Ohio Governor Mike DeWine announced awards for the fourth round of the Transformational Mixed-Use Development (“TMUD”) Program on January 27th. The program will provide $100 million in state support for nine major projects throughout Ohio. The TMUD tax credits, approved during the Ohio Tax Credit Authority’s January meeting, will spur over $2 billion of investment in the Buckeye State.
Fiscal year 2025 recipients are expected to develop nearly 7.5 million square feet of space and create over 7,500 permanent jobs at project sites throughout the state.
Notable projects from this round of funding include:
- Cuyahoga County’s $490 million Riverfront transformation will convert over 11 acres of parking lots into a “vibrant urban district.”
- Cincinnati’s $330 million west-end development includes renovations to TQL Stadium and over 2.5 million square feet of office, hotel, residential, retail, restaurant, and parking space.
- Downtown Columbus’s $570 million Capital Square Renaissance will construct four new buildings and transform a “concrete-heavy…environment” with an “elevated green space inspired by New York City’s iconic High Line.”
First administered in 2021, the TMUD Program was codified by the Ohio General Assembly as part of Senate Bill 39 and awards up to $100 million in funding each fiscal year. The program provides developers or insurance companies with a tax credit equal to either 10% of the total development cost or 10% of the companies’ capital contribution to the project, respectively.
Tax credits can either be issued as the project reaches tax collection thresholds or in a lump sum if the applicant qualifies for the alternative method of approval. The alternative method allows the credit to be received earlier by providing an economic impact study confirming that the estimated tax collections will exceed 10% of the estimated development costs. To date, a majority of award recipients have utilized the alternative method of approval. Developers can either i) claim the tax credit, or ii) sell/transfer the tax credit to raise capital to move the project forward.
Eligible projects are expected to have a transformational economic impact on the surrounding area and are categorized as either “major city” or “general” based on location and development cost. “Major city” projects must be located within 10 miles of Akron, Cincinnati, Cleveland, Columbus, Dayton, or Toledo and total development costs must be at least $50 million. The projects must be a combination of retail, office, residential, recreation, structured parking, and other similar uses into one mixed-use Development.
The TMUD Program was originally authorized through fiscal year 2023 (and later extended through fiscal year 2025). Awards for fiscal year 2025 will be the last under the program unless it is renewed during Ohio’s 136th General Assembly, which is currently underway.
If you would like to further discuss the contents of this post, please reach out to Rita Williams or any of our ZHF professionals.