JEDD Voted Down 2-1

At the 4/13 Trustee meeting, a proposed Joint Economic Development District (JEDD) was voted down 2-1 last night, depriving the township of a long-term income stream which would have been used to offset the cost of township services serving that area of the township.

The JEDD, proposed by McGill Property Group (the development group who built both MarketPlace North - Target, Home Depot, etc. - and Shops at MarketPlace -Walmart, Kohl's, etc.), would have been located on the existing Shops at MarketPlace site, had it been approved. The township has an existing JEDD with the City of Solon for MarketPlace North and, though this shopping center is not entirely built out, it contributes approximately $75,000 per year.

A JEDD collects income tax from employees working within the boundaries of the designated district. Because Bainbridge is a township, it cannot unilaterally levy an income tax; however, it can partner with an adjacent municiplity and create the JEDD that can collect the local income tax and divide the proceeds by agreement between the two communities. In the case of the proposed district, employees working at Walmart, Kohls, Dicks, etc. would pay an income tax to the JEDD, with the proceeds split between Bainbridge, Aurora, and a required small contribution to a JEDD fund.

This was an opportunity to provide a long-term revenue stream to the township, used to offset costs borne by police and fire for their services to the shopping center, with no adverse affect or cost of any kind to the township. The agreement would have required each community (Aurora and Bainbridge) to defer receipt of their share of the income tax until $600,000 was paid to the landlord who is arranging the tenant agreements to opt into the JEDD. There would have been absolutely NO COST or RISK to the township in this deal. We would not have to pay anything out of the General Fund in advance, nor would we be obligated to pay any portion of the $600,000 if there were complications (bankruptcy, foreclosure, etc.).

The trustees vote 2-1 against this revenue opportunity, with my vote being for the JEDD, only IF legally allowed to do so. The other two argued that this was poor policy as they termed the agreement a "bailout" for the developer. I disagreed, but again, the vote was 2-1 against forming the JEDD and providing the township with the opportunity for additional revenue. It should be noted that the Aurora City Council voted 8-0 to support the partnership with Bainbridge and create the JEDD.

Feel free to contact me if you have any questions on my decision to support this JEDD!