Bricker attorney Price Finley explains TIF’s role in effort to bring RH showroom in northeast Ohio
A recent Cleveland.com article reports that Orange Village, Ohio, authorized entering into an economic development agreement with Orange Place Development, LLC, but village council has yet to vote on legislation that would implement a tax increment financing (TIF) agreement for the project. The project involves the redevelopment of the site currently operated as a Slyman’s Tavern, which is adjacent to the Pinecrest development. The proposed redevelopment would for an “RH Mansion,” a retail establishment operated by RH, formerly known as Restoration Hardware. The 45,000 square-foot facility would include furniture galleries, an interior design department, a rooftop restaurant and a park.
Bricker Public Finance attorney Price Finley explained to village council, “The TIF itself will help to pay for the costs of the development of the parcel. So the demolition of the existing structure, the preparation of the site for the erection of the new building and the building itself all can be paid for from this type of TIF. Because it’s a project that involves redevelopment of an existing site, it necessitates as a first step that the village take a real property ownership interest in the parcel, and then it can immediately convey that parcel back to the owner or to another party at the request of the owner.” Finley explained that the economic development agreement also contemplates a compensation agreement with various parties, including Warrensville Heights City School District, upon passage of the TIF ordinance. “We would need to know that the Warrensville Heights School District is in agreement and that they are prepared to sign that compensation agreement,” Finley said. Once those steps are taken, council can pass the TIF ordinance.