City Council approved legislation to reduce the allowable municipal income tax credit for taxes paid to other municipalities from 1.50% to 0.50% beginning January 1, 2027, under the authority granted to Council under Ohio lawThe property is privately owned by Avon Lake Environmental Redevelopment Group (ALERG), a subsidiary of Charah Solutions. Charah Solutions is a company that provides environmental services to the power generation industry.

The City does not currently own any portion of the land, but we do have a Purchase Sales Agreement (PSA) in place with ALERG to purchase 23 acres of the property. It is important to note that there are many conditions included in the PSA that would allow the City to exit the purchase process.

City does not own and is not responsible for the stack. Avon Lake Environmental Redevelopment Group (ALERG) owns the stack and is responsible for its safety and maintenance. Private companies currently have communications equipment installed on the stack, and they lease space for that equipment from ALERG.

In connection with the park acquisition, the City intends to hire a park planner and engineering firm to evaluate potential erosion control issues. The current configuration of the fishing pier and submerged land lease structures have sheltered the lakefront from erosion for many years. No significant changes to the existing erosion control features are anticipated.

Additionally, the current Purchase Sales Agreement (PSA) with Avon Lake Environmental Redevelopment Group (ALERG) anticipates a $15 million improvement budget, a portion of which may be used to supplement existing erosion control protections.

Finally, the City has had preliminary discussions with Lorain County Metroparks about collaborating to apply for grant funds for park improvements.

The submerged land lease area encompasses the structures on the site that extend out into Lake Erie, which are separate from the 23 acres of land the City seeks to purchase through the PSA with ALERG. The submerged land at the site is currently owned by the State of Ohio. Under the terms of the Purchase Sales Agreement (PSA) and the Interim Development Agreement (IDA), the City will carefully evaluate the submerged land lease, including any potential liabilities.

The City will enter into discussions with the Ohio Department of Natural Resources (ODNR) to evaluate the submerged land lease opportunity. However, it is important to note that the acquisition of the submerged land lease is not critical for establishing a beach, because the most promising location for a beach is to the west of the submerged land lease area. Nonetheless, this issue, including environmental assessments, will be evaluated in more detail during the due diligence process.

The Purchase Sale Agreement (PSA) between the City of Avon Lake and Avon Lake Environmental Redevelopment Group (ALERG) anticipates closing by the end of 2026 or early 2027, assuming all the PSA’s terms and conditions are fully met, including the environmental remediation of the site to Ohio EPA standards.

The proposed Lakefront Mixed-Use Overlay (LMUO) district does not include or define the term “high density.” The LMUO district would permit up to sixty (60) units per acre. The site is approximately 43 acres total with 23 of those acres designated for park land. No residential units would be built on the park land.

The City of Avon Lake’s Planning and Zoning Code requires any vertical developer who wants to build on the remaining acreage of the site to provide adequate parking, including any parking needed for residential and commercial use of the property.

The City intends to provide parking for residents who visit the park area.

The best use for this property is as a first-class mixed-use lakefront development with a publicly accessible shoreline that includes housing as a significant component. If the site were used for industrial purposes, it would prevent public access to the lakefront. A mixed-used development that includes multi-family residential properties would create a sufficient property tax increase to provide the Tax Increment Financing (TIF) funds the City of Avon Lake needs to purchase the 23 acres of the site identified for a future lakefront park.

The high real estate value of lakefront property and the proposed mixed-use zoning for the site – which stipulates the types of housing developers will be permitted to build – ensures the redevelopment of the site will result in a long-term community asset. Avon Lake Environmental Redevelopment Group (ALERG) currently projects an overall developer investment of more than $400 million.

Avon Lake Environmental Redevelopment Group (ALERG) proposed this density based on its evaluation of both land planning and economic factors. The City of Avon Lake placed limitations based on the height of buildings, setbacks, and viewsheds to ensure that development is cohesive, fits with the surroundings, and protects views of Lake Erie from the street.

The former power plant site is a very unique piece of property with a unique history and development challenges. Cities that have high rise buildings that obstruct views of Lake Erie, such as Lakewood, East Cleveland, and Euclid, are not comparable. The Planning Commission paid significant attention to compatibility with the surrounding area when they made their recommendation to Avon Lake City Council.

The current Planning and Zoning Code Chapter 1234 requires the developer to provide adequate parking, as determined by the Planning Commission, before the development can be approved.

Section 1219 was negotiated into the IDA and the PSA to protect the City of Avon Lake’s interests in creating a publicly accessible lakefront park and controlling the zoning of the property. Section 1219 was not attached in any way to constrain the City Planning Commission or City Council in evaluating and acting upon the proposed zoning text amendment to create the overlay district. Critically, the City wanted to ensure ALERG’s agreement to its acquisition of the park property and to assert that the City will not place its full faith and credit behind any financings in advance of rezoning the power plant property.

The City's vision for the power plant property aligns with the Avon Lake Comprehensive Land Use Plan adopted in August of 2019, which identified public access to the lakefront as a major priority for residents. Our vision for redevelopment of the site also aligns with the Economic Recovery and Resiliency Plan which was completed in 2025.

The current owner, Avon Lake Environmental Redevelopment Group (ALERG), is conducting the land development portion of the Purchase Sale Agreement (PSA). This includes marketing the property to potential vertical developers who will build on the property if the PSA moves forward.

There are several areas for potential redevelopment south of Lake Road, including the Stop 65 – Beach Park Plaza area and the area surrounding Avondale Avenue. The City of Avon Lake is currently working with the owners of Stop 65 - Beach Park Plaza as they seek to redevelop the property. First Energy controls most of the land around Avondale Avenue, and the City has been in ongoing discussions with them about the future of that property.

The City’s Interim Development Agreement, zoning and planning code, Planning Commission review, and City Council approval are just some of those layers of control the City has over the development process. The development of the former power plant will require many layers of approval, agreements, permits, financing instruments, and operational commitments that can each be conditioned, delayed, amended, or denied by the City.

In addition, acquiring the 23-acre lakefront park would provide the City and its residents with permanent control of this critical asset for the community’s long-term benefit.

The Purchase Sale Agreement (PSA) with Avon Lake Environmental Redevelopment Group (ALERG) guarantees the City of Avon Lake will have 23 acres of lakefront property, securing public access to Lake Erie. Without the PSA and/or the adoption of the proposed Lakefront Mixed-Use Overlay (LMUO) by City Council, no lakefront access is guaranteed.

Under 1234.22(b)(4) of the City of Avon Lake’s current Planning and Zoning Code, a Traffic Impact Analysis (TIA) would be required for any Lakefront Mixed-Use Overlay (LMUO) development plan because of the site’s location, potential traffic generation, and other factors. Any developers who wish to build on the site must comply with and pay the cost of any recommendations that result from the TIA study. Because the site is adjacent to a state route, the traffic analysis will be required to be even more comprehensive than ½ mile radius required in the City’s planning and zoning code.

It does not make sense to conduct a traffic impact analysis until after a vertical developer submits their plan, because without a developer’s plan any traffic analysis would be too theoretical to be accurate. Possible improvements may include adding a third lane and the installation of a traffic light. Other improvements may be suggested in the area, depending upon the results of the TIA.

In simple terms, a vertical developer is an entity which constructs buildings on a parcel of land. In this case, the exact building height has not been determined, but building height has been capped at 75 to 100 feet as outlined in Section 1219 of the proposed Lakefront Mixed-Use Overlay (LMUO). Actual height will be determined when a vertical developer submits plans to the City of Avon Lake for review. These plans must meet the City’s Planning and Zoning Code and be approved by the City following review by the City’s Development Review Committee, Planning Commission, and City Council. Additionally, the 75 to 100 feet height restriction was determined in part through consultation with the Avon Lake Fire Department.

This question highlights the need to maintain the power plant site redevelopment project’s momentum. Resolving complex issues to allow the project to proceed and attract a vertical developer is critical to redeveloping this brownfield property into a thriving community asset. Current development conditions, including high interest rates and construction costs, make this project even more challenging. Therefore, the City of Avon Lake’s efforts to balance development concerns with current economic conditions are especially important for such a significant redevelopment effort.

Every development is subject to the current economic situation and market. The City does not own the property, which is currently zoned industrial, and thus the continuation of the Interim Development Agreement (IDA), Purchase Sale Agreement (PSA), and Lakefront Mixed-Use Overlay (LMUO) provides the most favorable atmosphere for the creation of future residential/commercial development and a lakefront park. Avon Lake Environmental Redevelopment Group (ALERG), the owner of the property, is motivated to sell the property to a vertical developer, and their hope is this transaction will be completed very soon. However, it is important to recognize that tackling a major brownfield redevelopment of this nature is a highly risky and complex venture.

Maintaining project momentum is critical to successful redevelopment efforts.

It is highly likely there will be trails within the lakefront park from the south side of Lake Road, utilizing the current bridge as a pedestrian crossing. The existing Lake Road bike lanes would also feed into the park.

The original transformer repair building and the property it sits on is owned by Avon Lake Environmental Redevelopment Group (ALERG). ALERG is considering keeping the building in place and converting it for commercial use.

Yes, it is possible that remediation may be needed. It is important to note that the waters of Lake Erie are the property of the State of Ohio, not the City of Avon Lake or Avon Lake Environmental Redevelopment Group (ALERG), the current owner of the power plant property. If historical contamination is found in or along the Lake Erie shoreline, the State of Ohio would lead the remediation process.

If contamination is discovered in Lake Erie, the Ohio Environmental Protection Agency (EPA) would likely hold the historical owners and operators of the power plant primarily responsible for remediating any past releases from the plant that may have contaminated lake sediments.

Yes, EPA reports are a matter of public record. They will be available to Avon Lake City Council and the general public once the environmental assessment of the site has been completed. Information about the ongoing environmental assessment is currently available to all members of City Council.

Full public disclosure will occur after a No Further Action Letter is submitted to Ohio EPA and a Covenant Not To Sue is received by the City of Avon Lake from the Ohio EPA. All associated environmental information in connection with the City’s acquisition of the park area will become publicly available through the City and the Ohio EPA at that point.

No current environmental studies have been conducted on the lakebed, which is owned by the State of Ohio.

No current environmental studies have been conducted in Lake Erie. The City of Avon Lake plans to conduct initial testing of the lake. If any remediation is deemed necessary following that testing, the City would involve the State of Ohio to take the lead on further investigations and remediation activities.

The City’s environmental consultant, in coordination with ALERG’s environmental consultant, is currently evaluating potential ground water impacts to Lake Erie as part of the Ohio Voluntary Action Program (Ohio VAP) process. The goal of the Ohio VAP process is to secure a No Further Action Letter from the Ohio EPA confirming that site has been investigated and remediated to meet applicable regulatory standards.

Testing of the soil is ongoing to determine if remediation or engineered fixes are needed.

The reality of development in Northeast Ohio necessitates the use of TIF as a public financing method to enable projects to happen. This is especially true of the power plant site because it requires substantial rehabilitation to enable development.

TIF is a commonly used economic development tool that provides a funding source to mitigate substantial infrastructure costs, not only in Ohio, but throughout the United States. According to research conducted by the City of Cleveland Heights, Ohio, there are currently approximately 1,850 active TIFs in Ohio. For example, the cities of Dublin and Columbus, Ohio use TIF extensively to support significant projects. In fact, 42 active TIFs were identified in Dublin as of December 31, 2023, resulting in over $250 million in infrastructure-related improvements and generating more than $1.2 billion in private investments. According to the City of Dublin, “Without utilizing Tax Increment Financing, it is very likely that this level of private value growth would not have occurred within the City.” (Source: https://dublinohiousa.gov/tif-tax-increment-financing/).

TIF will not “affect” city taxes. It simply captures a revenue source that would not exist but for the development to help pay for the required infrastructure.

The $60 million TIF amount was identified as an initial budget during negotiations with Avon Lake Environmental Redevelopment Group (ALERG) to address project goals without requiring the City of Avon Lake to pay for or pledge significant funds toward the project, or to provide the City’s full faith and credit to support the project. The initial TIF budget anticipates $15 million for park acquisition (based on a sophisticated appraisal), $15 million for park improvements, and $30 million to support other TIF eligible project infrastructure needs (e.g., roads, sidewalks, sewers, lights).

It is important to note that the TIF budget is subject to change based on the final Purchase Sale Agreement (PSA) transaction with ALERG. However, the PSA stipulates that the City will not backstop the TIF with City resources. Any vertical developer that wishes to build on the property will need to financially support the TIF, if it is passed by City Council.

If the TIF does not support the project’s needs, either the project will need to be modified in accordance with available financing, or the Purchase Sale Agreement (PSA) with Avon Lake Environmental Redevelopment Group (ALERG) will not proceed as it is currently structured.

If property taxes are eliminated, the TIF must be supported by the vertical developer separate and apart from any incremental tax payments (i.e., payments in lieu of taxes or “Pilots”) generated from the development. The City will not pledge its credit to support the TIF.

The terms of the TIF for the power plant site project will be negotiated between the developer and ALCSD. Any agreement between ALCSD and a developer will place the City of Avon Lake in a better position than if the development does not move forward.

ALCSD lost substantial revenue when the power plant shut down. Without TIF to enable development of the power plant property, ALCSD will have no opportunity to recoup any of that lost income or any other benefits that they may negotiate with a developer.

Tax Increment Financing (TIF) is not a corporate subsidy. In fact, TIFs are one of the most common economic development tools used by local governments to support complex projects in the State of Ohio and throughout the United States. Government subsidies provide developers with tax breaks, grants, loan guarantees, and other forms of financial assistance. Tax abatements provide developers with temporary reduction of or exemption from property taxes. TIF does not provide developers with these types of incentives. Instead, TIF allows private developers to mitigate their financial risk on complex projects while encouraging substantial private development that would be unlikely to occur otherwise.

The current Purchase Sale Agreement (PSA) between the City of Avon Lake and Avon Lake Environmental Redevelopment Group (ALERG) proposes the use of TIF to help the City acquire and redevelop the park area for permanent public access, which is unlikely to occur through a zoning-only approach.

No agreement has yet been reached with ALCSD because there isn’t a vertical developer involved in the project yet. Once a vertical developer is on board, negotiations with the schools will begin.

ALCSD lost funding when the power plant closed. With TIF in place to enable development of the power plant property, ALCSD will have the opportunity to recoup income it lost when the power plant closed.

The $15 million for building a park was negotiated as part of the overall Purchase Sale Agreement (PSA) with Avon Lake Environmental Redevelopment Group (ALERG) to provide an initial amount of funding for park and lakefront improvements. The City of Avon Lake’s goal is to acquire 23 acres of future park property without having to pledge significant financial resources to buy the land and make initial improvements. We believe $15 million is a sufficient level of funding to address our immediate goals, without increasing the Tax Increment Financing (TIF) funding budget beyond its currently anticipated amount.

The proposed Tax Increment Financing (TIF) for the power plant site does not increase current Avon Lake residents’ property taxes nor abate any existing taxes. In the long term this project will grow the tax base for both the City and Avon Lake City School District, generating new property and income tax revenue as homes and businesses are built on the site.

Ultimately, development of the power plant site will result in new tax revenues and new expenses associated with infrastructure and park maintenance at the site. The City administration has analyzed projected revenues and expenses both while TIF is in place and after TIF expires. Until a final development plan and TIF application are in place, projections are purely theoretical. Once they are in place, however, the City will be able to provide accurate projections.

It is important to note that the recent income tax proposal that was rejected by voters in the May 2026 Primary Election was entirely independent of the power plant project and has no bearing on the proposed TIF or the development of the power plant site.