Superintendent Collier's 1/22/07 letter to Mayor Williams
City of Norwood
4645 Montgomery Road
Norwood, Ohio 45212
Attn: Mayor Tom Williams
re: Request for Chapter 725 Property Tax Exemption - Linden Pointe Development
We have reviewed the City's request for a Chapter 725 Property Tax Exemption on the Linden Pointe Development, delivered June 22, 2006 with supplemental financial information provided November 6, 2006.
It is our understanding that the City is requesting the Norwood City School Board of Education approve a property tax exemption on the property, comprising the Linden Pointe Development, for thirty (30) years at the exemption rate of one hundred percent (100%) of increased value. In exchange for the School Board's approval of the exemption, the City is offering to provide compensation to the School district in an amount equal to twenty-five percent (25%) of the Service Payments in Lieu of Taxes, which will be collected by the City pursuant to Chapter 725 o the Ohio Revised Code.
Our analysis of the proposed transaction indicates that the School District should receive between 41% and 56% of the Service Payments in Lieu of Taxes in order to be held harmless by this exemption. We also understand that if the School District were compensated at that amount the net available Service Payments would not support the amount of infrastructure required to make this project a success.
In the interest of assisting the City with the development of this project and being responsible to the needs of the School District, the School Board is willing to approve the property tax exemption on the Linden Pointe Development at the rate of 100% exemption for a period of 30 years in exchange for compensation in the amount of 25% of the annual Service Payments in Lieu of Taxes generated by the development and title to the following parcels of property currently owned by the City:
1. The baseball field between the School District’s Shea Stadium and the maintenance building on the corner of forest Avenue and Harris Avenue. The field is currently being used as a baseball field and the School District would upgrade the property to be used as the girls’ softball field. The School District would make the field available for general use under an arrangement similar to that of use for Shea Stadium.
2. The parking lot on the southeast corner of the high school/middle school campus across from Walgreen’s on the corner of Sherman Avenue and Station Avenue. The property is currently used for public parking. The School District would like to utilize the property as a drop off area for parents to drop off and pick up students as a safer alternative to using the road as a drop off area. some green space would be created as well as some public parking spaces.
3. The parking lot on the northeast corner of the high school/middle school campus on the corner of Station Avenue and Elm Avenue. The property is currently being used as a City parking lot. The District would like to convert the property to green space for Physical Education classes for students.
In exchange for annual compensation of 25% of the Service Payments in Lieu of Taxes and donation of the above parcels of property, the School Board is willing to agree to the 100% exemption from property taxes on the Linden Pointe Development for 30 years and to waive any rights to income tax sharing from the Project under section 5709.82 of the Ohio Revised Code. We look forward to cooperating on a mutually beneficial project for the entire community.
Norwood City School District
Signed Steve Collier, Superintendent