CANTON − The city approved a tax increment financing agreement in 2015 to help transform the historic Onesto Hotel downtown into luxury apartments. It’s now extending that deal by 20 years to help the developer.
The agreement was set to expire this year but the extension was approved by City Council at its Sept. 8 meeting. Developer Steve Coon, who couldn’t be reached for comment, had requested the new deal for the 12-story building at 200 Cleveland Ave. NW.
“In order to maintain the liquidity to continue doing other redevelopment projects in the city and to get the refinancing done, he requested this extension,” city Economic Development Director Peter Zahirsky said.
The city originally had authorized the TIF to support the property redevelopment, which planned to restore the historic building and eliminate blight. The building now has 42 apartments and an events center.
The agreement exempts 75% of the improvement from taxation and requires the owners to make service payments to the Urban Development Tax Increment Equivalent Fund, which the deal established. The fund was designed to reimburse the developer for a portion of the improvements made.
Councilman Frank Morris III was the only member to vote against the TIF extension.
“I didn’t vote for this when it was 10 years, and I’m sure as hell not going to vote for it for 30 years,” he said during the meeting.
Morris voted against the extension because it means the Canton City School District, often the largest recipient of property taxes, will not get tax revenue on the improved value of the property for a longer period.
“As they increase the property taxes and we pay more, these businesses that we’ve given this TIF to are going to continue to pay taxes at this lower rate,” Morris said. “The rest of our community continues to pay up.”
Morris said he’s not opposed to all TIF agreements. He said he supports agreements that benefit the municipality by funding important infrastructure improvements.
He could not support the extension because the fund will reimburse the developer.
“When it goes to private entities, no way,” Morris said.
The Canton City School District Board of Education voted to approve the TIF extension on Aug. 4. A spokesperson for the district did not immediately respond to a message seeking comment.
Reach Grace at 330-580-8364 or gspringer@gannett.com. Follow her on X @GraceSpringer16.
This article originally appeared on The Repository: Canton officials extend tax break for Onesto Lofts development
Reporting by Grace Springer, Canton Repository / The Repository
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