CANTON − City Council approved a new 25-year annexation agreement with Canton Township on Aug. 10, with buyers of single-family homes and duplexes in areas of the township adjoining the city not being forced to annex to get city water.
Many terms of the deal, negotiated from March to July, were the same or similar to an annexation agreement Canton struck with Plain Township this summer.
“I truly believe just like Plain’s agreement, this agreement is going to benefit both communities, both Canton Township and the city of Canton moving forward,” Mayor William V. Sherer II said.
“The township keeps (their) identity, keeps their autonomy. But also keeps all their property taxes. … I think this is a monumental thing. And it’s a long time coming that will help both of our communities grow.”
Two Canton Township trustees who approved the agreement on Aug. 4, Mark Shaffer and Keith Hochadel, attended the meeting when City Council voted 11-0 to accept the deal. Councilman Frank Morris was absent.
Shaffer summarized the deal’s terms to township residents in a Facebook post on Aug. 7.
“I didn’t think we’d ever get to the point where we have an agreement that would allow our residential base of population to ensure they would not be annexed,” he said. “I did not think that day would ever come. And I was very happy that between the city and the township we were to agree to essentially guarantee for at least the next 25 years that Canton Township residents will continue to sit and live in their home and it will continue to be in Canton Township. And only if they want to annex will they have to.”
He said the township will get additional revenue under the agreement, which supersedes any prior annexation agreements.
Under the deal, Canton would not annex any area without the consent of all property owners. Canton Township, which would not contest any annexations, would keep all property tax revenue from the annexed area for at least 25 years.
Canton agreed not to compel the purchasers of properties with three residential units or less in the township that adjoined the city from agreeing to annexation in return for Canton water and sewer service. However, that pledge does not apply to commercial properties and properties with four or more residential units.
Like in the Plain Township deal, Canton Township would get a share of the city’s 2.5% income tax from people living at or working in the annexed areas. Plain Township gets an amount equal to 1% of taxable income. Canton Township gets 0.75%, with Canton getting 1.75%.
But Canton Township would get 1% for two proposed data center sites recently annexed by Canton. Those sites are at Trump Avenue SE and Orchardview Drive SE and Central Avenue and Millerton Street SE.
Sherer, who briefed council members on the terms, said the reason for the difference is because Canton Township doesn’t have a police levy while Plain Township does. Canton Township would provide road service and emergency medical services to annexed areas. Both Canton Township and Canton fire departments would respond to fires in the annexed areas.
The city would provide police services to annexed areas. Canton Township also agreed to maintain an additional mile of roads in an annexed area around Faircrest Street and Interstate 77, along with Mills Business Park, that was maintained by Canton.
Canton Township would also get 5% of any payments in lieu of taxes that a business would pay as part of a tax incentive review agreement, a reduction from the standard 15%.
Shaffer said the city agreed to grant his request that the city and township split hotel tax revenue from the hotel under construction in the Faircrest Street area by I-77 and any future hotels built in annexed areas. Shaffer said that would mean additional six-figure revenue per year for the township’s general fund.
Canton Council majority leader calls deal a ‘win-win’
“Occasionally, you get lucky and find a true win-win,” Council Majority Leader John Mariol said. “Where both sides walk out much better than they did walking in. And this agreement really does that. … But it also means economic development will grow. And we can attract more businesses. And in doing so, both communities benefit. It’s good for Canton. It’s good for Canton Township. It’s good for Stark County. It’s going to mean more jobs.”
Canton Township’s law director who reviewed the agreement for the township was attorney Eric Williams, who also as Plain Township’s law director did the same for Plain Township’s agreement
Sherer said the city is not in talks with any other adjoining townships on an annexation agreement. He said he’s open to discussions with Perry Township. The city and Perry are in an ongoing dispute over a 2023 annexation agreement.
Reach Robert at robert.wang@cantonrep.com.
This article originally appeared on The Repository: ‘Win-win.’ Canton and Canton Township agree to new annexation deal
Reporting by Robert Wang, Canton Repository / The Repository
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By Robert Wang, Canton Repository | USA TODAY Network
