ASHLAND — The future of three parcels of undeveloped farmland in Montgomery Township may include hundreds of new Ashland homes.
These particular parcels of land — commonly referred to as the Becker Estate — have been a topic of discussion among Ashland lawmakers for more than two years, Mayor Matt Miller said Tuesday.
The parcels — currently owned by Becker Estate LLC, according to the Ashland County Auditor’s website — are located between Mifflin Avenue and County Road 995. It is also bordered by U.S. 42 and found nearby to Beechwood and Woodview drives.
Combined, the trio of parcels total just less than 120 acres (about 119.8). The largest of the three — which covers 115 acres — is the parcel the city is focusing on for future single-family home development.
“If you were to take a look at an aerial map of the city of Ashland you will quickly draw the conclusion that of all the area around our city where it would make the most sense to develop new homes, this is the spot,” Miller said. “Developers feel the same way.”
The city has been working with a number of developers to conceptualize a project that would benefit Ashland in terms of creating new homes, the mayor said.
“Not apartments. Not condos. Not townhouses. But new (single-family) homes. That is what we commonly hear we need from our local realtors,” he said.
The acreage is currently in Montgomery Township, adjacent to Ashland’s city limits. As soon as the city would close on the parcels, it would begin the annexation process, the mayor said.
As the property owner, Miller said the city will be able to control how it’s developed.
“We are not interested in having a developer come in and build apartment buildings there and build townhouses there. It needs to be single-family homes and most all (of) the adjacent property owners would be the quickest to say ‘Amen,'” the mayor said.
Miller proposed to council that the city move forward with acquiring the 120-acres during Tuesday’s meeting. Council unanimously approved legislation to move forward with the acquisition.
“I think it’s wise for us as a city to be able to control it, to annex it and be able to monitor and regulate how it gets developed,” Councilman Dan Lawson said.
The approved legislation outlined how the city will cover the cost of the project — which Miller estimated will come in around $2.98 million.
Below is a copy of the ordinance, passed Tuesday by City Council, approving the city to move forward with the land acquisition.
Ashland will develop land at its own pace
The mayor compared this project to the process the city took to purchase a farm on Ashland’s north side, now the site of the city-owned industrial park.
“They bought it with the same principle in mind. The city would go to work to develop it, to add streets and infrastructure and then the city would be able to decide what businesses they allowed in the industrial park,” Miller said.
Ashland will purchase the land and work with developers to create lots in the format the city desires, he said. Development will happen at the city’s preferred pace.
“When you talk about adding 300, 400 or 500 homes to the community, it’s hard for a community to absorb that overnight,” Miller said.
“If the city is in control of this we can then develop it at a pace that makes sense for our community.”
Some interest has already been expressed from developers to the city, the mayor said, as recent as the second week of June.
“I have no doubt that we’ll be able to fill it, but we’ll be able to fill it at our pace,” Miller said.
How will the city pay back nearly $3 million?
The mayor highlighted two revenue streams the city will use to pay back the nearly $3 million in funding — the first being the sale of lots to developers.
Ashland also plans to use revenue it brings in from its commercial permit fees.
“We’re making those fees off economic development, so we would turn around and reinvest them in economic development,” Miller said.
The city brings in about $300,000 annually from commercial permit fees, he estimated.
Finance Director Larry Paxton said the city will utilize a bond anticipation note to pay for the land purchase.
According to U.S. Legal Forms, a BAN is a “short-term financial instrument that governments or municipalities issue to raise funds in anticipation of future bond sales.” They are repaid through the proceeds of future long-term bond sales.
The city can choose to pay down the BAN or roll it over at the end of the term for another cycle of being able to use the money, Paxton said.
“Investors put their money up and we use it to buy things such as this and then either pay it off, pay it down or just roll it over for another year,” the finance director said.
The BAN will be sold publicly, Paxton said, which is to the advantage of the city in terms of landing a lower interest rate, he said.
“We’ll pay it back in about 360 days or we’ll roll it over. Either way, we’ll still be required to make the interest payment. That has to happen regardless,” Paxton said.
According to the legislation, no taxpayer money will be used to for the payment of any debt charges on the notes.
“The city will, solely from the proceeds of the notes, the bonds issued to retire the notes or from non-tax revenues, pay or cause to be paid the debt charges on the notes…” the legislation reads.
