Wooster approves compensation for Wayne Township land acquisition
WOOSTER – City Council approved a measure Monday that would compensate Wayne Township if the city annexes 13 parcels of township land.
The parcels surround the intersection at Oak Hill and Milltown roads and generate $2,900 annually in real estate taxes for the township, according to the ordinance. If annexed by Wooster, the township would lose this revenue.
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Cities that annex land from a neighboring township are required by the Ohio Revised Code to pay the affected township a percentage of the lost real estate tax revenue over a 12-year period, said Jonathan Millea, economic and community development coordinator.
The city outlined three payment options to Wayne Township over a 15-year time frame with no new property developments, according to the approved ordinance.
First, a declining annual payment of 80% to 42.5% of $2,900 would pay a total of $21,556 in 15 years, while the second option flat-rate payment would compensate Wayne Township $34,837.
The final payment option is based on a risk share, which would pay up to 100% of the real estate tax revenue over the 15 years based on cumulative revenue from the city.
If new developments take place on these properties, the city could pay the township upward of $203,551, $388,005 and $418,731 under the respective plans.
While the city of Wooster will compensate Wayne Township for 15 years, the city will earn nearly $1,000 more in real estate tax than the township generated from the parcels, Millea said.
The 13 parcels are part of the city’s Tax Increment Financing plan that will finance road improvements along Oak Hill and Milltown roads.
More action at May 2 Wooster City Council meeting
- Two liquor licenses were approved. One for Omahoma Bob’s BBQ and another for Beef ‘O’ Brady’s.
- City Council tabled a resolution that would declare it necessary to construct sidewalks along Oakley Road and Saunders Drive after residents expressed opposition to the $35,000 project. Council has one year to reconsider the legislation before it expires.
- Council approved emergency repairs for 425 feet of vitrified clay pipe with PVC pipe and the replacement of two manholes and 10 lateral connections for an estimated cost of $60,000.
- The city will issue two sets of bonds for sewer and water line replacements and road reconstruction along Oak Hill Road at $1.8 million and $560,000 respectively.
- The city of Wooster will execute a development agreement with the Wooster Development Co.; this is among the first of many agreements for the planned TIF zone along Oak Hill Road.
Reach Bryce by email at [email protected]
On Twitter: @Bryce_Buyakie
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