Norwalk CRA expanded

NORWALK — Norwalk's city council on Tuesday approved the community reinvestment area (CRA) legislation put forth by Mayor Dave Light last week. A CRA is an economic development tool that provides real property tax exemptions for property owners who renovate existing or construct new buildings, according to the Ohio Department of Development. The approved CRA gives tax abatements for residential construction of 75 percent for 10 years and commercial properties will receive an abatement of up to 75 percent for up to 10 years. Light said he is "very thankful" to the council for passing CRA. "It means a lot to our local residents, this opens the door for quality housing to be built," Light said. According to Light, Norwalk has a housing crisis and the CRA will help alleviate the issue. "Occupancy rates are above 95% in the Huron, Erie and Ottawa County area," Light said. "The CRA will help stimulate the construction of additional residential housing units to increase our housing stock and alleviate this residential housing crisis. This method has proven itself effective in similarly situated areas such as Willard, Bellevue, Clyde, Shelby, Fremont, Wakeman and Sandusky." The CRA has been over two years in the making. Light first proposed an expanded CRA in 2023, but due to pushback from the Norwalk school board, Light and the council tabled the proposal. Light wants residents to understand that under these plans, their taxes will not increase. "The CRA recipients still pay full taxes on the value of the real estate. They receive a partial abatement on only the increased value for a limited period of time," he said. Councilman Steve Gfell asked whether the 75% tax abatement was high enough for developers of commercial properties. He preferred the city offer a 100% abatement. He questioned if the city could "miss out on a large project." Councilman Steve Schumm asked that the resolution be shelved, at which time president Steve Euton said he preferred to pass the CRA and then revamp it if needed. The resolution then passed 6-1, with Schumm casting the "no" vote.