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Economy takes toll on joint taxing district
(by Joseph Koziol Jr. - August 27, 2009)
Economy takes toll on joint taxing district
By JOSEPH KOZIOL JR.
Burton Village Council and Burton Township have agreed, at least temporarily, to abandon plans for establishing a joint economic development district for township-owned property north of the village.
Councilwoman Linda Swaney said the discussions on the JEDD began more than a year ago, after council initiated discussions about annexing the properties.
However, she said, economic times were different when the discussions began. Now, with the economic downturn, the JEDD no longer makes sense, she said.
When the discussions began, the village and township expected several sources of income tax, including from the Geauga campus of Kent State University, a new Berkshire High School and a new Burton Fire Station, Ms. Swaney said. But the plans for the high school and fire station never materialized, and Kent State was the only viable option for tax collections.
"Everything is there, but the economic conditions are not," she said. "Our recommendation is not to pursue it at this time. I just think we need to move on."
Mayor Thomas Blair Sr. said it would be unfair to single out Kent State, the lone taxpayer in the district. "KSU will feel like they've got a bull's-eye on them," he said.
He said, if the schools or fire department go forward with their plans, the village would reconsider its position.
Councilman Gerald Rouge said he doesn't believe it's time to abandon the idea. He said the village has been giving away its water to entities outside its borders.
Kent State had agreed to be annexed into the village when it was given village water, Mr. Rouge said. But although the water was provided, the annexation never materialized, he said. Minutes from council meetings at that time give no indication as to what happened with the annexation, he said.
He said it is likely the school and fire department will seek to have village water and sewer services when they build new. "I still feel we have something we can work with -- our water," Mr. Rouge said.
Ms. Swaney said the water issue is separate from the economic development aspects of the JEDD. "Let's re-examine the water issue, not the economic development," she said.
Councilman Jeffrey Coleman said he's not sure whether the village should abandon the entire idea of a JEDD at this time. He said the land there will be developed at some time and the village may want to at least identify the area to be included.
Councilman Darren LaForce said the cost for defining the area will be $12,000, and the village should wait until its ready to proceed with the JEDD before spending the money.
Mr. Rouge said the village should proceed with only Kent State paying now. He said it would set a precedent for when the school and fire department plan to proceed.
Ms. Swaney said that seeking to collect now from only Kent State may alienate the college. "I'm not sure we want to operate that way," she said.
Mr. Coleman said the issue of water being given to Kent State happened 15 years ago, and the situation is as it is. "That ship has sailed," he said.
Village Law Director Todd Hicks said the village has the option of including a surcharge for those who receive village water but lie outside its boundaries.
Kenneth Kleve, a member of the village's board of public affairs, which oversees water and sewer operations, said a 25 percent surcharge is assessed to anyone outside the village who receives village water.
Mr. Rouge said the village had to set a precedent with its water. "You're not pushing them," he said. "You have done nothing."
Mr. Blair said it would be difficult after 15 years to attempt to hold Kent State responsible for not giving the village something in return for the water.
Mr. Coleman said he agreed with Ms. Swaney. "I'm all for the JEDD, but I understand what Linda said about it not being the proper time," he said.
Mr. Blair said even if the village does not proceed with the JEDD, the time spent exploring it was not wasted. He said it takes between 10 and 15 months to start a JEDD from scratch, but the village already has done a lot of the legwork and would be able to proceed more quickly when the appropriate time arrives.
Mr. Rouge said the village has to establish some sort of precedent to prevent what occurred with Kent State.
"If you don't think about it now, it could happen again," he said.
Mr. Coleman agreed that the village should keep that situation in mind as it moves forward.
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