Economic Recovery Plan
The environmental clean-up in East Palestine is mostly complete. However, the economic recovery is just beginning. In September of 2023, the Village began an economic development planning process with the help of several regional economic development partners and Bricker Graydon, an Ohio law firm with several specializations, including economic development. The plan began with a deep dive into the state of the local economy – its strengths and the challenges.
The strengths of the community are that people still want to live, work, and go to school in East Palestine because of its real quality of life. People can still afford to buy a home or build a business in East Palestine at prices far below other parts of the country. It is safe, affordable, close-knit, and right in the middle of the Pittsburgh, Youngstown, and Canton metro areas.
Its economic challenges are not unique: a transitioning economy; aging homes, buildings, and infrastructure; and struggles attracting and retaining young talented people. But the train derailment added another level of fear and apprehension that rippled through every aspect of the local economy.
Community Improvement Corporation
The Village of East Palestine is taking big steps towards fostering economic development and revitalization with the establishment of the Community Improvement Corporation (CIC). Authorized under the Ohio Revised Code, the CIC is a 501(c)(3) charitable non-profit corporation which will serve as the driving force behind these crucial efforts.
Under Ohio law, villages can do development, but it’s harder and slower for them to do so. The CIC exists to undertake these activities in a timely and business-like manner. And the CIC is especially built to negotiate deals and sign contracts with developers and businesses allowing it to swiftly respond to the evolving needs of the community. Its purpose is to work alongside the village to accomplish development goals and to spearhead transformative initiatives.
CICs are very common across the state, having been on Ohio’s law books since the 1960s. By law, the CIC must have members of the Village government on its board – including members of Village Council. That’s because the CIC is actively seeking development deals on behalf of the Village – so it needs some Village leaders on its board. But the Village Council members sitting on the CIC board serve as volunteer private citizens. And CIC board meetings are not considered Village Council meetings. Importantly, CIC board meetings are fully open to the public. We invite you to attend!
Abilities include but are not limited to the following:
Forgivable Loans Available
The East Palestine Emergency Support Program was created by the Ohio Department of Development to provide loans to assist with ongoing expenses and recovery efforts for businesses impacted by the February 2023 train derailment. For-profit and non-profit businesses located within a two-mile radius of East Palestine that were operational on or prior to Dec. 1, 2022, are eligible to apply. The loans are 0% interest and range from $10,000 to $1 million. The loans are forgivable if utilized for payroll, employee benefits, rent or mortgage payments, utility expenses, worker protection, or inventory replacement expenses related to the train derailment. Please be aware applicants will need to document financial impacts from the derailment. Apply at development.ohio.gov/EastPalestine.
Property Tax Exemptions
The Village of East Palestine has a Community Reinvestment Area (CRA) that can provide temporary property tax exemptions on the value of new buildings, significant building improvements, and site improvements. Businesses must make an application for the tax exemption prior to starting construction. The tax exemption on improvements can last up to 15 years depending upon project details. Learn more by contacting the Village at (330) 426-4367.
