Ross trustees vote to dissolve economic development district with Hamilton

Hamilton City Council expected to consider legislation at its next meeting.
Pictured is farmland along Ohio 128 across from the Ross High and Middle Schools campus in Ross Twp. that's within a 123-acre JEDD, which township trustees voted 2-1 to dissolve. The JEDD, which is a partnership with the city of Hamilton, is expected to be dissolved after Hamilton Council members consider similar legislation.  The JEDD would have allowed Ross Twp. to collect income tax within the specified district on new development. MICHAEL D. PITMAN/STAFF

Credit: Michael D. Pitman

Credit: Michael D. Pitman

Pictured is farmland along Ohio 128 across from the Ross High and Middle Schools campus in Ross Twp. that's within a 123-acre JEDD, which township trustees voted 2-1 to dissolve. The JEDD, which is a partnership with the city of Hamilton, is expected to be dissolved after Hamilton Council members consider similar legislation. The JEDD would have allowed Ross Twp. to collect income tax within the specified district on new development. MICHAEL D. PITMAN/STAFF

Two of Ross Twp.’s trustees felt a 2021 Joint Economic Development District with the city of Hamilton was not the right move for the township, and they have voted to dissolve the agreement.

Hamilton City Council, later this month, is expected to consider legislation that could terminate the contract. Though there would be no impact as the JEDD does not own or control property, assets or funds and has not incurred any obligations or debts, Ross Twp. Trustee Keith Ballauer feels the dissolution of the agreement is a mistake.

He was the dissenting vote in the June 6 Ross Twp. trustee vote.

Ballauer said JEDDs as well as Tax Increment Financing areas are the primary economic tools a township in Ohio can use to help offset expenses for their police, fire and road departments.

“Other than that,” he said, “all that burden is put on the taxpayers if levies need to be increased, and last year we did increase our police levy.”

He said Ross Twp. has a fire levy coming up soon for renewal, and though there is no plan to increase it, there’s an expectation an increase request could be made for the township’s second fire levy before it expires.

“If businesses coming into Ross Twp. could offset that tax burden for our taxpayers, I’m all for it,” Ballauer said.

The initial intent of what was called Ross-Hamilton JEDD I was to capture income tax on just the development within the 123-acre area primarily serviced by Ohio 128. The property in the zone is either current or former farmland or forested land with limited or no existing improvements.

Ross Twp. trustees Russ McGurrin and David Young, however, said this district was not in the best interest based on the amount of feedback they’ve received from people in the nearly 8,800-resident township. According to a 2021 Journal-News article, the JEDD was in part initiated to potentially support the Spooky Nook Sports Champion Mill project, which was not yet open at that time. While Spooky Nook was not identified by name in the contract, it indicated that if a hotel were to be constructed, a lodging fee imposed would support the Hamilton Community Authority for parking at the facility.

It was believed Spooky Nook would encourage or drive development in Ross Twp., which is southwest of the city of Hamilton.

“I never once thought that Spooky Nook was ever going to be a driving force of economic development in Ross Twp.,” McGurrin said. “And I still don’t.”

This JEDD is also something Ross Twp. residents don’t want, McGurrin said, “and it starts and stops there.” A JEDD may be appropriate at a different time, but only if the Ross Twp. residents want it, he said. He also said it’s not his opinion that residents don’t want the JEDD; he told the Journal-News he’s talked with “hundreds of people.”

A JEDD is an economic development tool that allows townships to partner with one or more municipalities to agree to work together to develop land for commercial or industrial projects. Townships, which are not permitted to enact a local income tax, would be able to do so within the defined district. Income taxes would be divided, and the township would typically receive the greater amount.

The Ross-Hamilton JEDD would have only impacted the 123 acres when it became developed. According to the agreement, after taking a collective 5% off the top ― 3% to Hamilton for an administrative service fee and 2% into an escrow fund ― the JEDD would have allowed Ross Twp. to collect 95% of the remaining income tax generated and 5% going to the city.

McGurrin said the expectation of a significant amount of development as a result of the JEDD was something he was told by residents they didn’t want to see. Young believes any development wouldn’t equate to population growth, and he believes Ross Twp. needs the residential growth to support any development growth.

“Hamilton has revived itself, and they’ve done a damn good job of it,” Young said, “and I expect them to continue. People go there to eat, they go there to be entertained.”

Young also did not like the length of the JEDD, which was 99 years, and would “automatically extend for successive 10-year renewal terms.”

Ballauer sees the JEDD from a different viewpoint, where a JEDD doesn’t mean fast, uncontrollable growth as projects still need to go through the zoning process. Also, the ability to augment the township’s finances likely won’t happen now when the parcels in the 123-acre area are eventually developed.

“It’s prime property along a U.S. route (U.S. 27) and a state route (Ohio 128). Somebody’s going to buy it,” he said. “You’re not going to keep people from buying it because you did away from a JEDD.”

Without the JEDD, if more homes are built in Ross Twp., a bigger burden will be placed on residents when levy requests are made to voters.

“Adding 20, 30 homes will not increase the police and fire levies,” he said. “Levies are set for five years, but it does increase the burden of police and fire calls, and potholes.”

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