Another joint economic development district has been created by Akron Mayor Don Plusquellic. This one is with the Village of Mogadore. The city and village will share income taxes and Akron will provide water to Mogadore as part of a 99-year agreement.
Mogadore Mayor Mike Rick says this water agreement replaces an older agreement that cost the village more.
Under the new agreement Mogadore residents would pay Akron residents rate for the water plus 22 %. Under the old agreement village residents had to pay plus 45%.
Rick says the joint economic development agreement would split the Mogadore income tax, with the village collecting 50%.
The agreement would also have Akron extend water lines for new future development in Mogadore.
News Release From The City Of Akron
Akron, Ohio (February 22, 2013) - Today, Akron Mayor Plusquellic and Village of Mogadore Mayor Rick announced that Akron and Mogadore have agreed to enter into a long term water supply agreement and to share income taxes.
Under the long term water agreement and contract for the creation of a Joint Economic Development Zone, Mogadore will purchase its retail water exclusively from Akron for 99 years. Water service will be provided to residential and commercial/industrial parcels in the Village of Mogadore and those customers will pay Akron rates plus 22 1/2%.
Akron will also extend water lines to service and supply water to OMEGA Laboratories located in Mogadore, and Mogadore will pay to Akron 33 1/3% of the income tax revenue it collects from OMEGA Laboratories.
“It is nice to be able to supply water service to OMEGA Laboratories who desperately needed it for their new expansion,” said Mogadore Mayor Mike Rick. “More importantly, the agreement also saves money for the residents of Mogadore, as they were previously paying the Akron rates plus 45% for their water.”
The Agreement also specifies that in the event Mogadore annexes property, merges with another political subdivision, or enters into a JEDD Agreement, Mogadore will pay Akron 50% of the income tax revenue it collects from non-residential property within the annexed, merged, or new JEDD boundaries if Akron extends water to those new properties.
"I’m glad to see this come together after a number of years in negotiations," said Plusquellic. “We have been servicing Mogadore with water for quite some time now, and it is good to finally have a long term agreement.” The Mayor added that “this agreement is consistent with the agreements with other cities and townships served by Akron water. These agreements are designed to improving the long term economic stability of our region and are working well.”
On Wednesday night, the Village of Magadore passed legislation that would authorize these agreements. Mayor Plusquellic will submit similar legislation to Akron City Council for its consideration at its next meeting, Monday, February 25, 2013.