KJK successfully represented two applicants for the 2022 round of Ohio’s Transformational Mixed-Use Development (TMUD) Program. Nearly $417 million worth of applicants applied, but only $100 million was awarded in this year’s round of available tax credits. The TMUD application process proved to be highly competitive and only 13 projects were successful in receiving the tax credit, two of which were represented by KJK and received multimillion-dollar awards.
The TMUD program is a recently conceived state incentive that provides tax credits to qualified projects in the state of Ohio. The credit is 10% of the total estimated development costs and is awarded to projects located in Ohio’s transformational areas. Each applicant had to prove that the completed project would generate new income, lodging, real property or sales taxes exceeding the amount of the awarded credit.
KJK’s Managing Partner, Jon Pinney, delivered his presentation on CrossCountry Mortgage’s Superior campus and redevelopment plan to the Ohio Tax Credit Authority Board earlier this week. CCM’s Headquarters will be relocating to Cleveland’s Superior Avenue as part of a larger revitalization plan for the area. The presentation successfully detailed the area’s existing conditions and provided the Board with the site’s master development plan, as well as the company’s growth and projected job creation. The CCM Superior redevelopment plan was awarded $8.5 million in TMUD tax credits.
Another win for KJK came in the form of an esports facility and restaurant that aims to open in mid-2023 in downtown Elyria. KJK Esports attorneys Scott Norcross and Paige Rabatin consulted with property owner Kevin Flanigan, whose project aims to bring a transformative shift to the Broad Street area. The application was successful in obtaining $3.4 million in TMUD tax credits.
Ohio’s Department of Development evaluates projects within two funding groups: (1) Major City Projects located within ten (10) miles of Akron, Cincinnati, Cleveland, Columbus, Dayton or Toledo corporation limits; and (2) General Projects, or those projects not located within a major city. To be considered projects must include at least two uses, or three uses if one of the uses is a parking structure.
KJK would like to congratulate our clients on their successful application for this highly sought-after tax credit. If you have questions about the TMUD tax credit or believe you could be qualified for future fiscal year rounds, please contact KJK’s Economic Development & Incentives attorneys Jon Pinney (JJP@kjk.com; 216.736.7260) or Rich Morehouse (RAM@kjk.com; 216.736.7292).