Perry Township trustees hear CEDA concerns
PERRY TOWNSHIP — Perry Township trustees did their best to address concerns of residents who remained wary of the proposed cooperative economic development agreement (CEDA) between the township and the City of Salem regarding the annexation of properties during Monday’s trustees meeting.
“We’re here to listen to what the issues are,” said Trustee Stephen Bailey. “But what we’re trying to do is look at the whole picture of what’s happening and try to come up with something that will be beneficial. If the township keeps losing property via annexations to the city, it’s going to be detrimental to the township and it’s not the township losing just the property. It’s also the revenue that goes along with it, and our revenue hasn’t really increased much over the last few years at all compared to where our expenses are.”
Aside from placing a moratorium on enforcing existing deed restrictions requiring township residents to annex for city water and sewer services for 12 and a half years, the CEDA also includes a split of future tax revenue from annexed properties. Under the draft agreement, 70% of the income tax revenue collected from property would be retained by the city, with the remaining 30% being paid to the township, while property tax revenue from the property would be split down the middle with the city and township both receiving 50%.
“By having an agreement like this we are able to keep our revenue up and hopefully increase our revenues more on the commercial side of things,” Bailey said.
While residents questioned the split of which Salem receives the bulk, the trustees explained that something is better than nothing.
With no CEDA in place, all property tax from land absorbed into Salem becomes the city’s, and unlike cities and villages, townships are not given the power to create or collect an income tax on their own. With the agreement, the township would retain half of the property tax for annexed properties and receive a percentage of income tax that under state law it is not entitled to — annexation or no annexation.
“From a commercial standpoint, it is more beneficial for the township to share in the income taxes than it is to lose it all,” Bailey said.
“We have the land but they got the utilities,” added Trustee Jim Armeni. They won’t let us develop anymore because they got the water. We can’t expand.”
Residents also questioned the length of the moratorium, but Bailey said the number came down to negotiations.
“They wanted zero and we wanted 25, we met in the middle at 12 and half,” he said.
Residents also expressed concerns of the “vagueness” of the draft agreement, potential breaches of contract by the city and the ramifications of those breaches. Residents also voiced a mistrust of Salem in general as past annexations and what residents view as strongarm tactics to force those annexations have caused opinions toward the city to sour.
“We are dealing in good faith. That’s what we can say,” Trustee Tony Leropoli said. “We are bargaining in good faith.”
“You can get snookered under your terms or you can get snookered under someone else’s terms,” Bailey said. “We are trying to be as open as we can be with this. We want people to know what’s going on and what we are working with.”
The trustees reiterated to residents that the draft agreement which can be viewed at perrytownshipsalemoh.org, is just that — a draft agreement.
“If the people of Perry Township have a true issue with the final proposal, there will be changes,” Armeni said.
In other matters, the trustees:
— Heard the salt building project is in its last phase. The shell structure was erected and the roof was set to be completed on Tuesday. In May, the board approved the purchase of a new salt storage barn, a 32-foot by 48-foot hoop barn from Elemental Shelter Solution for $50,897, as it was cheaper to purchase a new structure than repair the old building.
— Discussed high grass violations of some township properties, particularly a property on Overlook Drive. Trustees said violation notices were sent to the property owners via certified mail but delivery to the Overlook owner was unsuccessful. The trustees are pursuing the next steps necessary to have the township mow the property and then assess the applicable fees to property taxes.
— Answered a question regarding CRA abatements, confirming that construction of a greenhouse on a property zoned agriculture would qualify for the tax breaks.
— Discussed the previously awarded Issue 2 funds given to the county to be disbursed to municipalities. The township can receive up to $220,000 of those funds, paying 12% for paving projects. Paperwork for the funds has to be submitted this year for next year’s paving projects.
— Accepted and approved the financial reports.