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Ellen Belcher is the Dayton Daily News opinion pages editor. She writes about state government, education, the environment, higher education and all things Dayton.
Martin Gottlieb is an editorial writer and columnist for the Dayton Daily News opinion pages. He focuses on the political process itself and does such national issues as war, the economy, taxes and Social Security, as well as a hodge-podge of local and state issues.Home > Blogs > A Matter of Opinion > Archives > 2009 > September > 25 > Entry
Editorial: Suburbs need law to settle war
Solving the expensive, seemingly never-ending battle between Sugarcreek Twp. and Centerville about the former Dille farm apparently is going to take either a decision by the Ohio Supreme Court or an act by the legislature.
The latter would be best.
The fight has dragged on for three years and, between the two sides, cost more than a half-million dollars in taxpayer money. The owners of the 268 acres of land, located in a prime spot near the Wilmington Pike interchange along Interstate 675, asked in 2006 to be annexed to Centerville. That deal was completed with developers standing by, waiting to add commercial buildings to the land.
The Ohio Legislature wrote special rules in 2001 to address just this sort of situation involving a landowner who wants to be annexed to a city. The law was supposed to speed that process and preclude the sort of lengthy court battles that have bogged down many past annexation cases.
Notwithstanding the law change, Centerville and Sugarcreek are bitterly engaged in a legal war over what the law allows.
Developers want to use “tax increment financing” to build on the old Dille farmland. That financing strategy spends future tax revenues from a development project to make improvements to the property now.
What Centerville and Sugarcreek are fighting about is who gets those future tax revenues. Sugarcreek insists it is entitled to a portion.
Because the law is fairly new and each side thinks it has the right interpretation, both are insistent on continuing to fight in court. Rulings in this case have implications that could affect other so-called TIF development deals.
With an issue this complex, there is a lot of risk for both sides that a major ruling could hamstring either cities or townships across the state.
A recent Second District Court of Appeals decision demonstrates that danger. Because the issue is so complicated and the ruling so detailed, lawyers on both sides are, days later, still not certain what it means for them.
On balance, the outcome seems most beneficial to Centerville. But the judges also said Sugarcreek was entitled to some future tax revenues. And they left unsettled the question of who should receive the biggest chunk of future tax revenue.
Centerville Council member Brooks Compton, a lawyer, says the battle over TIF financing is so important for future development projects that the issue may have to be decided by the Ohio Supreme Court.
There is another way. The legislature could clarify the 2001 law to make clear what is, and what is not, intended by the original language. A legal fix is a better option than leaving these calls to judges.
With this case as a prime example of what has gone wrong with the original law, Dayton-area lawmakers should push for changes that can settle the issue. A fix needs to be made.
Permalink | Comments (3) | Post your comment | Categories: Editorials, Education, Scott Elliott
Comments
By Bill
September 26, 2009 10:44 AM | Link to this
This is another attempt by a City to rip off the an area township of prime real estate. Centerville has been doing it for years to Washington Twp. These efforts are always lead by the DOUBLE DIPPING, RETIRED-REHIRED City Manager Greg Horn. What a SHAM!By Washington Township
September 27, 2009 10:25 AM | Link to this
What’s sad about this is that the local economy is so weak that localities have to use the TIF tool to SUBSIDIZE suburban development. Pathetic.By robert
September 30, 2009 4:17 PM | Link to this
Maybe townships can’t keep up with the modern times, having to rely on county government for any road/infrastructure improvements, property owners feel compelled to become part of a city. Townships were a fine idea, back when they tended to farms/farmers, now they are so overpopulated they can’t keep pace.