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Youngstown wants August goal for JEDD
An Austintown trustee says he doesn’t know a township resident who supports the plan.
YOUNGSTOWN — A Youngstown official wants contracts with Austintown and Boardman to allow the city to implement an economic development plan, including the imposition of income taxes on those working in the townships, by August.
“It’s a reachable goal,” Sarah Lown, the city’s development incentive director, said after a city council meeting to discuss the plan.
Austintown Trustee David Ditzler, who also attended the meeting, said Lown’s goal is going to be “extremely difficult” to achieve.
City council and administrators met publicly for the first time Wednesday to discuss the proposal known as a joint economic development district, or JEDD.
The proposal calls for the city to charge a 2-percent income tax on those who work in the portions of Boardman and Austintown that receive Youngstown water. That’s about half of Boardman and almost all of Austintown.
The townships could place its own 0.25-percent income tax on those same people.
In exchange, the city would reduce its income tax from 2.75 percent to 2.25 percent, a move that would put more money in the pockets of those who work in the city, including those living in the two townships.
Also, Youngstown would reduce the surcharge on its water customers in the two townships from 40 percent to 20 percent.
Ditzler said he and others in Austintown would embrace a proposal to charge an income tax on vacant land that could be developed through the assistance of Youngstown.
But Ditzler said he doesn’t know one township resident who supports taxing workers at businesses.
If Youngstown insists on pressing ahead with its proposal, Ditzler said Austintown could become its own city.
Youngstown Mayor Jay Williams said that idea would be too cost-prohibitive for the township and wouldn’t benefit anyone.
Without being specific, Williams and Lown said there is room for negotiations.
Councilwoman Carol Rimedio-Righetti, D-4th, asked during the meeting if not taxing current businesses in the townships is an option.
Though the city is willing to negotiate and be flexible, Finance Director David Bozanich said it needs to tax the township businesses for the plan to succeed.
A city-funded study projects Youngstown would receive $6.5 million annually from those who work in Austintown through a 2-percent income tax and $8.4 million a year from those who work in Boardman.
Though Lown wants a plan in place in about four months, she says discussions with the two townships are in the preliminary stages. Also, most of the talk from officials with the two townships is negative toward the proposal, she said.
For a JEDD to be implemented, a contract needs to be created, made available to the public for 30 days, two public hearings must be completed, petitions requesting the creation of the districts need to be signed by a majority of property and business owners in the JEDD area, and city council and township trustees must adopt ordinances approving the pact.
If the proposal isn’t supported by all three trustees, it has to go in front of voters for approval. If that’s necessary, Lown envisions that happening in November.
Ditzler said that time frame is much too quick. “You need to walk before you run,” he said.
skolnick@vindy.com