Council
says it supports list of 9 economic incentives
Village Council indicated
last week that it may be willing to make available nine different economic
incentives to companies which develop or locate in a local commerce park.
Council plans to
present the list of incentives to the Miami Township trustees when the
two boards hold a special meeting later this month, at which time, Council
president Tony Arnett said in a memo to Council, they hope to “achieve
joint resolution on incentives to make available” for the park,
which Council and the trustees have agreed to work on.
Arnett also said
that he hopes Council will not limit itself to providing incentives only
for a commerce park, but instead will create a policy stating the incentives
the Village would offer businesses, including existing companies. Creating
a policy would let the community and future know under what parameters
the Village would offer financial incentives to businesses.
The list of incentives
includes tax abatements, subsidies for utilities and loan assistance through
the Village Economic Development Revolving Loan Fund. Council members
said that there was not one item on the list that they opposed using,
at least in principle.
This response seemed
to please Village Manager Rob Hillard, who said that the Village has to
make available different financial incentives for businesses. He stressed
the need to tailor a package of incentives for a specific business “that
makes sense” for the schools and the community.
As part of a Greene
County enterprise zone, the Village may provide abatements of up to 75
percent for personal property taxes or real estate taxes on improvements
made to existing facilities or new buildings. Abatements can last for
up to 10 years, but they cannot be applied to retail businesses.
Hillard said that
offering tax abatements has become such an established practice the Village
has to make abatements an option.
In an interview this
week, Tom Haugsby, president of the Yellow Springs school board, said
that school board members recognize the long-term benefits the community
and the school district would realize through economic growth. Therefore,
board members, he said, are “generally supportive of tax abatements
to support and provide for economic growth.”
Council’s list
also includes rebating income tax for a period of time. Income tax revenue
makes up over 60 percent of the Village’s revenue for general fund
activities. Hillard said that income tax breaks are not widely used and
that is the one item on Council’s list that makes him hesitate.
The list of incentives
includes subsidizing or reducing rate structures on Village utilities
and reducing or eliminating utilities hookup fees. The Village could also
seek grants to extend water or sewer lines for a business or provide assistance
with stormwater management plans.
Council member Denise
Swinger said that she would be concerned with subsidizing utilities rates
if that practice became an expense for the Village. For example, the Village
could not lower utility rates in a situation where the Village loses money
on a business.
Council’s list
also includes offering industrial revenue development bonds and allowing
a business to borrow against future taxes to pay for improvements.
Based on a suggestion
by Swinger, Council agreed to add another idea to its list: to be more
creative with the Revolving Loan Fund, which has been used sparingly in
recent years to fund the creation of new jobs for lower-income people
at local businesses. For instance, Swinger suggested that the Village
could use the loan fund to pay the relocation costs and hookup fees for
telecommunication systems for businesses that move to town.
Council must still
strike an agreement with the Miami Township trustees on the incentives
the two boards will provide to people who develop or occupy a commerce
park, as part of a Cooperative Economic Development Agreement (CEDA).
The CEDA states that Council and the trustees will work to promote a commerce
park and provide services to and share tax revenues from the park. Under
that agreement, Council and the trustees must agree on incentives that
would affect the Township’s revenue from the development.
The agreement designates
two areas for possible development: 46 acres of farmland at Dayton-Yellow
Springs and East Enon Roads, which is owned by Vernay Laboratories, and
almost 40 acres of farmland on the east side of East Enon, which is part
of the Pitstick farm. However, since a member of the Pitstick family plans
to build a house on the land, 32 acres of the Pitstick property is now
available for this project. Both properties border the village limits
on the west, and any land developed under the CEDA would be annexed into
Yellow Springs.
When Council and
the trustees meet on Monday, Sept. 29, Arnett said that he anticipates
the trustees will have a similar discussion to the one Council had last
week, focusing on, in this case, what kind of incentives the trustees
are comfortable offering.
Chris Mucher, president
of the Township Board of Trustees, said that while the trustees need more
information “on what is traditional and proper,” the board
is “interested in discussing incentives.”
He said that in “this
economic day and age” a financial package is “probably necessary
in order to attract the type of commerce we’re interested in promoting.”
—Robert
Mihalek
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