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Marlington board tables MPI Labels tax-relief request after members raise fiscal concerns
Summary
MPI Labels asked the City of Alliance for a 15-year Community Reinvestment Area (CRA) exemption for a 19,500-square-foot expansion that the company says would create 10 full-time and two part-time jobs. The board discussed the estimated $8,500–$12,800 annual property-tax yield and voted to table the request until a full board could consider it.
The Marlington Local School District board on March 13 voted to table consideration of a Community Reinvestment Area (CRA) agreement linked to an MPI Labels expansion in Alliance.
According to material the district received from the city of Alliance, MPI proposed a 19,500-square-foot addition and asked the city for a CRA tax abatement for the addition, lasting up to 15 years. The company said the expansion would create 10 new full-time jobs and two part-time positions.
District staff and the county auditor provided the board with rough annual-revenue estimates for the district from that addition. Estimates ranged from about $8,500 to $11,500 per year in incremental property tax revenue under typical appraisal assumptions; one staff calculation showed an upper estimate near $12,802. Over 15 years, the district staff summary presented a possible range of roughly $127,000 to $172,000 in property-tax revenue that would instead be abated under the request.
Board members debated the tradeoffs at public length. One board member said he was conflicted: with looming state budget cuts, the district is already planning internal reductions, and he questioned whether granting a multi-year abatement is prudent when the district may need sustained local revenue. After discussion, the board moved to table the CRA request until the next meeting when all members could be present; the motion to table passed on a roll call vote.
The superintendent noted that municipalities and economic-development partners sometimes need incentives to expand and that expansions can create new jobs and future tax base increases; he also told the board that building without an abatement would still generate the incremental tax revenue. The board’s action was a delay rather than a denial: the district will consider the request at a later public meeting.
Ending: The board tabled the CRA agreement for one month to allow additional review and to await fuller board participation; staff said they would follow up with the city of Alliance and provide updated financial detail at the next meeting.
