JEDD board places city income tax on workers at hospital construction site
WARREN — At its first meeting, the newly formed Warren-Champion Joint Economic Development District board approved a motion Wednesday placing a 2.5% income tax on workers at the Mercy Health construction site off Educational Highway in Champion.
The new board, which includes Anthony Iannucci who represents Warren and Rex Fee who represents Champion, named Nick Coggins as the third member of the current three-member board.
Coggins, who serves as the assistant director of the Trumbull County Planning Commission, will serve as chairman of the board, Fee as vice chairman and Iannucci as secretary.
Warren Community Development Director Mike Keys was at the meeting and said the board approved the 2.5% income tax, which is Warren’s rate. The rate is effective for construction and other workers at the site effective Monday and will be for the first quarter of the year.
The JEDD was approved by officials in Champion and Warren with the agreement dictating the distribution of income tax generated by the new Mercy Health emergency room in Champion.
The JEDD board will oversee the area that taxes itself at a 2.5% rate. After some funds are used for administration and investment in the JEDD area, the remaining revenue from that tax would be split between the township and city. For the first two-and-a -half years, income tax revenue will be split 45% to the city and 55% to the township. After that, it will become a 50 / 50 split.
Township officials have said they are not sure how much revenue the JEDD will generate, but it can be used for anything in the township — such as safety services. Warren city also has a JEDD with Howland and Warren townships for the Kimberly-Clark facility on Pine Avenue.
The board is three members, but once Mercy Health has the emergency facility operating in Champion, the JEDD board will be five members. Coggins said the fourth and fifth members will be a representative of the hospital and a representative of the employees who work there.
Board members are not compensated for serving on the board.
The board will meet quarterly on the first Wednesday of the months of April, July and October, but Coggins expects a special meeting will be scheduled to address certain issues for the JEDD board getting started.
The board also approved seeking proposals for legal counsel, a certified public accountant and setting up a bank account.
