School board rejects tax-sharing offer

Lordstown village, education system to split income levy from GM battery-cell plant

LORDSTOWN -- The Lordstown Board of Education voted 5-0 Wednesday to reject an income tax-sharing agreement with the village for the General Motors battery-cell plant now under construction because of a dispute over who should sit on the tax abatement committee.

The board last month sent to village council a proposal on what percentage of income tax to share over the next 15 years, which is the life of the tax abatement for the battery plant.

The board had decided that for years one through five, the village would receive 75 percent on the construction and also receive 75 percent of the income tax revenue, with the schools receiving 25 percent in income tax revenue. In years six to 15, the village and the schools would share the income tax 50-50.

Also as part of the proposal, the board had asked that a representative of the school board, selected by the board, be able to sit on the local tax abatement committee.

Earlier this year, village officials asked the board of education to waive receiving income tax from any tax abatement request by GM for the battery plant. Anytime the village is involved in a tax abatement request of more than 50 percent, it is required to enter into an income tax-sharing agreement with the schools. The abatement is for 75 percent over 15 years.

The Lordstown board in February tabled the motion on waiving income tax sharing with the village, although the board did give approval to a community reinvestment agreement between the village and GM.

Village council on Monday approved the income tax proposal percentages offered by the board, but recommended that Lordstown Schools Treasurer Mark Ferrara serve on the tax abatement committee rather than a school board member.

"We do not feel that it is appropriate that the village gets to choose that. We tried to negotiate an offer that is fair," Lordstown Board of Education President Cheryl Kistler said.

Kistler said she was in contact with Ron Radtka, village council president,who said council would accept the money deal proposal if Ferrara filled the position on the abatement committee.

"I told him we had already discussed that we wanted a school board member," she said.

Because of this, the board decided to reject the village's counter offer.

Board member Jackie Woodward said a representative from the board should be invited to sit with council for any future negotiations for abatements so the schools have some say on them.

"They accepted our numbers offered, but only wanted the school treasurer to come to the table to negotiate abatements on behalf of the schools," Woodard said.

Lordstown Mayor Arno Hill said because the counteroffer was rejected by the school board, the negotiating is done and the taxes will be split 50-50 for the 15 years.

He said council felt Ferrara would be the best representative on the tax abatement board with his financial background and understanding of tax abatements.

"The person who made the most sense to have on the board is the school treasurer. For them, it was like a take it or leave it," Hill said.

He said the original proposal was to share the projected income tax amounts of $400,000 to $450,000 annually between the schools and the village, with the village getting the income tax and the schools receiving the property taxes.

The amount at stake for the school district is about $225,000 each year. Hill said the school district would still get the property tax, which could be $600,000 to $650,000.

Officials said the battery-cell plant could bring 1,100 jobs with a payroll of $45 million, meaning $450,000 in income tax.