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AIA Ohio News
Rademacher Appointed to Ohio Architects Board
John P. Rademacher, AIA, Cincinnati has been appointed to the Ohio Board of Architects for a term ending October 1, 2017. Rademacher is a past president of AIA Cincinnati, a past member of AIA Advocacy Committee, an alternate director of AIA Ohio and a member of the AIA Ohio Advisory Committee to the Ohio Facilities Construction Commission (OFCC).
Budget Bill: Senate Replaces Personal with Small Business Income Tax Cut
Tax on Architecture Still Off the Table
Ohio Senate Republicans intend to replace the 7% accros the Board Personal Income Tax Cut (PIT), included in the House Passed State Budget Bill (HB59), with a $1.4 billion targeted tax cut to small businesses--by exempting individuals' first $375,000 of annual business income from the state income tax. The 5% tax on architectural services proposed by Governor Kasich remains off the table.
Senate President, Keith Faber, (R-Celina) said in a statement that the small business personal income tax reduction would help boost “the drivers of our economy.”
“Our plan not only provides a critical incentive to small business creation but also allows these job creators to invest more of their hard-earned dollars into equipment needs, expansion plans, and employee payroll,” he said. “We believe this targeted tax relief will have the most direct impact on encouraging job growth in the state.”
In opting for the business tax break, the upper chamber eliminated the House plan to provide a 7% across-the-board PIT cut for all taxpayers. The House had opted for that tax reduction after removing a good chunk of the governor’s tax package, which included an expansion of the sales tax to cover services and would have generated enough new revenue to cover both the business and individual (20% over three years) reductions.
More changes are expected to emerge this week and next when the Senate expects to vote on its final version of HB 59. Following Senate action a House/Senate Conference Committee will reconcile differences between the two versions.
Tax Credit for Rehabbing Vacant Industrial Sites (HB 135) Discussed
The House Economic Development and Regulatory Reform Committee took testimony May 28 on HB 135 which would authorize a nonrefundable credit against the income tax and certain business taxes for the rehabilitation of a vacant industrial site.
Several witnesses offered proponent testimony: President Mark Wagenbrenner of Wagenbrenner Development in Columbus, Vice President of Governmental Relations Michael Hartley of the Columbus Chamber of Commerce, President Dave Sobochan of the NAIOP Ohio Chapter, Principal and Chief Financial Officer Zachary Price of Triad Architects, and President Ted Graham of Marion Industrial Center.
All witnesses said the legislation would provide an important impetus for the rehabilitation of vacant industrial properties. Wagenbrenner noted his own company specializes in refurbishing of "difficult" urban spaces with the support of tax credits including Clean Ohio.
"That does not mean personal and investor capital is not the driving force of the projects -- private businesses must have skin in the game for a development to be truly successful," he said. "However, there are many projects that would never get off the ground if some risks were not mitigated with timely public support."
Sobochan provided the hard numbers, identifying 2,101 industrial buildings in Ohio that are 100 percent vacant. He said Indiana and North Carolina have passed similar tax credits, and that HB135 has "unique elements" that should make it successful in Ohio.
Price compared the legislation to Ohio's existing Historic Preservation Tax Credit and New Markets Tax Credit Program. He said a study by Cleveland State University's Maxine Goodwin Levin College of Urban Affairs projects that the Historic Preservation Tax Credit will produce $10 billion in economic impact and 6,900 jobs between 2007 and 2025.
Graham said after 40 years of personal involvement in the rehabilitation of industrial buildings in Ohio, the profit margin for refurbishing such properties has been reduced "almost to nothing," and that many useful buildings are going unattended. "We need to have some incentives to redevelop it."
Rep. Burkley asked Wagenbrenner whether projects are started on speculation, or whether there is generally an end-user in mind. The witness said the latter. Rep. Driehaus and Chairwoman Baker asked him about the future of brownfield remediation under Clean Ohio. "The green money is still flowing through the Legislature. ... The brown side has been spent down," noted Driehaus.<image001.png>
Wagenbrenner said her concerns are valid. "A lot of low hanging fruit has been picked," he said. "A lot of heavy lifting on the environmental side still has to be done."
Burkley asked Sobochan to what degree credits would really spur owners or developers to rehabilitate industrial properties. He said banks have been known to offer bridge loans to projects based on the award of tax credits.
Baker told Price the committee would be interested in full information on the CSU urban study of the Historic Preservation Tax Credit. "The return on investment is what we must always consider," she said of state tax expenditures.
Baker also asked Graham about industrial rehabilitation versus full demolition and redevelopment of unused industrial properties.
"Tearing down and rebuilding them is really not an option when your outside Franklin County," he said, again pointing to costs and return on investment.
Chicago Exhibition Features KSU's Cleveland Urban Design Project
Kent State University's (KSU) Cleveland Urban Design Collaborative (CUDC) will have its "Pop Up City" initiative featured at the Chicago Cultural Center for the "Spontaneous Interventions: Design Actions for the Common Good" exhibit. The exhibit will run through Sept. 1.
According to KSU, "Pop Up City" is a temporary-use project intended to catalyze the use of some of Cleveland's underutilized vacant places as havens for cultural arts and activities. The KSU CUDC project is one of 84 projects on display in the Chicago exhibit.
Terry Schwartz director of KSU's CUDC said in a news release, "Short-term interventions allow us to activate the city and transform vacant buildings and sites, which are abundant in Cleveland." Schwartz also said, "There is quite a lot of work involved in some of our temporary interventions, but we have a network of partners and friends who help us envision and implement pop-up projects in response to specific opportunities and needs."
The "Pop Up City" initiative was also featured as a part of the official U.S. presentation at the 13th International Architecture Exhibition at the Venice Biennale in Italy last year.
OFCC Conference 2013: Save the Date
July 25 – Cincinnati
July 30- Columbus
The Ohio Facilities Construction Commission announces its first conference since the consolidation of the Ohio School Facilities Commission and the State Architects Office.
The annual conference, now known as the OFCC Conference, combines A/E-CM Regional Meetings, SAO College, and Ohio Construction Reform.
The OFCC Conference will bring together public owners, school districts, architects, engineers, landscape architects and planners, construction managers, design-builders, contractors and suppliers, consultants and specialty service providers, and construction attorneys.
Stay tuned for more information.
Latest AIA News & Information
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AIA Ohio’s Legislative affairs program provides information and leadership through advocacy and monitoring of legislation and regulations at the state level. By collaborating with allied professionals, industry representatives, code officials, and state and local representatives, AIA Ohio strives to build strategic alliances to address issues of public health, safety and welfate, design excellence and in advancing the quality of life through the built environment.
As advocates of innovative approaches to legislation, AIA Ohio advances state regulations that benefit the practice of architecture and promotes good design that positively affects the quality of life of for all citizens of Ohio. Through our efforts, AIA Ohio works to educate the public and legislators on a wide facet of issues relating to architecture including:
- Qualification Based Selection
- Historic Preservation
- Sustainable Design
- Building Code development and regulation
- Statute of repose
Working through our highly qualified staff and experienced membership, AIA Ohio proposes regulations, positions architects as leaders, and tracks and responds to legislation that benefits both architects and users of the built environment alike. Additionally, through our Political Action Committee, we strive to support legislation, and allies in the legislature, that advances the needs of our members.
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