If needed, attach a spreadsheet to your post to support your answers. Your analysis for
each question should be on a separate tab.
1.
2.
3.
4.
5.
6.
7.
Using the annual payroll estimate of $150,000 and the financial positions in Exhibits 6
and 7, what will be the monthly rents in the proposed development? Are these
calculations reasonable?
Cincinnati has a proportional income tax of 2.1%, for both residents and workers in
the City. Without considering inflation, what amount of payroll would
John Blatchford need to create in order for Cincinnati to break-even on the CRA tax
abatement using the assumptions in the memo?
The ordinance reports a positive ROI for the City of Cincinnati. However, does the tax
abatement, in its entirety, generate a positive ROI for the region?
Will some industries generate a higher ROI for a given property tax abatement? Why
or why not?
Any future development contains uncertainty. How should an applicant calculate
future payroll and employment, knowing that the answers will affect the value of the
tax abatement. Is there an inherent ethical conflict?
Should Cincinnati request any additional information in its CRA application?
Cincinnati’s income tax of 2.1% applies to both workers in, and residents of,
Cincinnati. Based on the two statements below, do you think that the City
Administration properly calculated the ROI?
a) Section 13.C. CRA Tax Exemption Agreement
Community Reinvestment Area Employment. The Company shall (i) adopt hiring practic
es to ensure that
at least twenty-five percent (25%) of the new employees shall
be residents of the City of Cincinnati and (ii) give preference to residents of the Cit
y relative to residents of the State who do not reside in the City when hiring new e
mployees under this Agreement.
b) Footnote to CRA Tax Exemption Agreement Memo for 205WM, LLC
The revenue gains from the Cincinnati earnings tax associated with the CRA may be
impacted if the positions created or relocated to Cincinnati are filled by Cincinnati
residents previously paying the earnings tax on wages earned outside Cincinnati.
Potentially, the net revenue impact may be reduced because Cincinnati may be
collecting all or some of the earnings tax from resident employees.
8.
What improvements can be made to the CRA tax abatement program?
1
Sorting out the Rules for Corporate Tax Incentives
On May 22nd, 2017, Cincinnati City Councilmember and Budget and Finance Committee
member, Kevin Flynn, would cast his vote on whether to recommend that a tax incentive
be approved by City Council. The City’s Administration proposed that John Blatchford
receive a property tax abatement in order to develop a six-unit, apartment building in
Over-the-Rhine, a neighborhood in downtown Cincinnati. The incentive would be an 8year tax exemption for 100 percent of the value of the improvements to the property. The
incentive was projected to cost Cincinnati an estimated $12,613 in foregone property
taxes over the life of the incentive. In exchange, the City expected to receive $31,325 in
income tax revenue from construction jobs and permanent jobs located at the property in
connection with the development (Exhibit 1).
These types of property tax abatements were not without controversy among City
Councilmembers. At a City Council meeting on May 10th, Councilmember Yvette
Simpson declared “I’ve implored our community and economic development department
to please, please, please…decide with all the remaining parcels in Over-the-Rhine what
our requirements are going to be upfront….do not bring me another development project
in Over-the-Rhine that does not take these things into consideration…figure out what the
rules are, let us know what we need to do to get it done.”1
At the same May 10th Council meeting, Kevin Flynn and other City Council members
criticized the many times that the City of Cincinnati’s administration presented tax
incentives to Council in which there was only a day or two to review the documents
before voting. While the value of this particular tax abatement was relatively small, other
property tax abatements have much been larger. In 2013, a property tax abatement worth
$2.5 million was approved for an apartment complex in downtown Cincinnati.2
Councilmember Flynn was also concerned that City Council generated little discussion
about the costs and benefits within a larger economic development strategy. He said “I
would ask us to be consistent up here, yes we are the policy makers, yes we can make
whatever decisions we want. I was looking back through the records, I have not seen us
reject a LEED3…tax abatement on this council yet.”4
On May 10, 2017 the City of Cincinnati City Council voted to send the Over-the-Rhine
tax abatement proposal to the Council’s Budget and Finance Committee for further
review before a full Council vote on May 24th, 2017. Members of the Budget and Finance
Committee were responsible for a detailed examination of the tax abatement proposal and
the recipient’s qualifications before making a recommendation to the full City Council.
As a member of both groups, Councilmember Kevin Flynn needed to decide how to cast
his vote.
Community Reinvestment Area (CRA) Tax Exemption
The State of Ohio introduced the Community Reinvestment Area (CRA) program to
encourage developers to renovate or construct new buildings, with the eventual result of
increased economic development in the surrounding areas.5 Under the CRA program,
property tax abatements are available for up to 15 years on both residential and
2
commercial developments, and may be granted on 100% of property tax liabilities. To be
part of the CRA program, a city, village, or county must petition the Ohio Development
Services Agency (ODSA) to grant the designation to a geography in which investment
has lagged.6 ODSA approved the entire City of Cincinnati to be a Community
Reinvestment Area (CRA).7 The details of each program, including the application and
approval process are the responsibility of the local government that administers the
program (Exhibit 1).8
As part of the CRA program, Cincinnati offers property tax abatements to both residential
and commercial properties, including multifamily properties of three or more units. In
order to qualify, the proposed plan must include at least $40,000 in renovation
improvements as well as the creation of net new jobs.9 The term of the abatement varies
depending on whether the property is renovated or newly constructed, as well as the level
of LEED certification.10 To achieve LEED certification, all new buildings must satisfy
certain requirements regarding water efficiency, indoor air quality, energy efficiency, and
other environmentally sustainable criteria.11
In addition, the applicant must submit an annual report and include an annual monitoring
fee of 1% of the annual exempted taxes. This fee may be no smaller than $500, but no
greater than $2,500 per year. The City of Cincinnati also requires that the developer
enters into a separate agreement with the school board to pay 25% of the abated taxes as
a “payment-in-lieu of taxes” or PILOT.12 In 2015, City Council also asked that
developments which were located close to the City’s streetcar rail lines contribute 15% to
fund operations of the streetcar.13 This additional payment is known as a Voluntary Tax
Incentive Contribution Agreement (VTICA), and it offsets some of the costs that the City
of Cincinnati pays to operate the public transportation system. While the law allows for a
100% property tax abatement, the net effect for many developments in Over-the-Rhine is
a maximum property tax abatement of 60%.
A Rocky History of Tax Incentives in Cincinnati
For years, Cincinnati’s City Council received questions from the media and residents
about the fairness and success of the tax incentive program. In 2014, the local newspaper,
the Cincinnati Enquirer, released an analysis that found that nearly 5,000 properties in the
City received a residential property tax abatement. Collectively, these properties were
worth $1.1 billion according to the local auditor, but were taxed on only half of this
amount. This reduction in the taxable amount of the properties meant that these owners
paid more than $14 million less in taxes than they would have in the absence of the CRA
program. The analysis also found that “four neighborhoods [Hyde Park, Mount Lookout,
Columbia Tusculum and Mount Adams] combined hold 7 percent of the city population,
but account for 26 percent of the residential abated value.”14 These four neighborhoods
have the highest household income among the 52 neighborhoods in the city of Cincinnati,
and were all in the top 10 neighborhoods which received property tax abatements.
3
The author of the analysis noted that the reduction in property taxes resulted in a loss of
revenue to local government services like public education, county parks, libraries, police
communications, and mental health services.15
In 2015, in an attempt to answer whether city tax incentives spurred economic
development, Cincinnati hired HR&A Advisors, a consulting firm specializing in real
estate and economic development to analyze 218 tax incentives approved by the city
between 2005 and 2015 for economic development purposes.16 The consultant compared
Cincinnati to similar programs in Cleveland, Louisville, Nashville, Kansas City, Missouri
and Richmond, Virginia and found that other cities implemented a more stringent
application and approval process. 17 For example, several cities included a scoring system
to “align deals with development goals,” or use “commercial tax abatements within
neighborhoods struggling with persistent food deserts.”18
In the same year that the consultant was hired, the Cincinnati Enquirer asked city officials
about $250 million in incentives that were granted since 2008 and they were provided no
response.19 The Enquirer’s inquiry also found that “the city did not have a set of
standards that identified a good deal from a bad one.” They discovered that City Council
approved many deals without detailed scrutiny because they were given details at the last
minute.20 On two occasions, City Council told the City administration to evaluate the
effectiveness and economic impact of the of the incentive programs.21
Since then, several City Council members have exhibited their own frustration with how
the abatements have been handled. One Councilmember, Chris Seelbach, said "I have
been frustrated about things since I got here in 2011…Council does not want to be a
rubber stamp even when they are good deals."22 Both Yvette Simpson and Kevin Flynn
have been vocal about the lack of consistency in the deals that have been approved. In
one City Council meeting, both council members expressed frustration with the changing
goal posts for abatement applications.23 Further, Kevin Flynn expressed frustration that
on occasions, he was handed an memo with tax incentive application as he ascended the
platform on which he was to meet.24
Kevin Flynn
Kevin Flynn was elected in 2013 to serve as one of the nine members of the City of
Cincinnati City Council. In late 2016, he announced that he would not be seeking
reelection.25 Flynn was a graduate of the University of Cincinnati and the University of
Cincinnati College of Law and also worked with the law firm Griffin Fletcher & Herndon
LLP.26 His “law practice focuses on real estate financing, residential and commercial
transactions and development.”27 Flynn spent 23 years teaching a course in Real Estate
Transactions as an adjunct professor at the University of Cincinnati, College of Law. His
focus on real estate extended to his city duties as he was the only council member to
serve on the Tax Incentive Review Council. The Tax Incentive Review Council served to
“review annually each owner’s compliance with exemption agreements entered into
pursuant to this Legislative Resolution, and shall make written recommendations to this
4
Council as to continuing, modifying or terminating such agreements based upon the
owner’s performance of the agreement.”28
The Tax Incentive Application
On March 29th, 2017, Cincinnati’s City Manager released a memo regarding John
Blatchford’s application for a LEED CRA Tax Exemption Agreement for 205WM, LLC
(Exhibit 2). However, City Council was not asked to take a vote on the CRA application
until May 10th, 2017, when a second version of the memo was released to City Council
(Exhibit 3).
5
Exhibit 1: City of Cincinnati Community Reinvestment Area (CRA) Process
1. The Company submits an initial CRA application.
2. The City of Cincinnati’s Department of Community Economic Development (DCED)
reviews the application and determines a recommendation.
3. City Council approves the recommendation and passes an ordinance and a CRA
agreement is executed by the City Manager.
4. The Company begins construction of the improvements.
5. The Company enters into a Payment in Lieu of Taxes (PILOT) agreement with
Cincinnati Public Schools (CPS) and registers the agreement with Ohio Development
Services Agency (ODSA).
6. The Company submits a completion application to DCED once construction is
completed.
7. DCED sends all agreement materials to the Hamilton County Auditor.
8. Hamilton County Auditor assesses improvements and puts the abatement into effect.
9. The Company submits annual reports and fees during the term of the abatement.
10. DCED submits an annual report on all agreements to ODSA in March, and presents
the information to the TIRC in June and City Council in September.
Source: City of Cincinnati Tax Incentive Review Council 2017 Annual Meeting
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6
Exhibit 2: Memo, March 29th, 2017
To: Mayor and Members of City Council
From: Harry Black, City Manager
Subject: LEED CRA TAX EXEMPTION AGREEMENT – 205WM LLC – 205 W
MCMICKEN IN OVER-THE-RHINE
Attached is an Emergency Ordinance captioned as follows:
APPROVING AND AUTHORIZING the City Manager to execute a Community
Reinvestment Area Tax Exemption Agreement with 205WM, LLC, thereby
authorizing an 8-year tax exemption for 100% of the value of the improvements
made to real property located at 205 W. McMicken Avenue in the Over-the-Rhine
neighborhood of Cincinnati, in connection with the remodeling of a building into
six residential apartments, which remodeling shall be completed at a total
construction cost of approximately $456,372.
Recommendation
The Administration recommends approval of this Emergency Ordinance.
Rationale: This project will result in the rehabilitation of 6 market rate apartment
units at the southeast corner of W. McMicken and Elm Street in the Over-the- Rhine
Neighborhood of Cincinnati.
Assuming no increase in real estate value or payroll over the life of the exemption,
this project will generate $5.81 of payroll taxes for the City for every $1 of real
estate taxes forgone by the City. This calculation does not include income taxes
from new residents of the renovated units.
Assuming no real estate tax rollback, this property would generate $14,692 in real
estate taxes for the City annually upon expiration of the exemption.
This project will support the creation of 6 construction jobs with total annual payroll
of approximately $350,000 and 7, new, full-time jobs with an annual payroll of
$400,000.00.
This incentive is consistent with the uniform rules for Community Reinvestment Areas
adopted by Council Ordinance No. 119-2007, as amended.
Current Status of Property
The property is located at 205 W. McMicken Avenue, west of Elm Street and east of
Dunlap Street in Over-the-Rhine. The building on this site is currently vacant and has not
been occupied within the last five years. The building is in need of new mechanics and
complete renovation.
The redevelopment of 205 W. McMicken will reduce blight, create jobs, attract private
investment, increase property values and the tax base, as well as support small businesses
in the Over-the-Rhine Neighborhood.
7
Project Description
205 WM, LLC plans to renovate both the exterior of the building and the six residential,
market rate apartment units inside the structure. The total project cost is estimated at
$456,372. The project will support the creation of 6 construction jobs and 7 permanent jobs
with total annual payroll of approximately $350,000 and $400,000 respectively.
This project represents Plan Cincinnati’s Vision to Compete by making a targeted
investment and Vision of Live to support and stabilize our neighborhoods. This incentive
is consistent with the uniform rules for Community Reinvestment Areas adopted by
Council Ordinance 119-2007.
Development Entity
The principle owner of 205 WM, LLC is John Blatchford, 1328 Race Street, Cincinnati,
Ohio. Mr. Blatchford has experience as a general contractor for three, Over-the-Rhine
historic renovation projects and has been in the construction and development industry for
four years.
Proposed Incentive
The Emergency Ordinance provides for a net 60 percent, 8-year, CRA tax exemption. The
exemption applies only to the increase in value attributable to the new construction.
Taxes and Payments not Foregone: $5,984.00
(1) The property owner will continue to pay ordinary property taxes of
approximately $260.67 annually. This is the amount of taxes paid on the preconstruction value of the property.
(2) Two third party agreements will annually commit a payment of 25% and 15%
$3,628, and $2,177 respectively, to Cincinnati Schools and streetcar operations
(VTICA).
Taxes Foregone: $69,660
The tax liability for this property will be reduced by an estimated $8,708 per year.
This represents 60% of the difference between the actual pre-renovation value and
the estimated post-renovation value. The City share of the foregone taxes is
estimated at $1,577 annually or $12,613 over the life of the exemption.
8
Job and Revenue Summary1
Year 1
Year 2
8-year Total
Jobs
Permanent jobs created
2
2
7
Temporary construction jobs created
6
0
6
Total Jobs
8
2
13
Permanent payroll taxes (est.)
$8,400
$8,400
$67,200
Construction payroll taxes (est.)
$6,125
$-
$6,125
Total tax revenue
$14,525
$8,400
$73,325
Tax Revenue
Source: CRA Tax Exemption Ordinance, March 29th, 2017
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1
Based on estimates provided by the developer; assumes no increase in real estate taxes or
payroll over the life of the exemption. The revenue gains from the Cincinnati earnings tax
associated with the CRA may be impacted if the positions created or relocated to Cincinnati are
filled by Cincinnati residents previously paying the earnings tax on wages earned outside
Cincinnati. Potentially, the net revenue impact may be reduced because Cincinnati may be
collecting all or some of the earnings tax from resident employees.
9
Exhibit 3: Memo, May 10th, 2017
To: Mayor and Members of City Council
From: Harry Black, City Manager
Subject: CRA TAX EXEMPTION AGREEMENT - 205WM LLC - 205 W
MCMICKEN OVER-THE-RHINE – B VERSION
Attached is an Emergency Ordinance captioned as follows:
APPROVING AND AUTHORIZING the City Manager to execute a Community
Reinvestment Area Tax Exemption Agreement with 205WM, LLC, thereby
authorizing an 8-year tax exemption for 100% of the value of the improvements
made to real property located at 205 W. McMicken Avenue in the Over-the-Rhine
neighborhood of Cincinnati, in connection with the remodeling of a building into
six residential apartments, which remodeling shall be completed at a total
construction cost of approximately $456,372.
Recommendation
The Administration recommends approval of this Emergency Ordinance.
Rationale: This project will result in the rehabilitation of six market rate apartments
at the Southeast Corner of W. McMicken and Elm Street in the Over-the-Rhine
Neighborhood of Cincinnati.
Assuming no increase in real estate value or payroll over the life of the exemption,
this project will generate $5.81 of payroll taxes for the City for every $1 of real
estate taxes forgone by the City. This calculation does not include income taxes
from new residents of the renovated units.
Assuming no real estate tax rollback, this property would generate $14,692 in real
estate taxes for the City annually upon expiration of the exemption.
This project will support the creation of six construction jobs with total annual
payroll of approximately $350,000 and three new full-time jobs with an annual
payroll of $150,000.00.
This incentive is consistent with the uniform rules for Community Reinvestment Areas
adopted by Council Ordinance No. 119-2007, as amended.
Current Status of Property (see Attachment A)
Dunlap Street in Over-the-Rhine. The building on this site is currently vacant and has not
been occupied within the last five years. The building is in need of new mechanics and
complete renovation.
The redevelopment of 205 W. McMicken will reduce blight, create jobs, attract private
investment, increase property values and the tax base, as well as Support Small businesses
in the Over-the-Rhine Neighborhood.
10
Project Description
205 WM, LLC plans to renovate both the exterior of the building and the six residential,
market rate apartment units inside the structure. The total project cost is estimated at
$456,372. The project will support the creation of six construction jobs and three
permanent jobs with total annual payroll of approximately $350,000 and $150,000
respectively.
This project represents Plan Cincinnati's Vision to Compete by making a targeted
investment and Vision of Live to support and stabilize our neighborhoods. This incentive
is consistent with the uniform rules for Community Reinvestment Areas adopted by
Council Ordinance 119-2007.
Development Entity
John Blatchford is the principle owner of 205 WM, LLC, and resides at 1328 Race Street
in Cincinnati, Ohio. Mr. Blatchford has experience as a general contractor and has
previously worked in the construction and development industry for four-years.
Furthermore, he was the principal contractor of three Over-the-Rhine historic renovation
projects.
Proposed incentive
The Emergency Ordinance provides for a net 60 percent, eight-year, CRA tax exemption.
The exemption applies only to the increase in value attributable to the new Construction.
Taxes and Payments not Foregone: $5,984.00
(1) The property owner will continue to pay ordinary property taxes of
approximately $260.67 annually. This is the amount of taxes paid on the preConstruction value of the property.
(2) TWO, third party agreements will annually commit a payment of 25% and 15%,
$3,628, and $2,177 respectively, to Cincinnati Schools and streetcar operations
(VTICA).
Taxes Foregone: $69,660
The tax liability for this property will be reduced by an estimated $8,708 per year.
This represents 60% of the difference between the actual pre-renovation value and
the estimated post-renovation value. The City share of the foregone taxes is
estimated at $1,577 annually or $12,613 over the life of the exemption.
11
Job and Revenue Summary2
Year 1
Year 2
8-year Total
Jobs
Permanent jobs created
2
1
3
Temporary construction jobs created
6
0
6
Total Jobs
8
1
9
Permanent payroll taxes (est.)
$3,150
$3,150
$25,200
Construction payroll taxes (est.)
$6,125
$-
$6,125
Total tax revenue
$9,275
$3,150
$31,325
Tax Revenue
Source: CRA Tax Exemption Ordinance, May 10th, 2017
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2
Based on estimates provided by the developer; assumes no increase in real estate taxes or
payroll over the life of the exemption. The revenue gains from the Cincinnati earnings tax
associated with the CRA may be impacted if the positions created or relocated to Cincinnati are
filled by Cincinnati residents previously paying the earnings tax on wages earned outside
Cincinnati. Potentially, the net revenue impact may be reduced because Cincinnati may be
collecting all or some of the earnings tax from resident employees.
12
Exhibit 4: Definition of Jobs, CRA Tax Incentive Agreement, Section 13
Section 13. Job Creation and Retention.
Jobs to be Created by Company. The Company agrees to use its
best efforts to create (i) three (3) full-time permanent jobs and (ii) six (6) fulltime temporary construction jobs at the Property in connection with the Project.
In the case of the construction jobs, the job creation and retention period shall
be concurrent with remodeling, and in the case of the other jobs described
herein, the job creation period shall begin upon completion of remodeling and
shall end three (3) years thereafter.
A.
B.
Company’s Estimated Payroll Increase. The Company's increase
in the number of employees will result in approximately (i) $150,000 of
additional annual payroll with respect to the full-time permanent jobs and (ii)
$350,000 of additional annual payroll prior to the completion of the Project with
respect to the full-time temporary construction jobs.
C.
Community Reinvestment Area Employment. The Company
shall (i) adopt hiring practices to ensure that at least twenty-five percent (25%)
of the new employees shall be residents of the City of Cincinnati and (ii) give
preference to residents of the City relative to residents of the State who do
not reside in the City when hiring new employees under this Agreement.
D.
Posting Available Employment Opportunities. To the extent
allowable by law, the Company shall use its best efforts to post available
employment opportunities within the Company's organization or the
organization of any subcontractor working with the Company with the Ohio
Means Jobs Center, 1916 Central Parkway, Cincinnati, Ohio 45214-2305,
through its Employer Services Unit Manager at 513-746-7200.
Source: CRA Tax Exemption Agreement, May 10th, 2017
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13
Exhibit 5: Timeline of City Council’s Review of CRA Ordinance
/
Source: Public Interdepartmental Correspondence Sheets regarding 205 WM, LLC and City Council
Meetings
14
Exhibit 6: All Market-Rent Properties: Operating Income and Expense Data, 2016
Total
Garden
Mid and High Rise
$ Per
$ Per
% of
$ Per
$ Per
% of
$ Per
$ Per
% of
Unit
Sq. Ft.
GPR
Unit
Sq. Ft.
GPR
Unit
Sq. Ft.
GPR
Gross Potential Rent
$13,517
$14.47
100.0%
$12,561
$13.39
100.0%
$19,113
$21.00
100.0%
Rent Revenue Collected
$12,566
$13.45
93.0%
$11,690
$12.46
93.1%
$17,688
$19.43
92.5%
$726
$0.78
5.4%
$669
$0.71
5.3%
$1,058
$1.16
5.5%
Collection Losses
$82
$0.09
0.6%
$82
$0.09
0.7%
$81
$0.09
0.4%
Losses to Concessions
$143
$0.15
1.1%
$118
$0.13
0.9%
$286
$0.31
1.5%
Revenues
Losses to Vacancy
Other Revenue
$787
$0.84
5.8%
$714
$0.76
5.7%
$1,211
$1.33
6.3%
Total Revenue
$13,353
$14.30
98.8%
$12,405
$13.22
98.8%
$18,899
$20.76
98.9%
$1,284
$1.37
9.5%
$1,240
$1.32
9.9%
$1,540
$1.69
8.1%
Operating Expenses
Salaries and Personnel
Insurance
$259
$0.28
1.9%
$251
$0.27
2.0%
$302
$0.33
1.6%
$1,575
$1.69
11.6%
$1,408
$1.50
11.2%
$2,550
$2.80
13.3%
Utilities
$330
$0.35
2.4%
$301
$0.32
2.4%
$502
$0.55
2.6%
Management Fees
$364
$0.39
2.7%
$344
$0.37
2.7%
$483
$0.53
2.5%
Administrative
$265
$0.28
2.0%
$248
$0.26
2.0%
$369
$0.41
1.9%
Marketing
$174
$0.19
1.3%
$157
$0.17
1.2%
$277
$0.30
1.4%
Contract Services
$355
$0.38
2.6%
$324
$0.34
2.6%
$541
$0.59
2.8%
Repair and Maintenance
$487
$0.52
3.6%
$476
$0.51
3.8%
$548
$0.60
2.9%
Total Operating Expenses
$5,094
$5.45
37.7%
$4,748
$5.06
37.8%
$7,112
$7.81
37.2%
Net Operating Income
$8,259
$8.84
61.1%
$7,656
$8.16
61.0%
$11,787
$12.95
61.7%
Capital Expenditures
$1,181
$1.26
8.7%
$1,127
$1.20
9.0%
$1,490
$1.64
7.8%
Taxes
Source: 2016 NAA SURVEY OF OPERATING INCOME & EXPENSES IN RENTAL APARTMENT
COMMUNITIES. https://www.naahq.org/sites/default/files/naa-documents/aboutmembership/IncomeandExpense2016-EXECSUMMARY.pdf
15
Exhibit 7: Apartment Operations Metrics, 2016
PROPERTY SIZE
Less Than 100 Units
100 to 199 Units
200 to 299 Units
300 to 399 Units
400 to 499 Units
500 or More Units
Total
REVENUE /
PAYROLL
NET OPERATING
INCOME / PAYROLL
# UNITS / FULLTIME EMPLOYEES
# UNITS / TOTAL
EMPLOYEES
PAYROLL /
REVENUE
PAYROLL / NET
OPERATING INCOME
$9.09
$8.98
$9.72
$10.35
$10.43
$10.78
$10.00
$5.20
$5.26
$5.95
$6.48
$6.60
$6.80
$6.17
33.5
39.1
41.8
45.6
46.4
49.2
43.7
28.0
35.0
39.7
43.9
45.4
48.1
41.5
11.0%
11.1%
10.3%
9.7%
9.6%
9.3%
10.0%
19.2%
19.0%
16.8%
15.4%
15.2%
14.7%
16.2%
Source: 2016 NAA SURVEY OF OPERATING INCOME & EXPENSES IN RENTAL APARTMENT
COMMUNITIES. https://www.naahq.org/sites/default/files/naa-documents/aboutmembership/IncomeandExpense2016-EXECSUMMARY.pdf
16
Notes
https://archive.org/details/10170510Coun
https://data.cincinnati-oh.gov/Growing-Economy/Commercial-Economic-Incentives-City-ofCincinnati/ecxn-umas
3 LEED is an acronym used to measure the environmental performance of a building. LEED stands for
Leadership in Energy and Environmental Design.
4 https://archive.org/details/10170510Coun
5 https://development.ohio.gov/bs/bs_comreinvest.htm
6 Ibid.
1
2
7
http://www.choosecincy.com/Cincinnati/media/Cincinnati/EconDev/2016_CRA_Commercial_one_p
ager.pdf?ext=.pdf
8 https://development.ohio.gov/bs/bs_comreinvest.htm
9
http://www.choosecincy.com/Cincinnati/media/Cincinnati/EconDev/2016_CRA_Commercial_one_p
ager.pdf?ext=.pdf
10 https://www.cincinnati-oh.gov/communitydevelopment/assets/File/CRA%20residential%20application%20rev%201-2016.pdf
11 https://www.usgbc.org/buildingperformance
12
http://www.choosecincy.com/Cincinnati/media/Cincinnati/EconDev/2016_CRA_Commercial_one_p
ager.pdf?ext=.pdf
13 https://www.wcpo.com/news/insider/otr-downtown-developers-cash-in-on-citys-property-taxdeals?page=2
14 https://www.cincinnati.com/story/news/2014/03/01/city-tax-breaks-benefit-well-offneighborhoods/5938023/
15 Ibid.
16 https://www.cincinnati.com/story/money/2016/06/06/city-may-overhaul-tax-incentives-newreport/85514902/
17 Ibid.
18 Ibid.
19 https://www.cincinnati.com/story/news/2015/03/29/cincinnati-gives-awaymillions/70592636/
20 Ibid.
21 Ibid.
22 Ibid.
23 https://archive.org/details/10170510Coun
24 Interview with Case Author
25 http://wvxu.org/post/flynns-not-running-re-election-cincinnati-council-wont-rule-outreturn#stream/0
26 http://www.cincinnati-oh.gov/council/council-members/council-member-kevin-flynn/
27 https://gfh-law.com/meet-the-team/kevin-r-flynn/
28 http://city-egov.cincinnatioh.gov/Webtop/ws/council/public/child/Blob/28618.pdf;jsessionid=CC76223AFC46B89A0B3CD1C
CE1E117DE?m=27518
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