One issue that continues to be over looked is the debt service payments. Mr. Fix and his supporters talk about sharing the tax revenues but don?’t look at what it will cost in infrastructure. Mr. Weltlich is quoted as saying the JEDD areas will build its own infrastructure once the income taxes start coming in. Then we have others claiming that either the federal government or the state or maybe the county will step forward and hand the area all the infrastructure it needs to develop.
Folks: yes the Feds and the state helped (80%) with the Diley Road widening but it was the City taxpayers alone that put forward the local funding requirements and not the township taxpayers. That local funding requirement is going to come in at around $8 Million.
The debt service payments on that 8 million will be around $650,000 per year when all of the expenses are in. That payment will come from everyone in the city and nothing from the township (unincorporated residents). Even if there are no property tax abatements and other tax incentives given the biggest share of that debt service payment will come from the city taxpayers.
Will zoning all of the land along Diley road to commercial zoning bring in the needed revenues to make the debt service payments for the Diley Road widening let alone a recreation center?
We have a clear example in the Canal Point industrial park. To get those businesses to move to the park they are providing 15 year 100% tax abatements for the land. I read in the paper that Canal Winchester collected $512,000 from the 2% income taxes last year from this park. Of that $512,000 they paid Violet Township $117,000 in service payments to maintain the roads. Since this property is all tax abated then Canal must share with their school district up to half of the remaining $395,000 of that income tax revenue. I guess before we jump onto the JEDD band wagon we need to strongly consider the costs of development. Which by the way, Mr. Fix has refused to consider.
I know Mr. Fix sat through the meetings while we analyzed the expenses for making the Canal Point industrial park possible and the CEDA. Here are the round figures: $9 Million from Canal Winchester (property purchases and marketing) $5.5 Million for widening Diley south of Busey. $6 Million for sewer plant expansion. Pickerington spent $7 Million for the water plant expansion, and $8 Million for widening Diley north of Busey. The county also provided some water and sewer service but I do not have those figures. Then there is Violet Township that spent $900,000 for marketing and what ever. Cleary the township is getting their return back much sooner than any of the other parties.
The point is someday 20 to 30 years out these developments might start to break even for the tax payers. They will NOT provide the excess revenues like what has been suggested by Mr. Fix and his supporters.
The fact is that the Allen Road and US 33 area has no infrastructure. It will need millions to make ANY development possible. If any of you think you will raise that amount from these 5 and 10 acre JEDD please think again. Commercial development may look good when only considering the income side of the balance sheet. I strongly suggest we have experts run the numbers on these projects BEFORE we commit out money.
Folks: yes the Feds and the state helped (80%) with the Diley Road widening but it was the City taxpayers alone that put forward the local funding requirements and not the township taxpayers. That local funding requirement is going to come in at around $8 Million.
The debt service payments on that 8 million will be around $650,000 per year when all of the expenses are in. That payment will come from everyone in the city and nothing from the township (unincorporated residents). Even if there are no property tax abatements and other tax incentives given the biggest share of that debt service payment will come from the city taxpayers.
Will zoning all of the land along Diley road to commercial zoning bring in the needed revenues to make the debt service payments for the Diley Road widening let alone a recreation center?
We have a clear example in the Canal Point industrial park. To get those businesses to move to the park they are providing 15 year 100% tax abatements for the land. I read in the paper that Canal Winchester collected $512,000 from the 2% income taxes last year from this park. Of that $512,000 they paid Violet Township $117,000 in service payments to maintain the roads. Since this property is all tax abated then Canal must share with their school district up to half of the remaining $395,000 of that income tax revenue. I guess before we jump onto the JEDD band wagon we need to strongly consider the costs of development. Which by the way, Mr. Fix has refused to consider.
I know Mr. Fix sat through the meetings while we analyzed the expenses for making the Canal Point industrial park possible and the CEDA. Here are the round figures: $9 Million from Canal Winchester (property purchases and marketing) $5.5 Million for widening Diley south of Busey. $6 Million for sewer plant expansion. Pickerington spent $7 Million for the water plant expansion, and $8 Million for widening Diley north of Busey. The county also provided some water and sewer service but I do not have those figures. Then there is Violet Township that spent $900,000 for marketing and what ever. Cleary the township is getting their return back much sooner than any of the other parties.
The point is someday 20 to 30 years out these developments might start to break even for the tax payers. They will NOT provide the excess revenues like what has been suggested by Mr. Fix and his supporters.
The fact is that the Allen Road and US 33 area has no infrastructure. It will need millions to make ANY development possible. If any of you think you will raise that amount from these 5 and 10 acre JEDD please think again. Commercial development may look good when only considering the income side of the balance sheet. I strongly suggest we have experts run the numbers on these projects BEFORE we commit out money.
