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County agrees to tax incentives for major retail development

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By Lauren Pack and Chelsey Levingston, Staff Writers Updated 8:33 PM Monday, January 30, 2012

With a tax incentive agreement in place, a Columbus-based developer can now begin shoring up private funds and brokering lease agreements for tenants for a $300 million retail, residential and entertainment development at the Liberty Way interchange.

The agreement for public financing from Butler County and Liberty Twp. will help Steiner + Associates secure private money to pay for the remaining approximately $250 million cost of the first phase of Liberty Town Square, said Ralph Ireland, Steiner chief development officer.

Before the project breaks ground, Steiner also has to sign a definite agreement with the local governments, form a New Community Authority of public and private project representatives, sign leases with tenants and purchase the land for development. Steiner is focused first on signing leases with two anchor development stores, which takes longer to come to agreement than entertainment venues such as movie theaters and restaurants, Ireland said.

The county and township financing gives the project more certainty, he said.

“You’re never past the point of no return. I guess we’re about 10 percent of the way there,” he said.

County commissioners approved a memorandum of understanding Monday between Butler County, Liberty Twp. and the developers calling for the county to fund $30 million and the township $5 million through tax incentives for infrastructure-improvement costs. Liberty Twp. agreed to the same deal on Friday.

The development near Intersate 75 will be part of a Tax Increment Financing District, which means the project developers would not pay the property taxes that normally would be owed on the developed property. Instead, money will go to pay down a bond issue used to finance roads, parking areas and other infrastructure.

Commission President Don Dixon call the agreement “one of the best deals that probably is ever going to be made in Butler County.”

It is not a binding agreement, but an outline for the project with many benchmarks included for the developer to meet before the project becomes a reality is now in place.

Assistant Butler County Prosecutor Roger Gates said the agreement also assures $70 million in private equity before the first dollar of public money is invested.

Planners say ground breaking for the project could begin at the end of this year with a opening in 2014.

Attorney Jack Grove, who works with clients in real estate, land use, zoning and public financing, expressed concern that the Steiner may lead to an exodus from other area retail establishments where public funding is also in place.

“It is tricky business,” Grove said, pointing to the failure of the former Forest Fair Mall, now the Cincinnati Mall in Fairfield.

The commissioners noted Yaromir Steiner, founder and CEO of the company, indicates his lease rates would be among the highest in the area, about 2.5 times that of places like Bridgewater Falls. Also, As part of the agreement Steiner has agreed not to solicit the relocation of and will not require the relocation of existing retail outlets in the county to Liberty Town Square.

Steiner said about 3,000 construction jobs and roughly 4,500 permanent jobs would be created by the project, which would ultimately generate $1 million to $1.5 million a year in sales tax collections. The additional revenues would benefit the county, township and Lakota School District.

Liberty Town Square will be modeled after Steiner’s projects at Easton Town Center in Columbus and The Greene in Beavercreek. The first phase of the project, which would include two department stores, specialty retail, restaurants, smaller anchor tenants, approximately 100,000 square feet of office space and approximately 150 upscale multifamily residential units, is planned for 1 million square feet

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