North Canton's Annexation Policy in Exchange for City Water Provides for Needed Economic Growth!

Prepared Comments Made to

NORTH CANTON CITY COUNCIL

March 21, 2018

ü    Negotiating away public tax dollars thinking that these actions benefit the community reminds me of the custom of bloodletting that was practiced until the late 19^th century.

No one would argue today that depleting the body's blood supply is not risky. In addition to the danger of losing too much blood, the practice can precipitate a perilous drop in blood pressure and even cardiac arrest. Further, bloodletting doesn’t cure what ails you.

ü    Negotiating away public tax dollars is much akin to the past practice of bloodletting.

One may think you are doing something good when in reality the opposite is true.

ü    Water and Sewer services are basic to growth and economic development.

These are services which have brought about the very existence of municipalities in America and their subsequent growth.

A March 2, 2018, Repository story titled, "Foreclosure sale halted for Meadowlake Golf," states, "The golf course is being considered for an 'expedited' annexation into Canton to receive city water…."

Clearly, City water is a valuable annexation tool which is non-negotiable. 

ü    In regards to proposed legislation to waive annexation outlined in Ordinance No. 19-2018, there is nothing to negotiate – if OMNI Orthopedics wants City water for this property that abuts the City's western border, they will have to annex, plain and simple.

If tax dollars are negotiated away to bring about the annexation of this property, all future property owners who need City water will ask for corporate charity in exchange for agreeing to annex into North Canton.

And that is exactly what this is, corporate charity. And I am seeing a pattern.

North Ridge Place Apartments were developed by a partnership of investors who took advantage, many think illegally, to extract nearly a million dollars of public taxes to enrich themselves.

Now, once again, we have a partnership of investors, the owners of OMNI Orthopedics, who want to extract public tax dollars from the City to enrich themselves by refusing annexation into the City of North Canton.

ü    Water and annexation decisions that have been made by North Canton City officials over many years have made Jackson Township the retail shopping mecca of Stark County and surrounding counties.

WHY?

Why does the City repeatedly give its life blood away in the form of water, and then lament those decisions?

Just so we can proudly say we sold the water that allows the Jackson Township business community to flush their toilets? 

ü    Mayor Held, I commend you for your remarks at last week's Council meeting that this proposed legislation needs scrutiny, and that there is no need to rush as was urged by Law Director Tim Fox.

But more importantly, I commend you for your comment that this property is not going anywhere. If Bob DeHoff's prospective buyer, OMNI Orthopedics, does not want to annex into our fabulous community without corporate charity, I am sure Mr. DeHoff will be successful in finding a buyer in the future who would welcome the opportunity to annex into North Canton without corporate charity.

ü    Mayor Held, I believe it has become public knowledge that you are unhappy with Stuart Lichter and IRG, the owner of the Hoover District.

Currently, the owner of the Schroer Group is also unhappy, and as a result, the word on the street, which you have confirmed to me, is that this company will be leaving the Hoover District and taking 300 jobs with it!

The reported 75 jobs that could come with the annexation of the property desired by OMNI Orthopedics, should they agree to annex, would certainly help to lessen the loss of the Shroer Group and their 300 employees.

I ask you to reject Ordinance No. 19-2018 outright. Municipal annexations in exchange for City water have been a mainstay for economic growth as long as municipal water services have been existence.

If OMNI Orthopedics balks on the annexation requirement, the invite to annex into our fine community was not meant to be.

There will be other opportunities for North Canton.

Do not poison the water for future annexation opportunities by waiving the annexation requirement for OMNI Orthopedics!

Thank you,

Chuck Osborne

North Canton Participates in a Manipulation of Its Income Tax Policy to Structure a Contrived Donation That Creates Tax Benefits for Akron Children's Hospital.

Prepared Comments Made to

NORTH CANTON CITY COUNCIL

February 12, 2018 

          I would like to speak to Ordinance No. 10-2018, that is on your legislative agenda tonight. The proposed ordinance is titled as an Industrial and Commercial Occupancy grant Agreement by and between the City of North Canton and Children's Hospital Medical Center of Akron. 

          Sadly, the legislation simply makes North Canton City Government a participant in the manipulation of its income tax policy to structure a contrived donation by Akron Children's Hospital that will take advantage of tax laws that benefit Children's Hospital. 

          And these tax benefits that the hospital will gain, with the active participation of North Canton City officials, will come about on the backs of the Hospital's employees through their payment of North Canton City income taxes.

 

          Is this laundering of tax dollars really needed? 

          City officials always defend their corporate charity by saying the particular entity could choose to locate elsewhere. Not likely this time and I will tell you why.  

In a May 2, 2013, Repository story titled, "Stark facilities team up with Akron Children's Hospital," the story reports that "Aultman … had signed a letter of intent for Akron Children's to operate the inpatient pediatric unit at Aultman. 

That was nearly five years ago.  

The 2013 story goes on to say, "For the last five years, Aultman has collaborated with Akron Children's to operate the inpatient pediatric unit at Aultman."  

Akron Children's Hospital and Aultman Hospital have collaborated for ten years at this North Canton location and your argument is that tax incentives are needed to keep Children's Hospital from building elsewhere.  

I think you as members of City Council and the Held Administration should explain yourselves and say why you are playing musical chairs with North Canton income tax receipts. 

So it is your intention to collect income taxes from the employees of Children's Hospital and then return those income tax dollars back to the Hospital.  And out of the goodness of their corporate profit-motivated heart, Children's Hospital will donate $250,000, a portion of the returned income taxes, toward the upgrade of facilities at Dogwood Park.

 

The $250,000 is and was already the City's tax dollars collected from hospital employees. 

And from this contrived donation of income tax dollars, paid by hospital employees, Children's Hospital can realize tax benefits and garner undeserved PR. 

The moving of income tax dollars from Akron Children's Hospital employees, then to the City's coffers, then returning those same collected tax dollars back to Children's Hospital for them to return those tax dollars back to the City under the guise of a donation reminds me of the those stupid shell games at the carnival. 

If one looks up the definition of "Shell Game" on a site called THE FREE DICTIONARY (found at https://idioms.thefreedictionary.com/shell+game) one would find the following:

1.     A game in which an object is place under one of three cups or shells, which are then moved around. The person playing the game must guess the final location of the object. 

The second definition of the game sums up what is taking place with this legislation.  

2.     By extension, a method of deception that involves hiding or obscuring the truth. 

This legislation is nothing but a play on an old confidence trick by pretending to change things or pretending to change things that will afford tax breaks for Akron Children's Hospital. 

Explain the movement of the money to an adult or even a child and both would look at you and wonder if you are either out of your head or an out and out crook. 

I would urge each of you the next time you are up for re-election to tell voters that this legislation was one of your proudest moments. 

When you perpetrated a fraud using City tax dollars. 

That you engaged in needless legislation to provide tax benefits to a corporation on the backs of the employees of that corporation. 

The nearly $1.0 million secret tax abatement for Northridge; the  recent decision of the Water Board foregoing annexation of a property expected to have 75 healthcare jobs, and now manipulating income tax policy for Akron City Hospital does not bode well for the future of North Canton.    

Thank you,

Chuck Osborne