10/23/2021
Another post by a local resident about the school bond and how our schools are funded (or not funded though poor choices): Over 60% of our property tax dollars is distributed to the Milford school district. All property owners pay property taxes, including businesses. Some communities offer tax abatements to promote economic development and create jobs. Tax abatements are basically a property tax break for a limited amount of time. The more businesses move into our area, the better off we are. They not only bring in jobs, but they also bring in more tax revenue. Our school district benefits through the property tax revenue. Although I may not personally agree with every parcel of vacant land being developed, it does bring in more property tax revenue.
A parcel of vacant land only brings in a fraction of what that parcel brings in with a house or a business on it. Our property taxes are based on the assessed value of the land + the building. School districts like Mason have nice things and new school buildings because they have a large business base. Our school district had a chance to receive approximately 550K per year from the property taxes on the FC Cincinnati practice facility, and they rejected it. Instead, they agreed on 50K per year in lieu of taxes. That's only 18K per year more than the district received from the prior owner of the property.
Why did this happen? According to what I've read, our elected officials wanted the facility here. This facility is not only a training facility for a professional soccer team, but they also host youth soccer clubs and youth camps. City officials thought it would bring in more people to Milford, who would stay, shop and dine here. And new businesses, restaurants and hotels would open, bringing in more tax revenue and jobs to our area.
How they did it is complicated. The two former softball fields were purchased by the Clermont County Port Authority. Then the property is leased to FC Cincinnati for $1. The Port Authority also issued bonds to pay for the 35M training facility. FC Cincinnati agreed to buy back the bonds. The debt service for the land purchase will come from the implementation of an additional 1% lodging tax. Clermont County Convention & Visitors Bureau made the projections of the lodging tax that would be collected, and the City of Milford agreed to have their residents make up the difference, if the lodging tax collected comes under the projections.
Documents obtained by Cincinnati Enquirer, "show that the revenue generated from the additional tax falls short of the full amount needed by Milford for full debt service." "The 1 percent lodging tax is estimated by the visitor's bureau to bring in nearly $224,000 annually. Debt service, according to the documents, is projected to be nearly $270,000. Milford tax-payers will be on the hook for the remaining annual balance of $43,000 to $47,000."
To me, this sounds like a shell game so that taxpayers would pay for the property and the 35M facility, while FC Cincinnati had no cash outlay, and would never be burdened with ever-increasing property taxes. FC Cincinnati made a deal with the City of Milford and our BOE to avert paying property taxes for the assessed value of the 35M facility and property for the long term. It was a bad deal for the residents of the City of Milford, and a bad deal for the residents of the Milford school district.
How did FC Cincinnati get this sweet deal? The CVB (Clermont County Convention & Visitors Bureau) board was involved in negotiations with the City of Milford and the Port Authority as far back as February of 2018. There were back room meetings with the mayor of the City of Milford and the city council, and with the members of the Milford Board of Education. Rachel Richardson (a freelance journalist and administrator of the Neighborhood group) sued the City of Milford and our school board for the back room deals, and both settled.
Chris Hamm (a member of the BOE, and who is up for re-election) was also the head of the Port Authority until they reached the deal with FC Cincinnati. Soon after the Port Authority signed the deal with FC Cincinnati, he resigned from the board of the Port Authority. He was also on the Convention & Visitors Bureau board, and was the former Director of the Chamber of Commerce.
Andrea Brady (another BOE member) also worked at the Chamber of Commerce, and is now their director. Ed Brady, Andrea's husband, served on the City Council when the deal was made with FC Cincinnati. He served two terms on the City Council until his term ended in 2020.
Both Chris Hamm and Andrea Brady were on our Board of Education when the board reached the deal with FC Cincinnati. Chris Hamm was knee-deep in the FC Cincinnati deal. He's currently the president of the Board of Education, and now is running for re-election. We would have had more than enough money for a new middle school if our BOE had been more mindful of our district's needs, before that of wealthy investors.