BUTLER COUNTY, Ohio — Madison and St. Clair townships have taken steps to establish a tax increment financing district on land tied to a proposed Amazon Web Services data center, a move that could determine which government entity receives millions of dollars in future property tax revenue if the project moves forward.
The proposed TIF district would cover 600 acres of Madison and St. Clair township land that Trenton officials hope to annex. Because TIF agreements remain attached to property based on the entity that created them, a township-created TIF could continue generating revenue for the townships even if the land later becomes part of Trenton.
Trenton Finance Director Matthew Mesisklis recently told city council that TIFs redirect new tax revenue generated by development toward infrastructure improvements and other eligible public projects. These arrangements are commonly used to support major economic development projects.
Townships move to establish TIF
Madison Twp. Trustee Jeff Willoughby said the township approved a resolution establishing a TIF and notified Edgewood City Schools and Butler Tech, though the paperwork has not yet been filed with Butler County.
Willoughby said the township is moving forward with the TIF to have “control” of property tax revenue and protect the township’s interests.
According to a notice St. Clair Twp. Trustee Dustin Gadd sent to Edgewood City Schools, the proposed project is estimated to carry a value of about $690 million.
Mesisklis said the action indicates the townships are preparing for the possibility of the AWS project moving forward, a view Mayor Ryan Perry echoed during a recent council meeting.
Gadd disputed that characterization, saying township officials did not learn of the proposed data center and annexation effort until details became public. He said the township is now trying to determine the “best route” for its electors.
Willoughby also rejected the claim that the township had worked with Amazon or prepared for a data center.
“Trenton didn’t include us on their work with this,” he said. “We really found out about it whenever the annexation was put on Trenton’s (council) agenda.”
Differing revenue plans
The dispute centers on how tax revenue from the development would be distributed.
Under a 10-year, 75% TIF proposed by the townships, 75% of the increase in property tax revenue would be captured by the TIF district. The remaining 25% would flow to local taxing entities, including schools, counties and townships.
Trenton has proposed a different approach if annexation occurs: a 30-year, 100% TIF. Under the city’s proposal, Edgewood City Schools would continue receiving revenue equivalent to its full millage rate, which Mesisklis said represents about 60% of the total tax bill.
City officials estimate annual distributions under Trenton’s proposed arrangement would be:
- Edgewood City School District: $6.5 million
- City of Trenton: $3.85 million
- Madison Twp.: $385,000
- St. Clair Twp.: $385,000
- Butler Tech: $371,520
According to calculations presented by Trenton officials, annual distributions under the townships’ proposal would be approximately:
- Edgewood City School District: $1.6 million
- Madison Twp.: $4.5 million
- St. Clair Twp.: $4.8 million
- Butler Tech: $92,880
- City of Trenton: $0
Both Gadd and Willoughby disputed the projected impact on school funding, saying they would ensure Edgewood City Schools is made “whole” if the township-created TIF takes effect.
Trenton city officials say three potential outcomes remain possible:
- The AWS project is built in the townships under a township-created TIF.
- The project is annexed into Trenton but remains subject to a township-created TIF.
- The project is annexed and developed under a city-created TIF.
Annexation and ongoing negotiations
Perry argued the development could move forward regardless of whether the property is annexed into Trenton and that the key question is which jurisdiction ultimately receives the tax benefits.
“These things are going in the same soil, the same fields, in the same location,” Perry said. “We have the duty to do the best thing for our citizens.”
During a recent council meeting, Perry acknowledged some residents oppose the project but said the city must consider the economic impact.
“I understand that it might not be the most agreeable thing to have this here. I understand people might be afraid of it,” Perry said. “But as we’re looking at it, the question at this point is, where is the ‘Welcome to Trenton’ sign? And do they pay taxes to Trenton, or do they pay less taxes to the county and the townships?”
Willoughby said Madison Twp. retained a law firm with TIF expertise and continues negotiating with the city.
“We’re still at the table,” he said.
The dispute comes amid months of debate over a proposed data center on 141 acres already inside Trenton and a second campus, reportedly consisting of 18 buildings, planned on roughly 600 acres the city hopes to annex.
Trenton officials argue annexation would provide development standards and infrastructure protections, including public water and sewer service, stormwater oversight and coordinated planning. The city also says annexation would prevent AWS from directly accessing the local aquifer or obtaining its own wastewater discharge permit while requiring the company to pay municipal payroll and net-profit taxes.
City officials also said Butler County’s six-month moratorium could be repealed before its expiration and that township zoning amendments related to large-scale projects may be exempt from public referendum.
Opponents of the project and annexation effort have argued that stopping annexation would halt the proposed AWS development, a claim city officials dispute.
For now, the Ohio Department of Development will certify whether the AWS project meets economic development requirements for the expedited Type 3 annexation petition. These requirements include at least $10 million of real and personal property investment and at least a $1 million payroll, according to County Administrator Judi Boyko in a recent commissioners meeting.
