Niles council opposes Ohio House Bill 160

Recreational pot tax collection would be capped at 5 years

NILES -- City council on Wednesday approved a resolution in opposition to proposed changes in Ohio's recreational marijuana laws under House Bill 160.

Niles Mayor Steve Mientkiewicz criticized the bill, which proposes reducing the local excise tax on marijuana sales from 36% to 20% and limiting the tax collection to a five-year period.

"We feel that we were sold a bill of goods," Mientkiewicz said. "The rules of the game are changing after the game has already started."

The mayor said the city agreed to allow marijuana dispensaries with the expectation of long-term tax revenue to reinvest in the community. He noted that while HB160 is a slight improvement over Senate Bill 56 (SB56), which initially sought to eliminate local tax revenue entirely, the five-year cap still leaves Niles in a precarious position.

"After the fifth year, we go to zero," said Councilman Aaron Johnstone, D- 2nd Ward, who also serves as vice chair of the Community Development and Neighborhood Stabilization Committee. "We're back in the exact same boat we were in with Senate Bill 56."

Johnstone urged residents to continue contacting state representatives to voice their concerns.

"I don't want them to throw out House Bill 160 and take their foot off the gas," he said.

Councilman James Sheely, D-3rd Ward, echoed these sentiments, stating he has repeatedly contacted state representatives and even the governor's office.

"I think they're hearing from people," Sheely said. "We really need to keep pushing to handle this quietly and effectively."

Johnstone also provided updates on the city's Commercial Improvement Grant (CIT) program, which offers funding for downtown and citywide business improvements. The program, which opened for applications on Jan. 1 and will close on April 30, provides 50% matching funds for projects such as facade improvements, signage and landscaping.

"We're trying to prioritize downtown properties," Johnstone said. "When you do first-come, first-serve, the money could be spent before a downtown property applies." To address this, the city has implemented a scoring matrix that awards additional points to downtown businesses within a one-mile radius of Robbins Avenue and Main Street.

After the meeting, Johnstone elaborated on the program's goals.

"We're trying to grow the downtown," he said. "Local businesses, small businesses, those are the ones we're prioritizing."

He noted the program already has seen success, with businesses like Vernon's Cafe and the Ski Chalet using grants for improvements such as digital signage.

The CIT program is funded through a $50,000 allocation from the city's general fund, but Johnstone said the city is exploring ways to make the program self-sustaining.

"We're looking for ways to generate revenue so the city doesn't have to put tax dollars into it," he said.

In other business, council:

• Approved an ordinance adjusting security personnel fees.

• Approved funding for the Riverfront City Project, a $3.5 million initiative to revitalize the riverfront area, with construction expected to begin in late June or early July.

Mientkiewicz highlighted the progress on the Riverfront City Project, noting that trees and debris have been cleared from the site.

"It's looking really, really good," he said.

The next Niles City Council meeting is April 17.