By John Kiesewetter
The Cincinnati Enquirer

HAMILTON - Butler County commissioners said Thursday they plan to create special taxing districts for five unbuilt subdivisions in West Chester Township and give much of the money to the financially strapped Lakota Schools.

Commissioners also plan to do the same Monday for unbuilt housing developments in Liberty Township in the northern half of Lakota, and Fairfield Township.

Lakota could receive $80 million over 30 years from the tax-increment financing districts on new subdivisions, said Commissioner Michael A. Fox.

Other funds from the districts could pay for part of the Interstate 75 Liberty interchange at Hamilton-Mason Road, improvements to the Interstate-75/Union Center Boulevard interchange, and a new countywide emergency radio system, commissioners said.

Tax-increment financing allows local governments to pay for improvements in an area using anticipated tax increases - the tax increment - from increased property values after the improvements. Fox says building schools may qualify as infrastructure improvements.

Lakota schools officials were reluctant to comment, because commissioners had never formally discussed plans with them. Officials from West Chester and Liberty townships, who also had never been briefed, rushed to Hamilton Thursday afternoon after hearing commissioners planned to vote.

"It would have relieved a lot of anxiety if we had had some discussion with the commissioners," said Lakota Treasurer Alan Hutchinson.

Although West Chester Township Trustee Catherine Stoker and Liberty Township Trustee Christine Matacic promised to cooperate with the county, after the meeting they expressed anger over commissioners planning township tax districts without telling trustees.

Commissioners said they acted hastily because the legislature may change the law allowing these residential tax districts through June 2007. Stoker said they voted Thursday to prevent West Chester and Liberty trustees from enacting them - and keeping the revenues.

Technically, commissioners gave Lakota 14 days' notice that they plan to grant a 10-year, 75 percent tax exemption to unfinished parts of five subdivisions: Foxborough, Keehner Meadows, Reserves of Providence, Villages of Providence and West Chester Village. Commissioners also said they prefer granting a 100 percent tax exemption for 30 years. They also promised to give schools the full amount of lost revenues.

The commissioners' action came two months after Lakota voters rejected a levy to provide $21 million annually for operations and $84.9 million to build three new schools and renovate four others. Since the defeat, Lakota has eliminated 29 teaching jobs for the coming school year.

Commissioners cautioned that special tax funds would not eliminate all of Lakota's problems.

"We're just talking about ... (constructing) empty buildings, and someone has to be in there to teach the children," Fox said.

E-mail jkiesewetter@enquirer.com. Sue Kiesewetter contributed to this report.