Hudson -- The development of commercial and industrial properties could potentially yield $4 million more in income tax, an amount much lower than expected.
Council member Dennis Hanink agreed the $4 million in potential income tax is not a "silver bullet" for the city's problems. He wanted to evaluate how much investment was needed to reach that number.
The Aug. 27 presentation on District 8 in southern Hudson was similar to a presentation for District 6 in May. Council members emphasized the numbers were speculative and did not include any tax abatements but reflect the development potential for the city.
Hudson Economic Development Director Chuck Wiedie said there were three parts to economic development. The presentation Aug. 27 was about the potential development in the commercial and industrial areas. A future meeting would be about metrics and measuring the tax return and costs of a project; and a future workshop would show how the city could reach its build out potential.
Economic Growth Board member Matt Beesley said the numbers show payroll is not as significant to the city as real estate tax will be to the city and schools. Income tax could total $4 million for both districts while real estate taxes could total $11 million.
Beesley, principal at Cresco Real Estate in acquisition and disposition of commercial real estate, used his expertise to analyze the properties available and shared numbers from Hudson Industrial Park, Hudson South Commercial Park and Seasons Greene in District 8. Seasons Greene is in the Stow School District, which impacted new building (real estate) taxes to Hudson.
"This is a good example of how the [Economic Growth] Board supports Chuck [Wiedie]," said Council member William Wooldredge.
A past presentation on District 6 in the western part of Hudson was updated and combined with District 8 with totals of 419,362 leasable square feet of property. New building value potential could be $431 million with new building tax potential of $11 million. If fully built out, both districts could produce 5,277 jobs with salary potential of approximately $216 million. The city could potentially receive $4.3 million in income tax.
"I'm surprised the numbers weren't bigger," said Council member Alex Kelemen.
The expense of developing every project the city goes after increases with incentives and marketing, especially hard to develop areas, he said.
Beesley said much of the infrastructure has already been built in Districts 6 and 8 so there will be more money coming in than going out.
"This is very valuable," said Council President David Basil about the report. "It helps with future development."
Kelemen suggested Council discuss the numbers and report with the school board and others agreed.
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