Oberlin approves first step of community reinvestment area around previously greenlit senior housing

Oberlin City Council Monday night gave a first reading of an action aimed at bolstering development in an area that it says has lacked investment — a move that is meant to encourage economic stability, maintain property values and provide affordable senior housing. Following the approval of a senior housing development along West College Street, Council cleared the first hurdle in creating a Community Reinvestment Area around the 62-unit location. In a memo to council members dated Nov. 24, Carrie Porter — Oberlin's director of planning and development — said the creation of the community reinvestment area, or CRA, could incentivize further development. Porter stated that the CRA "will facilitate the negotiation of a tax incentive agreement with the developer of the Oberlin Place affordable senior housing project to be located at 450 W. College St. Tax incentives will assist with the financing of this project." Porter shed light on the preliminary step of potential future development when she addressed Council on Monday night. "We're starting with the creation of this community reinvestment area for the Oberlin Place senior affordable housing project. This ordinance would just create the boundaries for that, though," Porter said. "We would be negotiating an agreement that we would bring back to Council for the actual abatement terms." The development of affordable, senior housing was greenlit by City Council in mid-November. Proposed by Ryan Kozak of SLK Capital Holdings LLC on behalf of the trustees of the Milan and Kathleen DeRuyter Trust, the housing development is expected to include a three-story, 50-unit building along with 12 cottage units. During Monday night's Council meeting, city officials said SLK Capital had requested the use of tax abatements for the development. "We were asked by the developer of the Oberlin Place project for this type of assistance to help with the financing of the project to make it more affordable," Porter said. "That's why we brought it to you." According to a report from the Oberlin Planning Commission, the senior housing project will feature 25 one-bedroom and 37 two-bedroom apartments. Oberlin City Council voted unanimously to approve the development in the third and final reading of the ordinance in November. While the creation of a CRA can lead to tax exemptions, only real property can benefit. Personal property and inventory are ineligible, according to Porter. "Local municipalities or counties can determine the type of development to be supported by the CRA pProgram by specifying the eligibility of residential, commercial and/or industrial projects," Porter stated. As noted in city documents, only residential, commercial or industrial properties consistent with applicable zoning regulations can be eligible for any exemptions. Real property can achieve a maximum tax exemption of 100 percent, Porter noted. However, if a proposed exemption of any property exceeds 75 percent, consent from the Oberlin Schools Board of Education would be required. City officials said conversations have already begun with Oberlin Schools officials. "We've already met with the schools to let them know that we're planning on doing this," Porter said. "I think for this development, there weren't a lot of concerns because it's not going to put kids in the schools." However, Porter added that other concerns may rise in the future with tax increment financing (TIF) districts that the city may create. If the Oberlin ordinance clears all procedural steps by Council, it would also allow for a housing officer to be designated for the program, as well as a community reinvestment housing council and a tax incentive review council to be created. The proposed CRA along West College Street would not be the first in the city. According to Porter, a CRA was established in the downtown area around South Main Street in 2003. Although further development is the goal when establishing a CRA, no fiscal impact is tied directly to it. "The fiscal impact will be realized after the city has negotiated a tax incentive agreement with the developer with the Oberlin Place affordable senior housing project which could grant tax abatement on all new construction for at an agreed upon percentage and term," Porter stated. Contact Garrett Looker at glooker@chroniclet.com.