North Canton still working on Hoover District tax agreement

NORTH CANTON – City leaders are still hammering out the final language with developers regarding a tax-increment financing agreement for the Hoover District project.

City administrator Patrick DeOrio told City Council on Monday that he hopes to deliver that language to council the last week of December with a possible final vote on Jan. 8.

Under the agreement, the Hoover District would get to keep property taxes paid on any increase in value on the old Hoover west factory and use that money on construction and development costs. Developers have proposed transforming a portion of the factory into shops, restaurants, apartments and offices.

Maple Street Commerce has already agreed to turn over more than 10 acres north of Howser Street to the North Canton City School District. In return, the district would drop objections to the tax-increment finance agreement and losing 30 years of potential property tax revenue.

Jeff Martin, a senior vice president for Industrial Commercial Properties, said contingent on developers getting financing the first quarter, they would also pay $2.5 million to the school district.

But DeOrio said the developers have failed to realize past timelines in developing the west factory. And the condition of the building does not comply with current city codes, he said.

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Because of that, DeOrio said he will insist that as a condition to get the tax-increment financing, the developers will have to not only turn over the land to the school district, they will have to pay the $2.5 million by a set deadline; comply with all city building codes, all state building codes and obtain all required permits; and pay all contractors what they're owed.

DeOrio said if the developers fail to fulfill what they're required to do under the law, they would lose the tax-increment financing. DeOrio said he also wants an estimate from the developers on the percentage of the west factory that will be developed as residential, as commercial and as office space.

Skepticism about the Hoover District project

Resident Jim Tedrick urged council to reject giving Maple Street Commerce a tax-increment financing arrangement. He said he worked at the Hoover factory. It's a century old building that was designed for manufacturing. It was not designed to ever serve a residential or commercial use, Tedrick said.

He said if the prospects for the project were good, investors would gladly provide the funding to construct it and it wouldn't be necessary for the city to grant what was essentially a substantial tax break.

Council member Jamie McCleaster, Ward 1, clarified that the tax-increment financing agreement would not affect current taxes paid by Maple Street Commerce. It would only give a tax break based on the increase in value from development.

"If they do something, it's the same tax they're paying now if they do nothing," said McCleaster.

DeOrio said, "If the project isn't done, they get no benefit."

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Resident: Is North Canton income tax hike necessary?

Resident Joseph Mulqueen told council he was undecided on the proposed 0.5% income tax increase council submitted to voters for the March 19 ballot. He said it should not be on taxpayers to pay for new fire facilities that provide changing rooms and sleeping quarters for female firefighters.

Mulqueen said the city should hold fundraising dinners to help raise the money.

The city has estimated construction of a new fire facility would cost more than $10 million.

Mulqueen also argued that elected city officials should have their pay cut before taxpayers are asked to pay higher taxes.

Resident Susan Meadows said she wanted the city to save Dogwood Pool.

DeOrio has said that the fees that pool members pay cover the salaries of the people who run the pool, sell concessions and serve as lifeguards. But they don't cover the millions of dollars in capital expenses needed to replace the pool liner and replace the pool building.

Meadows asked if the city could approach the Timken Co. or perhaps the Suarez Corp. to donate much of the money needed to save the pool in return for having its name on the pool.

City officials have discussed asking voters to approve a new property tax to fund Dogwood Pool.

Reach Robert at robert.wang@cantonrep.com. X formerly known as Twitter: @rwangREP.

This article originally appeared on The Repository: North Canton finalizing Hoover District tax-increment financing deal