EDITORIAL: Akron and the abatement option

April 13--Something happened in Akron around the turn of the century. Although its population dropped from 1960 to 2000, the number of households held steady at roughly 90,000. The past 16 years? Households declined by more than 6,000. The poverty rate climbed, and the population fell by 20,000 people.

As Jason Segedy, the city planning director, often notes, an average 500 houses are torn down each year in Akron, while just 10 new homes are built.

So, Mayor Dan Horrigan is right to put at the top of his agenda halting the decline and even increasing the number of households and residents. On Monday, he sent to the City Council an ambitious abatement proposal to forgive property taxes on new home construction and residential improvements.

The concept already had been much discussed. It arrived as expected, covering the entire city, extending 15 years and forgiving 100 percent of taxes (though land still would taxed). Private developers have advised the city to take such a step to overcome the low property values currently discouraging investment.

More, other cities have succeeded on this path. In evaluating the potential for Akron, the Greater Ohio Policy Center described the record in Cleveland. The abatement program there has attracted higher-income and moderate-income buyers. Cleveland has seen growth in its share of the new homes in Cuyahoga County.

Researchers at Cleveland State University have concluded that the program will have a positive impact on city revenues, even with the abated taxes. They point to the increased property values overall and the higher earnings from people moving into the city.

Tax abatement hardly rates as a flawless tool. Too easily the benefits have landed with those who would invest, anyway. Then, there is the concern voiced this week by Russ Neal, the Ward 4 councilman, about the inequity, one resident receiving tax relief while others on the same block do not.

The counter takes two forms. First, residents and the city as a whole will not be better off if things stay the same, navigating a steady decline. Second, the mayor hits the mark: The city's housing market "needs a jolt." The risk is worth taking to benefit all.

If anything, the Community Reinvestment Area, as originally conceived by the state, was designed for just such circumstances.

In a survey, Cleveland State found that the abatement incentives did not offset concerns about the Cleveland city schools. Which reminds that neither is tax abatement the answer on its own. In that way, the mayor has launched several initiatives, including updating the zoning code.

Of the many partners required, none is more important than the Akron Public Schools. Thus, it was good to see the LeBron James Family Foundation join with the city schools this week to set in motion a school for students at risk of falling behind their peers. This complements the larger strategy of college and career academies. It reflects the necessity of having city schools that help attract new residents, too.

___

(c)2017 the Akron Beacon Journal (Akron, Ohio)

Visit the Akron Beacon Journal (Akron, Ohio) at www.ohio.com

Distributed by Tribune Content Agency, LLC.