Huber Heights Is Set to Expand on Monday
A long contentious annexation is set to for a vote Monday night.
On Monday, a City Council meeting held in Montgomery County will undoubtedly set the stage for development in Miami County over the next few decades as the Huber Heights City Council will undoubtedly approve the near 300 acre annexation of “Carriage Trails 2.0”.
This annexation is just the latest development in a decades long attempt of Huber Heights to grow into Miami County. The 43,000 member community is literally landlocked on it’s south, east and western sides. In order for the community to grow, it must grow north, and it has been for at least twenty years.
And the growth has not been without problems. The newly annexed areas are within the Bethel Local School District and over the past ten years, the district has been one of the fastest growing in the entire state. This has caused a formerly rural district to try to provide the teachers and infrastructure to cater to a fast-growing student population. We have explored these issues in previous editions:
On the agenda for Monday’s Huber Heights meeting isn’t just the annexation itself, but also a “Pre-Annexation Agreement” between the developer and the City of Huber Heights. The agreement outlines the terms and conditions under which approximately 296.236+/- acres of land will be annexed to the City. This agreement is designed to facilitate the annexation process, support development, and ensure mutual benefits for both parties. This publication took a look at the agreement, since it will largely determine how this land will be developed in the years to come.
Development considerations are a significant aspect of this agreement. To support the development and necessary infrastructure improvements of the Property, the City will establish a Tax Increment Financing (TIF) district. This district will offer a 100% real property tax exemption for 30 years, with service payments in lieu of taxes (PILOTs) used to fund public infrastructure. This financial arrangement is intended to make the Property more attractive for development by reducing initial tax burdens and ensuring the readiness of infrastructure.
Considering the Bethel Local School District, still derives income from property taxes, this 30 year property tax exemption, may cause financial constraints for the district. The district may have to levy additional income taxes or raise property taxes on current taxpayers to help make raise funds that the district will surely need. There is an open question on how the district will be treated in this agreement, especially since they are not a signatory to the agreement.
Furthermore, the City plans to create or expand a Community Reinvestment Area (CRA) to provide a 100% real property tax exemption for 15 years on new residential structures. This incentive aims to encourage residential development within the Property by offering significant tax relief to developers and future homeowners. In cooperation with the City, the Developer will establish a new community authority (NCA) that will levy a community development charge (CDC) on property owners within the NCA. The charge will fund community facilities and services, ensuring that the new development is self-sustaining and equipped with necessary amenities. However, this agreement failed to outline in any detail what services will be paid for by the NCA, again opening up the conversation on how the schools will be treated in this agreement. Furthermore, the agreement is very clear that the CDC will be based on Montgomery County property tax rates, not Miami County property tax rates. Property tax rates in Montgomery County tend to be higher, and this treatment of property in Miami County certainly should raise some eyebrows.
The agreement also includes a provision for the donation of approximately 20 acres of land by the Developer to the City. This land is intended for the development of a school, community park, and fire station. This donation supports public infrastructure needs and enhances community amenities, making the area more attractive for residential and commercial development.
Of those 20 acres, approximately 16 to 18 will be donated to the School District for the construction of a new elementary school. However, if the school is not built within five years of the donation, the land will revert to the City of Huber Heights for a community park. To many observers, putting an arbitrary timeline on the building of the school is quite unfair. There is no discussion on how long it will take to build out the development, nor where in the development this new school will be. However, the school district will be “given” land it which it will be required to pay for a new elementary school, that will undoubtedly cost the taxpayers of the district millions of dollars. Yet, if the district isn’t ready to break ground within five years, the district will lose the land, which will certainly put the district further behind in serving the children and the families of the new development.
Special assessments will be supported by the City to cover additional costs associated with the development. These assessments, funded by the developer, will be negotiated separately and are intended to provide financial mechanisms for covering public infrastructure improvements. Moreover, the Parties will amend a previous development agreement to resolve claims related to the allocation of TIF funds. This amendment ensures that funds are appropriately directed towards necessary infrastructure improvements.
Zoning considerations are addressed as the Developer seeks a planned mixed-use zoning designation for the Property. The goal is to achieve a gross density of five to seven units per acre to promote diversity in housing products. The City will process these zoning applications through its regular procedures, with support from city planners and staff. However, the agreement acknowledges the inherent uncertainties of the regulatory process, recognizing that there is no guarantee that the zoning applications will be granted.
The compliance section of the agreement ensures that all development must adhere to the City’s zoning, development plan, and subdivision platting process. This compliance guarantees that the development aligns with local regulations and standards, promoting orderly growth and development.
One of the interesting notes is that the agreement fails to mention who will be responsible for providing water and sewer service to the new development. The City failed to mention that it will provide these services in previous legislation, making the claim that these services should be provided by Miami County. The Board of Commissioners tried to deny the annexation on the grounds that the county should have some input on the water and sewer issue, since they could be responsible for servicing the new development. However, given the tight parameters of current annexation laws, courts threw out the Commissioner’s objections and the Commissioners had to agree to the annexation. You can read about that part of the story here:
In the end, the ramifications of this annexation that will take place on Monday is going to have a profound impact on infrastructure, education and taxes for not only the Bethel Township community, but truly, Miami County for decades to come.
What do you think? How do you think annexation is going to impact Bethel Township, Huber Heights or the entire County for decades to come? Our paid subscribers are welcome to leave their ideas in the comment thread.
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