Green Local Schools has decided how it would like to use the first round of money expected from the proposed Google data center in Franklin Furnace.
The discussion centers around the annual Payment in Lieu of Taxes (PILOT) payment that would be generated if the project moves forward and is completed.
Scioto County Commissioners had originally proposed using the entire first $500,000 annual PILOT payment to eliminate the district’s bond levy, creating significant tax relief for Green Township property owners.
But school officials had a different idea.
Instead of putting all of the money toward the levy, the district asked to split the funding—using part of it to reduce taxes while keeping a portion to help cover school operating expenses.
At a recent meeting, commissioners approved a memorandum of understanding with Green Local Schools outlining that plan.
Commissioner Merit Smith said the issue has been under discussion for months.
“I was at the school board meeting. This has been a couple months we’ve been talking about this and we’ve kicked it back and forth,” Smith said.
According to Smith, commissioners made a commitment from the beginning that the PILOT money would be returned to Green Township in a way that benefits local taxpayers.
The board initially believed the biggest benefit would come from paying off the district’s school construction bond.
Residents currently pay a 7.5-mill levy to retire the debt from the construction of the school building, generating about $460,000 annually.
Commissioners proposed using the full $500,000 PILOT payment to eliminate that levy entirely for the next 15 years.
“The school came back with a counter offer saying they need some money for operations,” Smith explained.
Under the agreement approved by both sides, Green Local Schools would receive the full $500,000 payment but would divide it roughly 60/40.
About $300,000 would be applied toward the bond levy while approximately $200,000 would remain with the district for operating expenses.
Smith said he would have preferred to see the entire levy eliminated.
“Basically, it will reduce the tax levy from 7.5 mills down to about a 1.5 mill levy,” Smith said. “I would have much rather seen it completely eliminated, but that’s not what the school chose to do.”
The money will not begin flowing immediately.
Commissioners noted that the first PILOT payment won’t be received until a building is constructed and receives a certificate of occupancy. Until then, no PILOT funds will be available.
What About Future PILOT Payments?
The $500,000 payment is only the starting point.
If Google’s planned campus expands as expected, PILOT payments are projected to increase substantially.
Commissioner Scottie Powell said future conversations will likely involve other local entities beyond the school district.
“This first round we’ve pointed everything at the school,” Powell said. “That means we left out the fire department and the township.”
According to Powell, if the data center campus reaches approximately 2 million square feet, annual PILOT payments could grow to around $1.3 million per year.
“We’ll have those conversations,” Powell said.
He noted that Green Township’s fire levy recently decreased and that local officials have already expressed interest in how future PILOT funds might be used.
“The fire department’s levy went down. They were hoping to raise around $75,000 a year. I know there’s interest there,” Powell said.
For now, the agreement gives Green Township taxpayers some relief on their school levy while providing Green Local Schools additional operating funds. How future PILOT payments will be divided remains an open question that commissioners say will be discussed as the project develops.
The Bottom Line
When the Google project is built, the first $500,000 annual PILOT payment is expected to reduce Green Township’s school bond levy from 7.5 mills to about 1.5 mills while also providing Green Local Schools with additional operating revenue. Future payments could be much larger, but decisions about how that money will be distributed have not yet been made.
