The city is also proposing a similar agreement with the Franklin Board of Education as area around the Atrium Medical Center lies in that Warren County school district.
Middletown City Council and the school board have approved this agreement in recent weeks underscoring that opportunities can be enhanced with the city being more competitive and working with on local economic development projects in a timely fashion.
The four-year agreement authorizes the city to offer businesses and developers up to a 100 percent tax abatement for up to 15 years through enterprise zone agreements and community reinvestment areas; and up to 30 years by establishing Tax Increment Financing districts. As part of the agreement, the city will reimburse the school district for a portion of the property taxes abated. That amount ranges between 25 and 33 percent depending on the type of tax abatement granted.
“The City competes with other communities-nationally, even internationally. Having the pre-approved School Compensation Agreement in our incentive toolbox puts the City in an extremely advantageous position,” said Alexis Fitzsimmons, assistant economic development director in a news release. “Middletown’s ability to move quickly on these tax abatement programs is very attractive to businesses weighing their development options.”
Fitzsimmons said the agreement preserves the tax base for the district with the incentives based on increased value of the impacted properties.
She said the entities understand that economic development cannot happen in the community without a healthy school system.
“The concept of preparedness, of having the agility to ‘work at the speed of business,’ is essential here - quite possibly the differentiator in Middletown being first to the table to make a deal in this dynamic, super competitive marketplace.”
Under the new agreement, the city will notify the district if any project in which one of these incentives is offered will increase student population beyond the district’s capacity in the affected area. The district is required to notify the city each year of changes in its capacity.
Twice a year, the district and the city will review the allowable geographic area for these agreements to ensure it is still appropriate.
“The School Board’s unanimous vote reinforces our willingness to work with the City to our mutual benefit,” said Middletown City Schools Treasurer Randy Bertram in a news release. “With every new business locating in Middletown, our tax base grows as do the job opportunities for the City’s workforce. We enthusiastically agree with the structure of our new partnership with the City; it is a ‘win’ for all parties involved.”
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