The Johnstown-Monroe Board of Education heard more details of the New Albany Company's (NACO) proposal to develop 279 acres in the northern part of the school district during Monday's meeting, but a vote on the matter won't take place until next month.
Mark A. Engel, of Bricker and Eckler, the school district's attorney, said "the guts" of what's proposed is two agreements: A tripartite agreement among the village of New Albany, the J-M Board of Education and MBJ Holdings LLC, an affiliate of the New Albany Company, and a compensation agreement between the village of New Albany and J-M Board.
Related to those agreements is a resolution New Albany would need to approve to expand its Economic Opportunity Zone (EOZ) and establish additional accounts within that zone. That resolution would expand the New Albany EOZ in the state Route 161 area off Beech Road within the J-M district.
"They are looking for commercial industry--high quality, clean development," Engel said.
The distribution of income tax revenue from that zone, he said, would include 30 percent going into an infrastructure account for public infrastructure improvements; 15 percent to the Columbus Service Account, providing water and sewer in that area for 15 years; and the remainder going into an account that would be subject to be split between New Albany and the J-M schools.
A summary provided by the New Albany Company states at build-out and after a revenue sharing agreement expires, J-M would receive 100 percent of the real property taxes estimated at $2.89-million annually. That estimate is based on non-residential development of 279 acres at 10,000 square feet per acre.
The three-party agreement would give J-M's approval for New Albany to grant real property tax incentives that may exempt, abate, redirect or redistribute the district's portion of real property tax revenues that would be derived from future improvements to the property, or any portion of the property. In consideration for the board's consent, the village of New Albany obligates itself to share with J-M an agreed upon portion of income tax revenues that are generated by future development on the property.
In recognition of the benefits it would receive from the execution of the agreement, J-M would agree to provide its support toward MBJ's efforts to annex the property to the village. Likewise, J-M would agree to provide its support toward MBJ's efforts to zone the property for non-residential uses.
Rob Klinger, Licking County economic development manager, called the proposal "a huge chance for a private-public partnership," similar to agreements the developer has already negotiated with Plain Local and Licking Heights school districts.
"The New Albany Company and village of New Albany are offering compensation to make you whole," he said. "É It's a darn good package."
Board president John Davis said he will support the agreements.
"Vacant farm land isn't bringing us anything," he said. "If it's developed, it brings tax revenue and jobs to the people of Johnstown. It's my hope that it provides jobs for our graduates. It's probably good for Johnstown."
Board member Karen Blair also expressed support, saying there is some history with similar agreements with two other districts.
"It has yielded what it was to bring," she said.
Davis said he talked to members of the Licking Heights board, and things have gone as planned there.
Besides discussion on the proposals agreements themselves, spirited debate took place Monday between board members Terry Holter and Blair concerning the compensation of Engel.
While Engel is the district's attorney, the New Albany Company is paying his tab for time on the proposal.
Holter said that is a conflict of interest.
Blair said she was embarrassed by Holter's comment and complimented Engel's work.
Johnstown resident Marvin Block agreed the board should be paying its attorney's fees.
"That doesn't pass the fish smell test," he said.
Davis affirmed his support of Engel.
"It does smell bad," Davis acknowledged, "but he's a man of ethics É We appreciated not footing the bill."
In other business Monday, the board approved:
¢ A donation of $1,000 from Coldwater Creek to the Searfoss Elementary principal's fund.
¢ A snow removal contract with M and L Services for the 2009-2010 school year at the following rates: $400 per plow of district parking lots and board office lot, $400 per salting of district and board lots; $150 per plowing of Searfoss playground; and $150 and per plowing of Oregon playground.
Several personnel items were also approved.
The next regular board meeting will take place at 6:30 p.m. on Monday, Dec. 14, in the Johnstown Council Chambers.