A legal battle is brewing over a controversial development plan in Norwood.Norwood City School District's board of education filed a lawsuit this month against the city, claiming tax breaks for local developments violate state l aw in a way that could drain public funding for local schools.Brandon Atwood, school board vice president, said local property taxes are the district's most stable and reliable source of funding. But he claims the city's plan to give 100% abatement to what the board believes are commercial properties could cost hundreds of thousands, if not millions, of dollars in lost revenue each year.A revised ordinance would "permit apartments above the ground floor commercial space to be treated as residential property and be eligible for full exemption from taxation without district approval.""The city changed their ordinances multiple times last year three times specifically to up the abatement level for commercial property up to 75%," Atwood said. "(This) would give a developer a 100% abatement for 15 years if the property is deemed residential."One of the developments the board claims the city is deeming residential is Factory 52, an entertainment district in Norwood that has restaurants, shops and apartments. WATCH: Norwood City Schools fights against tax abatement for developments School district sues the city over tax breaks for businesses"Even though it may be residential, three units or more is deemed commercial property ... those are housed under the housing statutes of the revised Ohio Revised Code, not the tax statutes," said Atwood. "And there, there's a little bit more ambiguity of what could be classified as residential or commercial, and that is what we're fighting here is to have a clear definition of what is residential to align more with what the tax statutes and the Ohio Revised Code aligns for."Atwood's frustration with the situation was echoed by residents. During a council meeting on March 11, one upset resident expressed their concern and pushed for a deal to be made that would bring at least some money into the district."Deals can still happen with the schools' input ... but the way the ordinance is written now, we don't even get a smackeral," the resident said. The board is calling for a temporary restraining order on the ordinance. "If they're adding children but then we're not getting the local taxpayer dollars that puts a strain on everyone who has to pick up the slack," said Atwood. ...read more read less