County commissioners want South Point and Perry Township officials to develop a revenue-sharing deal to ease tensions over the village’s pending annexation of the former ethanol plant property.

Wednesday, February 09, 2000

County commissioners want South Point and Perry Township officials to develop a revenue-sharing deal to ease tensions over the village’s pending annexation of the former ethanol plant property.

"We’ve sent letters requesting they work out a solution that is beneficial to both parties," commissioner George Patterson said. "Ultimately, it’s tax revenue that both parties are looking at."

Marathon Ashland Petroleum (MAP) filed an annexation petition last month with the commission, which must approve in order for the process to continue.

South Point agreed to allow a MAP pipeline to pass through the village, and in return, MAP pledged matching funds for an Ohio Department of Natural Resources grant for the village park as well as annexation of the remaining 400 acres of the ethanol plant property into the village.

Upon completion, the MAP pipeline will carry petroleum products from the Catlettsburg, Ky., refinery to Columbus.

Annexation means property tax revenues normally collected by the township would go to the village, and that has trustees concerned, commissioner Paul Herrell said.

When property passes from the township into village limits, present and future tax revenues make the trip, too.

Trustees have said they will oppose the annexation because that impending loss threatens the township budget.

South Point officials have called the move positive, saying it expands corporation limits and reimburses the village for MAP’s pipeline plans.

"We’re hoping each will agree to share resources on a percentage basis so that neither party is affected greatly," Herrell said. "It doesn’t hurt the township or village either one that way."

"We believe the two parties can work it out," Patterson said.

The commission encouraged Proctorville and Union Township to make a similar deal earlier this year, after the village acted on property owners’ requests and annexed a portion of Union Township just west of the village.

Union Township stands to lose $2,000 in tax revenue, so commission president Bruce Trent issued a challenge to village officials to try to make that loss less of a burden to township officials.

Proctorville has an annual $10,000 contract with the township for fire fighting services and the challenge was for village officials to work with the fire department and see if they can reduce the cost by $2,000, Trent said.

The commission will continue the annexation petition process. Its responsibilities under state law include:

– Once the petition is filed, notification is given to governments and property owners affected.

– The commission sets a hearing on the petition, which will not be less than 60 nor more than 90 days after the filing date.

– The petition and notice of hearing is published for four weeks prior to the hearing.

– A site visit is made to the property. The county checks the accuracy of petition signatures, property ownership records, the accuracy of maps and plats, and determines that the territory is not unreasonably large.

– The commission’s decision to grant or deny the annexation petition must occur within 90 days after the hearing.

– If the petition is granted, the municipality (South Point) must accept or reject the annexation. If accepted, the annexation becomes effective 30 days after passage of a resolution.

Currently, the commission has not set a hearing date.