On Thursday, the Miami County Commissioners formally objected to a Huber Heights plan to set aside 30 years of new property taxes from a large housing project. The project is called Carriage Trails II and was the center of a contentious annexation fight.
The development sits in Miami County, but it belongs to Huber Heights because the city annexed the land. Now that development is ready to begin, the city wants to create five tax increment financing districts, known as TIFs. In a TIF, the growth in property taxes from new construction does not go to the usual places, like the county. It goes into a fund the city controls. This plan would cover about 1,100 homes worth an estimated $357.5 million, and 100% of the new value would be exempt for 30 years.
The commissioners did not say no to the project. They objected to the length of the exemption, which is the piece Ohio law lets a county challenge. They also asked to negotiate a deal that repays the county for what it gives up. If the two sides can’t agree, state law has a backup plan. Starting in year 11, the county would receive up to half of the taxes it would have collected.
Their concern is easy to understand. The families who move into those homes will use county services. County tax dollars help pay for services such as county parks, mental health care and support for people with developmental disabilities.
It’s also interesting to note that the draft ordinance creating the TIF from the City of Huber Heights has an attachment that stands out. In this attachment, the language states the city may use these payments to build or improve “recreational and cultural” property located “within or near” the districts, as long as it benefits residents. It also says a “permanent improvement” has the same meaning as in Ohio law, which covers property expected to last five years or more.
You can view the Attachment B referenced in the TIF ordinance here:
Now consider the city’s other big project. Huber Heights is planning an indoor music venue. The latest report puts it at 67,900 square feet with a $68 million budget and a groundbreaking planned for November. The venue is planned for Executive Boulevard, that lies in the Montgomery County portion of Huber Heights.
The ordinance does not name the venue, at least in the part we have seen. So we can’t say the city plans to use these dollars for it. We can say the wording is wide enough that the city could try.
It helps to be careful about who pays. Most of the money in a TIF comes from the owners of the new homes, not from Miami County residents in general. But those are Miami County property taxes. Without the TIF, they would help fund Miami County services and local schools. With the TIF, they flow to the city and possibly help pay for a $68 million music venue in Montgomery County.
Here is what happens next. On Tuesday, October 20, Huber Heights City Council holds a work session. The agenda item is only a notice that a public hearing will take place at the October 26 Council meeting for the TIF district. That hearing is the chance for residents to speak and ask questions — such as will property tax dollars from Miami County go into a Tax Increment Fund to support a music venue in Montgomery County?
Growth can be good for a community. But when tax money from one county could help build something in another, residents deserve clear answers before the vote. Good decisions begin with good information.
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