Return on Investment due to EZ and CRA Agreements

Goal

The City utilizes a variety of programs and policies to incentivize business development to grow the number of jobs and enhance real estate. Incentives allow a community to invest in a growing business, and like any investment, the City of Wooster is careful to support projects that show a strong return on investment. Tax abatement incentives, through programs known as CRA for Community Reinvestment Area or EZ for Enterprise Zone, help businesses to invest in the community by temporarily limiting increases to their real estate tax bill. In return, firms agree to invest more in payroll, generating job opportunities and spreading wealth. Abatements are only available to projects that would otherwise locate outside of the Wooster area, and are not available to retailers or restaurants. (An exception is granted when a retailer or restauranteurs seeks to reinvest in old real estate in Downtown which usually is more expensive than constructing a new building.) By making investments to encourage businesses to grow in Wooster rather than out-of-state, the community is able to grow its job base, and at the same time, lower the tax burden on homeowners and residential buildings. While led by your City, each incentive is a partnership with your local schools and county governments.

Definition

This indicator shows the real estate tax revenue generated from projects incentivized by the City of Wooster. Real estate taxes primarily support our local school district and Wayne County government. Without the City’s economic development efforts, these industrial buildings and commercial spaces would have been built in other regions or nations, generating real estate taxes there instead of locally. Wooster citizens would have to increase their real estate taxes to make up the difference, or our top-ranked schools and County government would have to reduce services. This metric is updated the second quarter of each year.

Significance

Accountability to Wooster residents, who are the shareholders of each of these public-private partnership investments. We all agree as a society how to fund the public institutions that keep us safe, provide education, and provide public infrastructure and utilities. When exceptions are made to how businesses are taxed, there needs to be a clear understanding of the return on investment. Making investments in business expansions is essential to growing opportunities for prosperity for all residents, and every tax dollar generated by these projects are dollars local residents save. Today, over half of all real estate taxes paid in Wooster are paid by businesses, saving homeowners tax dollars and lowering costs for apartments.

Performance Data

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Did you know?

Wooster successfully utilized economic development tax incentives to secure 53 buildings projects in our community, creating over a thousand local jobs since 2010.

Useful Resources

To discuss incentive programs, please contact Jonathan Millia, Development Coordinator, 330-263-5250.

For more in depth information please visit the City of Wooster's Annual Reports.