Developer Wants Accounting of ED Zone Tax Revenues

It's one of the largest suburban office parks in the Akron area, covering 120 acres in Bath Township along Interstate 77 near state Route 18. Although it is located outside of the Akron city limits, the thousands of workers at the Embassy Corporate Park still have to pay city income tax, thanks to a 1998 joint economic development district agreement among Akron, Fairlawn and Bath Township.

And now John D. Dellagnese III, who operates the Embassy Corporate Park, wants an accounting of where the income tax money is going. He suspects the thousands of dollars in income taxes that businesses in his corporate park are paying are being used against him -- to attract businesses to locate in Akron instead.

Dellagnese says he first asked Akron for records documenting the receipt and disbursement of the tax funds more than a year ago. He didn't get them. So the businessman has now filed a lawsuit in Summit County Common Pleas Court, seeking the release of the documentation and reimbursement for the cost of hiring a lawyer to request the records over the last year or so.

JEDDs -- an idea touted by Plusquellic and now part of Ohio law -- were intended to end contentious annexation battles between cities and townships. In return for being able to collect income taxes from workers within designed economic districts in townships, cities like Akron agree to cease annexation attempts and to provide city utilities to the businesses in those outlying areas. The cities also offer to help market and seek development on the previously undeveloped area.

So, what rules should appy here? My assessment is that Akron should be able to use its tax revenues in any way it sees fits, including to encourage economic development within the City. A deal is a deal. The suburban development got what it wanted, and Akron should be able to use its revenues to strengthen business growth in its city limits. I may be missing something here, but that seems like that is the right answer to this situation. One caution: Akron should not deliberately work to undermine the suburban development. That would not be good for any of the parties concerned. After all, the development is now a revenue generator for the City.

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