DELAWARE — Nearly 1,200 future housing units could help pave the way for the next phase of Byxbe Parkway — and eventually, a multimillion-dollar railroad overpass.
Delaware City Council held a public hearing and second reading Monday on a proposal to establish 13 Northwood residential tax increment financing (TIF) districts, which would use revenue generated by new development to help fund public infrastructure improvements.
“Essentially this is a non-school, 30-year residential TIF that has been broken up into 13 different districts that all have their own timeline and their own trigger for when they start,” Economic Development Director Nic Langford said.
Langford said an estimated 1,168 residential units could span across the 13 districts. He also estimated that the districts could carry $269.15 million in assessed value once the new improvements are completed.
The proposed housing includes 357 single-family homes in M/I Homes’ development on the west side of the corridor, 451 townhomes primarily in the Wilcox development on the east side and 360 apartments in Metro Development’s planned Northbourne project.
Each district’s 30-year TIF period would begin once its assessed value reaches $2 million.
“So once there is about five to 10 homes built, the clock will start and the 30 years starts and [the city] will start getting increment for that,” Langford said.
Langford emphasized that Delaware City Schools, Buckeye Valley Local Schools and the Delaware Area Career Center would continue receiving the revenue they otherwise would have collected from the properties.
“[The schools] are going to get exactly what they would get otherwise and we’re going to be capturing everything that is sort of left over,” Langford said.
“The tax increment created will be used to finance public infrastructure, ergo Byxbe.”
The legislation is set for a third reading during council’s Dec. 14 meeting.
How the TIF would work
Under the proposed TIF, 100% of the eligible increase in property value resulting from new improvements would be exempt from property taxes.
Instead, property owners would make service payments in lieu of taxes, which would help finance public infrastructure.
“So the property owner pays their taxes as normal, the county treasurer collects them,” Langford explained.
“Delaware City Schools, Buckeye Valley schools, [the DACC], they stay whole — they collect the same taxes as they would otherwise. [The city] gets everything that is left over. The county, if they are doing statutory compensation, we will pay them.”
Langford said the city is also negotiating with Delaware County officials after the county raised an objection to the proposal.
“We are in discussions with the county for them to waive their objection that they did a couple of weeks ago, with some minor conditions,” Langford said. “We are going to work on that. The remaining funds go into the TIF district account and is pledged for Byxbe.”
Where the money would go
Under the development plan, M/I Homes would construct portions of Byxbe Parkway and receive reimbursement for part of the cost through TIF revenue.
Langford said the developer would be reimbursed for approximately 58% of the project costs because the roadway would also serve its Northwood development.
“Ultimately the [TIF] is going to pay for the extension of Byxbe from State Route 521, from the roundabout, to Birchwood Avenue,” Langford said.
The road would then extend another approximately 980 feet north, ending about 1,000 feet short of the railroad tracks.
“Eventually, we’ll have to accrue enough funds to build a $30-40 million railroad overpass,” Langford said. “Hopefully, we can get some kind of grant for that.”
Langford identified the extension from State Route 521 to Birchwood Avenue as Byxbe Parkway Phase 2A. The additional 980-foot extension would be Phase 2B.
Under the proposal, developers would be reimbursed about $2.2 million for Phase 2A, about $1.8 million for Phase 2B and about $1.05 million for right-of-way — totaling more than $5 million in reimbursements.
The city would be obligated to make those reimbursements only through TIF revenue, not its general fund, Langford said.
He also noted that the Northbourne apartment development would not be eligible for reimbursement.
