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JEDD is dead

East Liverpool makes move to purchase, annex township land off park way

By MICHAEL D. McELWAIN (mmcelwain@reviewonline.com)
POSTED: July 22, 2008

EAST LIVERPOOL - City leaders made a move Monday night to go it alone and annex land in Liverpool Township for business and industrial development.

The city will issue notes in anticipation of bonds to purchase the roughly 80 acres of Liverpool Township land off Park Way for $1.3 million. The land is currently under the control of the Bosco family.

Plans originally called for a JEDD, or Joint Economic Development District, between the city and the township.

Under the JEDD proposal, officials said the venture was something neither the township nor the city could do alone. The initial agreement stipulated that the township was to provide roads to and through the JEDD project while East Liverpool would supply water and sewer service.

If the purchase is complete and the land annexed, the city will have to assume full responsibility.

"We've worked on this for some time now," Ryan Stovall, city council member and chairman of the Planning and Expansion Committee, said. "It's a good agreement with the city and one of the best, flat pieces of land in southern Columbiana County."

The legislation to act on the measure passed out of Stovall's committee and on to the full council floor Monday evening.

"The contract is a fair contract in terms of how the city is concerned," Law Director Charles Payne said.

The city will have to deposit in escrow $20,000 as an initial payment. At closing, the city will have to sign a promissory note for the remaining $1.28 million and pay $3,000 a month for the next three years. The balance of the note with all interest accrued will be fully due and payable if the property is sold by the city or at the end of the three-year period.

Stovall said the city would need to secure a loan to pay off the balance, but added that in a few years, he "hopes to have investors in there already."

City leaders opted to move alone because, in part, "They (the township) haven't responded to our last JEDD counteroffer in March," Stovall said.

The sticking point for city officials with the original JEDD plan was with the contract's 99-year ban on land - JEDD property and any property within the township - from being annexed into the city.

"I think 99 years in a contract is excessive," Sherrie Curtis, city council member, said at the time, pointing out that Liverpool Township "practically surrounds our city ... For the future growth of our city, it seems like it's tying our hands."

On Feb. 4, the full council gave a unanimous vote of approval to the idea of a counteroffer and instructed Payne to craft changes in the proposal that would be more palatable to city council.

Members of the city's Planning and Expansion Committee debated the stipulations of the counter proposal and suggested the city could live with an initial contract of 40 years with two, 10-year extension offers and with the city agreeing to not annex JEDD property for the duration of the contract.

As for land outside the JEDD, the city's counterproposal put a three-year moratorium on active annexation unless a landowner or community actively requested annexation into the city.

The township had 30 days to respond to the city's counteroffer made March 7, but Stovall said he was never contacted.

"I think the city can handle it themselves," Stovall said. "The township could have been involved and it would have been good for both sides. But this will still be good for everyone because it will bring jobs."

Liverpool Township Trustee Karl Kontnier had been the active participant in JEDD negotiations on behalf of the township.

Monday night, Kontnier said he was not surprised by the unanimous vote by East Liverpool Council members Monday night.

"I've been expecting it for months," Kontnier said. "If there's anything they (council members) are, it's that they are predictable."

Kontnier said the act "reminds me of a welfare recipient out shopping for a brand new Cadillac."

If history is a guide, the township will fight the annexation. "I can't answer for the other guys, but in the 18 years I've been there, we've always fought against having land annexed," Kontnier said.

Stovall said he expects a fight on the annexation issue. "Absolutely. they have to challenge it," he said. "The elected officials have to do what they have to for the township, but we have to do what we need to do for the city. This is for job creation on one of the best pieces of land in the county."

Stovall would not indicate the name of any specific company, but he said one business interested in the JEDD property is still expressing interest in working with the city. Also, Stovall said a "medical distribution center" has expressed interest as well.

Mayor Jim Swoger worked on the initial JEDD proposal and said, "Obviously, it's not the way I wanted, but I'm for the creation of jobs and always will be."

Kontnier said he appreciated the effort by Swoger and others during the initial JEDD talks.

"The people who worked on it worked in good faith," Kontnier said. "Nobody appreciated it I guess, but that's OK."

Council members praised Stovall for his work on the matter.

"It's probably one of the biggest things this city council has done in a long time," council President John Torma said. "I think this is going to help the city move forward."

Curtis agreed, telling Stovall, "It's a pleasure taking part in a Planning and Expansion Committee that is looking for future growth."

Stovall warned fellow council members that the process is only just getting underway.

"There is a long way to go, and it's just a first step," Stovall said, adding he appreciated the leadership and help from city officials and other community leaders in putting together the plan.

 
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