Sharing in Lake County

One way for our governments to work together is to share tax revenue generated by new projects that impact multiple communities. Such revenue sharing agreements are created under Joint Economic Development Districts or JEDDs. Akron and Summit County have used such agreements to accelerate economic growth, and now Painesville and Concord Township in Lake County are implementing a JEDD to help ease the pain caused by the relocation of a hospital.

News Herald Correspondent Sue Karel explains the deal in this story. She wrote:

The JEDD is a collaboration between Concord and Painesville that officials say should stimulate economic growth in the township’s Auburn-Crile Road Business Corridor, while allowing the city to recoup some of the tax revenues — about $600,000 annually — that will be lost when Lake Hospital System relocates its Painesville hospital to Concord in 2009.

“The JEDD contract permits the city to bring one of its strongest economic development assets, electricity, to the … Auburn Road Corridor,” Painesville City Manager Rita McMahon said.

“It also provides the city of Painesville the opportunity to bridge the gap in income tax revenue created by the departure (of the hospital from the city).”

JEDDs are smaller versions of the bolder regional planning and revenue sharing initiative being pursued by the Northeast Ohio Mayors and City Managers Association. Learn more about that initiative at RevenueStudy.org. Regional collaboration among governments is required if we're going to grow our region's economy. The Lake County JEDD is another step forward that hopefully will encourage residents and elected officials to explore even broader arrangements.