 21 Community Reinvestment Areas and 14 Enterprise Zones approved in Ashland currently.)
read more about abatements in ashland
Enterprise zones, regulated by the state, require employment and tax revenue forecasts.
In Ohio, school districts must approve CRAs if the abatement exceeds 75%.
Ashland City Schools Treasurer Kyle Klingler said the district was notified of the abatement. The school board, however, will not need to approve of the agreement.
County property records show AIP’s construction could be one of the largest warehouses in the city’s industrial park.
The new Amazon building is estimated to reach 78,000 square feet. Packaging Company of America built a 210,000 square-foot storage facility in 2021, records show.