Township proposes key changes in joint economic agreement
By DAVID S. OWEN
After taking almost three months to review the city's revised and approved draft of the Master Economic Development Agreement, Violet Township officials and their legal team delivered a revised version of the pact back to the city a little more than a week ago.
Pickerington Development Director Tim Hansley, who has been reviewing the revised version, said there are some changes the township is proposing.
He said one proposed change the township suggests is giving the city 30 days, as opposed to 120 days, to respond, yes or no, to entering into a Joint Economic Development District with the township.
''It looks like they don't want to hold up their ground off the market for 120 days,'' Hansley said.
''I would say 30 days is probably too short, and 120 may be little bit long, so, I guess if we were actually negotiating we could look at somewhere between the two dates,'' he said.
''We're willing to talk about anything, but we picked the number to begin with that is realistic that it can happen once a master agreement is worked out,'' said Township Trustee Terry Dunlap.
''It doesn't take four months to decide 'yes' or 'no,' '' he said.
The township also wants to clarify in its revised version of the agreement how it would share taxes with the city.
In the current city approved agreement the conditions on entering into a JEDD with the township requires the township and city to split the income tax in half.
Hansley said it looks like the township wants to make clear that it is only the income tax it will be sharing with the city and not property tax.
''This means in a JEDD area they would collect all the property tax and we would not,'' Hansley said.
When asked if the township could give the city a share of the property tax, Dunlap said, ''No, because it gets too complicated.''
''If we share property tax, then that means that the people who voted for extra police protection in the city would be sharing police protection money with the township and we would be sharing fire protection money with the city,'' Dunlap said.
''It's not a fair an equitable way to do it because it's harmful to the township and the city residents.
''The only way to do that is through income tax on the new area which doesn't hurt any current residents,'' Dunlap said.
Hansley said he thinks there might be a better deal or compromise to be made when they sit down to negotiate.
Another proposed change the township offered for the agreement is on how expenses would be handled.
The language in the current document says income tax would only be shared after expenses were considered.
''What (the township wants) to do is eliminate or reduce the definition of expenses ... and their point is, if we're allowed to count a whole bunch of stuff in as expenses, then there would be no income tax left to share with them,'' Hansley said.
''What they might be saying is, expenses defined by us could be more than half the income tax.
''So they want to continue to talk about the definition of expenses as we have it, and we'll have to negotiate more,'' Hansley said.
more to come.....
By DAVID S. OWEN
After taking almost three months to review the city's revised and approved draft of the Master Economic Development Agreement, Violet Township officials and their legal team delivered a revised version of the pact back to the city a little more than a week ago.
Pickerington Development Director Tim Hansley, who has been reviewing the revised version, said there are some changes the township is proposing.
He said one proposed change the township suggests is giving the city 30 days, as opposed to 120 days, to respond, yes or no, to entering into a Joint Economic Development District with the township.
''It looks like they don't want to hold up their ground off the market for 120 days,'' Hansley said.
''I would say 30 days is probably too short, and 120 may be little bit long, so, I guess if we were actually negotiating we could look at somewhere between the two dates,'' he said.
''We're willing to talk about anything, but we picked the number to begin with that is realistic that it can happen once a master agreement is worked out,'' said Township Trustee Terry Dunlap.
''It doesn't take four months to decide 'yes' or 'no,' '' he said.
The township also wants to clarify in its revised version of the agreement how it would share taxes with the city.
In the current city approved agreement the conditions on entering into a JEDD with the township requires the township and city to split the income tax in half.
Hansley said it looks like the township wants to make clear that it is only the income tax it will be sharing with the city and not property tax.
''This means in a JEDD area they would collect all the property tax and we would not,'' Hansley said.
When asked if the township could give the city a share of the property tax, Dunlap said, ''No, because it gets too complicated.''
''If we share property tax, then that means that the people who voted for extra police protection in the city would be sharing police protection money with the township and we would be sharing fire protection money with the city,'' Dunlap said.
''It's not a fair an equitable way to do it because it's harmful to the township and the city residents.
''The only way to do that is through income tax on the new area which doesn't hurt any current residents,'' Dunlap said.
Hansley said he thinks there might be a better deal or compromise to be made when they sit down to negotiate.
Another proposed change the township offered for the agreement is on how expenses would be handled.
The language in the current document says income tax would only be shared after expenses were considered.
''What (the township wants) to do is eliminate or reduce the definition of expenses ... and their point is, if we're allowed to count a whole bunch of stuff in as expenses, then there would be no income tax left to share with them,'' Hansley said.
''What they might be saying is, expenses defined by us could be more than half the income tax.
''So they want to continue to talk about the definition of expenses as we have it, and we'll have to negotiate more,'' Hansley said.
more to come.....