Title
Discussion of Summit County Intergovernmental Memorandum of Understanding for Job Creation and Retention and Tax Revenue Sharing
Brief Description: Discussion of Summit County Intergovernmental Memorandum of Understanding for Job Creation and Retention and Tax Revenue Sharing
Body
Legislative History
Resolution No. 11-60, A Resolution authorizing the City Manager to execute the 2011 Summit County Intergovernmental Memorandum of Understanding for Job Creation and Retention and Tax Revenue Sharing. Passed June 1, 2011.
Resolution No. 12-75, A Resolution authorizing the City Manager to execute the 2012-2013 Summit County Intergovernmental Memorandum of Understanding for Job Creation and Retention and Tax Revenue Sharing. Passed May, 16, 2012.
Resolution No. 14-116, A Resolution authorizing the City Manager to execute the 2014-2015 Summit County Intergovernmental Memorandum of Understanding for Job Creation and Retention and Tax Revenue Sharing. Failed October 1, 2014.
Resolution No. 14-141, A Resolution authorizing the City Manager to execute the 2014-2015 Summit County Intergovernmental Memorandum of Understanding for Job Creation and Retention and Tax Revenue Sharing. Passed December 17, 2014.
Resolution No. 15-123, A Resolution authorizing the City Manager to execute the 2015-2016 Summit County Intergovernmental Memorandum of Understanding for Job Creation and Retention and Tax Revenue Sharing. Passed September 15, 2015.
Resolution No. 17-87, A Resolution authorizing the City Manager to execute the 2017-2018 “Summit County Intergovernmental Memorandum of Understanding for Job Creation and Retention and Tax Revenue Sharing.” Passed June 20, 2017.
Staff Report 18-0043, A discussion that the 2017 agreement will automatically renew, unless there are suggested changes. There being no changes suggested by Council, no further action is necessary unless another signatory community proposes changes.
Purpose & Explanation
The City of Hudson participates in the Summit County Intergovernmental Memorandum of Understanding for Job Creation and Retention and Tax Revenue Sharing (“MOU”) which aims to encourage collaboration among communities in Summit County and dissuade poaching of major employers through incentives. The MOU has been adopted by all but two communities (Stow and Twinsburg Township). From 2014 to 2018, the city collected an additional $302,908 in income taxes for jobs that moved to Twinsburg under an incentive. Beginning with 2022, the city will pay the City of Green a portion of our income taxes collected from Diebold Nixdorf as they received a Jobs Creation Grant as part of their relocation to Hudson. The full agreement and signatory pages are attached as an addendum to this memo.
Originally, the legislation was reviewed and re-adopted annually by the participating communities but during the COVID-19 pandemic, the group did not convene and has not gathered since. The changes to the economic landscape create challenges to the way this legislation operates. For example, a business that historically had all employees in the office that has moved to a hybrid or largely remote employment model for their long-term strategy will logically seek out smaller office space in the coming years. They will likely look within the same community and if they are unable to find an appropriate space, will look in the neighboring communities as to not increase commutes for their hybrid and in office employees. These corporate moves are very likely to occur and are not the result of poaching, but rather a large shift in the change in the employment model. Additionally, the MOU is silent on how employees working from home should be considered in this analysis as it was not a pervasive issue at the time the MOU was written.
Timing Considerations
None
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required.
Recommendation
Suggested Action
At this time, staff is seeking Council’s recommendation on whether the city would like to remain a member of this agreement and if so, staff will engage our Summit County partners in a discussion on amending the legislation to account for post-pandemic realities.
Submitted by,
Thomas J. Sheridan, City Manager
Greg Hannan, Community Development Director
Katie Behnke, Economic Development Manager