Oakwood: First Interstate’s Tax Abatement

We asked Shakespeare if he thought First Interstate donating their 7 acre stormwater management system was a tax abatement.

He said “Yes!” and went on to explain why:

What’s in a name? that which we call a rose

By any other name would smell as sweet.

(Updated version: No matter what you call it…a tax abatement is a tax abatement!)

I would check his math, though.  He is much better at writing plays.

Check Shakespeare’s calculations below:

First Interstate says their 40 acre development will be valued at $45,000,000.00.

First Interstate’s stormwater management system takes up 7acres next to the 40 acre development.

These 7 acres will be donated to the city of South Euclid. So,no taxes will be paid on these 7 acres, even though they will be used every day as part of First Interstate’s development.

First Interstate will not pay taxes on its 7acre stormwater management system, so it WILL SAVE $312,637.50 IN TAXES PER YEAR.

Over the course of 10 years, THIS WILL SAVE FIRST INTERSTATE  $3,126,375.50 IN TAXES.

What if First Interstate decided to put its 7 acre stormwater management system somewhere else on its property?

Oops! There’s no place else to put it.

See for yourself by looking at the site plan .

This chart was taken from document at this link at the City of South Euclid website. Document was provided by First Interstate.

Here is a plan for the 21 Acre Park that shows the 7 acres used for stormwater management from the proposed development.

PS. If you haven’t signed our petition yet, you can join 574 others and sign it by clicking here!