UPDATED: New Albany enters into annexation contract regarding 3,190 acres in Jersey Township

The city of New Albany is in the process of entering into annexation agreement that could bring as much as 3,190 acres into the city from Jersey Township.

Council on Jan. 4 voted 6-0 to enter into an annexation agreement with Jersey Township for the property, which is bounded by the Franklin-Licking County line, Green Chapel Road, Mink Street and Jug Street.

Council member Mike Durik was absent.

Jersey Township trustees voted unanimously Dec. 27 to approve the measure, according to fiscal officer Marko Jesenko.

More:New Albany annexation, development 'transformational' for Jersey Township

Scott McAfee, spokesperson for New Albany, emphasized that an annexation agreement is not an annexation; it is merely the first step in the process.

The actual acreage – and timing – would be determined by the property owners, who actually initiate the annexation, McAfee said.

"Even if this proposed annexation agreement is approved by City Council, no land will be annexed into New Albany as a result of the agreement," McAfee said. "The property owner will determine how much and when any actual land might get annexed into New Albany and the request could be for a much smaller acreage amount than is part of the annexation agreement.

"The annexation agreement only defines the potential area that may be annexed and the financial arrangement between the city and township if an annexation actually occurs in the future," McAfee said.

The annexation agreement also defines which entity is responsible for what infrastructure, maintenance and improvements, he said.

Several companion pieces on council's agenda shore up New Albany’s commitment to maintenance and infrastructure responsibilities to several roads in and near the development.

For example, the agreement provides for the city to maintain any roadway that is adjacent to an annexed parcel.

If the city grants any exemption or abatement, the city will pay to the township an amount equal to 50% of the difference between the abated and unabated property-tax revenue that the township would have received during the previous calendar year had such an abatement not been granted.

If the city redirects property-tax revenue through tax-increment financing, the city will pay to the township an amount equal to 50% of the property-tax revenue that the township would have received subsequent to annexation had the TIF not been granted by the city. This provision would apply only to those calendar years in which the applicable property is not subject to a property-tax abatement.

The legislation is marked as "expedited type 1," which means it generally takes less approval time than some types of annexation, he said.

Any annexation request also would have to be approved by Licking County commissioners.

No annexation petitions had been filed as of Jan. 7, according to Beverly Adzic, the commissioners' clerk/administrator.

With expedited type 1, all property owners of the territory requested for annexation agree on the proposal, according to the County Commissioners Association of Ohio. Also, those owners waive their right to appeal the commissioners' decision.

Because of this specific type of legislation, the land would remain in Jersey Township but also the city of New Albany, depending on how the land is carved up by the owners, said Ken Oswalt, compliance officer for Licking County.

While annexation is the process of extending a municipality’s boundaries outward, such process does not automatically result in the removal of land from the township in which it is situated, according to the CCAO. A second process, commonly referred to as “withdrawal” or the land being “excluded,” must occur to remove the land from the township’s jurisdiction and change the township’s boundaries.

"When land is annexed and removed from the township of origin, the new law will require the municipality receiving the territory to provide compensation for lost property tax to the township of origin," according to the CCAO. "These payments are sometimes referred to as “reparations” or “revenue sharing” and are supposed to help compensate, on a limited basis, the township for the loss of the land and its tax revenue.

Once New Albany and Jersey Township enter into the annexation agreement, it then will be considered by Licking County commissioners, a process that takes about 60 days.

McAfee issued one caveat: The annexation would have to make financial sense for New Albany, which heavily relies on income-tax revenue that would be generated by future uses on the property.

Without that strong incentive, the annexation would be less attractive, he said.

"For us it comes back to revenues," he said. "We think this has tremendous potential."

Officials have stated publicly that no use for the property has been identified, but the land would become part of the burgeoning New Albany International Business Park, which has been humming with new prospects.

However, the city has taxing authority only over anything in the city limits.

McAfee said the city merely is looking “forward to the future and whatever comes next.”

He said that typically, a developer would come forward with a plan within six months of the annexation.

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gseman@thisweeknews.com

@ThisWeekGary