I did a public records request to get the document that DPS signed off on with the 4-3 vote.
Nowhere do I see any guarantees of performance for GE.
I’m not a lawyer, nor am I an expert in tax increment financing districts- so I’m posting the entire document that was sent to me. I OCR’d the document so that it will be able to be read by people with disabilities, and so Google can find it.
While it says DPS gives up all taxes on 100% of the increased value of the building “GE Aviation Systems LLC for its Electrical Power Integrated Systems Research and Development Center” for “up to thirty (30) years” it also agrees to this clause-
WHEREAS, the Board of the School District will agree to the thirty year TIF Exemption on the condition that fifty percent (50%) of all service payments in lieu of the exempted real property taxes payable by the owner of the Exempted Property in accordance with the TIF Ordinance after the initial 15-year term of the Lease are paid to the School District;
Does that mean after 15 years, UD is going to pass over 50% of all payments in lieu of taxes go to DPS?
There are no guarantees from GE on employment, payroll, or services to DPS in terms of volunteer hours etc. There is nothing holding UD liable for taxes if GE pulls out. There is also nothing explaining why this project is “a public purpose”- and that the taxpayers receive any benefit at all from this tax forgiveness.
The basics of contract law require both parties to part with something of value. In this case, I’m not sure where the return value is shown. Also, since valuation for tax purposes is an inexact science, the value of this project and the amount we are agreeing to skip out on is all nebulous.
If someone can shed some light on this- I, along with all my readers would be interested.
Also note- the part that says that this was all done according legal requirements of Section 121.22 of the Ohio Revised Code. Is this standard practice- or just a CYA?