In accordance with all policies and structure set forth in the ORC 3735.65, 3735.66,3735.67, 3735.671, 3735.672, 3735.673, 3735.68 ,3735.69, 3735.70, 5709.82, 5709.83, 5709.85, and all other sections of chapter 5709 the City of Delaware may offer a property tax incentives to a project on the property improvements made to the parcel(s) within a CRA or Enterprise Zone area. 

A project may negotiate up to 100% abatement for up to 15 years. Retail or restaurant projects MAY NOT EXCEED 10 year terms on CRA agreements or Enterprise Zone agreements. Industrial, manufacturing, office and all other non-retail or restaurant projects may not exceed 15 years per ORC. 

For industrial, office and other non-retail or restaurant projects, the level and term of the CRA is based on the Return On Investment (ROI) provided by the project in relation to the total package of incentives negotiated for that project. A project that has a 100% or greater ROI once all potential incentives are calculated is more likely to receive a 100% abatement for a greater number of years. Companies that are in our primary target industries (2014 Economic Development Plan) also are more likely to receive higher incentives.

Projects receiving a 100% abatement with less than $1 million in new payroll will typically be required to pay a pilot payment to the impacted school district and career center equaling 30% of what the district would have normally have received if the property had not been abated for the life of the abatement.

Impacted school districts must approve any abatements over 50%.

We utilize the following formula to calculate ROI:

((Projected Income Tax from New (not retained unless it is shown that a company will leave without the abatement on an expansion/retention project) Payroll for Entire Term of Projected Abatement  X (multiplied by) Most recent IMPLAN multiplier for industrial or commercial)
MINUS
Projected Total Potential Incentive Package Value Over the Course of the Term of the Incentive with the Longest Period – (subtracted by) Total of School Pilot Payments if Negotiated
DIVIDED BY
Projected Total Potential Incentive Package Value Over the Course of the Term of the Incentive with the Longest Period – (subtracted by) Total of School Pilot Payments if Negotiated

Forms, Applications and Downloads

• CRA Summary (PDF)
  
• Incentives Application (DOCX)
• CRA Process Guide
• 2014 Economic Development Plan (PDF) (Lists primary and secondary industries.)
• 2016 CRA Map (PDF)

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