Fallsnewspress.com - Tax deal still in works between city, schools

by Ellin Walsh

Reporter

Cuyahoga Falls -- The city and school district continue to negotiate the particulars of a special compensation deal that is a critical component of the redevelopment agreement for the former State Road Shopping Center property, according to the superintendent.

Superintendent Dr. Edwin S. Holland told the Board of Education March 11 district officials had spent the week reviewing the city's counter proposal to the district's response to the city's initial draft of the compensation agreement.

"We're not pleased with it," Holland said, "... so I cannot, in good faith, encourage Board endorsement of the ... agreement the city has presented so far." The superintendent said he intended to contact city officials March 12 to inform them the proposal "is not acceptable in this fashion."

The superintendent said the Board's attorney is in the process of drafting another proposed version of the compensation agreement. Holland said district officials would submit that document to city representatives this week.

Mayor Don Robart's administration is seeking a tax increment financing arrangement as a tool to finance economic development in terms of the former State Road Shopping Center; Holland said the school district is weighing the request in light of the schools' economic position.

The city is asking the school district to approve a TIF for the land which Stark Enterprises acquired in February; Stark intends to transform the 25 acres at Portage Trail and State Road into a retail center called Portage Crossing. The compensation agreement the city is advancing provides a split of all new real estate taxes between the city and school district; the term of the TIF would be 30 years.

One caveat the school district desires, the superintendent said, is for the city to use all the money generated by the TIF to pay off debt as soon as possible. According to Holland, the sooner the debt is paid off, the sooner the school district would start receiving money at the full valuation because the property would be placed back on the tax duplicate. Payroll and income tax from the property should be used to pay off debt, Holland stressed.

"We're [considering] making this agreement so this development can take place," Holland said. "We're not doing this agreement in order to allow the city to gain additional revenues ... and, at this point, with some of the language that's in place, the city will acquire additional revenues that they do not necessarily need to pay off this debt. That's my professional opinion -- it's also our attorney's opinion."

Holland said it is his hope the school district and city can come to agreement so the project may proceed.

"I think it will benefit everybody long-term," the superintendent stated.

E-mail: ewalsh@recordpub.com

Phone: 330-686-3908