Cleveland Development Discussions (Euclid, Mason, Napoleon: hired, festival, employees)

[bjimmy24]

Developer buys big Flats building | Crain's Cleveland Business

I would love to live down there. Always has a really badass vibe down there, living underneath the bridges and looking up at downtown and Tremont. Glad to see something starting to happen here.

[ecurito35]

Does anyone have an idea when the 271/480 construction is set to be completed? Boy is that area a mess both ways during work commute hours. It's going to be terrific once it's actually completed.

[RobF1129]

Cleveland's nuCLEus project appears to be target of proposed tax credit for 'transformational' deals | cleveland.com

[RobF1129]

Downtown Cleveland continues to rise - Cleveland 19 News Cleveland, OH

Cleveland hopes to have 20,000 people living in downtown by 2020 - Cleveland 19 News Cleveland, OH

Downtown Cleveland Alliance looks to build on neighborhood's hou - Cleveland 19 News Cleveland, OH

2017 Annual Report | Downtown Cleveland Alliance

[WRnative]

Originally Posted by RobF1129

Cleveland's nuCLEus project appears to be target of proposed tax credit for 'transformational' deals | cleveland.com

<<Policy Matters Ohio, a nonprofit research institute with a liberal bent, criticized the proposal as a handout to developers. "We have all kinds of very significant needs in the state that we have not fully met," Zach Schiller, the organization's research director, said. "In light of those needs, should we be providing tens of millions of dollars to this special interest?"

He also questioned how the state will measure a return on its investment. The bill talks about the potential impacts of a project, from job creation to changes in property values to tax revenues from people shopping, dining, lodging, working and living on site and within a one-mile radius. But the legislation doesn't outline firm marks that a project, once completed, would have to hit to be worthwhile.>>

http://realestate.cleveland.com/real...oject_app.html

Of course, no discussion in this article mentions the reality that NuCLEus will drain commerce from other parts of Cleveland, greatly mitigating the economic benefits of the project.

And, once again, the Republicans will cut public services in order to make up for the lost revenues. Like JobsOhio, this is just another way to push public tax dollars into private pockets.

Note there is no cap on the tax revenues lost, effectively transferred to insurance companies and real estate developers.

<<Now the state could pick up part of the deal, sacrificing as much as $54 million in tax revenues if HB 469 becomes law. The legislation would create a nonrefundable tax credit for insurance companies that invest in such major, mixed-use projects. Insurers would use the credits to offset premium taxes, which flow into the state's general fund.

Basically, the state would award a tax credit to a property owner. That property owner, in turn, would sell the rights to the credit to an insurance company or a group of insurers, with some sort of discount. The arrangement would generate cash at the outset for a development and would give the insurers the ability to reduce their tax payments over as many as five years.

The credit would be capped at 10 percent of development costs. Insurers wouldn't be able to claim it until a real estate project is complete. That's similar to the structure of the state's historic tax credit program, though there's one major difference: Historic credits max out at $5 million per project, with few outliers. This mixed-use credit has no upper limit.>>

Likely, several projects throughout the state will take advantage of this new special interest tax break, creating another massive leak in Ohio's state revenues. Combined with tax breaks in the new federal tax bill for real estate developers, particularly the Trump one-percenters, which reversed Reagan's dismantling of tax shelters, economically questionable real estate developments will proliferate in Ohio at the expense of diminished public goods.

<<A last-minute change to the just-passed tax plan that would benefit real estate investors like Donald Trump should surprise no one. He loudly opposed 1986 tax reform legislation because it shut down tax shelters for real estate investors like him. So, it’s only natural that the Trump-GOP tax plan creates new loopholes for real estate investors and makes the tax code more complicated.>>

Commentary: GOP Tax Plan's Real Estate Pass Through Helps Investors | Fortune

So passage of this legislation by the Republicans, and it's signing by Kasich, likely is a sure thing.

Kasich will need insurance company donations to fund his upcoming Presidential campaign.

[1watertiger]

We shouldn't let politics ruin a good thread. We all know both parties grab and squander our tax dollars.

[WRnative]

Originally Posted by 1watertiger

We shouldn't let politics ruin a good thread. We all know both parties grab and squander our tax dollars.

Anybody that has read my C-D posts over the years knows that I have problems with both parties, such as with Democratic Party immigration policies and the inept industrial policies of both parties.

Yet those who think funding new construction with private tax revenue grabs is a subject that should be off-limits as a development topic of discussion more than just perplex me.

The tax credits proposed here are very different than real estate tax abatements, where existing tax revenues are not eliminated, except to the extent that properties competing with new development lose value.

In Columbus, I did know residents who opposed that city's real estate tax abatement for new residential construction because it lowered the value of existing residential properties by increasing supply while also forcing the owners of existing properties to pay for the services needed by new residents who received real estate tax abatements. Of course, many of the new residents did pay city income taxes and often had no children in schools, so the trade-off apart from lower property values on existing residential property wasn't quite as onerous.

Historical development tax credits at least have the purpose of saving the immense historic investment in existing development and capturing the value of the existing development rather than throwing existing, often architecturally irreplaceable real property, in the trash heap.

I'm not even certain Democrats will oppose this new tax grab, as real estate development is popular with trades unions. It's more likely, just as with JobsOhio, that Libertarians will oppose it.

Anybody who objects to continued state cuts in inflation-adjusted funding for education, state and local government funds, etc., should oppose this concept for funding new developments IMO.

[Yac]

Originally Posted by 1watertiger

We shouldn't let politics ruin a good thread. We all know both parties grab and squander our tax dollars.

Let's hope no one tries to hijack this thread to be about politics. I wouldn't want to be in the shoes of that person
And if someone decides to go that way, I don't want to hear that someone crying they weren't warned.
Yac.

[RobF1129]

Originally Posted by ecurito35

Does anyone have an idea when the 271/480 construction is set to be completed? Boy is that area a mess both ways during work commute hours. It's going to be terrific once it's actually completed.

Sorry wish I had an answer. It's rare I make it further east than University Circle though lol.

[RobF1129]

https://www.news5cleveland.com/news/...e-on-the-rise-

Loan deal clears way for Church & State project in Ohio City | Crain's Cleveland Business

Man, Cleveland really is on the rise. What an exiting time for this city!