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City hears public testimony on Joint Economic Development District for First Quality Tissue project
Summary
Defiance held a public hearing on a proposed joint economic development district (JED) to support infrastructure for a First Quality Tissue Midwest LLC project; officials outlined a 1.8% JED income-tax mechanism, a 99-year term with automatic renewals, and next-step ordinance consideration at a future meeting.
Defiance City Council on April 7 heard a public presentation and took public comment on a proposed Delaware–Defiance Joint Economic Development District intended to serve the First Quality Tissue Midwest LLC development in adjacent townships.
City legal staff explained that the Ohio General Assembly authorized JEDs under Ohio Revised Code sections 715.70–715.82, calling a JED “a completely new governmental entity” charged with financing and overseeing infrastructure and economic development in the designated district. Mr. O'Donnell told council the parties have identified several public infrastructure needs, chief among them a long sewer line that must be extended outside municipal boundaries to serve the site.
Under the plan described to council, the county would issue bonds and use an All‑Ohio Future Fund loan/grant mix to finance initial construction; the JED would collect a 1.8% income tax on payroll and company net profits within the district to repay those bonds. "There is a 10% of those income tax distributable revenues that will go to the city," Mr. O'Donnell said, explaining the finance director would administer the JED and the fee would cover administration costs.
Officials described the proposed JED term as 99 years with automatic rolling 10‑year renewals unless parties act otherwise. They also said that, once the county debt is repaid, distributable revenues would be subject to negotiation among the city and townships and that the JED board—comprised of government seats and business representatives—would make future investment decisions, typically for infrastructure and maintenance.
Erica Wiltzer, Defiance County’s economic development director, was present for the hearing and answered technical questions about project timing and payroll projections. Council members asked whether the district would include uses beyond the First Quality project (answer: not at present) and pressed staff for repayment timelines; presenters said estimated contractor and payroll schedules (initial on‑site work projected in 2027–28) inform payback timing and that precise repayment projections depend on final contractor and payroll numbers.
No ordinance was adopted at the hearing. Mr. O'Donnell said a JED contract and an ordinance approving that contract will be brought to a future council meeting for formal consideration, after which council could vote to approve or amend the arrangement.
