A Checklist for Change - No.3: Policy

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A CHECKLIST FOR CHANGE

GROWING INWARD
REBUILDING THE CENTER CITY

Introduction | Conclusion | Speakers | Sponsors

PRESENTED BY

Columbus Metropolitan Club, Columbus Urban Growth Corporation, Greater Columbus Arts Council and the Ohio Arts Council

No. 3 - Policy		Refocus Incentives Where Needed

		Promote Historic Preservation

		Address Small Issues

Refocus Incentives Where Needed		Evaluate Private Investment Decisions

In Franklin County a significant amount of tax-abated property is located along the I-270 outerbelt, an area that will continue to grow in response to economic forces. To ensure that such a valuable economic development tool is being used efficiently and effectively, Columbus should establish a comprehensive approach to providing incentives for fringe areas, downtown and existing city neighborhoods. The goal should be to provide some parity in development incentives and to direct incentives where they can really help overcome barriers to investment. Encouraging redevelopment of already developed urban areas generally is a more efficient way to use financial and other resources.

Speaker Doug Kelbaugh made the case: "Make infill and redevelopment of existing urban areas and towns a higher priority than new suburban development, because in existing communities the social, physical and institutional infrastructures are already in place."

Karen Phillips cited a telling statistic: "The Pathmark store chain requires a 20-mile suburban radius to get the buying power of 10 blocks in Harlem." Rather than being perceived as areas constantly in search of handouts, densely developed urban areas, of which Harlem is only one example, should be viewed as places of real business opportunity. While individual income levels may not match those of suburban areas, the collective income of urban neighborhoods is enormous. Direction of incentives to such areas will have real economic benefits for private investors. The US Department of Housing and Urban Development has identified densely developed urban areas as prime targets for commercial investment that tend to be greatly under-served by retailers and other businesses.

The widespread problem of surface parking lots and vacant land held for speculation is evident in downtown Columbus. Current policy encourages those uses because property taxes on empty land are low relative to those on improved parcels. The Ohio Constitution prohibits land value taxation, in which land is assigned a higher value than buildings. It may be time for Ohio citizens to take another look at this issue and consider ways to remove the incentive to keep land vacant for parking or speculation.

Speaker Joshua Vincent summarized the favorable impact of land value taxation policy: "In cities where land value taxation is in effect the vast majority of homeowners see a reduction in their property taxes, infill and new construction increase, and the end result is revenue-neutral."

Speaker Nancy Hollister talked about recommendations made by Ohio's Farmland Preservation Task Force. Included in new incentives is Jobs Bill III, intended to address the needs of distressed urban and rural communities. The bill's two-pronged approach provides protection for farmland by adjusting criteria for evaluation of agricultural land, while it promotes urban revitalization by creating new tax breaks and credits for innerbelt communities. It also allows municipalities to define downtown development districts that are eligible for investment incentives.

Next: Promote Historic Preservation