ASHLAND — In a move officials say could spur development on the city’s east side, Ashland City Council approved a revenue sharing agreement with Montgomery Township for future annexation of township property into the city.
The agreement, which was passed by council unanimously and has also been approved by the township trustees, covers an area near the Interstate 71 and U.S. 250 interchange that includes land west of Township Road 653.
Under the agreement, the city and the township will split real estate taxes generated in the area for 50 years. After that, the city will receive all real estate tax revenue from the area. The township will receive any bed-tax revenue generated by future hotel development in the area indefinitely.
The township agrees to fully cooperate with and facilitate any annexation of territory in the area.
“They have areas on the other side of Interstate 71 that need some essential services, and it’s something Mr. (city engineer Shane) Kremser has been working on to help try to meet that need,” city finance director Larry Paxton told city council members.
Paxton said Ashland already has a revenue sharing agreement with the township that has been in place for several years. The ordinance passed Tuesday extends that agreement and modifies it from 30 years to 50 years from the point of annexation, Paxton said.
“Along with that, it’s a 50-percent split,” Paxton said. “Both the township and the city agree to share those property taxes as those properties are annexed into the city, keeping in mind those properties have to adjoin a parcel that has already been annexed into the city.
“In doing that, I believe it’s a good program for both the city and the township and it shows where public entities can agree to work together, and we’re very appreciative of the mayor working to accomplish this as well as the township trustees.”
Council member at-large and mayor elect Matt Miller thanked the township trustees for working with the city on an agreement to allow for annexation.
“It wasn’t long ago every time we tried to annex land in this community there was usually some sort of battle that took place, because the townships did not want to lose their land to the city, because they would give up their limited amount of tax revenue every time that happens,” Miller said.
Miller said the agreement represents progress for the city of Ashland.
“Really what’s driving this is the intention and the preparation that’s gone into working toward extending our utilities across I-71,” Miller said. “For so long, folks have talked about the types of development that could occur if the utilities were across the interstate, and it looks like now we may be able to actually move in that direction relatively soon.”
Also at Tuesday’s meeting, council accepted a plat for a subdivision on Commerce Parkway. Aber’s plans to move its truck center to the location, according to Kremser.
Council members also authorized two percent raises for classified supervisory personnel in the city, in line with raises given to other non-union staff earlier this month. The ordinance had been tabled at a prior council meeting and was since tweaked to eliminate some positions, according to human resources director Mark Burgess.
Tuesday marked the last regular council meeting for Mayor Duane Fishpaw, council president and third ward representative Ruth Detrow and fourth ward council member Sandra Tunnell.
The council will meet for the final time this year to finish up year’s end business at noon Dec. 29.
Following Tuesday’s meeting, Miller announced he and new council members Dennis Miller and Al Farnam will each be sworn in to their new offices at a special ceremony at 6 p.m. Jan. 2 at Archer Auditorium at Ashland High School. Miller said he anticipates a crowd for the approximately 45-minute ceremony.
