The fourth and final round of Transformative Mixed-Use Development Tax Credits is now available and could help spur major construction projects in Ohio’s largest cities or their closest suburbs (Google). CLICK IMAGES TO ENLARGE.

Unless extended, the TMUD program will enter its final round

Developers looking to transform their Ohio communities can now apply for funding opportunities through the Ohio Department of Development’s Transformational Mixed-Use Development (TMUD) program, which awards up to $100 million. in tax credits per round.

Unless the TMUD program is extended by the Ohio General Assembly, this will be the fourth and final offering of the so-called “megaproject” tax credits. For applicants from large cities, the TMUD program finances new construction or renovations valued at $50 million or more and includes buildings that measure at least 350,000 square feet in contiguous parcels or include at least one building at least 15 stories or higher. Applicants can also include buildings already under construction or renovation.

Online applications for the program are now available. The program provides a tax credit for large, mixed-use projects and encourages construction and building improvements in underdeveloped neighborhoods across the state.

“The Transformational Mixed-Use Development program helps make our communities more connected, productive and sustainable,” said Lydia Mihalik, director of the Ohio Department of Development, in a written statement.

“Mixed-use projects create jobs, housing and communities where Ohioans can thrive in places that have historically been underfunded and underdeveloped,” Mihalik said.

The tax credit can be used to finance new construction and/or to improve vacant buildings. Developments must impact the economic and social well-being of the immediate site and surrounding area in a way that creates long-term change in the area. Development sites eligible for the tax credit must include at least two mixed uses, or three if one of them is a parking garage.

The Transformative Mixed-Use Development Tax Credit program was originally created to make it easier for new developers to finance expensive new-build towers in or near downtown Cleveland, but no applications have been received to date. Only one new-build project, Bridgeworks in Ohio City, has applied (Cleveland Water).

Eligible costs include land acquisition, building acquisition, demolition, site improvement and new site construction.

Projects applying for the program are divided into two funding categories: metropolitan projects and general projects. Metropolitan projects must be located within 10 miles of the city limits of Columbus, Cleveland, Cincinnati, Toledo, Akron, and Dayton. No more than $80 million will be approved for metropolitan projects in any fiscal year, and no more than $40 million for any single project.

Through three previous rounds of funding, the program has awarded $300 million for 40 mixed-use development projects in 24 communities that are expected to generate nearly $3.8 billion in additional jobs and $6.3 billion in investments across Ohio.

For more information and available application materials, visit the program website. Applications will be accepted until October 4 at 4:00 p.m. Questions about the program can be sent to [email protected].

The Ohio Department of Development helps communities succeed by investing in Ohio’s people, places and businesses. For more information about our work, visit development.ohio.gov.

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