County, business remain at impasse on tax issue

Highland County commissioners and the legal counsel for Hangar 6 remained at an impasse Wednesday over property taxes levied against the business.

Hangar 6 attorney Brian Sullivan of the Cincinnati firm of Dinsmore and Shohl, LLP, told commissioners he was "disappointed" over a March 15 letter, in which commissioners closed by saying "We cannot ask the taxpayers of Highland County to pay the taxes for {Hangar 6 owner George Matthews}, nor was that agreed to in the lease."

"I've got to say I'm disappointed," Sullivan said. "Our positions are still somewhat the same. Is there any overture by the county other than those expressed in the letter? The general law is 'He who owns the land pays the taxes.' The county is the land owner."

Sullivan then referenced paragraph 25 of the lease between Matthews and the county, which states "Lessor [the county] shall pay, satisfy and discharge as they become due, all assessments, charges, mortgages, liens, and taxes whatsoever which may exist or be payable for, or against, or in respect of the leased premises or any part thereof."

Sullivan said there is no provision in the lease for Hangar 6 to pay the taxes.

Highland County Prosecutor Jim Grandey responded, "There is no question the county has to pay tax on the land. {But} I don't know any provision in Ohio law that permits a county to pay taxes for a third party business which they have no interest in. We cannot pay taxes on something we don't own. It's not our name on the mortgage, it's Hangar 6."

Sullivan then brought up what he called a "situation with Ray Fenner."

"How is this different from our situation?" Sullivan asked. "As we understand it, Mr. Fenner pays no tax" {on his business near the Highland County Airport}.

Commissioners said they were not aware of any such arrangement with Fenner.

"Fenner doesn't have anything to do with this," said Highland County Economic Development Director Dan Cowdrey.

"To say the county 'doesn't pay taxes for a tenant' is contrary to the arrangement with Mr. Fenner," Sullivan said.

While commissioners repeated they were not aware of the agreement with Fenner, Grandey said, "If he {Fenner} hasn't been paying taxes, we'll go back and collect his taxes."

"He tells us he doesn't pay taxes," Sullivan said.

"He will now," replied Commissioner Tom Horst.

Sullivan then offered, "The only resolution I see is that Hangar 6 will pay the taxes in protest and we'll file an action in court. If we're right, we'll get our money back. If you're right, we won't. We have a written document."

Commissioner Shane Wilkin told Sullivan, "It is not our intent to be adversarial. Would you be interested in drafting a new lease?"

"I would say 'no,'" Sullivan said. "If the question is 'Would we renegotiate the taxes only, yes, we would be open to that."

Wilkin replied, "For us to ask the taxpayers to subsidize a private business by picking up its taxes, I'm not comfortable with that. The county shouldn't be in the business of paying private citizens' taxes."

Commissioner Gary Heaton added, "We can't be in a position of paying taxes for a private business. Our responsibility is to the taxpayers. We value George and would like to see him continue to operate here. The lease is very favorable to you. We're asking for the concessions from you."

As first reported by The Highland County Press, two weeks ago Horst questioned why the previous commission would agree to the lease, which pays the county approximately $342 per month, with the county paying all the taxes.

"George is an asset to the county," Cowdrey said. "But we gave him a pretty good deal. It's a two-way street. He's an asset to us and we're an asset to him."

Sullivan agreed to meet with his client and communicate with the commissioners.