Commissioner Gary Lee has said a proposed FedEx distribution center could make history.
“I believe this will be the first time a development of this size has not been offered any type of tax incentive,” said Union County Commissioner Gary Lee.
42 Real Estate LLC is moving forward with plans to develop a 530,000-square-foot trucking distribution center 8341 Industrial Parkway in Jerome Township.
In February, the Jerome Township Board of Zoning Appeals approved a conditional use variance for the 99-acre site, allowing the project to move forward. Sun Capital, now 42 Real Estate LLC, initially filed the application, though documents in the file confirm the user will be FedEx Ground. W&D Thomas Family, LLC., owns the property, which currently holds a single family home and a vacant farm.
“As we look at the project, I don’t think we are dead against the project, but it seems there is going to be economic gain, as a whole, with the FedEx facility,” Lee said.
Most tax incentive offers need approval by the township or municipality, county and school district they impact. A tax incentive is a way to entice new businesses to a community. Often based on projected employment, economic impact or investment, the incentive can be an abatement or deferral of some or all potential tax. Through an incentives package, tax revenue can be used to repay a developer for infrastructure investments made in a community.
Many of the political subdivisions and school districts in the Union County have already approved a standard abatement agreement, and authorized Economic Development Director Eric Phillips to offer it to businesses looking to move into the county.
“We told Eric Phillips we would not be offering an economic incentive package to FedEx,” Lee explained.
Lee said the discussion happened at the beginning of April.
Phillips added that while there have been informal discussions, the company has not actually asked for any type of tax incentive.
“Without having something from the company, it is difficult to make a decision,” Phillips said.
He added, “We have had discussions with the company, with local leaders, but nothing has been decided. It could be “Yes.” It could be “No.”
At a recent meeting, township trustee Ron Rhodes expressed frustration with the county process. He said county officials did offer a tax incentive to the developer then withdrew the offer.
“They didn’t tell us anything about it,” Rhodes said.
Phillips said he has talked with township leadership about the process, and did not offer or rescind any offers.
Lee said he has not been part of any discussions with the developer so he does not know which account is accurate.
Jerome Township Zoning Inspector Mark Spagnuolo said any property tax abatement wouldn’t really impact the township.
“One of the conditions of approval of the conditional use was that, should there be a tax incentive offered, they would make the township whole,” Spagnuolo said.
He added, “The township just wanted to protect themselves because that is our tax base, that’s where we get our revenue.”
While Lee said he does not remember a time when a tax abatement was not offered, Phillips said he is sure there have been.
“It happens,” Phillips said. “I can’t give you a list. Sometimes less is offered.”
Phillips cited a medical waste supply company that residents did not want locally. He said the Kroger Company did not get the exact abatement agreement it wanted when moving to the new location on West Fifth Street.
Phillips said the decision about any tax incentive revolves around whether or not the company will be an economic asset and is the location a good fit for the community.
“It really comes down to looking at the economic incentive policy and does it meet the economic incentive policy,” Phillips said.
He said that under that policy, county officials can specifically target businesses for certain locations.
He said officials offered tax incentives to hotels coming to the community in an effort to have one locate in Marysville’s Uptown area.
The FedEx development will still need to submit a traffic impact study and to pay for needed infrastructure improvements identified in the study. The developer has already agreed to pay almost $1.5 million to make improvements to Industrial Parkway, creating turn lanes from both north and south bound lanes and installing a traffic light on the south driveway into their facility. Additionally, the developer has said they would be willing to contribute to additional improvements needed at several other intersections.
In March, residents Barry Adler and Jennifer Wynne and Terrence Wynne, along with Rainfresh Harvests, have filed an appeal in the Union County Common Pleas Court objecting to the Board of Zoning Appeals’ decision.