By Michael J. Sikora III
Board President, NAIOP of Ohio

The enactment of Ohio House Bill 96 delivers one of the most pro-growth operating budgets in the nation in terms of support of economic development in an overall tighter fiscal cycle. From mobilizing our local chapters to substantive discussions amongst our state leaders with industry experts, NAIOP members advocated for additional funding and refined standards for proven programs that provide the necessary tools to re-energize communities, attract private capital, and keep Ohio competitive for years to come. Each of these wins accelerates commercial real estate investment and job creation. As an organization, we believe these enhancements will lead Ohio in the direction of meaningful economic growth as a whole.

Transformational Mixed-Use Development (TMUD) Program

TMUD credits close financing gaps for mixed-use development projects of significance to the communities in which they are located, promoting economic development, while unlocking underused sites, attracting residents, and opening-up new tax revenue streams.

• Previously funded at $100 million per year but the Program was scheduled to sunset – brought back to life and increased funding to $125 million per year.
• Focused funding on projects that truly need the funding and that are well prepared to proceed with the funding.

As we delved deeply into the advocacy process, we worked closely with the Legislature to include specific criteria in the Statute, to address complaints that developers expressed that the standards changed from round-to-round without adequate notice.

Moreover, the Ohio Department of Development reached out to NAIOP in an effort to improve its ability to administer the Program, particularly related to the process for assessing the economic impact of projects. That led us to closely collaborate with the Department of Development and the Legislature to bring about those desired improvements.

Opportunity Zone (OZ) Tax Credit Program

By boosting the OZ Tax Credit Program, Ohio incentivizes investment to build momentum in historically distressed areas to support new construction and revitalization where it’s needed most.

• Annual cap doubled to $50 million with unused funds rolling over to maximize utilization.

Brownfield Remediation Program

Cleaning up contaminated sites removes the single biggest barrier to redevelopment, turning idle properties into productive assets that boost opportunities for investment.

• Received $200 million in funding from an initial $0 starting point.
• Shifts focus of awards away from first come, first serve, to projects that have economic merit, which is better for our members.

Historic Preservation Tax Credit Program

These credits make it financially worthwhile to rehab historic structures, preserving their character, and often repurposing obsolete office space into multifamily housing.

• Annual cap raised from $60 million to $75 million.
• Credit boosted to 35% (from 25%) for projects in communities under 300,000 residents.
• Removal of building vacancy as a practical requirement, so more buildings qualify and owners do not have to ask tenants to leave prematurely.

In addition to securing substantial funding for development tools and tax credit programs, NAIOP of Ohio applauds the General Assembly for enacting the following additional key policy reforms that will improve the development climate across the State.

Public Parking Garage Exemption

• Multi-level off-street parking structures owned, leased, or constructed by a municipal corporation, a county, a new community authority, or a port authority, and the land they occupy, may benefit from property tax exemption. For developments that need creative solutions and true public-private partnerships, this will help make more projects financially feasible.

Megaproject CRA Modernization

• Allows Community Reinvestment Area (CRA) tax exemptions to extend up to 30 years for buildings tied to megaprojects or megaproject suppliers.

Zoning Referendum Reform

• Signature requirement to place local zoning referenda on the ballot increased from 10% to 35% of voters in municipalities and limited home rule townships. This amendment will improve predictability for developers in their planning process.

NAIOP of Ohio applauds Governor DeWine and the General Assembly for their vision, leadership, and continued partnership in advancing policies that fuel job creation, private investment, and prudent development across our State. The provisions included in House Bill 96 represent a bold, strategic step forward and continue to position Ohio as a national leader for growth-oriented, pro-development policy. We will continue working closely with policymakers, our local chapters, and industry experts to ensure that Ohio stays at the forefront, attracts investment, and thrives as a destination for economic development now and into the future.