August 2, 2014

Medina
Intermittent clouds
69°F

Tax deal OK’d between city of Medina, Montville Township

MEDINA — For the next 100 years, the city of Medina and Montville Township will join in economic endeavors.

On Monday, Medina County commissioners unanimously approved a joint economic development district between the city and the township.

“I think it’s a great development tool for the township as well as the city,” Commissioner Steve Hambley said Tuesday.

JEDDs are formed to generate revenue. Employees of businesses in the JEDD pay city income tax — 1.25 percent — even though they work in the township.

Montville, because it is unincorporated, cannot levy an income tax.

Hambley said the next step in the process of forming the JEDD will be for representatives from the township, city, a business owner and an employee within the JEDD district to form a board that will oversee JEDD issues. The JEDD agreement will be in place for 100 years.

At-large Councilman John Coyne said he expected the JEDD board to be formed by August.

“I think it’s a great opportunity for the community,” Coyne said, because the JEDD will help to pay for the services the city and township provide to businesses in the district.

While the agreement outlines which parcels of land — in this case property along state Route 18 — fall within the JEDD, businesses can decide whether to participate in the district. The recently opened University Hospitals Urgent Care Center and the future Summa Health Systems’ 24-hour emergency facility will be part of the JEDD. Although not on Route 18, two elementary schools — Ralph E. Waite and H.G. Blake — also will fall within the district.

No township property will be annexed to the city under the plan, and the district does not affect residential properties.

Under the JEDD, the city and township equally will split revenue earned from the district. The governing bodies can use revenue for any legal purpose they wish. While they are not obligated to invest all the money earned from the JEDD into the district, for an initial period, 20 percent of revenue will be set aside for special improvement projects or needs in the district, such as traffic lights or road improvements.

Montville Fiscal Officer Mary Pawlowski has said the JEDD is expected to generate between $10,000 and $15,000 initially, but “50 years from now it will be a nice number.”

“I think it’s wonderful,” Montville trustee Jeff Brandon said Tuesday. “I think it’s a great cooperative agreement between Montville and the city of Medina.”

Contact Kaitlin Bushinski at (330) 721-4050 or kbushinski@medina-gazette.com.