Potential Purchase and Redevelopment Opportunities in Akron, OH: City of Akron Solicits RFPs for Purchase and Redevelopment of City Owned Properties
Earlier this month the City of Akron released Request for Proposals (RFPs) to redevelop several properties throughout parts of greater Akron, OH. The proposals come as part of city’s larger “Planning to Grow Initiative” – a growth plan aimed at increasing the city’s population to 250,000 by year 2050. The city is inviting home builders and developers to submit responses to one of its nine (9) RFPs. Click the link below to view the list of RFPs:
Financing Incentives: Tax Abatements & Opportunity Zones
The City of Akron is offering tax abatements for certain projects to incentivize developers or investors with the capacity to achieve the proposals’ intended objectives. Many of the properties have accompanying fifteen (15) year tax abatements.
A couple of the properties available (517 Rhodes & 523 Evans Ave.) for sale also fall within designated Opportunity Zones. The Opportunity Zone Program provides both federal and state tax incentives for taxpayers to invest in projects in economically distressed areas. After investing in Opportunity Zone property, through a Qualified Opportunity Fund, a taxpayer is entitled to defer capital gains being invested and avoid tax on your investment’s appreciation if it is held for at least ten (10) years. For real estate investors to take advantage of this program, the real property must be substantially improved after acquisition.
Additionally, when investing in Ohio Opportunity Zone property, taxpayers are eligible for a non-refundable tax credit equal to 10% of the amount invested by the Qualified Opportunity Fund into the property. By taking advantage of this unprecedented tax program, taxpayers can reduce their individual income tax liability now and leverage future benefits by avoiding tax on their sale of the qualifying property, while also helping to increase business and housing development in economically distressed areas. Click here for more information about the Opportunity Zone Tax Credit Program.
The map of qualified opportunity zones is available here.
RFP Application Process
Most of the RFPs are due on July 30th or 31st. The City’s Planning Department will review throughout August and September, and provide recommendations to the Mayor and City Council in October. At minimum, submissions should be accompanied with a cover letter, development proposal, project timeline and budget, potential project partner, and conditional zoning permits if applicable (see specific applications for additional requirements). Proposals can be submitted to the City of Akron, Department of Planning and Urban Development, Development Services Division.
Click here for more available properties.
Assistance with RFP Submission
Buckingham, Doolittle & Burroughs, LLC is a corporate law firm that counsels middle-market executives and business leaders all over Ohio and beyond. With offices in Akron, Canton and Cleveland, Buckingham offers clients sophisticated and practical legal services. Serving the region for more than 100 years, Buckingham’s mission is to deliver meaningful experiences through the practice of law, exceed expectations in terms of service, counsel and business sense, and to offer continuous value to the industries, communities and clients they serve.
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