Delaware-Berkshire Township JEDD deal will bring hotel, lodging, income tax close to 71 and 36

Proposals are underway to add hundreds of residences and a 4-story hotel near the Interstate 71 and US Route 36 interchange, the Delaware City Council announced on October 25.

These details were outlined by Berkshire Township Administrator Kevin Vaughn before council approved an ordinance to enact provisions for a second joint economic development district with Berkshire as an emergency measure, which means it takes effect immediately.

Delaware Town Hall

The first city-Berkshire JEDD was approved in 2017 and covers land including the Tanger Outlets, also near intersection 71-36, according to city records.

The provisions of this convention – called JEDD 1 by the city – allow the city’s income tax of 1.85% to be collected there. The Council ordinance will also allow income tax to be collected in JEDD 2.

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In the mid-1990s, Vaughn said, the state legislature allowed townships to partner with an incorporated municipality to use its income tax, “so we can connect that shared income tax with the companies and employees of these companies… in the defined district, as well as the net profits of the district.

Otherwise, he said, the townships do not have the power to levy income tax.

City Manager Tom Homan said a portion of the income tax collected in JEDD 1 is used to administer tax collection, and a larger portion is levied by the city to be applied to necessary improvements in the city. corridor of Route 36, which enters the east side of the city. . The same would apply to JEDD 2, he said.

City finance director Justin Nahvi said some of that money would be used to pay down debt on the city’s plans to widen the “The Point” intersection – part of Route 36 in the town where East William Street ends – four-lane.

City officials said earlier that an ambitious project would take 18 to 24 months to complete, with a tentative start date of 2023.

Besides The Point, “there will be no shortage of other projects along this corridor where we can direct this revenue,” Homan said.

Vaughn told council that state provisions allow a JEDD as long as the district is a mixed-use development, which is the case with both JEDD 1 and JEDD 2.

He showed the advice a map representing the JEDD 2 zone, on the north side of US 36, opposite JEDD 1.

The township approved two projects for JEDD 2, he said – 100 single-family homes in the southeast corner of the property, which would be rented instead of sold, and a 296-unit, 3-story multi-family project.

An application for a 4-story hotel is also in the works, and an RV dealership has been proposed, Vaughn said.

Income tax, he said, would also be paid by workers doing construction work in JEDD 2.

“There are a lot of opportunities here.… We really thank you for your partnership,” Vaughn told the board.

Homan said the city collects 40% of the JEDD 1 tax and will receive 20% of the JEDD 2 tax, excluding the 4% levied for administrative costs.

Nahvi estimated that the city has collected around $ 1.1 million from JEDD 1 income tax since 2017.


This article originally appeared on ThisWeek: Hotel planned on JEDD 2 site in Delaware-Berkshire near I-71, US 36

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