Pickerington Area Taxpayers Alliance

PICKERINGTON CITY COUNCIL

TUESDAY, APRIL 4, 2006

CITY HALL, 100 LOCKVILLE ROAD

COUNCIL WORK SESSION

DISCUSSION REGARDING

JOINT ECONOMIC DEVELOPMENT DISTRICT (JEDD)

6:30 P.M.

1. ROLL CALL. Mr. Wisniewski opened the work session at 6:30 P.M., with Mrs. Riggs, Mr. Fix, Mr. Smith, Mr. Hackworth, Mrs. Hammond, Mr. Sabatino, and Mr. Wisniewski present. Mayor Shaver arrived at 6:40 P.M. Others present were: Judy Gilleland, Lynda Yartin, Ed Drobina, Jennifer Readler, Phil Hartmann, Sean Casey, and others.
2. Review and discussion regarding Joint Economic Development District (JEDD). Ms Gilleland stated she met last week with Mr. Arcari, Mr. McGory, and Mr. Yaple, to talk about the JEDD document that we have had for quite some time and that was drafted by the township. She stated we are working toward a template document that we can apply to any JEDD that we desire, with the idea being that there will be different circumstances for each JEDD area; depending upon where the area may be located it will make sense for the City to supply some services in one area and the Township to supply services in another area. She stated we are attempting to create a template that we can utilize for any of the JEDDs that may come up in the future. She stated part of that template will go toward the split of the property tax and the income tax. She stated we have talked about taking all of the tax money, putting it in a pool, dividing up the services based on where the JEDD is located, paying for the services out of the tax pool, and then dividing the remaining taxes on a 50-50 basis. She stated that is the concept we are working from. Ms Gilleland stated some members of Council had some specific questions on JEDDs and that is why she has invited our attorneys here tonight. Ms Gilleland stated we plan on taking the template that was worked on last week and Schottenstein will take that, add to it our concerns, questions, what have you, and make sure they are addressed in the template.
Mr. Hartmann stated they had received some questions from Mr. Hackworth and they would begin by trying to answer those questions. Ms Readler stated if we formed a JEDD with the Township for a specific property, you could in the initial formation document include language that you may contemplate adding additional territory in different areas. Mr. Fix clarified that the landowner would have to sign off on a JEDD. Ms Readler stated one of the biggest issues with a JEDD is that it requires extraordinary cooperation between municipalities, governmental entities, and the property owner. She stated the JEDD statute provides for the property owner being part of the Board. Ms Readler stated

JEDD continued

with regard to putting up money for infrastructure prior to the JEDD forming, you should contemplate how you are going to fund all of the different improvements. She continued it is a matter of choice, you can make the JEDD document as specific as you want with regard to the infrastructure and the commitments. She stated you retain all of your municipal powers when you go into a JEDD, so if Pickerington is going to implement a TIF in a certain area of the JEDD, and that is how you are going to pay for infrastructure, and you commit to that in the opening JEDD document, you can do that. Mr. Wisniewski ascertained in that case the land does not have to be within the City boundaries, that the powers of the municipality can be enforced in the JEDD area. Mayor Smith inquired if that included impact fees and Mayor Shaver stated it depended on what the JEDD language says, you can or cannot have whatever powers. Ms Readler stated there are some prohibitions in the Revised Code about certain types of development plans, but the agreement defines what you are going to do.
Mr. Hackworth stated we have one or two TIFs in the City and the development did not materialize, so if we had a TIF in one of these JEDD areas and the development did not materialize, who would be responsible for the TIF. Mayor Shaver stated the JEDD has nothing to do with the TIF, and Ms Readler stated the JEDDs Board of Directors have powers to administer the income tax, but again, the JEDD document is going to state exactly how that income tax is levied, and how it is administered, etc. Mr. Hackworth clarified the Board members would not be able to obligate the City for debt service if whatever they plan does not work out. Mr. Hartmann stated that was correct. Mr. Wisniewski inquired who made up the Board, how often did it change, and that sort of thing. Ms Readler stated that is statutory and the Board?’s composition varies in terms of if there are currently businesses existing in the JEDD area, and there are a couple of different statutes you can proceed under. She stated in the JEDD document the Township was proposing the initial Board of Directors would be one member from the City, one member from the Township, one member from owners of businesses in the District, if that exists, one member representing people working in the District, and one member from the County Commissioners. She stated if there aren?’t any businesses or people working in the District in the beginning, then you would have three members from the City, the Township, and the County Commissioners. She stated the terms initially would be staggered, and then would go to four years. Mayor Shaver clarified the County Commissioner?’s seat was mandatory. Ms Readler stated if you add territory to the District at a later date, then they would be eligible for being on the JEDD Board when terms expire. Mayor Shaver clarified the powers of the JEDD Board are defined by the instrument and they can be extremely limited. Ms Readler stated the JEDD document can set out exactly what the Board can do. Mr. Sabatino clarified the original JEDD document could specify that additional areas are anticipated to be included and the JEDD Board has to admit them. Mr. Smith clarified that the vote by the Board to accept new territory must be unanimous, so if the City did not want an area included, it could be stopped by their representative?’s vote on the Board.
Ms Gilleland clarified that if we have several areas that are very different, it might be best to have several JEDDs rather than including it in the original JEDD. Mr. Wisniewski clarified the JEDD document could specify that the Board would be a voluntary position. Mr. Smith clarified that the boundaries of a JEDD can change, however, typically JEDD

More JEDD

agreements are for specified periods of time. Mr. Wisniewski clarified that with a JEDD you can add territory from different areas whereas with a CEDA you cannot do that. Mayor Shaver stated a JEDD provides much more flexibility than a CEDA would allow. Mr. Wisniewski stated he had some concerns regarding the stipulations set forth in the annexation settlement agreement we entered into. Mr. Fix requested a copy of the settlement agreement be provided to all of Council so they would be aware of those stipulations.
Mr. Hartmann stated if Council has any questions, they could contact him or Ms Readler. Mr. Wisniewski requested Council also be forwarded the outline that details the benefits of a JEDD versus a CEDA.

3. ADJOURNMENT: There being nothing further, the work session closed at 7:20 P.M.,

April 4, 2006.

RESPECTFULLY SUBMITTED:
__________________________________

Lynda D. Yartin, Municipal Clerk
ATTEST:
___________________________________

David Shaver, Mayor