Community Reinvestment Area (CRA)
Ordinance 19-2020 established a Community Reinvestment Area (CRA) encompassing the entire City. The CRA provides real property tax exemptions for property owners who renovate or construct new buildings based on eligibility established in the Ordinance. The CRA benefits property owners who take advantage of the program by reducing their property taxes. As an investment in our community the program also has greater and more wide ranging benefits for the whole City by helping to create healthy housing stock, provide for the City’s future, and improve property values.
Who Qualifies for a CRA Abatement?
The CRA covers three different groups; residential housing, commercial housing, and commercial/industrial structures. In all cases qualifying property owners must apply and would still be responsible for all existing property taxes on the value of the land.
Residential Homes, a dwelling containing 4 units or less, would be eligible if the existing structure is demolished and new units are constructed worth at least $250,000 each. Qualifying locations would receive an abatement worth 100% of the property taxes on the newly built structure for a period of 12 years.
Commercial Housing, dwellings containing more than 4 units, would be eligible if the existing structure is demolished and new units are constructed worth a total value of at least $1,000,000. Qualifying locations would receive an abatement worth 100% of the property taxes on the new construction for a period of 15 years.
Commercial or Industrial Structures, would be eligible for remodeling, new construction, or a combination thereof worth at least $250,000. Qualifying locations would receive a maximum abatement worth 100% of the property taxes on the added value for a maximum period of 15 years. Exact abatement values would be negotiated on a case-by-case basis with the City and School District prior to construction.
How will this help the Community?
The CRA program helps the North Canton Community in a variety of positive ways.
1. Creates Healthy Housing Stock.
By encouraging the demolition of aging and/or dilapidated structures the CRA would help to revitalize city housing stock with newer modern homes. In the process some properties may be rezoned to consolidate small R-50 lots into larger R-70 lots that can more easily accommodate modern homes.
2. Encourages Business
Access to tax incentives encourages businesses to come into the community and build a permanent location. The presence of jobs then exponentially improves the surrounding community by boosting incomes, providing new customers, and attracting new residents.
3. Provides for the Community’s Future
Constructing new modern housing stock improves the City and School district’s property tax base and secures both short and long term future revenues. These added revenues will then be reinvested by the City into our community and by the School into our children.
4. Improves Property Values
As new homes are constructed property values will increase; not just for the new homes but also for surrounding parcels. The increase in value will lead to higher sale prices, and enable the City and School to utilize lower property tax rates benfiting residents and local businesses.