A 1999 tax abatement agreement between the City of Cincinnati and Cincinnati Public Schools is set to expire. Now the city and CPS are at odds over renegotiating the deal.
Under the original agreement, CPS supported the construction of the two riverfront stadiums, which are tax abated. In exchange, the city provides $5 million annually to the school district. In addition, developers in the city who receive tax abatements make payments in lieu of taxes to CPS to compensate for the lost property tax revenue.
CPS says it is now losing tax revenue under the 20-year-old agreement. The teachers union puts that loss at about $8.4 million a year due to tax abatements. The city argues revenues have actually gone up for the district because the abatements work to increase funding from the state.
CPS held a fact-finding session on May 8 to hear from community stakeholders. The 1999 tax abatement agreement expires on December 31, 2019.
Joining Cincinnati Edition to discuss renegotiations are Members Eve Bolton and Ryan Messer.
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