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The Suburbanite
  • Officials discuss details of 50-year joint economic development deal

  • City officials Monday night provided to council more details of the proposed 50-year economic development agreement with Canton, Plain Township and Jackson Township.

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  • City officials Monday night provided to council more details of the proposed 50-year economic development agreement with Canton, Plain Township and Jackson Township.
    Council is set to vote Monday to schedule a public hearing on the agreement at 6 p.m. Oct. 30 in Jackson Township Hall.
    “We’re picking up revenue we never would be able to obtain,” said Councilman Dan Griffith, at-large, who played a role in the negotiations. “We’re getting additional money for no additional services (provided by the city).”
    According to council President Jon Snyder, Ward 4, Griffith and the terms of the deal:
    • The affected area covers the territory in Plain Township north of 38th Street NW, east of Whipple Avenue NW and west of the Metro Regional Transit Authority Railroad tracks and the area in Jackson Township east of the railroad tracks and west of the Plain Township boundary north of where Whipple and the tracks meet.
    • North Canton and Canton agree not to annex land in this area without the consent of the trustees of the township where the property is located. If there is an annexation, the township and annexing city would have joint jurisdiction.
    •  Plain and Jackson Township get to keep all current bed tax revenue from hotels, unless the townships agree to a higher city bed tax rate to be shared between the township and two cities.
    • The townships keep all property tax revenue they got before.
    • If a business enrolls in an agreement, income tax revenue from that business and its employees would be split equally among Canton, North Canton and the township where the business is located. Snyder said the rate would be 2 percent of taxable income. However, North Canton and Canton would collect 100 percent of the income taxes paid by workers at the business who are their residents.
    • The agreement affects only the Cain Toyota property, a Staybridge Suites hotel planned for Everhard Road NW and new or existing businesses that agree to be part of a economic development agreement in the target area. The incentive for them to be part of an agreement would be that the savings of deeply discounted water rates and sewage rates from North Canton would outweigh the costs of new income taxes. Also, because the townships would get income tax revenue from the businesses they ordinarily wouldn’t collect, they have more of an incentive to offer property tax breaks to lure the businesses to the area.
    • Under the deal, Jackson and Plain townships get income tax revenue they would not ordinarily receive, North Canton gets income tax revenue from businesses in areas that it can’t annex due to Canton’s past annexation of the adjoining railroad track and Canton gets income tax revenue by offering businesses the benefits of North Canton’s lower-cost water and sewage rates and avoiding the costs of extending its water line to the north. The parties also avoid the legal costs of fighting annexations among each other along with litigation delays that might deter businesses from relocating to the area.
    • Jackson and Plain townships would continue to provide street maintenance, parks and recreation services to the businesses in their territory, while the townships and cities would split providing police, fire and ambulance services on a mutual aid basis.
    • The deal includes a provision seeking to maximize the compatibility of zoning between the townships and cities in the area.
    • A committee with representatives from all four communities would be established and charged with discussing ways for the four to cooperate in sharing services to save costs and collaborating on attracting businesses.
    Page 2 of 2 - Snyder said talks on the pact began after Cain Toyota, which is in Jackson Township on Whipple Avenue NW and uses a lot of water for its car wash and wanted to expand, expressed interest about a year ago in being annexed into North Canton to get the lowest possible rate for North Canton water. However, Jackson Township had an exclusivity agreement with Canton, which had the right to veto any attempt by North Canton to form a tax-sharing annexation agreement with that township.
    TMI Hospitality of Fargo, N.D., the developer of the proposed 2.7-acre Staybridge Hotel property in Plain Township, also wanted to use North Canton city water and sewer services, but the railroad track annexed by Canton lies between North Canton and the planned 93-room four-story hotel, set to open in 2014. And Canton wanted to sell its water to the hotel. These complications prompted the four-party talks this year.
    Canton Mayor William J. Healy II said Monday that “we can all work together to promote this (land), instead of being out there fighting each other.”
    Reach Robert at 330-580-8327 or robert.wang@cantonrep.com.
    On Twitter: @rwangREP
    Reach Matt at 330-580-8527 or
    matthew.rink@cantonrep.com.
    On Twitter: @mrinkREP