As a follow-up to last week’s story about the announcement of potential new monies in the Ohio Historic Preservation Tax Credit program, Preservation Ohio has since learned that the exact details of that possible $120 million allocation will go have not been specified. Details about the current discussion are available on the Preservation Ohio Member Resource Center, which can be accessed by clicking here.
One thing is clear, however. At the outset, the question of the remaining applications in “the queue” – those tax credit applications submitted on or after July 1, 2007 for the first cycle of funding, but not included among those that the Ohio Department of Development approved before the trial program was closed – are at the forefront of concern. These projects represent approximately $91 million in additional tax credits.
Because properties were required to be in a fee simple ownership status at the time of application, and because applicants had to aver that the project would not take place but for the granting of the Ohio Historic Preservation Tax Credit, this has left dozens of properties in a perilous condition – owners wanting to develop but not able to proceed. This week, owners of properties in Cincinnati, Dayton and Cleveland responded by filing a request with the Ohio Supreme Court for a Writ of Mandamus, a legal action which would, if successful, require the issuance of a tax credit should an applicant/plaintiff meet the requirements of applicable statues. For a review of that action on Building Cincinnati, click here. The case itself can be followed (and the legal pleadings read in their entirety) by visiting the Ohio Supreme Court’s website (click here), clicking on “Clerk of Court & Case Information,” and “Online Docket,” and entering the case number 2008-0675.
A look at the queue itself is illustrative of the importance of the program. Based on the 25% tax credit, these remaining unfunded projects represent a minimum of $364 million in investment in Ohio – investment, mind you, occurring in the middle of an economic downturn nationally and in Ohio. Because many of these projects would also use the Federal Rehabilitation Tax Credit, these projects also represent the missed opportunity for tens of millions in Federal dollars flowing to Ohio. And, because renovation of historic buildings generates an average of 32.2 jobs for every million dollars of expenditure, this represents a potential loss of well over 11,000 jobs!
MyHometownOhio will continue to post updates on the tax credit as they become available. For Preservation Ohio members, additional detailed information will be regularly posted on the Resource Center.
Photo: Ohio Statehouse Dome - Public Domain