Shalersville approves JEDD deal with Streetsboro to lure $70M development, 375 jobs

A new income tax district funding improvements needed for a planned $70 million development with 375 jobs in a 1-million square foot building was approved by Shalersville Township Thursday.

Trustees held a special meeting for residents to comment on a proposed Joint Economic Develop District with Streetsboro. Following a period of lively conversation, the board went into an executive session and later voted for creation of the Shalersville-Streetsboro JEDD.

The deal allows the two communities to share revenue generated by income taxes from future employees at the development on the corner of State Route 44 and Beck Road. Townships can't normally collect income taxes.

The JEDD provides a 15-year, 100 percent tax abatement on property taxes for the development of a piece of land recently bought by Shalersville Holdings LLC, a subsidiary of Geis Companies.

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The division of future income tax revenue favors Shalersville.

Shalersville Trustee John Kline said that they would be receiving 65% of the funds while the remaining 35% would go to Streetsboro. Streetsboro will have no obligation to provide any services to Shalersville under the agreement.

However, there is a required maintenance fund paid into equally by the township and the city. Ten percent of all income taxes collected in the district will be used to pay for maintenance and permanent improvements to roads inside the JEDD. Shalersville alone is responsible for administering the fund.

Trustee Frank Ruehr stated previously that officials from Geis talked to the township about plans to build a warehouse on the land that will host one to four businesses.

The entire parcel is 450 acres, but the JEDD currently only encompasses the 77 acres currently slated for development.

There is room to grow, but the expansion must be approved by Streetsboro and Shalersville via legislation passed by the two municipalities within 60 days of each other.

Included in the JEDD project development agreement is a provision for the collection of funds even if the future building stands empty.

Beginning in 2026, if the income tax received is less than what would have been generated by a payroll of $11.25  million, the owner of the project — SFG Geis Shalersville, LLC — will make a payment to the city and township in the amount equal to the amount of lost income tax revenue, minus what's already been collected.

Several people at the nine-person gathering had concerns and questions regarding the 77-acre development.

Former trustee Nancy Vines asked about what workers in the JEDD could expect their income tax rate to be.

Kline responded that the rate will be 2%, the same rate that Streetsboro levies against workers inside its city limits. If the Streetsboro increased its income tax rate, it would also apply to the JEDD, Kline said.

Mantua City Council President Tammy Meyer and Mantua Mayor Linda Clark raised concerns that the township trustees didn't properly consult with the Mantua-Shalersville Fire Department. 

Meyer wondered how much the fire district would receive in the deal. She was concerned that there would be no money for them because of the 100 percent tax abatement.

"We are all a fire district together," Clark said. "They should have been approached, like the school was approached, like the commissioners were approached." She added that before the agreement was signed, the trustees should sit down and speak with the fire department.

Ruehr, a member of the fire board, responded that, according to the board's legal counsel, it wasn't required that the fire department receive any of the funds.

"We've got this maintenance agreement that we get money that we can forward to the fire department," Ruehr said. "It could amount to $30,000 or $40,000 a year."

During the hearing, Kline said that he's personally thought a lot about the implications of allowing the district into the township.

"It's just been a matter of time," Kline said. "We can't stop that growth; we can try to control it the best we can, which is, I think, what we're doing."

Contact reporter Derek Kreider at dkreider@gannett.com

This article originally appeared on Record-Courier: Shalersville approves JEDD with Streetsboro for development