Joint Economic Development District – JEDD
By DONALD L. PLUSQUELLIC
AKRON CITY MAYOR
We created the Joint Economic Development District (JEDD) for Akron as a way to promote economic development in unincorporated areas without the animosity produced by annexation. JEDDs have helped us not only retain, but generate new jobs for the region. At least 19 other JEDDs have been established in communities across Ohio, including several in Summit and neighboring Cuyahoga County. In this article, we discuss the need for JEDDs, how JEDDs were formed, and advice for those who might consider a highly adaptable JEDD in their communities.
ANNEXATION ANIMOSITY – A town of 62 square miles, Akron has relatively little developable space. Our experiences during aggressive annexation through the 1970s and 1980s ---intended to promote growth and economic development --- were punctuated with rancor and resentment on the part of the communities we had sought to annex. For nearly 20 years prior to JEDDs, there was palpable animosity created by these annexation attempts which were meant to be positive. Communities fought rather than worked together. Were there other options for economic growth available?
BRAINSTORMING AND BUILDING ANOTHER WAY – The idea came in 1988. Growth could be generated by creating partnerships in which both city and township could benefit. The townships often did not have water or sewer capabilities that were needed to bring in businesses, and the city could offer that.
The ideas for the first Joint Economic Development District began to form. Developing such a district took an incredible amount of will and determination.
The JEDD effort was initiated with Coventry Township Trustee Val Sawhill. We enlisted assistance from trustees in surrounding townships to begin the process of identifying possible JEDD boundaries within townships and arriving at contract terms. The contracts were reviewed in a series of public hearings before the townships, the city and Summit County.
On November 8, 1994, Akron and three townships became the first communities in Ohio to formally establish township JEDDs when voters in Copley, Coventry and Springfield townships approved separate JEDD agreements with the City of Akron. Three elections culminated a six-year effort by the city to provide Akron with a new economic development tool and a means for townships to obtain property-tax paying development and to retain their sovereignty.
We cannot minimize the impact of public opinion on this process. It was extremely important to us that the citizens of Akron and each surrounding township understand the concept and our motivation before voting on JEDDs. One township in particular, Bath, saw three votes take place before citizens agreed to allow the initiative. Dozens of public meetings took place to answer questions and get input from the community at large. This was no small feat.
Since establishment of Akron’s JEDD program, JEDDs have been ratified by the Ohio Legislature for statewide use and have been adopted by dozens of communities throughout the state, including Dayton-Butler Township and Olmsted Falls-Olmsted Township.
JEDD BENEFITS – With Joint Economic Development Districts, both city and township benefit and relations are enhanced, rather than strained. This regional approach to government was the first of its kind in Ohio and one recognized nationally by author and former Indianapolis Mayor William Hudnut as a brilliant innovation and example of good government.
JEDDs employ smart growth principals to bring to citizens a cooperative, regional approach to government. This fosters good will, stabilizes the urban tax base and retains the township property tax base once threatened by annexation.
JEDDs have served Akron and surrounding neighbors well fiscally and socially for more than 10 years. City and townships have benefited economically, and two townships so far have enjoyed enhanced services provided by Akron resources; Akron has built recreational complexes in two townships, at this writing, and shares programming and use of the facilities. Prior to JEDDs, our neighboring townships could not create such resources due to limited funds.
Joint Economic Development areas enable Akron to market designated areas in neighboring townships for existing businesses that might be looking to leave the area and for those who might be looking to move to Northeastern Ohio for the first time.
In our JEDDS, we now have roughly 25,000 people working, accounting for $70 million in new income tax revenue in the last five years alone.
The public investment in Akron’s Joint Economic Development District programs with Coventry, Copley, Bath-Fairlawn and Springfield townships is approximately $30 million. The private investment attracted is currently $150 million for new construction and rehabilitation. The contribution to Akron’s tax base is in the dozens of millions of dollars.
We live in very challenging and competitive times as far as economic development is concerned. Joint Economic Development policies that focus on regionalism help Greater Akron remain competitive.
JEDD ADVICE – Leaders in both the city and township must meet together, form JEDD boards, set boundaries of the JEDD, and draft contracts emphasizing mutual benefit. Each city/township agreement must be negotiated separately because each township has different needs. JEDDs are readily adaptable to local needs in terms of government contributions. Akron’s contribution to its JEDDs is the provision of water and sewer service. However, a community could choose to provide other services to a JEDD, such as planning assistance, recreational facilities, emergency services or whatever the participating municipality and township determine is appropriate.
Tax-sharing is fundamental to the workings of the JEDD. Akron receives new revenue from an income tax levied for JEDD business and their employees. Those funds are then used by the city to fund water and sanitary sewer projects to serve JEDD areas as approved by the townships. The townships receive revenue from property taxes from the newly-developed areas, expanding their abilities to serve their citizens.
Many public hearings must be held to educate the populations of both entities before the JEDD contract goes to the ballot. To be enacted, the agreement must be approved by both jurisdictions.
The JEDD contracts with our neighbors are in force for 99 years, but they are far from maintenance-free. Once formed, JEDDs are initiatives that require constant and active attention by the leaders and the boards that govern them. Strong, sustained leadership is essential for the success of JEDDs, strong leadership and a philosophy that supports regionalism. This is certainly not a guarantee when political winds shift, and new leaders are elected, but it provides for some solid footing. Boards must prepare for change and work a mechanism for modification into the system.
Promoting economic development in unincorporated areas without using annexation, JEDDs have helped us retain and generate jobs for the region. This is what we consider the most important achievement of this innovation. For a post-industrial, Midwestern city recovering from a significant loss of manufacturing and the greatest exodus of jobs of any state in the U.S., finding creative, new ways to retain and attract jobs is critical.
If you have any questions about JEDDs and their formation, you may contact Deputy Mayor for Economic Development, Robert Bowman. He may be reached by phone at 330.375.2133 or e-mail at bowmaro@ci.akron.oh.us. NEO
JEDDs –
A Township Perspective
BY BRUCE KILLIAN
SPRINGFIELD TOWNSHIP TRUSTEE, SUMMIT COUNTY, OHIO
Springfield Township’s experience over the past 13 years being a partner in Joint Economic Development District (JEDD) Agreements with the City of Akron has been positive. This experiment in government cooperation started in the early 1990s with much credit going to Val Sawhill, a now-retired trustee from neighboring Coventry Township, and Akron Mayor Don Plusquellic. Their discussions about how to stop battling each other over annexation and instead to work together led to state approval for the concept in charter counties, i.e., Summit.
In 1994 agreements were signed by the communities of Copley, Coventry, and Springfield Township and the City of Akron. Voter approval was gained in the fall of 1994. Then the real work began. Areas of the township needing water and/or sewer were identified and construction began shortly after.
Having served as a township trustee the past 16 years, I have witnessed the evolution of JEDDs from concept to fruition. While the road to success has not been without its problems, the final outcome has been well worth the endeavor. The township has been able to grow and has not had to contend with losing areas to annexation. The City has expanded its income tax base and has an expanded area of land to lure business to the area. We have also been able to build a joint use sports complex using joint cooperation and some JEDD funds.
Now that JEDD agreements are an option statewide, I would encourage all communities to explore this tool for regional growth. My advice is to leave past history, political agendas and personal bias behind. Work together for the benefit of all.
