SUNBURY — Mayor Joe St. John proposed a partnership between the city and the school district at a special meeting of the Big Walnut Board of Education on Aug. 23.

The partnership would “encourage limited industrial development in the city and for the district,” St. John told the board. “This partnership will create new revenue streams for the district through real property taxes, PILOTs (payments in lieu of taxes), and for Sunbury new income taxes through job creation.”

This tech development is in preparation for the completion of Intel facilities in next-door Licking County during what St. John called “strong economic tailwinds.” The partnership would attract such businesses, grow revenue, and diversify the tax base.

St. John emphasized that “limited industrial zoning prohibits housing.” He then went into some details.

“Sunbury is in the process of creating a limited industrial zoning district, enabling business growth and scientific research facilities, scientific development industries, science technology-focused businesses, industrial flex uses, and light-intensity production of goods and manufacturing. All development within the zoning district will incorporate enhanced building architecture, high-quality landscape features, comprehensive site designs and performance standards which will ensure the development is compatible with the surrounding area.”

Further, the city will protect “the health, safety and welfare of the users of the limited industrial district and residents alike,” St. John said.

He then addressed the business terms of a memorandum of understanding (MOU) between the City of Sunbury and Big Walnut Local Schools relating to a Community Reinvestment Area (CRA) and school district compensation.

“I am proposing a 10-year agreement with two discretionary 10-year renewal terms where Big Walnut would exempt real property taxes for limited industrial development,” St. John said. “Only a large limited industrial with greater than $1 million in annual payroll could seek this exemption. These businesses would be obligated to remit annual payments to the Big Walnut Local School District equal to 12.5% of any exemption in the form of a PILOT for the term of that exemption.

“In less technical terms, this is new money for the district, both in the short term and the long term,” St. John continued. “As valuations increase, so do the payments to the (district). Absent an economic development agreement enabling business growth we can simply look to the past to predict the makeup of future development. For every ten developers that I meet with, nine are interested in building housing. I assume this comes as no surprise given the fact that we’re living in the fastest-growing region in the Midwest, inside the fastest-growing county in the state, inside the fastest-growing city in the county… and the Sunbury zip code, which makes up about half the geographical boundaries of the school district, is the hottest housing market in central Ohio in terms of price increase since 2018.

“I would argue our current economic model is unsustainable at our current tax rates — a model that relies heavily on residential property taxes to fund our schools,” St. John said. “I would go so far as to say it is imperative that we amend our growth strategy to diversify our tax base, and with your partnership, we will.”

Regional economic development authority One Columbus said such an agreement is critical to attract high-tech to the area, St. John said. “Without it, we are out of the game… without this particular economic tool, we will not be able to move forward,” he said.

“As Sunbury faces growth challenges, my professional litmus test is overly simple: Is the decision I make today moving our community closer to prosperity. As it relates to the agreement before you tonight, I can confidently say this is the put our foot down moment, the moment we pivot, the moment we go in a new direction together… This is collaboration for the common good.”

Sunbury has an existing CRA created in 2007, St. John said in answer to a question. State law allows municipalities to incentivize economic development, and Sunbury has studied what Dublin, Groveport and New Albany have done to attract high-quality businesses.

“We at the city are debating do we expand the existing CRA or is it easier to just draw a new map,” he said.

St. John praised the district’s board and administration for managing its own growth “through diligent decision-making.”

“Mr. Mayor, thank you for coming to discuss this in open session,” said board member Steve Fujii. “I appreciate your time, I appreciate your vision, I appreciate your put the foot down moment. How does it feel to be mayor?”

“It’s a big challenge,” St. John said. “We manage growth. There’s property owner rights, there’s the law, and there’s ordinances the city can put in place to help guide the development, and that’s why I’m here tonight. We want to guide it in a different direction.”

Fujii said the MOU was the culmination of many past meetings between the city and the district over the course of a year. He said the partnership would allow Big Walnut to better plan for the future, and an equitable opportunity by diversifying the tax base.

“It is a critical milestone,” St. John said. “There’s users coming to the City of Sunbury… that want to plant roots here now.”

Board President Doug Crowl said he would like similar partnerships with all of the townships and villages in the district.

“Do we continue with just housing, because that’s not attainable,” Crowl said. “The district is giving some compensation to Sunbury in order to enter this agreement. The development that’s already being spurred southeast of us, it’s not going to stop. We could bury our heads in the sand and hope that it didn’t come. The district will be stronger, the community would be better if we do some long view thinking and move some of the tax burden off the real estate housing and put it over to industrial…

“I’m old school in Sunbury, never wanted it to change,” Crowl continued. “But the Sunbury I grew up in is long gone. And that doesn’t mean you just open up the gates and let development flood in. You cannot stop development, but you can control it. This is part of that control.”

The board then unanimously approved the MOU.

The meeting was timed so St. John could next approach the Delaware Area Career Center with an MOU.

Assistant Editor Gary Budzak covers the eastern half of Delaware County and surrounding areas. He may be reached at [email protected].