Port Authority to pay income tax on federal, state credits

On Apr 16, 2022

The Guernsey County Port Authority will have to pay an estimated $16,000 in income taxes to the City of Cambridge for state and federal tax credits received to help pay for a $5 million renovation project at the Potter-Davis Building on Wheeling Avenue.

The Guernsey County Port Authority Board will pay a city income tax arising from renovations at the Potter-Davis building on Wheeling Avenue in downtown Cambridge.

Executive Director Norm Blanchard advised board members the Port Authority has an estimated tax payment of $13,900 due to the city for income generated by Ohio’s state tax credit of $713,900 that was used to pay a loan to fun the renovations.

The Port Authority also received nearly a half-million dollars in federal tax credits to help pay for the $5 million in renovations that created a new home for the Area Agency on Aging Region 9.

The Port Authority will also be required to pay a 1% income tax to the city for the federal tax credits, according to the Port Authority’s accounting firm Clark Schaefer Hackett of Columbus.

“It’s an income, but I did not see that coming and nobody told us,” said Blanchard of the tax bill. “I have not heard from the federal government yet to see what that bill is going to be, but they (Clark Schaefer Hackett) estimated between $1,800 and $2,200.”

Port Authority Treasurer Ed Wright said the Port Authority’s responsibility for the tax payments was confirmed by an outside third party.

“We really don’t have a choice and we are going to have to pay that,” said Blanchard.

The tax payments will be a one-time bill.

Blanchard reported the first-half of real estate taxes for the building at 710 Wheeling Ave. have also been paid.

During the treasurer’s report, Wright said the Port Authority’s current bank balance is $360,163 including $257,069 in unrestricted funds. The funds necessary to pay the tax bills will be transferred to Cambridge Renaissance LLC for payment to the city.

In other business, the board approved accepting 0.102 acres from the Village of Byesville for transfer to the Guernsey County District Public Library at the request of Mayor Jay Jackson.

The parcel of land extends along Glass Avenue in front of the Byesville Branch Library.

“When they built the Byesville branch, it slightly impacted property that was owned by the village and they (village) need to transfer that property,” said Blanchard. “The transfer will clean that up. There is no charge for the property.”

Blanchard said he learned Tuesday that the deeds to complete the transfer are done and ready to be executed.

The director also updated the board regarding a $2 million grant through the 2022 Consolidated Appropriations Act for expansion work at the D.O. Hall Business Center.

The request for funding was submitted by Appalachian Partnership Inc., a non-profit created to advance economic development opportunities in the region, through the office of U.S. Congressman Bill Johnson for work at the near 45-acre site.

The total project cost is $3.7 million to complete site development, finish road work and upgrade existing utilities, although that estimated was obtained in 2018. Blanchard said the project would need to be re-engineered to obtain a current cost estimate.

He also discussed an estimated $770,000 fee for permits to mitigate a stream on the property to creating one 40-acre plot or leaving the stream and utilizing three main areas for development.

“We could eliminate that fee if we work around the stream and there is engineering done both ways,” said Blanchard. “The CIA (Community Industrial Association) owns that property and it will fall on them to determine how we want to best use that money.”

Other topics discussed by Blanchard with the board included:

Completion of the sale and transfer of the Harper-Hutchison building on Steubenville Avenue in Cambridge to Jack Warne Construction.
Status of Ohio Valley Charcoal construction plans at the D.O. Hall Business Center.
Updates regarding the search for a downtown home for Dickens Victorian Village.
Funding options for the Ohio Bridge expansion project in Cambridge and the status of Phase III expansion for Colgate-Palmolive on Guernsey Industrial Boulevard, which are pending at this time.
Pending sale of The Daily Jeffersonian building in Cambridge including a request by the potential buyer for additional parking.
Efforts to improve a 50-acre property owned by Otto Luburgh near Interstate 70 outside Old Washington for business development. Blanchard reported plans and a cost estimate have been submitted to Guernsey County Engineer Paul Sherry.