The current Amberley Village budget deficit was brought about primarily
by the loss of income tax revenues from Gibson Greetings and the debt incurred
from building the new Town Hall. Once these situations are resolved, it
is likely that our financial crisis will be solved. Amberley Village 's
current bank balance is ~$7.1million. Income tax revenues were already
up 33% last year, and as we continue to recover, this is likely to
increase.
The current Gibson Greeting property is owned by a New York Real Estate
Investment Trust (REIT) that has not attempted to sell or develop the property
because of a lease that American Greeting still has which runs through
2012. However, American Greeting is expected to execute a buyout option
in 2005. At the end of this lease, it is expected that the REIT will sell
or redevelop the land. This should create new jobs that would restore the
lost income tax revenue. This will also increase the property value, which
would result in an increase in real estate taxes paid.
The old Amberley Swim Club is expected to be commercially developed soon.
This will generate positive dollars for the community.
The current mortgage balance on the Amberley Town Hall is $2.5million,
which is due to be paid off by Dec 2008. At that time, the village
will start saving about $500,000.00 per year.
Most residential developments cost $1.40 - $1.60 to maintain for every
$1.00 collected in revenues. In September, 2003, Amberley Village officials
estimated that developing the Crest Hills property would cost the village
an additional $330,000.00 per year. This would not include salt, road repairs,
or eventual repaving. While some of this cost could be used to help improve
services to the rest of the village, none of it would need to be spent
for at least the next few years if Crest Hills isn't developed. Thus, if
Crest Hills is developed, it is not likely to create additional net income
to the Village.
Furthermore, new residential developments usually take 5 - 10
years to start producing the predicted revenues (taxes) for the community.
By that time, the financial crisis will be over.
Maintenance costs for any new development are likely to start well before
any significant new revenues are generated and could further strain our
budget crisis.
Traffic around the Ridge Club property is already unacceptable and
getting worse, according to the majority of residents who live closest
to the property . The developer's estimate that it would increase
by ~10% will surely not help our property values or our peace of mind.
The cost of road and traffic modifications could be born by the Village,
and no one has been able to give us a cost estimate of this, other than
to say it would be expensive.
If The Ridge Club or any subsequent owner of the property does not maintain
the property (i.e. mow the lawn and remove any trash), Amberley Village
can legally fine them and force them to provide appropriate maintenance
of the grounds.
Many of the older residents who want to downsize and "stay in Amberley" have
already bought homes in Florida , where they will make their permanent
residence to avoid Ohio taxes.
The bottom line is that the Village's financial crisis isn't as bad as
some would want us to believe and is likely to be totally resolved long
before any revenues (assuming there were any after allowing for expenses)
are seen from a potential Crest Hills development. Thus, we run the risk
of giving away a beautiful and valuable asset to our community that is
not only unnecessary, but irreplaceable!
