During the city council meeting on Tuesday, March 26, the West Carrollton City Council approved a renegotiated tax incentive financing (TIF) compensation agreement with the West Carrollton City Schools and Miami Valley Career Technology Center.
The school district and career technology center both approved the compensation agreement earlier in the month.
The new agreement expands the boundaries of the original TIF agreements, and also allows the 30-year collection ‘clock’ to reset when each new development begins.
In the new agreement, the schools will receive 40 percent of the service payments generated from any new commercial redevelopment, and 63 percent of the service payments generated by residential development. In the previous agreement, the schools received the funds only after any debt payments were paid.
Under new state guidelines, the renegotiated TIF agreement will allow the city to use the collected service payment funds on economic redevelopment tools such as demolition, property acquisition, fiber installation, or incentives to developers, in addition to public infrastructure projects.
“We appreciate the partnership of the school districts,” said Brad Townsend, city manager. “Their cooperation is essential in encouraging the successful economic redevelopment of our community.”
Townsend said that residents should be assured that the agreement is not a tax abatement program and will not result in any changes to their own taxes. He said the school district will also be able to use the TIF funds on any project that they deem appropriate.
The previous TIF agreements have generated about $166,800 for the schools since they began in 2007.
“The TIF agreement with the City of West Carrollton and the school district benefits everyone. The school district recognizes the importance of economic development to sustain a viable community. We are looking forward to our continued relationship with the city as well as community members. It’s an exciting time to be in West Carrollton,” said Dr. Andrea Townsend, superintendent of West Carrollton City Schools.
-end-
For more information, call Brad Townsend, city manager, at (937) 847-4633 or Dr. Andrea Townsend, superintendent, a (937) 859-5121.