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Published:Thursday, April 10, 2008
An Austintown trustee says he doesn’t know a township resident who supports the plan.
YOUNGSTOWN — A Youngstown official wants contracts with Austintown and Boardman to allow the city to implement an economic development plan, including the imposition of income taxes on those working in the townships, by August.
“It’s a reachable goal,” Sarah Lown, the city’s development incentive director, said after a city council meeting to discuss the plan.
Austintown Trustee David Ditzler, who also attended the meeting, said Lown’s goal is going to be “extremely difficult” to achieve.
City council and administrators met publicly for the first time Wednesday to discuss the proposal known as a joint economic development district, or JEDD.
The proposal calls for the city to charge a 2-percent income tax on those who work in the portions of Boardman and Austintown that receive Youngstown water. That’s about half of Boardman and almost all of Austintown.
The townships could place its own 0.25-percent income tax on those same people.
In exchange, the city would reduce its income tax from 2.75 percent to 2.25 percent, a move that would put more money in the pockets of those who work in the city, including those living in the two townships.
Also, Youngstown would reduce the surcharge on its water customers in the two townships from 40 percent to 20 percent.
Ditzler said he and others in Austintown would embrace a proposal to charge an income tax on vacant land that could be developed through the assistance of Youngstown.
But Ditzler said he doesn’t know one township resident who supports taxing workers at businesses.
If Youngstown insists on pressing ahead with its proposal, Ditzler said Austintown could become its own city.
Youngstown Mayor Jay Williams said that idea would be too cost-prohibitive for the township and wouldn’t benefit anyone.
Without being specific, Williams and Lown said there is room for negotiations.
Councilwoman Carol Rimedio-Righetti, D-4th, asked during the meeting if not taxing current businesses in the townships is an option.
Though the city is willing to negotiate and be flexible, Finance Director David Bozanich said it needs to tax the township businesses for the plan to succeed.
A city-funded study projects Youngstown would receive $6.5 million annually from those who work in Austintown through a 2-percent income tax and $8.4 million a year from those who work in Boardman.
Though Lown wants a plan in place in about four months, she says discussions with the two townships are in the preliminary stages. Also, most of the talk from officials with the two townships is negative toward the proposal, she said.
For a JEDD to be implemented, a contract needs to be created, made available to the public for 30 days, two public hearings must be completed, petitions requesting the creation of the districts need to be signed by a majority of property and business owners in the JEDD area, and city council and township trustees must adopt ordinances approving the pact.
If the proposal isn’t supported by all three trustees, it has to go in front of voters for approval. If that’s necessary, Lown envisions that happening in November.
Ditzler said that time frame is much too quick. “You need to walk before you run,” he said.
skolnick@vindy.com
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Austintown & Boardman - tell Youngstown to go to hell !!! We burbs don't need the dumb Y-town income tax revenue raiser.
Google "Joint Economic Development Districts" and you'll come up with information like this:
["Q.: Our township and a nearby city are considering a JEDD. How is a JEDD formed?
A.: First, the city and your township negotiate a tentative JEDD contract. The contract covers issues such as the provision of city services, which entity will provide police, fire and road services; zoning, land use and planning issues; and agreements as to tax abatements and how to divide the JEDD income tax. The contract also identifies the property that will ultimately become the JEDD.
After these tentative agreements have been reached, maps and plans are drawn. The city and township must hold separate public hearings, and must make available all JEDD-related documents at least 30 days before the scheduled hearings.
Then, the city and township approach the landowners, because a majority of current business owners and a majority of landowners must sign a petition saying they wish to be included within the JEDD. Once there are enough signatures, the county commissioners review the JEDD proposal. Assuming the township and city have provided all the required documents, the commissioners generally must approve the JEDD. In some cases, the JEDD is voted on in the next election by property owners in the unincorporated area of the township. If, however, all three trustees have unanimously approved the JEDD, the landowners and business owners have signed the JEDD petition, and all the land is already properly zoned as commercial or industrial, then the JEDD can be created without requiring an election in the township, although it is still subject to referendum."]
JEDDs are supposed to be about 'prime development land.' Let's see the property they have in mind or share with the the public the proposed districts.
In most of the state of Ohio, JEDD means Joint Economic Development District. An environment in which two separate political districts (eg. an incorporated city and an un-incorporated township) JOINTLY cooperate in providing services and a desirable business environment to encourage new business development on land currently not occupied by businesses and not served by necessary utilities.
In the Valley, JEDD means Jay’s Extortion of Dollars from Dupes! In the grand tradition of Y-Town, demand payment for not destroying businesses by making sure accidental fires do not erupt.
As I have stated previously, I am now working on relocating my business out of the proposed Boardman JEDD so that I and my employees are not forced to pay confiscatory taxes for which we receive NO benefits and have no power to vote on either the rate or utilization of said taxes.
Since Boardman and Austintown appear to be contemplating acquiescing to this extortion in exchange for a cut of the new taxes, I encourage all business owners to examine their alternatives.
For the townships, what is your alternative, annexation? Wow, Y-Town schools, taxes, housing and crime? What an alternative –growth—I doubt it.
Youngstowns JEDD's are nothing more than a desperate attempt to get into the pockets of the only people who have money and use their (Youngstowns) water to extort us into them. They ONLY benefit Youngstown. The vast majority of suburbanites will lose. To save $50 in water costs at the expense of $1000 of income taxes is simply government out of control.
What a crook. Jay Williams the ever lasting failure of y-town now should be charged with extortion along with all his followers. To my ELECTED Trustees of Austintown,,Do not go down this road for a few dollars from y-town. I agree, no one in Austintown wants this. Dave, Lisa and Bo have all stated that they do not. Now y-town wants it done by Aug '08. Here comes the strong arm. I say,,,give us our water,sewer for FREE and we will give you
1/2 % ,,never in 100 years to incress,,and all new lines put in within 1 year!!!!!!!!!. Y-town , under this plan would get 6.5 million, Austintown gets $700,000??? Sounds like a good deal to me....And I feel as good about this like when I go trade my car in. Next we will have to be named Austintown-Youngstown. Look at the water towner on Kirk Road. Tell Williams to go fly a kite at a sub-station.
Just a reminder, as taxes increase with those increase siphoned off by an entity not responsible for providing services to those being taxed, the over all tax base is harmed.
In other words, if you are forced to pay $1,500 to $2,000 or more per year to Y-Town, that is less money that you have to spend locally. Read that as less sales tax collected by the county and lower values (by an average of 2% to 3%) of the real property.
Believe it or not, this is not a race based issue. Y-Town is a majority white city. The issue here is that presently less than 15% of the adult population of the city pay ANY federal income tax. Why- the percentage of retirees, low income workers, the underground cash economy and welfare recipients. Therefore you have over 70% of the income taxes collected by the city being paid by non-residents who had no opportunity to vote or the level of taxation or for the elected officials that direct the spending of the funds.
Y-Town and its schools are in a mess due to spending money they know they don’t have and can’t get from their residents or people working in the city. Y-Town is consuming itself by making it untenable to do business in the city. How many grocery stores, department stores or new car dealerships are in the city? The major portion of high(er) income employees in the city are either government employees (city/state/federal/university/county) or non profit (St. Es, church, etc) employees.
Allowing Y-Town to export its self cannibalism to the townships with no accountability by the politicians who are collecting and spending our money is not a rational thing to permit. Is the government of the township(s) going to permit this to happen so they can collect 1/2% themselves? Foolish math if they do, they should expect a net loss of over 2% in their tax base.
Just because Y-Town expects me to send them a few thousand dollars a year doesn’t mean I can raise my prices to make up for it. Of course my employees won’t expect to see a loss of income because of the new tax. Maybe little Jimmy will need to be laid off so I can spread his income around. Sorry Jimmy, talk to Williams about finding you a job
The hell with Williams & his bunch! The people of Austintown should tax Youngstown for the main water line that goes thru the township. If they refuse, we'll put a valve in it & shut it off!
So we are to pay $1000 in taxes for a $40 decrease in water? Just tell me does Mr. Williams think we are all products of the Youngstown school system? I agree with Mr. Ditzler, it seems like blackmail to me. My vote is NO JUDD!
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