South Range schools, Salem resolve TIF dispute
By ROBERT CONNELLY
NORTH LIMA
The South Range school district and the city of Salem have resolved a legal battle over funds from a financial district.
South Range school district Treasurer Jim Phillips said the schools have received $60,675 from the city after settling the legal dispute centered on a tax increment financing district, or TIF. That amount is for nine of the 10 years of the TIF.
It was a 10-year, 75 percent TIF district centered on a Home Depot store and a nearby development. That TIF includes land in Mahoning County and within South Range’s district borders.
According to Vindicator files, South Range school officials began to ask questions once the TIF was formed involving the Home Depot development in 2005. It was a 75 percent TIF, meaning that Salem received 75 percent of the property taxes of the developed property for 10 years. TIF funds are used for improvements at or directly around the property, such as road construction and water and sewer line work.
In October 2005, Salem Law Director Brooke Zellers asked city officials to meet with South Range school officials.
The district filed a lawsuit against Salem in February in Mahoning County Court of Comnon Pleas over the funds. According to online court records, the case was settled out of court Aug. 18.
“I think Salem wanted to do the right thing, and we certainly wanted them to do the right thing,” Phillips said.
“Of course, our opinion and their opinion of the right thing was the thing in question.”
There will be a final payment made next year for the 10th year of payments, which Phillips estimates to be between $6,000 and $7,000.
“Any money is welcome money, but it’s not going to save the district or anything like that long-term,” Phillips said.
Zellers explained that “Home Depot never thought its payroll would exceed $1 million” meaning that it would qualify to give funds to the schools. A few years after opening, Home Depot hit that threshold.
“Once we determined what the amount was, we paid” South Range, Zellers said.