Nursing Home is outside village
Village officials should try to work out a deal for some of the new tax revenue
This morning I wrote an editorial about the Clarendon Street bridge, and how the village should proceed with having the bridge replaced even if Albion needs to borrow money to make it happen.
The village stood to reap new revenue with the nursing home coming onto the tax rolls, a new Dunkin’ Donuts and increased tax payments from the former Chase building. All that would more than cover the bond payment, which the village says could be $60,000 to $70,000 a year for two decades.
The nursing home, however, is not in the village. That property was sold for $7.8 million. If it was assessed for that amount, the village would receive about $132,000 in new revenue based on a tax rate of about $17 per $1,000 of assessed property.
I apologize for thinking the site was in the village. When it was sold, some of the county officials told me one of the benefits would be it would help the village’s tax base. There is an Albion welcome sign on 31 west of the nursing home.
But the village has confirmed the village line ends near the GCC building.
That could be the end of the bridge story with no new money for the village. The Village Board may think there is not enough new revenue to pay for the bridge. The board doesn’t want to raise taxes for the villagers.
However, the county, town, school and village leaders could craft a tax-sharing agreement so the village receives some revenue from the nursing home.
Medina worked out a deal with Shelby, Ridgeway, the school district and county to get some of the tax benefits for properties outside the village that use the village’s water and sewer. Each of the municipalities – county, town and school – agreed to give up a portion of their taxes to the village.
Albion village officials could strike a similar deal with the town, school and county.
Here is how this could work in Albion, and I know it’s a little complicated. You add the total tax rates of the three taxing entities – school at $16.82, town at $4.25 and county at $10.10. That’s $31.83. Multiply that by a $7 million assessment (the assessment hasn’t been determined) and the new nursing home owners would pay $222,810 in taxes with nothing in taxes to the village, despite using some services.
If Albion follows Medina’s tax-sharing plan, the nursing home owner would still pay the $222,810 in taxes. However, the portion would be shared as a percentage of the total tax rate, including the village’s. The four entities have a combined rate of $48.65 with the village accounting for 35.9 percent of that based on its $17.48 rate.
The Medina model would give Albion 35.9 percent of the new tax revenue or $79,988, based on a $7 million assessment for the nursing home, which more than pays for the bridge payment.
After realizing I made a mistake earlier by saying the nursing home was in the village, this blunder forced me to dig a little deeper for money for the village. I don’t think the Albion village officials have pursued the tax-sharing plan for properties outside the village that use village services.
I would urge them to do so, and would ask the town, county and school district leaders to follow the example on the western end of the county and not just grab as much money for themselves while the village gets nothing.