Impact fee waivers could face veto
Thursday, May 17, 2007
By SEAN CASEY
ThisWeek Staff Writer
Over the threat of mayoral veto, Pickerington City Council is moving forward with exempting a pair of businesses from the city's pay-as-you-grow policy.
Meeting Tuesday night, council unanimously approved the second reading of two ordinances to waive impact fees for new corporate headquarters for the medical offices of Tobin, Merritt & Associates LLC and the energy supplier Volunteer Energy Services Inc. The ordinances must pass a third reading to become effective.
In September 2005, city council adopted an impact-fee policy, through which developers make payments to Pickerington in order to help fund the infrastructure improvements that their projects necessitate.
Under the policy, the city collects between 46 cents and $2.50 per square foot of new commercial space. However, the policy allows for city leaders to exempt businesses in ''extraordinary'' circumstances, if a developer applies for such a waiver.
Backed by the approval of council's finance committee, Pickerington Development Director Tim Hansley said these two projects meet that ''extraordinary'' test based on a three-pronged set of criteria: significant employee payrolls, significant job growth and quick payback of the waived fees through the collection of city income taxes.
If approved by council, exempting the 8,000-square-foot Tobin, Merritt office building -- which is part of Equity's 17.7 acre mixed-use project just south of Kohl's on Hill Road -- would save the developer $13,920, an amount the city expects it will recoup within 13 months, according to Chris Schornack, Pickerington's deputy finance director.
The waiver for Gahanna-based VESI, which is constructing a 5,839-square-foot building at 790 Windmiller Drive where the company plans to relocate its central operations along with 19 employees, would save construction contractor Berry and Miller Inc. $10,159.86, Schornack said. The city plans to make up these funds in income taxes within three months.
Despite the positive projects, Mayor David Shaver warned council that it may be opening a Pandora's box with the exemptions.
''I want all companies coming to the city to be treated objectively,'' Shaver said. ''Case-by-case opens itself up to slippery slopes ... and perceptions that developers can push certain buttons at City Hall to get whatever they want.''
He recommended establishing explicit guidelines for impact-fee waivers, which could also prevent legal challenges to the city's exemption policy.
Before the vote on the measures, Shaver added that he felt strong enough about the issue that he may veto the waivers.
Under the city charter, Shaver would have 72 hours to invoke his veto power, at which time council would receive notice within 24 hours of the veto. Council could then overturn the veto with a two-thirds majority vote at the subsequent meeting.
Responding to Shaver's concerns, Council President Keith Smith stated council deals with exemptions on case-by-case basis frequently, especially in regard to issues before the city's planning and zoning commission.
However, as chairman of the finance committee, he agreed to investigate the appropriateness of well-defined guidelines for impact-fee waivers.
Thursday, May 17, 2007
By SEAN CASEY
ThisWeek Staff Writer
Over the threat of mayoral veto, Pickerington City Council is moving forward with exempting a pair of businesses from the city's pay-as-you-grow policy.
Meeting Tuesday night, council unanimously approved the second reading of two ordinances to waive impact fees for new corporate headquarters for the medical offices of Tobin, Merritt & Associates LLC and the energy supplier Volunteer Energy Services Inc. The ordinances must pass a third reading to become effective.
In September 2005, city council adopted an impact-fee policy, through which developers make payments to Pickerington in order to help fund the infrastructure improvements that their projects necessitate.
Under the policy, the city collects between 46 cents and $2.50 per square foot of new commercial space. However, the policy allows for city leaders to exempt businesses in ''extraordinary'' circumstances, if a developer applies for such a waiver.
Backed by the approval of council's finance committee, Pickerington Development Director Tim Hansley said these two projects meet that ''extraordinary'' test based on a three-pronged set of criteria: significant employee payrolls, significant job growth and quick payback of the waived fees through the collection of city income taxes.
If approved by council, exempting the 8,000-square-foot Tobin, Merritt office building -- which is part of Equity's 17.7 acre mixed-use project just south of Kohl's on Hill Road -- would save the developer $13,920, an amount the city expects it will recoup within 13 months, according to Chris Schornack, Pickerington's deputy finance director.
The waiver for Gahanna-based VESI, which is constructing a 5,839-square-foot building at 790 Windmiller Drive where the company plans to relocate its central operations along with 19 employees, would save construction contractor Berry and Miller Inc. $10,159.86, Schornack said. The city plans to make up these funds in income taxes within three months.
Despite the positive projects, Mayor David Shaver warned council that it may be opening a Pandora's box with the exemptions.
''I want all companies coming to the city to be treated objectively,'' Shaver said. ''Case-by-case opens itself up to slippery slopes ... and perceptions that developers can push certain buttons at City Hall to get whatever they want.''
He recommended establishing explicit guidelines for impact-fee waivers, which could also prevent legal challenges to the city's exemption policy.
Before the vote on the measures, Shaver added that he felt strong enough about the issue that he may veto the waivers.
Under the city charter, Shaver would have 72 hours to invoke his veto power, at which time council would receive notice within 24 hours of the veto. Council could then overturn the veto with a two-thirds majority vote at the subsequent meeting.
Responding to Shaver's concerns, Council President Keith Smith stated council deals with exemptions on case-by-case basis frequently, especially in regard to issues before the city's planning and zoning commission.
However, as chairman of the finance committee, he agreed to investigate the appropriateness of well-defined guidelines for impact-fee waivers.
