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Concept · term

CRA

community reinvestment area

An Ohio property-tax-abatement district (R.C. 3735) that lets a municipality exempt the value of new construction to incentivize development.

[verified]
  • land-use
  • finance

A community reinvestment area is an Ohio economic-development tool under R.C. 3735: a local government designates an area where new construction and improvements can receive a partial or total exemption from real-property taxes for a set term. It is one of the state's most-used tax abatement vehicles, and for a large project the abatement is usually memorialized in a negotiated agreement with job and investment commitments.

The CRA is central to the data-center financing thread because it is how the abated value is delivered: a campus worth hundreds of millions can have most of that value exempted for a decade or more, shifting the visible public benefit from property tax to a negotiated payment in lieu of taxes or a school-district revenue-share. Reading a CRA agreement — its term, its exemption percentage, and what the developer promised in return — is how the platform tests whether a deal's public benefit matches its public cost.

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