Middletown, school district near deal

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Category: Middletown City Government
Forum Name: City Council
Forum Description: Discuss individual members and council as a legislative body.
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Printed Date: Nov 22 2024 at 10:30am

Topic: Middletown, school district near deal

Posted By: Vivian Moon
Subject: Middletown, school district near deal
Date Posted: Nov 18 2015 at 6:31pm

Posted: 5:21 p.m. Wednesday, Nov. 18, 2015

Middletown, school district near deal

By http://www.journal-news.com/staff/rick-mccrabb/" rel="nofollow - Staff Writer

MIDDLETOWN —

The city and school district are in the final stages of finalizing an agreement that they say will promote economic growth while enhancing the city’s tax base.

The duo has drafted a Cooperative Compensation Agreement, which provides the city with the authority to set up special financing areas for businesses relocating to Middletown. As part of the agreement, the city will reimburse a portion of the property taxes forfeited to the school district.

Marcia Andrew, school board president, said the city is “eager” to get the agreement signed so she expects the revised document to be presented at the next board meeting, Nov. 30.

If it’s approved, the deal would be presented to City Council members on Dec. 1. No terms of the agreement are being released, officials said.

Alexis Fitzsimmons, assistant economic development director for the city of Middletown, said the agreement will create and support new growth going into the future.

“This is a tremendous opportunity for both of us,” she said. “This could really move the community forward.”

She said the agreement provides the city with the authority to negotiate and execute Enterprise Zone Agreements, Community Reinvestment Areas, and Tax Increment Financing Districts within and up to a pre-approved threshold. As part of the agreement, the city will reimburse a portion of the amount of the property taxes forfeited, she said.

The competitive nature of retaining and recruiting jobs frequently requires the use of economic development incentives, including Enterprise Zone Agreements, Community Reinvestment Areas, and Tax Increment Financing; each type of incentive offers short-term benefits to prospective companies which end after a finite number of years, she said.

In addition to financial incentives, “speed to market” has become one of the most important factors in winning consideration from a site selector, she said. Middletown competes with other communities in Ohio, nationally, and internationally for these job retention and creation projects, she said, and having a pre-approved, clear agreement with the district is essential to moving at the speed of business.

Middletown City Schools Treasurer Randy Bertram said the board is excited and willing to work with the city to finalize the plan.

But Andrew said it’s important to be fair to the school district and the taxpayers.

“We didn’t want to give away the shop,” she said.

Andrew said the original draft called for a 10-year agreement, but the board is asking for a four-year deal. That way, she said, the deal won’t tie the hands of future board members and can be reviewed and possibly renewed after every full-term election of board members.

Replies:

Posted By: VietVet
Date Posted: Nov 19 2015 at 6:11am

Whether the people's money goes to the city or the school district, it's still the taxpayer's money being spent somewhere. Just an internal vortex of money movement.

None of this will work nor matter if there is no enticement for businesses to locate to the city. Why is this thinking just now hitting the table? Should have been ongoing for decades. You just don't start and stop on economic development. It is a continuous effort.

Let's see the success rate in the near future before we get all giddy with delight about things. Your enthusiasm may a be premature and without merit. Let's face it, the city's track record on drawing new business to town the last three decades hasn't exactly been stellar now has it.

"Alexis Fitzsimmons, assistant economic development director for the city of Middletown, said the agreement will create and support new growth going into the future."

"“This is a tremendous opportunity for both of us,” she said. “This could really move the community forward.”"

Shoulda, woulda, coulda......but no real confidence factor here. Positive speculation is good but real results are even better Fitzsimmons. Show us some results for a change. Otherwise this idea falls in the same category as the often attempted, over spent, over speculated efforts to get the downtown started. Speculation about what it may do when, in reality, it has done nothing seems to be all we have gotten so far.

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I'm so proud of my hometown and what it has become. Recall 'em all. Let's start over.

Posted By: acclaro
Date Posted: Nov 19 2015 at 8:31am

As more and more residents plot to move out of Middletown, it is clear it is the resident taking the brunt of the tax abatements, and significant pipeline of non-profits in Middletown. As the city fills the void associated with reduction in taxes, which are to be compensated to the city, although unlikely many businesses will move to Middletown associated with a reduction in paying property taxes since so many are already, non-profits, with the city already expressing financial woes which prohibit expenditures, where do you think the money is going to come from to have a fund set aside to make up the short-fall for the school district from its tax collection? Residents that will be paying a much higher income tax, so businesses get the reduction. That doesn't help the resident, and it doesn't attract new residents. Single residents will absorb the tax gap, given to businesses, by the income tax. The state won't make up the difference and assuredly, not the fed government GRANT program. So long, farewell, to you, and you, and you.

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'An appeaser is one who feeds a crocodile, hoping it will eat him last.' - Winston Churchill

Posted By: Cooper
Date Posted: Nov 19 2015 at 9:00am

It won't be long before the property tax reduction is also given to certain residential neighborhoods such as Main Street Historic area, The Highlands, The Oaks. The Renaissance, and others. Niche businesses presently located at The Mall (Towne) are moving downtown, as that is to become an Enterprise Zone, Community Reinvestment area, or a tax Increment district. Tighten up Main Street by the use of tax abatements. Fill Fenwick by naming east end an Enterprise Zone. Bring a new Kentucky developer to east end by telling them their apartment taxes will be reduced. Same with the new businesses springing up downtown, which were told a year ago, tax abatements were on their way. Mr. Grau now has the Manchester in a Community Revitalization Area, which both Renaissance and Manchester projects for renters will extend to no income taxes as well.

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