Joint Economic Development Districts (JEDDs) Millcreek Township

Transcription

1 Joint Economic Development Districts (JEDDs) Millcreek Township 1

2 Agenda Introduction Background JEDDs and CEDA Overview Advantages of JEDD Overview of Proposed Agreement Next Steps Questions 2

3 Background Since 2001 Millcreek has attended a number informational meeting on JEDDs with Marysville, Jerome Township and Union County In June 2013, Millcreek Township held two public meetings on JEDDs and began formal negotiations with the City of Marysville 3

4 Joint Econ Dev Districts (JEDD) A contractual arrangement between a township and a city to share the benefits and responsibilities of commercial and industrial development Communities use JEDDs because they collect increased tax revenue on the new development, without having to raise their own taxes or outlaying initial funding for infrastructure improvements. There are dozens of JEDDs across Ohio 4

5 Why a CEDA and JEDD? Cooperative Economic Development Agreements (CEDA) permit municipalities and townships to enter into agreements governing development activities in designated areas A CEDA is not a Joint Economic Development District, it more closely resembles contract authority 5

6 Joint Econ Dev Districts (JEDD) In its purest form, it allows a regional approach to economic development (or at least one that is different than the "winner take all" approach of annexation) The JEDD contract covers issues such as who will provide: Utilities; Police Fire and EMS Road Services; Zoning, Land Use and Planning Issues Tax Abatements 6

7 Advantage of a JEDD for Millcreek Township Townships cannot collect income tax, yet the JEDD provides the township an ability to increase revenues through income taxes on newly developable land JEDDs provide a new source of funding for services (utilities, infrastructure, etc.) at no additional cost to residents 7

8 Advantage of a JEDD for Millcreek Township Moratorium on Annexation Ensures Development Pays for itself Ensures a diversified tax base for the Township Ensures Millcreek manages its own growth, planning and zoning Creating a frame work to maximize the value of land, if the owners wishes to sell for development. 8

9 Advantage of a JEDD for Marysville Minimize lawsuits or disagreements typically associated with Annexation Ensures development pays for itself Allows city some tax revenue without providing full services that comes with annexation Allows city to sell utility services (water, sewer, etc.) in areas it may not otherwise easily do. 9

10 Joint Econ Dev Districts (JEDD) For any property or area to be included in the JEDD District, a land owner(s) or a majority of landowners must sign a petition saying they wish to be included within the JEDD It is important to recognize, once the land owner is ready to develop the property or sell the land to a developer, if they want water, sewer, tax abatement, etc. they will need to join the JEDD 10

11 Joint Econ Dev Districts (JEDD) Once there is a signed petition of the requisite landowners, the county commissioners review the JEDD District proposal. Assuming the township and city have provided all the required documents, the commissioners generally must approve the JEDD The statute provides that the JEDD is voted on in the next election by voters in the unincorporated area of the township, unless all three trustees unanimously approve the JEDD. 11

12 Joint Econ Dev Districts (JEDD) The JEDD is governed by a 5 member board, including 1 representative each from the township and the city, as well as 1 representative from the JEDD s business owners, and 1 from the employees of the JEDD s businesses. These four members choose a 5 th member, who acts as chairperson The JEDD board may impose an income tax, which is normally the same as the city's income tax 12

13 Proposed Agreement Framework Agreement Basic Terms Parties City of Marysville and Millcreek Township Term 50 years, with a 25 year extension Annexation Moratorium on annexation by the City, of properties within the Township during the term of the Framework Agreement, except with mutual agreement of both parties. Territory Eligible property would include land within Millcreek Township that is zoned industrial, manufacturing, commercial, business, etc. 13

14 14

15 Proposed Agreement Framework Agreement Basic Terms cont. Income Tax The income tax levied within the JEDD shall be equal to the City s income tax rate. The income tax shall be levied on income earned by persons working within the JEDD and earned by businesses based on the net profits of the businesses located within the JEDD. The income taxes collected within the JEDD shall be allocated as follows: 70% to JEDD Board assigned as follows: 55% to infrastructure; 10% to economic development marketing; and 5% to administrative expenses 15% to the City (includes 3% income tax collection fee) 15% to the Township 15

16 Proposed Contributions to the JEDD City of Marysville Responsibilities: Water Service Sanitary Sewer Service Collection of Income Taxes JEDD Board Account Management. The City of Marysville Finance Director shall be the fiscal officer for the JEDD Board. The City of Marysville shall administer and manage financial accounts for the JEDD Board. Reconciliation reports shall be provided to the JEDD Board on a regular basis. 16

17 Proposed Contributions to the JEDD Millcreek Township Responsibilities: Township Dedicated Roads Law Enforcement Fire Protection Zoning and Land Use 17

18 Next Steps Sept: Continue to answer questions or concerns of residents Sept: Trustees Finalize terms of agreement Oct: Final Public Meeting Oct: Vote 18

19 Questions 19

20 Zoning Map of Millcreek 20

21 Land Use Map of Millcreek 21