AVON LAKE, Ohio – Acquisition of the land where the former Avon Lake Power Plant once stood took center stage once again at the Monday (Oct. 20) meeting of the Avon Lake Collective Committee.
Councilman Zach Arnold told the Collective Committe that the city’s Economic Development Committee, which he chairs, has recommended moving forward with the purchase of the land and asked Avon Lake brownfield attorney Todd Davis to give a public presentation as to the machinations of the proposal.
The proposal will be available for public input over the next several weeks and it will be put before council at its next city meeting for an initial reading.
The city has been discussing the inner workings of the property purchase for the better part of two years while the remains of the old power plant are remediated, removed and readied for future development.
The Collective Committee is a regular gathering of council to hear committee reports but not to take any official action.
Davis gave a lengthy, detailed presentation on the proposal to the Collective Committee. He called it the largest economic development project in the history of Avon Lake, and has been tasked with enabling a major, mixed use development on what is currently a “highly distressed, brownfield site.”
The purchase agreement is for $15 million.
“I think people forget many times that this power plant has been defunct for many years, and it’s got a lot of environmental complexity and development complexity,” Davis said. “ ... I think it’s incumbent upon the city to consider using the best available tools.”
Tax Increment Financing (TIF) is one of those tools, he said, as well as the Ohio Voluntary Action Program (OVAP).
“We’ve got a once in a lifetime opportunity to create one of the best parks in the State of Ohio through this redevelopment process and that’s one of the goals for this entire transaction,” he said.
OVAP is the State of Ohio’s brownfield redevelopment program and the tool used most often in these types of redevelopments. The city plans to work closely with current owner ALERG to resolve the environmental issues on the site and both sides seem to agree that clean up of the site must meet rigorous standards, otherwise the property could sit vacant for years or perhaps even decades.
The proposed TIF funding is being used to expedite the purchase of the property by the city, a move some critics point to as costing the schools money while giving tax breaks to developers.
“It’s incorrect to say that developers won’t be paying taxes,” Davis said. “The developer will continue to pay taxes. The school district will not lose the value of current taxes from a TIF. If those things don’t happen, this deal will not move forward. The deal is completely contingent on TIF financing.”
Davis explained that the purchase agreement also gives the city significant control over the site and would enable various parties, such as the Lorain County Metroparks, to pursue grants to beautify and improve the space.
ALERG is currently searching to find a vertical developer for the property, however this is proving difficult according to Davis because of environmental and economic uncertainties. The environmental due diligence is in its very early stages and officials on both sides are not entirely sure how long the remediation process is going to take. If the city is not satisfied with the remediation, it is under no obligation to purchase the property.
“The deal structure is really a gold standard approach in terms of protecting the city from environmental liabilities in connection with this piece of property,” Davis explained. “We have an indemnification that lasts for 18 months.”
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