legislative action. He stated that the City ideally completed this process within
the calendar year, although multiple entities sometimes caused delays.
Director Gottke explained the separate roles of the Community Reinvestment
Area Housing Council, which reviewed existing abatements, and TIRC, which
made formal recommendations to Council. He reported that 13 post-1994
abatements existed and that TIRC found all 13 in compliance and
recommended continuation without modification. He noted that one
abatement expired in 2024, returning approximately $31,000 to the tax rolls.
Director Gottke reviewed performance data related to job retention, job
creation, and payroll. He stated that companies outside their job-creation
windows exceeded their commitments, creating 593 jobs compared to 462
committed. He reported that total payroll exceeded commitments by
approximately $15.5 million, resulting in an estimated $630,000 additional
impact to the City in 2024. He explained that companies self-reported the
data, and staff verified payroll with the Finance Department and physical
investment with the county auditor. Director Gottke concluded his
presentation.
Councilmember Merisa Bowers thanked Director Gottke and stated that she
had substantive and procedural questions. She acknowledged additional
context he provided by email earlier in the day and commented positively on
local businesses outperforming projections. She asked about the abatement
for Buckeye Elm Holdings Company LLC, created in 2020, and questioned an
inconsistency indicating that job creation and payroll would occur by
December 31, 2024. Director Gottke stated that the information was incorrect
and clarified that the company had the entire abatement period to create the
jobs. Councilmember Bowers confirmed that the abatement term was 10
years at 80 percent. Councilmember Bowers asked what would occur if, at
the end of the 10-year term, the company fell short of its job-creation
commitments. Director Gottke responded that CRA abatements did not
include clawback provisions. Councilmember Bowers expressed concern
about that structure and asked whether guaranteed performance periods
might provide better accountability. Director Gottke stated that job-creation
windows of 36 or 48 months were standard but that each agreement differed,
and he did not know the specifics of that abatement. Councilmember Bowers
referenced a 2025 TIRC report containing an economist’s study suggesting
that abatements did not always deliver expected job creation, while TIFs
performed better, and stated that Council should keep that in mind. Turning to
procedural questions, Councilmember Bowers asked why Mifflin Township
lacked representation at the TIRC meeting. Director Gottke explained that the
county auditor’s office issued invitations and that he did not know why the
township did not attend. Councilmember Bowers noted that the City
representatives listed did not match those confirmed by Council in 2024.
Director Gottke stated that the confirmed representatives were unavailable
and that temporary representatives attended so the City would not lack
representation. Mayor Laurie Jadwin stated that staff reviewed the applicable
code and believed the action taken complied with what the law permitted.