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Salem council, Perry trustees to discuss proposed cooperative economic development agreement

SALEM — The city council is set to meet with the Perry Township trustees to discuss the proposed cooperative economic development agreement between the city and township to govern the terms of future annexations in a second joint session.

City Council President Evan Newman announced that city council’s upcoming meeting Tuesday would be a joint meeting with the trustees to further discuss the agreement in an email to the rest of city council. Leaders from both municipalities previously met in a joint session to discuss the potential agreement on July 30.

At that meeting concerns were raised by Newman and Councilman Jake Gano over the division of municipal services and specific percentages of the proposed tax revenue splits for annexed properties. At that time the proposal would have seen 70% of the income tax revenue collected from a property retained by the city, with the remaining 30% being paid to the township, which cannot collect income tax normally, as a fee, while the property tax revenue would be split down the middle with the city and township both receiving 50%.

However, the question of how to address the 159 properties within the township with deed restrictions mandating annexation into the city to retain city water and sewer service should the property ever become contiguous remained the main source of disagreement.

Township officials maintained their position that people should not be required to annex if they do not want to and should instead be given the choice of annexing or remaining in the township and wanted a section included in the agreement which would suspend enforcement of those deed restriction while the agreement was in effect. City officials argued that being permitted to receive city utilities without annexing or without a contract requiring annexation removes the incentive to annex.

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