Akron Beacon Journal (OH)
Author: Gina Mace, Special to the Beacon Journal
Dateline: STOW City Council wants businesses to know they are welcome to move to Stow -- no matter where they are located.
And they don't think the city should be penalized if the business moves from another Summit County community.
Calling it ''blackmail'' and ''one of the worst pieces of legislation . . . ever,'' members of Stow council Thursday held up legislation that would allow Mayor Karen Fritschel to sign a countywide tax-revenue-sharing agreement.
County Executive Russ Pry has asked Summit's 31 communities to sign the agreement that creates a Model Code of Conduct designed to keep cities from poaching one another's tax base.
If a business moves from a Summit County community that has signed the agreement, the business' new home city could be required to share income-tax revenue with the business' former home community.
The revenue-sharing is triggered either by the amount of income tax lost or the economic incentives the new home community has offered.
Communities who commit to the agreement would receive extra points when state or federal infrastructure grant applications are scored.
This would put those communities at an advantage over those who choose not to sign.
Stow Council President Ron Alexander said that if the plan were in effect during the past five years, the city would have lost about $200,000 in income-tax revenue.
If it were in effect and Stow hadn't signed, the city would have lost $600,000 in grants during the same period, he said.
DISCOURAGES COMPETITION
Council member Janet D'Antonio said the legislation is ill-conceived.
''It smacks of socialism and encourages laziness,'' she said. ''It's poorly written, unclear and admittedly by its initiators, it's a work that is still in progress.''
Mary Bednar called the agreement ''blackmail.''
''We were told straight out that this legislation was made so we will have a level playing field,'' she said. ''That is not America. I would feel slapped in the face if I was working hard here to make this city strong and was told, 'I'm sorry, you have to be on a level playing field.' ''
Alexander said there is no benefit in the agreement for Stow, but it would be detrimental not to sign it. So he is asking council to pass the legislation anyway ? with an amendment.
Alexander is proposing that Fritschel be allowed to sign the agreement, but be required to give notice of termination the day after the contract takes effect.
''The contract would remain in effect for 181 days,'' Alexander said.
The six-month window would get the city through the next grant application and scoring process.
The amendment also would require requesting a legal opinion from Ohio Attorney General Richard Cordray.
KEY FOR PUBLIC WORKS
Sara Drew, chairwoman of council's Economic Development Committee, addressed council members and business owners who spoke against the legislation.
Even though she isn't in favor of the agreement, she wants the legislation passed with Alexander's amendment when it comes before council again June 25.
''We all have misgivings about the way it was written, given to us and shoved down our throats,'' Drew said. ''But in the end, this is about infrastructure. It's about sewers and roads and waterlines and bridges.''
On Monday, Cuyahoga Falls council will discuss legislation similar to Stow's during its Finance Committee meeting.
Chairman Don Walters said he hasn't formed an opinion.
''I want to hear what they have to say,'' he said. ''I think it's good if everyone signs on. If it's just piecemeal throughout Summit County, it doesn't serve the purpose for which it was intended.''
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