JED official outlines how 1.5% JED tax has funded sewer, streetlights and business grants

A JED official told the Clayton City Council the Clay Township–City of Clayton Joint Economic Development District (JED) has used a 1.5% income and net-profit tax in the district since 2008 to support economic development projects, including sewer installation, street lighting and small business grants.

The presenter said the tax structure directs the first 15% of revenues to the JED board and splits the remaining 85% between Clay Township (60%) and the City of Clayton (40%), with the city paying administration fees to collection agents. "When you do a JED, the city can impose income taxes in the JED district," the presenter said, explaining the revenue flow and permitted uses: "economic development, advertising, and some police, fire and infrastructure improvements." The presenter noted that JED funds are limited in how they may be spent and described the district footprint along Jack's Lane, Pleasant Plane Road and State Route 49.

The official reviewed achievements: sewer lines installed on Jack's Lane, assistance to businesses with tap-in fees, streetlight installation to improve employee safety, a COVID-era sustainment grant program for businesses current on income taxes, and business assistance awards (including a $10,000 award to Doors Galore to support showroom construction). "We provided a sustainment grant program during COVID," the presenter said, listing specific business support efforts and crediting the JED for facilitating those measures.

Council members and trustees asked about recent and proposed projects. Township trustee Angela How clarified that Clay Township intends to contribute approximately $336,000 toward a $1.5 million waterline that will serve a new QuikTrip location; she emphasized QuikTrip is not receiving JED funds but is investing heavily in easements and the waterline. The JED presenter said QuikTrip declined to join the JED because it did not want employee tax obligations to be passed on, and that QuikTrip has spent significant funds on easements and the line. The presenter added that remaining obstacles to development include sewer access further north and that utilities remain the primary barrier to attracting new businesses.

Council members also asked about specific parcels and prospects for blight remediation. The presenter said two residential parcels were removed from the JED in recent years and confirmed that individual property owners must typically be approached when parcels were added originally.

Why it matters: the JED's revenue-sharing arrangement and the ongoing utility projects—particularly the waterline and remaining sewer needs—will shape which properties can be developed and what incentives are available to businesses. Clay Township's stated contribution to the waterline underscores a public–private infrastructure effort that supporters say will unlock development along Route 49.

Next steps: the council and township will continue coordination with the JED board, the county and developers as water and sewer projects move forward.