Union Promenade, a 61-acre commercial and residential development that will include a Cincinnati Children’s Hospital location, is moving forward after a Boone County Fiscal Court meeting.
As developments continue, two major amendments were approved at Tuesday morning’s fiscal court meeting: that financial benefits and support for the project are based on incremental revenue that will be generated upon completion of the project, and a local participation agreement.
“We continue to study that document between first and second reading, and reviewed with the developer and they agreed to the amendments,” said County Administrator Jeff Earlywine.
There will be an administrative fee that the county will collect due to a Tax Increment Financing (TIF) district, set at 2%.
“Normally that’s a fee we can live with,” said Earlywine. “Most of our TIF developments have several large developers, large workforces, pretty straightforward, a little easier to administer. This mixed-use development will be a little different. We’re going to have more employers, a variety of workforce, some workforce will involve tipped employees that will require a little more work from staff to make sure quarterly filings are made for wages. We think a 4% fee will be a little more representative on the county’s side.”
Due to the complexity and diversity of businesses in the promenade, developer TJ Acker said 4% was more than fair to try to help the county cover expenses.
The developer and the county both have a responsibility to advise businesses in the area that they are in a TIF district, and there are special wage assessments that are applicable to the newly created jobs in said district.
Acker said they have already begun the process of notifying those businesses within the TIF district.
If the developer doesn’t pay their share in time, revenue generated from the TIF district is withheld until they no longer have a delinquent balance.
“That’s not been an issue in the past with our TIF districts, but we just want to make sure that that was abundantly clear that the developer had to be in good standing with all their filings before we would process a request for disbursement of that new incremental revenue,” stated Earlywine.
Acker said it is “understandable and acceptable” that their funds could potentially be withheld if they’re not current with the counties.
The item was approved unanimously by the fiscal court.