Staying with the story
The Springfield News-Sun has kept you informed about the future of the former Community Hospital site ever since it was first announced that the hospital would be closed several years ago.
Springfield city commissioners will consider offering property tax incentives to developers who build or renovate properties in an east side neighborhood, including a planned $7 million senior housing complex at the former Community Hospital site.
The designated community reinvestment area near Burnett Road and East High Street also would cover the Cole Manor public housing complex, the Burnett Plaza shopping center, a medical office building and the former Schaefer Middle School site.
The terms of the proposed reinvestment area are similar to those set forth in the Center City and South Limestone CRAs that were created a decade ago, Deputy City Manager Bryan Heck said. Depending on the size and scale of the project, developers could receive abatements for 12 to 15 years with the percentage of the property tax break negotiated on a case-by-case basis.
Springfield city commissioners discussed the proposal this week and likely will vote April 14 on the proposal. It must also be approved by the Ohio Development Services Agency, which administers the Community Reinvestment Area program for the state.
It will be a good step for the east end of Springfield, City Commissioner Dan Martin said. He’s been concerned about the future viability of the neighborhood without the former Community Hospital, which closed in 2009 and was razed last year.
Commissioners have heard concerns recently about the concentration of restaurants and shopping on Bechtle Avenue, Martin said.
“This is the type of measure we can do to hopefully encourage and stimulate some investment in some other areas of the cities,” he said. “It’s a step in the right direction.”
North Limestone Street is experiencing similar issues in terms of redevelopment, Commissioner Kevin O’Neill said. The city needs to look at the entire community as opposed to one area, he said.
“The east end project is going to be a real winner,” O’Neill said, “but we’ve got to focus on the entire community where we can start branching out.”
While he’s willing to look at proposals for incentives, Mayor Warren Copeland said the city needs to be cautious about expanding property tax abatements because it affects funding for the Springfield City School District.
“Workforce is our challenge,” Copeland said. “If we do things that undercut the public school system, we’re hurting ourselves much more than a few tax breaks here and there for people who are probably going to build anyway.”
Neighborhood Housing Partnership of Greater Springfield has applied for tax credits from the Ohio Housing Finance Agency for a proposed senior housing complex at the former hospital site. If the credits are approved in June, the first phase of the 80-unit facility could begin construction next year.
Community Mercy Health Partners is expected to sell the site to the partnership for $100,000.
NHP has discussed a local tax abatement as part of the project, said Executive Director Tina Koumoutsos, which could provide cash flow to sustain the development.
“It’s really critical if that project is going to be maintained properly that we’re able to set aside reserves for capital improvements,” she said. “We want this to be an asset for the community for a long, long time.”
The abatements are awarded on the increased value of the property. Developers can receive up to 100 percent tax abatements, according to state law, but anything more than 50 percent must be approved by the local school board.
The Burnett Road reinvestment area proposal hasn’t come before the Springfield school board, President Ed Leventhal said, but it will be discussed as part of state requirements. Leventhal believes the board would support the proposal, especially if it contributes to the redevelopment of the former hospital site.
“If this could create some housing and resurrect that area, I would think that’s something we would support,” Leventhal said.
The former Schaefer Middle School at 130 S. Burnett Road is listed for sale on Midland Properties’ website for $200,000. The 2.4-acre property is owned by the school district and is included in the proposed community redevelopment area.
The proposal is good news for the neighborhood, said Springfield resident Sheila Damon, who lives on Mount Joy Street. She’s hoping for more stores nearby to reduce the number of trips she makes to Bechtle Avenue. The Burnett Plaza shopping center is busy, she said, especially the Family Dollar, which is the most convenient option for local shoppers.
“It would be nice to get some other stuff over here,” Damon said.
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