Schools

Hyland Abatement Deal Will Cost Schools $62,000

When Hyland Software asked for a 15-year, 100 percent abatement, the city of Westlake instead approved a 10-year, 75 percent abatement on improvements made to the newly acquired Five Seasons property.

Hyland purchased the fitness center for $11.135 million on March 26. The property is adjacent to the current Hyland campus.

“We did receive a letter from the schools indicating that they would prefer we not provide that incentive, but after further consideration, and recognizing the importance of keeping Hyland Software in our city, we felt that it would be advantageous to offer them this incentive even though it’s less than what they originally requested,” Mayor Dennis Clough said in June.

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The school district said that based on financial projections, it would lose $61,804 overall, primarily in the first three years, and it would not support the abatement without providing the schools with 100 percent of the taxes they would have received if there was no abatement.

In a letter authored by Thomas Mays, the president of the Westlake Board of Education, said the school’s finances were an issue.

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“It is no secret the Schools’ resources are dwindling with the recent economic downturn and revenue cuts being handed down from the State,” the letter said. “Approval of this agreement further exacerbates this situation knowing the main source of revenue for the Schools is local property taxes while the City relies on a combination of municipal income tax, corporate taxes and local property tax.”

The city stands to gain $852,472 through income taxes minus the abated real estate taxes.

“Unfortunately the schools have no say in this,” Mays said this week. “At the end of the day, it’s the taxpayers of the city who feel the effect. Considering we just failed a levy, dollars are tight.  We’re trying to make sure the schools get every bit of money they can.”

Mays said he understood the need for the abatement, but would have preferred that it not have an effect on the school’s finances.

The letter essentially says the same.

“While we are certainly sensitive to the City’s position with respect to generating additional economic development, we are just as much concerned that approving the abatement agreement as drafted will further erode the Districts main source of revenue…,” the letter said.

City council approved the 75 percent, 10-year abatement on improvements in June. 


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