Pickerington Area Taxpayers Alliance

Brian Veiw in This Week

Posted in: PATA
Guest columns
Should Pickerington join JEDD?
No: Proposal based on speculation, lacks financial analysis
Thursday, October 12, 2006


Cooperation between the city and Violet Township. Less taxes and more commercial development. Sounds good, right? How could this economic development agreement be anything other than positive?
The proverbial devil is in the details.
The sponsor of this legislation will have you believe ''peace and prosperity'' will flow from this agreement. I prefer to live in a world where facts, figures and scientific studies prove success and provide direction, not one of distorted facts and speculation.
This agreement does not enter us into a commercial development project with the township. It forces the city to give up our right to grow and limits our ability to protect our citizens living along our borders. It gives away one-half of our income tax, forces us to prove our own expenses and further stresses our police force and limited city staff.
We're sacrificing this for an opportunity to talk to the township about possible future speculative agreements? The devil is in the details.
Our former development director documented, in painful detail, the amount of work and analysis that must be performed before entering into any Joint Economic Development District (JEDD) or Cooperative Economic Development Agreement. Instead, we're gambling the future of our city on the prospect of a JEDD someday occurring while sacrificing much as we wait.
The backers of this proposal have not provided a financial analysis showing the financial benefits or detriments to us as citizens. They have not, because you cannot perform a financial study on speculation. It's similar to performing a cost-benefit analysis on playing the Ohio lottery. The devil, they say, is in the details.
Route 33 is being hailed as the Holy Grail for commercial development. Are you aware: 1) Nearly all the open land along 33 is zoned residential. 2) Landowners cannot be forced to rezone commercially. 3) Landowners cannot be forced to put their land into a JEDD, even if they choose to rezone commercially. 4) ODOT has no plans for an interchange in this proposed area of development. 5) Canal Winchester gives 22 percent of its income tax in the CEDA area, and only 10 percent in another annexation agreement to Violet Township, while we're being required to provide 50 percent regardless of circumstances. 6) Canal Winchester, Carroll and Baltimore are not bound by this agreement and could annex their way through the middle of this proposed development area. leaving the city sitting high and dry.
The devil, I've heard, is in the details.
More of Brian from This Week

Large commercial development projects simply do not locate in areas without the infrastructure to support them, nor will they typically locate somewhere without massive tax incentives and/or abatements. A perfect example of this is in our own backyard. The CEDA between Violet Township and Canal Winchester offers 15-year tax abatements to attract businesses. Tax abatements mean no property taxes for schools.
State law dictates townships cannot issue debt without voter approval. Our historically poor showing in supporting levies allows me to conclude we are not willing to pay more taxes now in hopes they might be lowered later. If we are unwilling to build the infrastructure based on property taxes, someone must borrow the money. That someone is the city and its taxpayers, since we can issue debt and townships cannot.
I, like you, want strong schools, commercial development and lower taxes. I want to work with the township cooperatively. However, there are limits. Every opportunity to work with the township needs to be evaluated and justified on its own merits, not blanket agreements detrimental to city residents.
It is not the responsibility of city residents to further subsidize the township. Binding our city to an inescapable 30-year agreement lacking sound financial advice, based only on speculation, is irresponsible. As you are aware, the devil is in the details.
Brian Wisniewski is president of Pickerington City Council and a member of council's finance and safety committees.
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