CPED - Economic Development Division

The City of Youngstown is an Opportunity Zone Community, with 7 designated Census Tracts that qualify for both Federal and State tax credits. The Opportunity Zone program enables investors with capital gains tax liabilities to receive favorable tax treatment for investing in Opportunity Funds certified by the U.S. Treasury. Opportunity Funds provide investors with tax deferral options and potentially permanent exclusion from the taxable income of capital gains.

Reasons to Invest in Youngstown

Real estate is well below the national average, among metropolitan areas, with competitive wage rates and lower tax rates, allowing the Live, Learn, Work and Play experience. Experience quality of life, less stress, a lower cost of living, a short commute time, and lower cost of operations like water, electricity, and gas. The market for office space is well below the national average and you can take advantage of competitive wage rates.

Return on your Investment

Opportunity Zones present tremendous investment opportunities for real estate developers and manufacturers to benefit from significant capital gains savings and structuring a real estate deal that works for you.

Businesses located in specified areas within the City of Youngstown qualify to participate in the HUBZone Empowerment Contracting Program and benefit from enhanced opportunities to contract with the federal government and provide goods or services.

The Ohio Enterprise Zone Program permits local municipalities, townships and / or counties to encourage new business investment projects by providing direct tax incentives. The incentives generally take the form of real and / or personal property tax exemptions or a specific term on eligible project assets.

One of our most lucrative tools, the Float Loan Program, provides project financing to companies at 1/4% for up to 12 months based on provisions of an Irrevocable Letter of Credit from an acceptable financial institution. Loans are subject to be called at any point during the term of the loan. Consideration for this program requires submission of a written proposal and is granted competitively among pending projects.

Upon being called or term expiration, the City will call in the letter of credit for full repayment of funds disbursed and takeout financing commences between the borrower and financial institution.

There is no application for the Float Loan Program. To be formally considered for any funding, a written proposal which addresses the following (see below) should be provided, as well as a Float Loan Project Summary Sheet (see below).

Required Proposal Contents

• Project Overview
• Related job creation and relevant wage data
• Documented cost estimates of proposed expenditures
• Business plan and financials

Float Loans are provided based on formal approval of project that includes:

1. Review and determination by the Economic Development Office
2. Approval from City Council
3. Final approval/execution from the Board of Control.

Consideration by the Board of Control and execution of documents will not occur until the Irrevocable Letter of Credit has been provided.

The City of Youngstown and the Office of Community Planning & Economic Development are actively developing Business/Industrial Parks in our region with extremely competitive incentives that include the following:

• Fully improved property for $10 that can be used as equity in your project.
• Future expansion space available.
• 10-year, 75% real and personal property tax abatement.
• All utilities brought to the project.
• Excellent freeway/interstate access.
• Environmental warranties, if needed.
• Float Loans available for up to $2million at 1/4% for 18 months.

A Community Reinvestment Area (CRA) is a targeted area of land designated by the City of Youngstown on which property owners can receive tax incentives for constructing new or renovating existing buildings. The CRA Program permits municipalities, townships, or counties to designate areas where investment has been lagging to encourage revitalization of the existing housing stock and the development of new structures. Residential, commercial, and industrial projects are all eligible.

Ohio's Community Reinvestment Area Program was created in 1977 and revised in 1994 in sections 3735.65-70 of the Ohio Revised Code.

Youngstown City Council passed Ordinance 11-137 creating Community Reinvestment Area One on May 18, 2011 and was amended on July 20, 2011 by Ordinance 11-246.

Incentive Structure

Residential

• Remodeling (2 units or less; minimum $2,500): 10 year Exemption – 100% improved value only
• Remodeling (more than 2 units; minimum $5,000): 12 year Exemption – 100% improved value only
• New Construction: 15 year Exemption – 100% (improvements only, land value not exempted)

Commercial/Industrial

(Application fee of $750 payable to Ohio Department of Development applies. Local monitoring fee equal to 1% of amount of taxes exempted also applies. Minimum fee $500/ Maximum fee $2,500.)

• Remodeling (minimum $5,000): Up to 12 years as negotiated and approved in a CRA Agreement
• New Construction: Up to 15 years as negotiated and approved in a CRA Agreement

How to Apply

Residential

The Community Reinvestment Area Tax Abatement Program Application (see below) is to be submitted post-construction.

Commercial/Industrial

Applications for Commercial/Industrial projects must be approved prior to construction. To begin the process, contact the Department of Community Planning & Economic Development:

Have questions? Need assistance with your business project? We are here to help. Express your needs with our online contact form.