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COLUMBIANA -- A local developer is asking the school district for its support on the project to revitalize the old Lake Front Golf Course property.
Rob Struharik of Master Plan Builders presented the company's plans for the 54-acre property on South Avenue to the Columbiana School District Board of Education recently.
The plans have been taking shape over the last few years, with Struharik outlining the development opportunity to city council on other occasions.
The city and Master Plan are in discussions regarding a possible Tax Increment and Financing (TIF) and Community Reinvestment Area (CRA) for the project.
A TIF is a method used to subsidize some of the redevelopment costs for infrastructure and other community projects while a CRA offers certain tax exemptions for property owners agreed upon by the city.
Struharik said the Lake Front property has been unused for the last few decades and has a lot of potential.
"We feel the best thing that we need to do here is to have a development that has commercial and residential together. We feel that would be the best success story for the community," he said.
Should that plan not work out, the company has also looked at the possibility of developing the property for residential purposes only. Master Plan would have to work out any necessary zoning changes with the city.
Specifically, a complete rezone would be needed in order to make the property purely residential, he explained.
As for the TIF, it would be for the commercial portion of the property only, while the CRA would be for the residential portion.
If approved by the city, the TIF would last for 25 years while the CRA would last for 15 or 16 years.
"In no light does this property add a cost to the school district. In every possible scenario it would have revenue for the school district ... it would add a lot of property taxes and it would add income tax to all residents that reside there," Struharik said.
He went on to say that he believes the development could generate more than $1 million in income tax revenue for the city and 50 percent of that would likely come back to the school district.
The school district is concerned that the development could cost the district money it would it would result in a per pupil cost increase, or students living in the development opting not to attend the district, resulting in open enrollment costs.
Meanwhile, the district would also not see the revenue immediately from the development as a result of a potential CRA, which would exempt certain property taxes for the 15 or 16 years.
Struharik said Master Plan's proposal has a no disadvantage clause which is an additional assurance to the school system.
"We are not going to ever cost more than the number of students that we are sending to the school system. If we do so, the developer would make up for the difference," he said.
Master Plan's Attorney, Alan Wenger, said the intent of the clause is to "hold the district harmless for any per-pupil cost increase because of the amount of students residing in the development."
Struharik also said the district should experience a financial "windfall" once the CRA term is over.
He and Wenger hoped the board would give its show of support for the project until a more formal decision could be made.
Mook said the board will take the advisement of its legal counsel, who will be in discussions with Wenger.