By Rick Palsgrove
Southeast Editor
Groveport Madison Schools could receive an influx of revenue from a possible commercial development in Obetz.
The Groveport Madison Board of Education approved a 30 year community reinvestment area and school compensation agreement (CRA) with the village of Obetz regarding the 165 acre former Stambaugh property located at Toy Road and Alum Creek Drive.
According to Obetz Village Administrator Rod Davisson, negotiations are underway for a 1 million square foot warehouse to be built on the site that could bring between 500 to 1,500 jobs to the area.
Under the agreement with Groveport Madison, Obetz agrees to share 50 percent of the income tax revenue generated from this CRA with Groveport Madison Schools.
As part of the proposed deal, Obetz would grant a 15 year property tax abatement to the business that is considering the site.
The land, which is currently undeveloped farm land, could eventually generate between $200,000 to $650,000 a year in income tax revenue for Groveport Madison Schools once it is commercially developed, according to Davisson, who added there is no cap on the amount of income tax revenue the district could receive as the business grows.
Plus, Davisson said, that income tax revenue projection is based not only the jobs that will arrive with the business, but also the jobs created by the construction crews who build the warehouse.
Davisson said the land is currently owned by the Port Authority so it is tax exempt.
“Because of that we’re getting zero tax dollars from this land right now,” said Groveport Madison Treasurer John Walsh.
“Right now the district is not receiving any property tax funds on this undeveloped land,” added Hoover. “This CRA agreement will help attract business and jobs to the site, which will enable the district to benefit with the revenue it will bring. It’s better than having open property.”
Walsh said the money from the CRA the district would receive would go into the district’s general fund.
Davisson said that, if all goes as planned, the district could receive its first income tax revenue sharing check for the development by March 1, 2016. He said the warehouse could be fully up and running by 2017.
Davisson added Obetz will have to also look into improving the Toy Road and Alum Creek Drive intersection to accommodate the potential increase in traffic the project could create.
