A proposed tax increment financing district near the FairOaks Mall project could help pay for other area improvements in the future.
City officials discussed the idea Monday of a new TIF district in “midtown” Columbus that would include the NexusPark (formerly FairOaks) campus. The TIF would help fund infrastructure improvements for both the campus and the surrounding area.
A TIF district allows the commission to siphon off increasing property taxes in an area to fund improvements within that zone, essentially allowing development to pay for itself.
Director of Administration and Community Development Mary Ferdon clarified that the city is not seeking redevelopment funds for the NexusPark project. Instead, the city will be using EDIT bonds and park bonds. There may also be opportunities for donations, as well as grant funding from the Regional Economic Acceleration and Development Initiative and the American Rescue Plan.
“We see a lot of infrastructure changes around the property itself once the development gets moving,” Ferdon said. “So we felt like the potential development around it was really fitting to hopefully create a TIF district to capture any growth that we see.”
Right now, the rough draft map of the proposed district includes NexusPark, Duke Energy, Greenbelt Golf Course and other select parcels. Its boundaries are Sims Drive to the north, Elm Street to the west, Midway Street to the east and 10th Street to the south. However, not everything within this area necessarily falls under the proposed TIF; certain properties have been left out.
Redevelopment Director Heather Pope said that, assuming plans come to fruition, they’ll see a lot of redevelopment in the area, which will help push infrastructure improvements.
“TIF is a good use for that,” she said. “That’s where TIF, the public sector, can step in where the private sector won’t. … The plan would be to use these TIF dollars for those type of improvements, to make this pedestrian-friendly, easier to walk and maneuver. And then also make any improvements for the other utilities that we don’t see, like water, sewer, electric and things like that.”
Pope estimated that they should be able to have the TIF created by mid-November, which means it would start capturing assessments in January.
When the FairOaks project master plan was created in 2020, it included not only renovation of the old mall but also a “campus perspective,” Ferdon said. In the future, the city hopes to create a park on the campus, extend bike and pedestrian trails, improve loop roads and improve parking. The master plan also included a “road diet” on 25th Street and adding more sidewalks there.
“As we talk about the number of residents and visitors that we would be bringing into this area, we believe that we would see a lot of new growth over the next five to 10 years,” she said.
Columbus Regional Health and the city of Columbus partnered in 2018 to purchase the FairOaks Mall facility and property at a 25% to 75% split, with the city retaining majority ownership for parks and recreation and sports tourism development. The Heritage Fund — The Community Foundation provided the difference between the selling price and the appraised value.
The purchase was driven by the idea of turning the mall into a community wellness, recreation and sports center, while also determining new potential uses for the Donner Center and connectivity with surrounding areas.
The city and CRH are moving “full speed ahead” with the project, now known as NexusPark, Ferdon said. Both entities have hired architects and are sharing an engineering firm.
A schematic design is expected later this month or in September.
“From the city’s perspective, we hope to have some final designs by late 2021,” Ferdon said. “And in theory, hopefully, we will be able to bid out our fieldhouse, which is the big piece of the project, late in 2021. In May, we hope to bid out the renovation of the mall property itself. … With some supply chain issues, that may or may not happen.”
The city hopes to sell both EDIT bonds and park bonds in May as well.
