North Olmsted City Council is expected to approve a joint economic development district with Olmsted Township, a legal partnership that would let the unincorporated township collect payroll taxes it otherwise has no authority to levy on its own. The arrangement is designed to help fund the $16 million Olmsted Town Center development taking shape at the northeast corner of Stearns and Bagley Roads, a project that includes a McDonald's, a Sheetz, an Aldi, and residential condominiums.
According to Cleveland.com, North Olmsted Mayor Nicole Dailey Jones described a JEDD as a tool that allows cities and townships to partner on projects neither could easily fund alone. Olmsted Township is interested in the deal because it is the only way for a township to collect payroll taxes, since Ohio townships lack independent legal authority to levy municipal income taxes under state law, per Ohio Revised Code Section 715.72. That statute lets townships team up with a municipality to capture payroll tax revenue while explicitly shielding township territory from annexation.
Under the proposed agreement, the district would carry a 2.0% municipal income tax on businesses and workers within its boundaries, matching North Olmsted's existing municipal rate. The revenue split favors the township heavily: Olmsted Township would receive 75% of the tax, or a 1.5% yield, while North Olmsted would collect the remaining 25%, or a 0.5% yield, even though the Town Center site itself is not contiguous with North Olmsted.
Why Township Leaders Picked North Olmsted Over a Closer Neighbor
Olmsted Township notably bypassed Olmsted Falls, its immediate border neighbor, in favor of North Olmsted for the partnership. The math explains the choice: North Olmsted's 2.0% income tax rate produces a 1.5% net return for the township, compared with the 0.75% return that would have resulted from Olmsted Falls' lower 1.5% municipal tax rate.
Olmsted Township Trustee Riley A. Alton said the JEDD would capture payroll-tax revenue from nearly 100 new jobs expected within the Town Center development, according to Cleveland.com's report. Township officials have also described JEDD agreements broadly as an important part of reducing reliance on residential property taxes, and Olmsted Township has said it welcomes the opportunity to work collaboratively with neighboring communities.
A $16 Million Project Years in the Making
The Town Center development sits on a 35-acre parcel developed by Granger Property Development LLC, according to Olmsted Township Board of Trustees records. The Olmsted Township Zoning Commission recommended approval of detailed Phase 1 plans back in April 2025, covering commercial retail, medical office, restaurant, and residential space.
The Township Board of Trustees held a public hearing on the proposed JEDD contract on November 20, 2025, months ahead of North Olmsted City Council's 2026 consideration of the deal, per township meeting minutes. Under Ohio Revised Code Section 715.72, the JEDD will eventually need a governing board made up of representatives from the contracting municipality, the township, business owners operating in the district, and employees — a structure that holds statutory authority over tax collection and reporting once seated.
Part of a Broader North Olmsted Growth Push
The proposed JEDD arrives as North Olmsted has been actively courting new payroll and tax base elsewhere in the city. In March 2026, the Western Reserve Area Agency on Aging bought the former Moen headquarters for $6.6 million, bringing 330 administrative employees and $20 million in annual payroll into the city with the help of a 10-year job creation grant. That same month, city officials watched Millennium Place East, a 72,000-square-foot office complex, fall into court-ordered receivership amid owner financial distress — a sign of the commercial real estate pressure facing western Cuyahoga County suburbs.
North Olmsted has also leaned on development agreements to revive vacant commercial space, authorizing a deal with R6 Motors Inc. in February 2026 to turn the empty 16-acre former Sears parcel at Great Northern Mall into a new grocery store anchor. Taken together, the Town Center JEDD, the Moen headquarters sale, and the Great Northern redevelopment reflect a city and township both looking for new revenue streams as traditional office and retail models come under strain.
