by Kathleen Steele Gaivin
Oct. 11 board of trustees meeting
Sagamore Hills Township entered into a 30-year tax increment financing agreement with several financial institutions through the Development Finance Authority Summit County for property at Carter and West Aurora roads, where construction of a senior living community is planned.
The TIF agreement, which is the incremental amount of taxes over and above the amount the property currently generates, is expected to generate $28 million in revenue over 10 years. The money will be used for public infrastructure improvements on the property such as roads and sewer installation, which would otherwise be the township’s fiscal responsibility.
The developer is to acquire the existing medical building on the property and raze the structure to allow for construction of senior homes. The remaining money will be put in a township fund for public projects, with repaving the entirety of Carter Road a probable start.
Under the TIF, the Nordonia Hills City School District will receive 25% of what they would have received in property taxes for the first 10 years of development. That’s what the state of Ohio allows, according to Sagamore Hills’ attorney Jeff Snell. The owner of the development is guaranteeing the payments of those bonds.
Additionally, trustees accepted a $1,936 payment from the Cuyahoga Valley National Park in lieu of taxes for a portion of national park land that sits within the township.
The federal government does not pay property taxes, but an act of Congress instituted a Payment in Lieu of Taxes Program to help offset losses in property taxes due to nontaxable federal lands within township boundaries. Local governments can use the PILT payments toward services like firefighting and police protection, construction of public schools and roads, and search-and-rescue operations. CVNP was allotted $37,887 to distribute to affected communities within Summit County.
“They don’t give it anywhere except the townships that are most affected by the park, where land sits inside the park not generating any revenue stream,” Snell said.
The PILT distribution is based on the amount of land involved. Boston Township gets $24,621, while Northfield Center will receive just $53 of PILT monies.
Trustees also accepted a $10,000 State FireMarshal grant. “The grant was very specific as to what it could be used for,” Trustee David DePasquale said. The township will purchase a wireless, cordless Jaws of Life with the grant money and $5,804 of its own funds.