Gahanna, Ohio is a progressive and diverse community with a rich history and a bright future. For many years Gahanna has been among the leading communities in Central Ohio for residential, commercial, and industrial development. Known as the Herb Capital of Ohio, Gahanna has been the recipient of numerous community and economic development awards including being designated by Money Magazine as one of the Top 100 Best Places to Live. Public sector leadership has continually recognized the type of development needed for the City to prosper. Whether it was expanding the industrial business base after rapid growth in the residential population or revitalizing the core of downtown Gahanna when the City had grown its territorial boundaries. Gahanna public sector leaders have strategically made investments that have secured the city’s long term success and sustainability.
An Innovative Past
In the late 1970s, Gahanna’s leadership recognized the need to guide and direct development within the community. Then a city of approximately 16,000 people, Gahanna’s residential population was rapidly growing and due to its prime location near the airport, major highways, and railway, the City was in a position to grow its industrial sector. In 1978, the City took an unprecedented action and invested $2.25 million to purchase 103 acres of land in the southern portion of the City known as The Industrial Zone (TIZ). The issuance of revenue bonds to invest in land and related infrastructure was designed to stimulate private investment in industrial facilities and to increase new job opportunities.
The City developed this new incentive to reduce the land acquisition cost for companies locating in Gahanna. To facilitate development of the land, the Gahanna Community Urban Redevelopment Corporation (CURC) was established and entered into land lease agreements with the City for the 30 individual parcels. The CURC successfully attracted businesses to the TIZ by offering 30-year land lease agreements at incentivised rates. The businesses were then able to build facilities on the sites for a fraction of what it would have cost had they purchased the property for new construction. The land leases required the companies to pay an annual fee for the land, and at the end of the 30 year term the City would be obligated to transfer the properties to the companies.
In 2009, 17 land leases expired and the City transferred those properties to the individual companies. The result of this public investment has been the establishment of over 30 businesses, representing more than 600 jobs. Many of the companies in the TIZ are the original lease holders and have been in Gahanna for 30 years. These companies are proof that strategic public investment can spur market growth. Additionally, the lease payments from the companies were used to pay the debt issued to acquire the properties. This debt was retired in 2000 and the TIZ lease payments have contributed over $9.6 million in revenue to the City since 1992.
The public sector’s establishment of the TIZ spurred the private sector’s development of the Gahanna Industrial Park, the Crossroads Commerce Center, the Eastgate Industrial Center, and the newly established Central Park of Gahanna. The City continues to invest in the TIZ. For example, in 2009 changed the area zoning classification to the Office, Commerce & Technology Code to reflect changes in the economy and in industry. The new code merges the industrial uses of prior years with the green technology-orientated, emerging business activities of today. The TIZ stands as the anchor of the larger Office, Commerce & Technology District in Gahanna and is a significant contributor to the City’s employment base. The 30-year investment in the TIZ continues to benefit the City and the proactive steps by the City’s leadership helped lay the foundation a successful economic future.
A Sustainable Future
In May 2010, the City of Gahanna celebrated the second anniversary of its Creekside District. Completed in 2008, the $60 million downtown revitalization project is the single largest development project in Gahanna’s history. The development consists of 100,000 square feet of commercial space, 71 luxury condos, a 539-space underground parking garage, 10,000 square feet of brick plazas and multiple unique water features in the heart of downtown Gahanna.
Over the past thirty years Gahanna has experienced significant growth. Now a city of over 33,000 people, Gahanna was faced with a different set of challenges from thirty years ago. However the need for strategic public initiatives was still evident. One of the most important goals spurring this project was to maintain the character and small town charm for residents while satisfying the market demand for retail and commercial growth opportunities. From citizen feedback and market demands, it was clear that downtown Gahanna needed to become a place where family and friends could come together; where the public could enjoy festivals and community activities; and where businesses could grow, expand, and contribute to Gahanna’s economy.
To address this challenge, the City took the bold step of initiating the Creekside plan, modeling the project after the Riverwalk Project in San Antonio. The financing of the Creekside District was a collaborative partnership among public, private, and non-profit entities. The City invested $16.8 million for public infrastructure improvements that leveraged more than $48 million in private investment for the buildings and related structures. To further support the development and ensure its long-term economic sustainability, the City created the Creekside Tax Increment Financing (TIF) District. Through the Creekside TIF agreement, recognized in 2007 by the Council of Development Finance Agencies as the Best TIF Program in the Country, it is estimated that the City will receive over $10 million during the next 30 years.
The Creekside District continues to evolve as a dynamic downtown center. Creekside is currently home to 38 businesses including two of the region’s most popular restaurants, the region’s premier conference and event center, and 30 professional offices. Over 250 people work in the Creekside District representing, a valuable its economic vitality of downtown Gahanna. To spur investment in the residential units, the City expanded the existing tax abatement area and is now providing a 100 percent, 15-year real property tax abatement to new condominium owners. In addition, to increase traffic at Creekside, the City is now offering free parking in the underground garage.
This Creekside project has been greatly successful. A recent public survey completed by an outside consultant on behalf of the City stated that 69 percent of residents surveyed felt that the Creekside District was the “right” type of development for the City and 90 percent of residents have visited the project since its grand opening in May, 2008.
Gahanna is a community that is proactive in development and has consistently created programs and incentives that balance the current and future needs of the citizens with the demands of the market. The willingness of City leadership to pursue non-traditional methods to attract private investment has contributed to the City’s growth in its industrial, residential, and employment base. The Industrial Zone and the Creekside District are examples of Gahanna’s long-term commitment to well-planned, strategic investments that support the City’s vision of being a model community.
By the Department of Development
614.342.4015
No comments:
Post a Comment