Council approves JEDD despite protests

Several in attendance not thrilled with decision

Painesville City Council has passed a resolution to add new lands to their Joint Economic Development District.

However, the Nov. 5 vote was not unanimous and not without contention from some gathered in attendance.

A JEDD program allows municipalities to gain levied income tax from the businesses inside the district while the smaller townships are allowed to retain the development land and collect property taxes. In this instance its Concord Township and Painesville.

Concord Real Estate Investments is one of the properties proposed to be added to the JEDD, despite the company’s disinterest in joining. The company was represented at the meeting by attorney John Monroe, who opened the opposition.

“At this point, it’s being termed a petition but if the property owner’s not petitioning it, I’d suggest its not a petition at all,” Monroe said at the meeting.

Real estate developer Bill West was concerned his JEDD incorporated properties would be perceived as undesirable due to an increase in income tax levied.

“The amount of money the JEDD basically would give to these individuals is miniscule as compared to the cost that would incur from the income tax aspect.”

West reiterated as his time expired, “We have no incentive to do it. We didn’t ask to do it.”

Painesville resident Chris Fade saw both sides of the argument but ultimately felt “when it comes to owners, I side with the opposition. There’s no need to levy a 2 percent or even a 1.75 percent income tax because that could be a detriment to a seller. For the city of Painesville, that’s revenue, so that’s a good thing.”

Concord Trustee Chris Galloway, who also is the treasurer for the JEDD program, spoke in favor of the resolution.

“JEDD membership has a great deal of positives that go with it,” he said, citing “the roughly $13 million project opening up at Capital Parkway and Route 44 on Tyler Road. That is a critical interchange that’s allowing all of that (JEDD) property to now accelerate in terms of its development and sale opportunity.

“Frankly, without that investment and without that interchange the property would still be locked away in the back with not a lot of visibility.”

Galloway also pushed back on West’s contention that the JEDD would negatively impact the included properties income tax rates.

“We don’t see that. … Painesville has a 2.0 percent income tax, the JEDD is 1.75 percent,” he said.