Heath Hills - Community Impact Homepage

M/I Homes has withdrawn its application. In a July 31 email to Heath's mayor and planning director, M/I Homes pulled its request for a zoning change and development agreement for 500+ homes — two days before the scheduled August 3 council vote. Heath Council member Jeff Crabill confirmed it: “it is over.” Read the full story at The Reporting Project →

Heath Hills Will Overwhelm Granville Schools and Force Massive Tax Increases on Granville Families

The proposed Heath Hills subdivision — up to 546 homes on 212 acres in the City of Heath but located entirely inside Granville Schools — is projected to add roughly 874 new students to schools already near capacity.

To accommodate them, Granville taxpayers face a 10.66-mill operating levy + 4.05-mill bond levy — a combined 14.71 mills. That means over $2,317 more per year for the average Granville homeowner.

Heath and Union Township residents have reason to be concerned as well. Fundamental questions about traffic congestion, costs, utility capacity, and the need for hundreds of high-end homes were not adequately addressed before the proposal reached Council.

The July 13 draft agreement confirms a 30-year Tax Increment Financing (TIF) district diverting tens of millions in property tax from Licking County services. The city's own financial plan now shows Heath borrowing ~$20.2 million — $43.4 million with interest through 2067 — backed by its general fund if development revenues fall short. See exactly where the money goes in the TIF calculator.

What changed in the July 13 draft

Updated July 2026

A revised draft development agreement and the city's first public financing plan were released at the July 13 Community Development & Zoning Committee meeting. Below: what each change says vs. what it actually does — every bullet sourced to the released documents.

•“504-home cap” — A cap with a trap door. 504 homes only stands if Granville builds a school on M/I's timeline. If not — and Granville has no money or plan to — the “school site” automatically becomes up to 42 more homes (546 total). Plan on 546.
•“17.1-acre school donation” — Land for a school Granville can't afford to build. The donation requires the district to fund and start construction (a ~$30M+ bond from Granville taxpayers) within a year of the 326th home — or the land reverts to M/I Homes. It converts a school into a threat: build at your own expense, or get more students anyway.
•“$6M developer reimbursement removed” — The $6M / 7% payout from the May draft is gone — the provision that made the July draft necessary to re-read line by line.
•“Additional School Payments (2.25 + 1 mills)” — ~$240,000/year against a ~$12,000,000/year shortfall — about 2 cents on the dollar — as non-binding “intent,” paid out of charges Heath controls. The extra 1 mill only exists if the school Granville can't fund gets built anyway.
•Heath's bond plan is public. ~$20.2M of 5-year notes (2027) refunded by ~$20.1M of 35-year general obligation bonds maturing 12/1/2067 — $43.4M total principal + net interest. The bonds are backed by Heath's general fund / income tax if TIF + NCA revenues fall short.
•UNCHANGED: 30-year / 100% TIF, schools held harmless on the TIF itself, NCA charge up to 7.5 mills, $11,120/lot developer utility prepayment, developer-funded road widening.

Sources: July 13, 2026 draft agreement, Baker Tilly financial summary, City summary deck. See the full agreement breakdown in the FAQ and the updated TIF analysis.

Overview of the Heath Hills development plan

1. School District Boundaries

The Granville Exempted Village School District covers a large geographic area that extends well beyond the Village of Granville itself.

Because school districts in Ohio do not align with city or township lines, developments approved in one municipality can dramatically impact neighboring school districts. District lines can be moved by the State Board of Education only with the consent of both school districts involved and the approval of the landowner. In this case, Granville Schools is the only reason this development is located here.

Granville Schools currently serve approximately 2,500 students and are already operating near capacity. Major new residential growth in areas annexed by Heath will add hundreds of new students — without sufficient revenue or control for the district.

2. Heath Land Annexations

Over the past several years, the City of Heath has aggressively annexed large tracts of land from Union Township. These annexations have extended through Lakewood Local School District territory and deep into the Granville Exempted Village School District specifically to take advantage of the Granville Schools reputation.

These annexations give Heath control over land-use decisions and allow the city to capture tax revenue from Granville Schools residents and development fees. At the same time, the educational costs fall almost entirely on Granville Schools' existing residents. This map illustrates the pattern of annexations that have paved the way for major housing developments inside Granville's school district.

3. Heath Hills: 546 Homes

The entire 212-acre project lies inside Granville Schools despite being in Heath city limits.

The July 13 draft agreement "caps" the project at 504 homes (minimum lot 7,145 sq ft) — but only if Granville builds the donated elementary school on M/I's timeline. At 1.6 students per home, that adds roughly 874 new students to Granville EVSD — requiring massive tax increases for existing Granville homeowners.

Heath City Council has twice postponed its vote — now scheduled for August 3, 2026. On July 13 the Community Development & Zoning Committee held a public meeting presenting the revised draft and the city's $43.4M-through-2067 bond plan. See what Council is asking — and what should be answered publicly — on the Key Questions page.

This is Not Responsible Regional Growth

Heath will collect substantial development fees, income taxes, and a New Community Authority (NCA) charge of up to 7.5 mills on Heath Hills homeowners to fund its own services — about $1,575/yr on a $600k home. The July draft “intends” to pass 2.25 of those mills to Granville Schools for 20 years — roughly $240,000/yr at full buildout, about 2% of the new annual costs, at Heath's discretion, expiring while the costs are permanent. Granville Schools still bears nearly $12 million in new annual operating costs and up to $55 million in construction — with the bulk of the gap still uncovered.

Several Council members have raised serious questions of their own: traffic impacts on local roads, who pays for major infrastructure expansions, whether this volume of high-price homes is actually needed, utility capacity, and how the new residents will integrate into Heath's community. Those questions deserve public answers — and on July 13 the Community Development & Zoning Committee finally held a public meeting where the revised draft and the city's $43.4M-through-2067 bond plan were presented. What still remains unanswered: a public cost-benefit analysis of the 30-year county-services diversion and the risk to Heath's own general fund.

The July 13 draft development agreement confirms the 30-year, 100% TIF district and removes the earlier plan to reimburse M/I Homes up to $6 million for road costs at 7% annual interest — roads are now the developer's sole cost. During those 30 years, tax increment that would otherwise flow to Licking County services is diverted to repay Heath's own infrastructure debt and then to its General Fund. Learn more about the TIF →

Residents of both Granville and Heath deserve full transparency and answers before this project moves forward. The next vote is scheduled for August 3 — and any financial discussions between now and then should happen in public.

→ Key Unanswered Questions & Updates → Full Financial Impact Calculator → FAQ & Why Density Matters → What is the TIF?

We urge Heath City Council to keep all financial discussions public, demand complete studies, and insist on fair solutions. Good development should not come at the expense of neighboring taxpayers, schools, or the transparency residents of both communities deserve.