September 30, 2021

Press Release

Vandalia Butler City School District calls upon City of Union, Amazon for payment in compensation for tax exemption

VANDALIA, OH – The Board of Education of the Vandalia Butler City School District is calling upon the City of Union and
Amazon to provide compensation to the District for the 15-year, 100% tax exemption that Amazon’s new facility in Union
will receive. Otherwise, the District will receive only approximately $80,000 per year in new revenue while the exemption
is in place. Without the exemption, the District would stand to receive approximately $1.8 million per year from the
increased value of new structures at the facility.

“The District supports economic development for the region and wants its municipal partners to be successful,” said
Board President Holly Herbst. “At the same time, as a Board we believe we have an obligation to advocate for the needs
of our students, teachers, and taxpayers.”

The Amazon development would receive a 100% real estate tax exemption for the projects built for the development. The
vast majority of new taxable value on the site would be attributable to structures and would be exempt for 15 years. This
exemption is available without a requirement of school district consent or compensation due to the grandfathering-in of
certain Community Reinvestment Areas (CRAs) formed before 1994, and limited expansions of such areas.

“The Board understands that under this Pre-94 CRA, neither the City of Union nor Amazon is required to compensate the
Vandalia Butler schools for this multimillion-dollar exemption. But the Board also feels obligated to advocate for more
than the legal bare minimum,” said Herbst.

“We want this development to be a success for the whole community. The City of Union is set to receive contributions
from Amazon for their infrastructure over and above provisions and requirements called for in a Pre-94 CRA. We have
asked the City to provide compensation to the School District, since our District will be educating the children and future
workforce for this and other potential developments in the City. We have also asked them for information of who to
contact at Amazon, but haven’t received a reply yet,” said Board Member Rodney Washburn.

“We hope everyone can come up with an arrangement that works for Amazon, the City, and Vandalia Butler City Schools.
We look forward to Amazon being a longtime member of our community that contributes to the economic and academic
excellence of our region.”

Contact: Mary Stephens

Public Relations & Communications Coordinator
(937) 415-6409
Vandalia-Butler City Schools | 500 S. Dixie Drive | Vandalia, OH 45377

Ph: 937.415.6400 | F: 937.415.6429 | www.vbcsd.com