CLEVELAND PROMOTES ECONOMIC DEVELOPMENT IN RICHFIELD... and gets some income taxes in return.

Here's a City press release from Tuesday that hasn't gotten any coverage that I can find. Apparently the City of Cleveland is helping the Village of Richfield to create a Joint Economic Development District (JEDD) in Richfield Township.

The Village of Richfield and Richfield Township are in the process of creating a Joint Economic Development District (JEDD) to be located in the Township. The Township will contribute land and provide the general public services, and the Village will extend sewers and collect the income tax revenues. The City of Cleveland will extend water service to the new district through a water service agreement with the Village adjacent to the area. The City, the Township, and the Village will share equally in the net income-tax revenues that are generated.

JEDDs allow municipalities with water systems to get some tax revenue from business development in neighboring townships, without having to resort to annexation. Essentially the city offers water service and a no-annexation pledge in exchange for a share of new income taxes from the JEDD. Akron has set up four of them, described here and here.

Richfield Village gets its municipal water through a service agreement with Cleveland, so it needs Cleveland's cooperation to establish a JEDD in the adjacent township. Cleveland's saying yes, in exchange for a third of the new income tax revenue.

Hmmm. Think we can get a third of the new jobs?

Seriously, for a city like Cleveland with no unincorporated land next door, and a regional water system serving 70 communities in three counties, this "long-distance JEDD" idea probably makes a lot of sense. I wonder what the possibilities are around Brunswick. Or Twinsburg. Or Olmsted Falls.

P.S. Here's the full text of the authorizing ordinance for the Richfield JEDD, introduced in Cleveland City Council Monday. (The Mayor's press release says it already passed, but this looks like a first reading. I'm probably just missing something.) Take a look at the sponsors: Coats, White, Gordon, and... Jackson. Looks like cooperation between the Mayor and Council President is still possible.
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