Powell Development Committee Meeting — November 5, 2025

The Powell Development Committee met on Wednesday, November 5, 2025, at 6:30 p.m. in Council Chambers at 47 Hall Street, Powell, OH 43065. The agenda noted a "DATE CHANGE" from the usual schedule; the meeting was held on a Wednesday rather than the committee's typical first-Tuesday slot. Members present were Chairman Ferzan Ahmed, Councilmember Leif Carlson, Councilmember David Lester, and Citizen Representative Ross Irvine. Citizen Representative Shaun Simpson was absent. Staff present included Development Administrator Sean Hughes and City Manager Andrew White. The meeting's primary focus was a review of Downtown Commercial Community Reinvestment Area (CRA) incentives for two properties on West Olentangy Street owned by Transformed Construction.

Approval of Minutes

• Councilmember David Lester moved to approve the minutes from the October 7, 2025, Development Committee meeting; Councilmember Leif Carlson seconded. The minutes were approved.

Discussion: Downtown Commercial CRA Incentives — 147 and 173 W. Olentangy St.

• Staff presented applications from Transformed Construction for two downtown projects: 147 W. Olentangy St. (a two-story restaurant) and 173 W. Olentangy St. (a three-story project that will house a hotel). The agenda listed only the 147 W. Olentangy St. property under Today's Business, but the meeting minutes and discussion covered both properties. This discrepancy is noted per the public record.
• Development Administrator Sean Hughes recommended supporting the applications, explaining that downtown redevelopment is costlier than greenfield development, citing prior study, demolition, and approval costs. He argued that incentives encourage desirable development and reduce financial risk for developers, making projects more viable for both the developer and the community.
• Hughes stated the hotel project would generate lodging excise tax for the City for the first time and projected the two projects together would add 70+ full-time equivalent jobs; approximately $1.95 million in new downtown payroll, which equals about $21,606.00 in estimated annual income tax; additional parking downtown; approximately $500,000 in combined income tax and TIF PILOTs during the second 15-year period; an additional $1.9 million in spending with downtown businesses; and an increase of approximately $608,000 to the TIF fund after 30 years.
• Hughes noted that comparable boutique hotel projects across Ohio received abatements ranging from 10 to 15 years in length and from 50% up to 100% of abated taxes, with the City of Delaware approving a 15-year, 100% abatement. He recommended a 75% abatement over 15 years (the "75/15 model") for each property, structured as two separate abatements so that if the developer sells one building, the other incentive is unaffected.
• Citizen Representative Ross Irvine asked whether the abatements are recorded against the deed to the land or structured as a property interest. Hughes explained there are two mechanisms, that the agreement is not recorded in any other way, and that maintaining an ongoing relationship with the property owner is important so the City knows when a building is sold.
• Councilmember Leif Carlson asked whether abatements transfer to a new buyer or are transferable at bill of sale only with City Council approval. Hughes explained that commercial abatement assignments are subject to Council negotiation, whereas the 100%/15-year program is guaranteed and non-negotiable. He added that an assignment assumption agreement can change the terms through negotiation, require the new buyer to maintain the originally approved use, and that deviating from the agreement voids the abatement.
• Carlson also asked whether the applicant would be required to submit a plan before an application moves forward. Hughes explained that commercial abatements can be processed before a plan is approved, but noted the importance of having substantial information available—including the application, the actual agreement, and financial documentation—before staff brings a recommendation. He said staff typically screens applications at the onset and discourages projects that do not fit the City's economic development goals, though it would support an applicant who wished to take a proposal to Council regardless.
• City Manager Andrew White added that staff presented the CRA tool in a practical application for the committee's consideration and that Council would retain leverage to approve or reject each individual incentive package rather than a blanket program. He said the standard staff would want to present would be aspirational, and cited at least one past project that came forward but was not a good fit for what the City wanted to incentivize.
• Hughes discussed previous commercial CRA projects, including Kohatch and the Kroger CRA on Home Road, noting they were very different from downtown projects. He stated that state law does not require school board permission for commercial abatements at the 75% level, but that the City voluntarily coordinates with the school district; he read from a supportive email from the school treasurer saying "this is what partners do."
• Carlson asked whether staff anticipates setting different incentive rates for different businesses going forward, noting this is the second downtown project—with a third expected, since the two properties will be done in two allotments—all proposed at 75%/15 years. Staff and the City Manager indicated rates would be negotiated per application based on project fit, with Council holding final authority.
• Hughes emphasized that the agreement itself states what the developer will do, that the developer cannot deviate from it without voiding the abatement, and that the City knows in advance how a property will be used. He noted that commercial downtown projects are typically not judged as heavily on jobs and payroll as industrial or greenfield projects because downtown investment has a different return on investment.

Key Outcomes

• The Committee unanimously approved the October 7, 2025, meeting minutes.
• Chairman Ferzan Ahmed moved to forward the 75%/15-year CRA incentive recommendation for the 147 and 173 W. Olentangy St. projects to City Council. The motion carried, and the recommendation will advance to Council for consideration, where the actual legislation, agreement, and supporting financial documentation will be presented.
• The next Development Committee meeting is scheduled for December 2, 2025, at 6:30 p.m.
• Councilmember David Lester moved to adjourn; Citizen Representative Ross Irvine seconded, and the meeting adjourned.