INCENTIVES
The City of North Olmsted offers a number of incentive programs to encourage business growth and investment. Incentives are considered on a case-by-case basis.
Community Reinvestment Area (CRA) – Pre-1994
Program Purpose:
- To facilitate business retention and expansion in the City of North Olmsted.
- To foster the retention and creation of jobs.
- To stimulate economic diversification and growth.
- To reduce development costs associated with the renovation of existing or construction of new buildings.
Eligible Properties:
- Property must be located within the City of North Olmsted; the entire City is designated a CRA.
- Commercial, industrial, office and multi-unit housing properties are eligible for CRA tax exemption benefits.
- CRA applications must be submitted to the City and individual exemption terms must approved by City Council before construction begins.
- The real property tax exemption is based on an increase in the assessed value of the property as a result of the renovation or new construction project. The CRA exemption cannot reduce current real property taxes.
CRA Program Benefits:
Commercial/Industrial/Office/Multi-Family | Residential Dwellings | Residential Dwellings | |
|---|---|---|---|
| Exemption Level: | Up to 100% as negotiated |
100% |
100% |
| Term: | |||
| New construction projects | Up to 15 years as negotiated |
10 years |
12 years |
| Renovation projects | Up to 12 years as negotiated |
10 years |
12 years |
| Requirements: | All exempted properties are monitored against building code violations, non-payment of property tax, and conformance to CRA contract terms. |
For more information, go to http://www.odod.state.oh.us/edd/cra/
Enterprise Zone (EZ)
Program Purpose:
- To facilitate business retention and expansion in the City of North Olmsted.
- To foster the retention and creation of jobs.
- To stimulate economic diversification and growth.
- To reduce development costs associated with the renovation of existing or construction of new buildings.
Eligible Properties:
- Property must be located within a designated EZ area within the City of North Olmsted. Please refer to the EZ maps for a description of the EZ geographic boundaries.
Enterprise Zone NE / Enterprise Zone SE / Enterprise Zone West
- Commercial, industrial and office properties are eligible for EZ tax abatement benefits. Retail operations are prohibited.
- Commercial, industrial and office projects must be approved for EZ benefits by City Council before construction begins.
- Expansion projects must make investments that equal at least 10% of the value of the existing facility. In addition, the law permits EZ incentives for a business to renovate an existing facility if the renovations exceed 50% of the facility's value.
- The real property tax abatement is based on an increase in the assessed value of the property as a result of the renovation or new construction project. The EZ abatement cannot reduce current real property taxes.
EZ Program Benefits:
|
Commercial/Industrial/Office |
|---|---|
Abatement Level: |
Up to 75% as negotiated |
Term: |
Up to 10 years as negotiated |
Requirements: |
$750 application fee to State |
|
Annual monitoring fee to the City of 1% of the benefit received - a minimum of $500 and maximum of $2,500 |
|
Abated properties are monitored against building code violations, non-payment of property tax, and conformance to CRA contract terms. |
For more information, go to http://www.development.ohio.gov/edd/ez/
Job Creation Grant (JCG) Program
The JCG program is an annual grant payment based on a portion of payroll taxes on employee payroll new to the City of North Olmsted. The grant program is a tool that can be used to help businesses expand or establish operations in the City of North Olmsted. Grants must be negotiated and approved by City Council before the project begins. All grants are negotiated and approved on a case by case basis.
Eligibility:
The program is available to office and industrial businesses. Retail businesses may be eligible on a case by case basis, depending on the strategic importance of a prospective project. A company must create a minimum of $500,000 of additional payroll over three years in order to qualify for the incentive.
Application Procedures:
The Economic Development Representative will meet with interested businesses as required to understand their proposed expansion project and determine their need for assistance. An interested business must file an application with the City. The Economic Development Representative/ED Committee will review the application and make recommendations to the Planning Director and Mayor regarding terms, percentages and eligibility to participate in the process. All grants must be approved by City Council. Offers will be made in writing to the applicant. An agreement will be entered into between the applicant and the City outlining the terms of the agreement and project parameters.
Grant Offer Guidelines:
The length of the grant and the annual percentage will be determined on a case by case basis. The maximum term is up to 10 years. Projects will be evaluated based on the overall impact to the City, including direct and indirect economic and fiscal impacts to the community, type of industry, project fit with community plans, ownership vs. leasing, the lease terms, etc.