HOWLAND Deal to share taxes gets OK

Niles council also must approve the development pact.
By STEPHEN SIFF
VINDICATOR TRUMBULL STAFF
HOWLAND -- Trustees have unanimously approved a tax-sharing agreement to prevent the annexation to the city of Niles of partially developed land at the corner of state Route 46 and Mall Boulevard.
The joint economic development district agreement must be approved by Niles City Council before going into effect.
If approved, it would allow the city to collect income tax at businesses and charge low utility rates, and the township would continue to collect property tax, said John Emanuel, township administrator.
If approved, the 25-year contract would prevent Niles from annexing the property, which includes a Perkins Restaurant, a Holiday Inn Express and two undeveloped lots. The entire property is owned by Ray Travaglini. Travaglini has never petitioned to have the land annexed to the city.
"From Howland's perspective, whether we get the JEDD agreement or not, the situation remains entirely the same," Emanuel said. "We are collecting property taxes now, and we would continue to collect property tax."
Effect on Niles: If Niles council passes the agreement, it would allow the city to resume collecting 1.5 percent income tax from Perkins and Holiday Inn Express employees.
Niles had already been collecting this money, and the businesses had been paying utilities at the lower inside-city rate, despite the fact that the long-talked-about agreement has never been approved.
Niles Mayor Ralph Infante has said that some income tax money collected from the businesses would have to be refunded if the agreement is not approved.
It is uncertain if Niles council will pass the agreement. Although Infante has been a strong supporter, several council members expressed reservations at a meeting Nov. 14.