Lorain Council committee talks abatement for additional 55-and-older housing

LORAIN — A lot split will necessitate a vote on a tax abatement for the latest phase of 55-and-older apartments on Lorain's west side. The Bouman Group, owners of The Village at Lighthouse Point on Jaeger Road, came to a Finance and Claims Committee on Monday evening to discuss its Community Reinvestment Area tax abatement application for its latest phase of apartments. If approved by the city and schools, the agreement would grant a 100 percent tax abatement for 10 years, then a 75 percent abatement for five years. Trey Hines, project manager for the Bouman Group, said the company first came into the city in 2014, and went on to complete two phases of its 55-and-older community over the years. Those first two phases were completed with the same 15-year abatement agreement up for discussion on Monday, Hines said. A lot split after phase two created a new, 17-acre parcel for phase three that was not listed on the original CRA — prompting the developer to apply for the new abatement. "It's really nothing new," Hines said. "Phase three has been going along with what we've done since we've been here." Building, Housing and Planning Director Matt Kusznir said the abatement locks in property taxes on the parcels for a set amount of time. If approved, the city will not get the additional tax revenue that would be generated by the improvements on the parcel for the next 15 years, Kusznir said. He noted many of the developments would not happen without CRA agreements. The program's goal is to take undeveloped land and incentivize development there, he said. Beth Henley, D-1st Ward, praised the company for its apartments, saying they bring residents into the city with disposable income. The apartments range from $800 to $1,700 a month and require residents to have income three times their rent. Kusznir said while the city may not get its full property taxes due for the life of the abatement, it still gets income taxes from residents. The total investment into the property is about $6.6 million, according to the company's proposed agreement with the city. Josh Thornsberry, D-8th Ward, touched on fellow council members' concerns as to whether the abatement would be good for the city and schools. He compared it to the nearby Cornerstone Farms, where a farmer's field worth about $200,000 was split into 150 parcels each worth about $40,000 in land value alone. The residents still pay 100 percent of the taxes on the land valuation, Thornsberry said, and when the abatement falls off on the houses themselves after 15 years, it creates a windfall for the district. "The value of the land goes up once something is built on it, and then when the abatement ends the school gets their full amount," he said. After some discussion of delaying it so Councilwoman Sylvia DuVall, D-at large, and others could ask additional questions, the matter moved to full Council for consideration. DuVall was absent from Monday's committee meeting. The next regular Council meeting is 6 p.m. Oct. 21. Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com.