Lancaster Eagle Gazette
Local governments receive their funding from a number of sources. Cities and villages might choose to
One size doesn't fit all in proposed JEDD
JUNE 7, 2008
?•
WHEN companies choose to invest in a new facility, the benefits are numerous. Local residents have the opportunity for employment close to home, the new payroll helps other businesses as employees spend their money for goods and services and a variety of taxes are generated.
implement an income tax, which is typically a key funding mechanism for municipalities. Counties receive most of their income from property and sales taxes.
There has been plenty written about the creation of a Joint Economic Development District in portions of Violet and Bloom townships. JEDDs are a way for income taxes to be collected in unincorporated areas, generally for development of infrastructure to meet specific economic development projects needs. JEDDs might provide a mechanism for limiting annexation.
The JEDD that is being considered differs from many other JEDDs in Ohio. One provision is it includes numerous parties that will share in JEDD income taxes, but some likely will not provide any services to the JEDD. The JEDD as proposed will not be property owner-driven or project-driven. Most importantly, no specific infrastructure project has been identified for which the JEDD income tax is needed.
In the proposed JEDD expansion area, the only type of tax abatement available is through the Ohio Enterprise Zone Program. The program has fairly strict guidelines - with retail and service projects not eligible. We have 11
Enterprise Zone Agreements that are in effect in Fairfield County. None are in the proposed JEDD area, and only one is in an unincorporated area.
For that project, the abatement granted was 50 percent for 10 years. The tax abatement is an incentive for a company to invest in an area when it otherwise would not do so. During the abatement period, the township, county and other taxing districts, are receiving more money than they would if the project would not have moved forward.
The proposed JEDD has had pubic hearings that are required by law. Many have been opposed to the way the current JEDD contract has been written. The Lancaster Fairfield Chamber of Commerce Board of Directors voted to oppose certain language in the contract. They agreed in the general concepts associated with the cooperation between incorporated and unincorporated areas regarding JEDDs, CEDAs, TIFs and other economic development tools, which could lead to economic growth of Fairfield County. But these groups ''opposed the way the current agreement is written and the overall cost-versus-benefit imbalance that the Fairfield County 5-way JEDD represents.''
Based on public comments, the contracting parties are now in the process of making changes to the JEDD document.
Fairfield County Commissioners are committed to seeing economic growth. The county has invested more than $10 million to provide water and sewer services to the U.S. 33 Corridor.
In 2007 the commissioners pledged more than $150,000 to the Fairfield 33 Development Alliance. The public-private partnership will soon begin aggressively marketing the corridor and provide support for existing businesses.
We believe the proposed JEDD, with its 2 percent income tax, will discourage investment in the corridor. We need the flexibility to look at the needs of a new business or industry rather that a ''one size fits all'' solution that is currently being offered by the proposed JEDD.
(Jon Myers is the president of the Fairfield County Commissioners.)
By Concerned taxpayer
Local governments receive their funding from a number of sources. Cities and villages might choose to
One size doesn't fit all in proposed JEDD
JUNE 7, 2008
?•
WHEN companies choose to invest in a new facility, the benefits are numerous. Local residents have the opportunity for employment close to home, the new payroll helps other businesses as employees spend their money for goods and services and a variety of taxes are generated.
implement an income tax, which is typically a key funding mechanism for municipalities. Counties receive most of their income from property and sales taxes.
There has been plenty written about the creation of a Joint Economic Development District in portions of Violet and Bloom townships. JEDDs are a way for income taxes to be collected in unincorporated areas, generally for development of infrastructure to meet specific economic development projects needs. JEDDs might provide a mechanism for limiting annexation.
The JEDD that is being considered differs from many other JEDDs in Ohio. One provision is it includes numerous parties that will share in JEDD income taxes, but some likely will not provide any services to the JEDD. The JEDD as proposed will not be property owner-driven or project-driven. Most importantly, no specific infrastructure project has been identified for which the JEDD income tax is needed.
In the proposed JEDD expansion area, the only type of tax abatement available is through the Ohio Enterprise Zone Program. The program has fairly strict guidelines - with retail and service projects not eligible. We have 11
Enterprise Zone Agreements that are in effect in Fairfield County. None are in the proposed JEDD area, and only one is in an unincorporated area.
For that project, the abatement granted was 50 percent for 10 years. The tax abatement is an incentive for a company to invest in an area when it otherwise would not do so. During the abatement period, the township, county and other taxing districts, are receiving more money than they would if the project would not have moved forward.
The proposed JEDD has had pubic hearings that are required by law. Many have been opposed to the way the current JEDD contract has been written. The Lancaster Fairfield Chamber of Commerce Board of Directors voted to oppose certain language in the contract. They agreed in the general concepts associated with the cooperation between incorporated and unincorporated areas regarding JEDDs, CEDAs, TIFs and other economic development tools, which could lead to economic growth of Fairfield County. But these groups ''opposed the way the current agreement is written and the overall cost-versus-benefit imbalance that the Fairfield County 5-way JEDD represents.''
Based on public comments, the contracting parties are now in the process of making changes to the JEDD document.
Fairfield County Commissioners are committed to seeing economic growth. The county has invested more than $10 million to provide water and sewer services to the U.S. 33 Corridor.
In 2007 the commissioners pledged more than $150,000 to the Fairfield 33 Development Alliance. The public-private partnership will soon begin aggressively marketing the corridor and provide support for existing businesses.
We believe the proposed JEDD, with its 2 percent income tax, will discourage investment in the corridor. We need the flexibility to look at the needs of a new business or industry rather that a ''one size fits all'' solution that is currently being offered by the proposed JEDD.
(Jon Myers is the president of the Fairfield County Commissioners.)
By Concerned taxpayer
