Tax break for Ashland's Arrows Landing development leaves school district at a loss
ASHLAND – Arrows Landing, a housing complex under construction meant to help spur economic development has raised questions within the city's school district about the loss of potential tax revenue.
The Mifflin Avenue development is within a 100% community reinvestment area (CRA), which means property owners would be in line for a tax break. For the CRA to kick in for housing, 12 or more units have to be built in the area.
Under the CRA, property owners would pay taxes on the land itself, but the added value — the construction of new housing — is excluded for 10 years at 100%.
Each of the 44 units is valued at between $229,900 to $230,400, according to the county auditor's parcel maps.
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"Losing the most is the school district," county Auditor Cindy Funk said. "The city is recouping their loss by income tax."
Ashland schools will receive some money from the property tax collection, Funk said, but it won't be the full amount due to the abatement.
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Ashland City School’s Super Intendant Dr. Doug Marrah expressed disappointment that the school district was not part of the conversations about the tax exemption for Arrows Landing.
"First I was surprised," Marrah said.
With the exclusion of property taxes, Marrah and district Treasurer Kyle Klingler aren't certain how the district might recoup potential lost income.
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The state funds schools partially by the valuation of property within the district. It doesn't look at tax abatements, according to Marrah, thus giving a false impression of the district's property tax income.
Future tax abatements might look different
Grow Ashland, an economic development effort, is a private nonprofit separate from city government, Coordinator Aaron Pauly said.
It focuses on economic development for Ashland, one being increased housing and applying tax abatements where it makes sense.
"It's community building," Pauly said. "(I) think you have to look at the whole picture instead of one side of the coin."
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Ashland Mayor Matt Miller echoes Pauly's remarks, adding, "You've got to take a big-picture view about (how) all of these pieces contribute to the overall economic situation in our community."
"These projects are growing our economic community," Miller said.
Pauly said Arrows Landing was discussed with Marrah and Klinger.
In the future, Miller said, he plans to ask potential developers seeking an abatement about also making an annual or bi-annual payment to the school district to help offset their loss.
If the school district loses money, Marrah said, (we'll) "address holes in the budget once that time comes."
"We'll find a way to get through it."
Reach Grant at 419-281-0581, ext. 259 or gritchey@gannett.com
On Twitter: @ritchey_grant
This article originally appeared on Ashland Times Gazette: New Arrows Landing housing won't help Ashland school district budget
