The Ohio Department of Development released updated guidance and information for the next funding round for Ohio’s Transformational Mixed-Use Development Program (TMUD). The department announced the opening of the application window for submission beginning May 18, 2022, and final applications due by Friday July 8, 2022. In March of this year, the Ohio Tax Credit Authority awarded the first round of the highly competitive tax credit program to 13 projects around the state. A Montrose Group client, The Newark Arcade Project, was successful in the first round of funding, which saw project request totaling Over $400 million for the $100 million in available tax credits.
The State of Ohio TMUD program provides $100M in insurance premium tax credits for the next three fiscal years. TMUD creates a nonrefundable credit of 10% of the development costs or 10% of an insurance company’s capital contribution and permits unclaimed credit amounts to be carried forward for up-to five years. The Ohio TMUD programs awards $80M for projects within a major city (100,000 or more in population) that exceeds $50 million, includes the renovation, rehabilitation, or construction of at least one new or previously vacant building; is 15 stories in height; or is at least 350,000 sq. ft.; or is a project which creates $4 million in annual payroll, and $20M for projects not within a major city (100,000 or more in population) the project includes at least one new or previously vacant building that is two or more stories in height; or is at least 75,000 sq. ft. TMUD sets aside a cap of up-to $100 million per fiscal year, with no more than $40 million going to a single project and divides the overall $100 million between large city and small city projects, $80 million for large cities and $20 million for small cities.
In this next round of TMUD funding, the department issued updated guidance and application documents for the TMUD program, https://development.ohio.gov/business/state-incentives/transformational-mixed-use-development-program. One area of focus in the updated information is further clarification regarding the program’s requirement to submit an Economic Impact Statement (EIS), which is a major factor in determining the projects impact and transformation on a project site and surrounding area. The department, in more detail than previously provided, outlined the format for submitting the EIS by providing a template for the economic information to be presented in the application, as well as provided further clarification for what will be considered a catalyzed project by a TMUD eligible applicant. In addition, the department further clarified that an EIS should not include any construction impacts, including construction impacts from the Project, Development, surrounding area, or catalyzed projects and should not include any impacts from other projects in the surrounding area previously awarded or concurrently seeking tax credits under the TMUD program. The department is also asking for more detailed information in reference to the information provided in the EIS, including the specific inputs used to complete each section of the EIS and the source of the information used, the methodology used to determine the outputs reported in each section of the EIS, further clarifies that induced impacts should not be included in any EIS sections submitted, defines the surrounding area 1/2 mile for Major City projects and 2 miles for General City projects can include the zip codes whole or in-part , which fall within the project area and requires that information to be provided to the department.
The Fiscal Year 2023 application will once again include seven separate sections to be completed, including;
- Project Information Summary
- Eligibility
- Financial Information
- Development and Project Details
- Impacts
- Economic Impact Statement
- Application Certification
Competition for TMUD funding will remain fierce as urban and rural regions struggle to meet surging housing demands. Please contact Dave Robinson at [email protected], or Tim Biggam at [email protected], if you have any questions about the TMUD tax credit program or other economic development or lobbying matters.