Monroe school board double-checks tax deal
City official calls district's actions 'petty' and warns board it is risking a possible lawsuit.
Thursday, May 01, 2008
MONROE — Fear of approving two 100 percent tax abatements for Home Depot is the reason the Board of education has twice delayed a vote, officials said this week.
However, a city official is calling the district's actions "petty" and says it is risking a lawsuit for delaying the project when it already signed off on a tax incentive package a year ago.
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For the second time in two weeks, the board on Monday, April 28, delayed making a decision on the deal between the city and developer Vandercar Holdings Inc. for the home improvement retailer to locate a $33.9 million regional distribution facility at Corridor 75 Park off Ohio 63 and Interstate 75 in Warren County.
The delay also for the second time in two weeks forced the cancellation of a Monroe City Council special meeting to take a final vote on the project.
Monroe Local Schools last year approved community reinvestment area agreements — calling for a 15-year, 100 percent tax abatement — between the city and VH Monroe LLC, which is developing more than 440 acres at the park, and VH Monroe II, LLC, an affiliate of the developer.
Superintendent Elizabeth Lolli said the wording in the resolution — which was drafted by district attorneys — makes it appear as if the district is reapproving the same abatements for Home Depot.
"I think the board needs to have clarification from the attorneys," Lolli said.
Monroe Councilman Bob Kelley said the board was provided information that shows it is not approving tax incentives for a second time, and that time is running short for the board to stay within the 45-day window from the time the matter was submitted in February.
"After that point in time, they could possibly open themselves up to litigation if Vandercar would choose to pursue that," Kelley said. "Personally, I think it's petty on their part to be doing this now. I don't know what they hope to achieve.
"They have the potential right now to stall three-quarters of a billion dollars in development in the city of Monroe because they don't like the way the I's are dotted and the T's are crossed. That could substantially impact future developments for the city of Monroe," Kelley said.
However, Kelley said he doesn't think the delay would cause Home Depot officials to back out of locating to Warren County.
He said the board is contractually bound to pass the legislation because it already agreed to the incentives as part of the development agreement.
The board has called a special meeting at 7:30 a.m. Friday, May 2, the purpose of which Lolli said is to meet with attorneys to alter resolution language.
