The district encompassed by the Cooperative Economic Development Agreement (CEDA) between the City of Marysville and Jerome Township is highlighted in green. The CEDA acts as a framework for a Joint Economic Development District (JEDD), which allows the two governments to collect income taxes from employees at new businesses in the area. (Graphic submitted)
Proposed changes to an economic agreement between Jerome Township and the City of Marysville reflect a changing relationship between the two governments.
“It’s been a breath of fresh air to have the type of interaction we’ve had over the past few months,” said City Manager Terry Emery, adding, “We finally feel we’re on the same team.”
During a special meeting at Marysville City Council’s regular work session, Marysville/Union County Economic Development Director Eric Phillips shared proposed changes to the Joint Economic Development District (JEDD) between the city and township.
The JEDD allows the two governments to collect income taxes from employees of businesses within the designated district, to be used to expand infrastructure.
Phillips noted that the JEDD does not affect residential properties or existing businesses, but is a means to ensure “new development pays for itself.”
He added that the JEDD will not immediately generate millions of dollars, but will benefit the city and township over time.
“This is going to take time over decades… we’re betting on a future here, in a lot of ways,” Phillips said.
While the proposed changes to the existing agreement are relatively minor, Emery said approval would signify a shift in the way the two governments work together.
“This formalizes that partnership,” he said.
Phillips explained that a Cooperative Economic Development Agreement (CEDA) between the city and township was approved in 2019.
He described a CEDA as an agreement between jurisdictions which allows them to share resources in order to plan land use and future development in “a cooperative fashion.” The CEDA also serves as the framework for the JEDD.
The 50-year CEDA dictates that any non-residential development in the district that requests water or sewer services – provided by the City of Marysville – must join the JEDD agreement.
Additionally, terms of the agreement prevent any annexation within the CEDA district, which Phillips said helps the township maintain its “autonomy.”
Phillips proposed four revisions to the CEDA, along with minor “clean up” to the agreement.
The most notable would be a change to the breakdown of how income taxes generated by the JEDD are allocated.
Under the terms of the 2019 CEDA, 55% of the taxes generated go to the JEDD Board for infrastructure improvements; 10% to the JEDD Board for economic development marketing; 5% to the JEDD Board for administrative expenses; 15% to the City of Marysville and 15% to Jerome Township.
The proposed modifications would result in 60% going to the JEDD Board for infrastructure improvements and administrative expenses; 20% to the city and 20% to the township.
Emery said this was a suggestion from Jerome Township Trustee Wezlynn Davis, who said the new breakdown would allow officials to evaluate how much is actually needed for marketing and administrative expenses.
The revisions would also specify those who sit on the JEDD Board, which oversees which properties are added to the agreement.
Under the current terms, the board has five members: a city representative, township representative, business owner appointed by the city and township, employee appointed by the city and township and a county representative.
While the composition would remain similar, the revision would result in a board consisting of: the Marysville city manager, a township trustee, a business owner appointed by the township, an employee representative appointed by the city and the Union County engineer.
Phillips also detailed a change that would remove the requirement that tax incentives are approved by the City of Marysville.
He noted that, in many cases, income tax incentives already require approval by the township and county.
“Really, it’s kind of cumbersome” to require approval by the city as well, Phillips said.
Lastly, the CEDA revisions will include an updated economic development plan and schedule for income taxes.
The boundaries of the cooperative district, which surround Industrial Parkway and the U.S. 33 corridor, will not change if the revisions are approved, though Phillips said there is a “very good possibility” it is updated to encompass more in the future.
Emery said the proposed revisions will go before Marysville City Council for a first reading on April 11. Likewise, Davis said following the meeting that she expects the changes to go before the Jerome Township Board of Trustees on April 19.
Emery said he is thankful for what he views as an improving relationship between the city and township.
“We’ve never had the engagement and collaboration we have today,” he said.