As Introduced* 1
122nd General Assembly 4
Regular Session H. B. No. 434 5
1997-1998 6
REPRESENTATIVES SCHURING-MAIER-OLMAN-TIBERI-GARCIA-PATTON- 8
THOMPSON-CATES-SAWYER-COLONNA-PRENTISS-TERWILLEGER-METZGER- 9
MOTTLEY-KREBS-BRADING-BOYD 10
12
A B I L L
To amend sections 715.70, 715.71, 715.72, 715.74, 14
718.03, and 5709.82 and to enact sections 701.07, 16
715.761, 715.82, and 5709.411 of the Revised 17
Code to make various changes in procedures 18
governing the creation of joint economic 19
development zones and certain joint economic 20
development districts, to grant additional 21
authority to subdivisions joining in certain 22
kinds of joint economic development zones 24
regarding the issuance of industrial development 25
bonds, sharing property taxes, and granting 26
property tax exemptions, and to authorize 27
municipal corporations, counties, townships, the 29
state, and certain persons and private entities
to enter into cooperative economic development 31
agreements. 32
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 34
Section 1. That sections 715.70, 715.71, 715.72, 715.74, 36
718.03, and 5709.82 be amended and sections 701.07, 715.761, 38
715.82, and 5709.411 of the Revised Code be enacted to read as 40
follows:
Sec. 701.07. (A) THE LEGISLATIVE AUTHORITY OF ONE OR MORE 42
MUNICIPAL CORPORATIONS, BY ORDINANCE OR RESOLUTION, AND THE BOARD 43
OF COUNTY COMMISSIONERS OF ONE OR MORE COUNTIES OR THE BOARD OF 44
2
TOWNSHIP TRUSTEES OF ONE OR MORE TOWNSHIPS, BY RESOLUTION, MAY 45
ENTER INTO A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT UNDER 46
THIS SECTION.
(B) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT SHALL BE 48
FOR AN INITIAL PERIOD OF NOT MORE THAN SEVEN YEARS AND MAY BE 49
RENEWED FOR UP TO TWO ADDITIONAL PERIODS OF NOT MORE THAN SEVEN 50
YEARS EACH. A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT MAY BE 51
AMENDED AT ANY TIME IN THE SAME MANNER AS IT WAS INITIALLY 52
AUTHORIZED. A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT SHALL
DESIGNATE THE TERRITORY THE AGREEMENT COVERS. 53
(C) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT MAY 55
PROVIDE FOR ANY OF THE FOLLOWING: 56
(1) THE PROVISION OF JOINT SERVICES AND PERMANENT 58
IMPROVEMENTS WITHIN INCORPORATED OR UNINCORPORATED AREAS; 59
(2) THE PROVISION OF SERVICES AND IMPROVEMENTS BY A 61
MUNICIPAL CORPORATION IN UNINCORPORATED AREAS; 62
(3) THE PROVISION OF SERVICES AND IMPROVEMENTS BY A COUNTY 64
OR TOWNSHIP WITHIN THE TERRITORY OF A MUNICIPAL CORPORATION; 65
(4) THE PAYMENT OF SERVICE FEES TO A MUNICIPAL CORPORATION 67
BY A TOWNSHIP OR COUNTY; 68
(5) THE PAYMENT OF SERVICE FEES TO A TOWNSHIP OR A COUNTY 70
BY A MUNICIPAL CORPORATION; 71
(6) THE ISSUANCE OF NOTES AND BONDS AND OTHER DEBT 73
OBLIGATIONS BY A MUNICIPAL CORPORATION, COUNTY, OR TOWNSHIP FOR 74
PUBLIC PURPOSES AUTHORIZED BY OR UNDER A COOPERATIVE ECONOMIC 75
DEVELOPMENT AGREEMENT AND PROVISION FOR THE ALLOCATION OF THE 76
PAYMENT OF THE PRINCIPAL OF, INTEREST ON, AND OTHER CHARGES AND 77
COSTS OF ISSUING AND SERVICING THE REPAYMENT OF THE DEBT;
(7) THE ISSUANCE OF INDUSTRIAL DEVELOPMENT NOTES, BONDS, 79
AND DEBT OBLIGATIONS BY A MUNICIPAL CORPORATION TO FINANCE 80
PROJECTS IN TERRITORY LOCATED OUTSIDE THE MUNICIPAL CORPORATION 81
BUT LOCATED WITHIN THE TERRITORY COVERED BY A COOPERATIVE 82
ECONOMIC DEVELOPMENT AGREEMENT AND PROVISION FOR THE ALLOCATION 83
OF THE PAYMENT OF THE PRINCIPAL OF, INTEREST ON, AND OTHER
3
CHARGES AND COSTS OF ISSUING AND SERVICING THE REPAYMENT OF THE 84
DEBT. TO IMPLEMENT DIVISION (C)(10) OF THIS SECTION, A MUNICIPAL 85
CORPORATION MAY UNDERTAKE PROJECTS UNDER CHAPTER 165., 761., OR 86
902. OF THE REVISED CODE EVEN THOUGH THE PROJECT IS IN TERRITORY 87
LOCATED OUTSIDE THE MUNICIPAL CORPORATION.
(8) THE TERRITORY TO BE ANNEXED TO A MUNICIPAL CORPORATION 89
WHEN AGREED TO BY THE MUNICIPAL CORPORATION TO WHICH ANNEXATION 90
IS PROPOSED AND THE TOWNSHIP IN WHICH THE TERRITORY TO BE ANNEXED 91
IS LOCATED;
(9) ANY PERIODS OF TIME DURING WHICH NO ANNEXATIONS WILL 93
OCCUR AND ANY AREAS THAT WILL NOT BE ANNEXED DURING THE PERIOD 94
WHEN AGREED TO BY THE MUNICIPAL CORPORATION AND TOWNSHIP AFFECTED 95
BY THE ANNEXATION MORATORIUM;
(10) AGREEMENTS BY A MUNICIPAL CORPORATION AND A TOWNSHIP, 97
OR BY A MUNICIPAL CORPORATION AND A COUNTY, WITH LANDOWNERS OR 98
DEVELOPERS OF LAND THAT IS TO BE ANNEXED, OR WITH BOTH SUCH 99
LANDOWNERS AND LAND DEVELOPERS, CONCERNING THE PROVISION OF 100
PUBLIC SERVICES, FACILITIES, AND PERMANENT IMPROVEMENTS;
(11) THE APPLICATION OF TAX ABATEMENT STATUTES WITHIN THE 102
TERRITORY COVERED BY THE COOPERATIVE ECONOMIC DEVELOPMENT 103
AGREEMENT;
(12) CHANGING TOWNSHIP BOUNDARIES UNDER CHAPTER 503. OF 105
THE REVISED CODE TO EXCLUDE NEWLY ANNEXED TERRITORY FROM THE 106
ORIGINAL TOWNSHIP AND PROVIDING SERVICES TO THAT TERRITORY; 107
(13) THE EARMARKING BY A MUNICIPAL CORPORATION FOR ITS 109
GENERAL REVENUE FUND OF A PORTION OF THE UTILITY CHARGES IT 110
COLLECTS IN TERRITORY LOCATED OUTSIDE THE MUNICIPAL CORPORATION 111
BUT LOCATED WITHIN THE TERRITORY COVERED BY A COOPERATIVE 112
ECONOMIC DEVELOPMENT AGREEMENT, BUT ONLY IF THE COOPERATIVE
ECONOMIC DEVELOPMENT AGREEMENT DOES NOT COVER ANY MATTERS 113
RELATING TO ANNEXATION; 114
(14) PAYMENTS IN LIEU OF TAXES, IF ANY, TO BE PAID TO A 116
TOWNSHIP BY A MUNICIPAL CORPORATION. THESE PAYMENTS MAY BE IN 117
ADDITION TO OR IN LIEU OF OTHER PAYMENTS REQUIRED BY LAW TO BE 118
4
MADE TO THE TOWNSHIP BY THAT MUNICIPAL CORPORATION. 119
(15) ANY OTHER MATTER PERTAINING TO THE ANNEXATION OR 121
DEVELOPMENT OF TERRITORY, WHETHER THE TERRITORY IS OWNED BY A 122
GOVERNMENTAL ENTITY OR A PERSON OR PRIVATE ENTITY. 123
(D) COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENTS SHALL NOT 125
BE IN DEROGATION OF THE POWERS GRANTED TO MUNICIPAL CORPORATIONS 126
BY ARTICLE XVIII, OHIO CONSTITUTION, OR ANY OTHER PROVISIONS OF 128
THE OHIO CONSTITUTION OR OF A MUNICIPAL CHARTER, NOR SHALL 129
MUNICIPAL CORPORATIONS AND TOWNSHIPS, OR MUNICIPAL CORPORATIONS
AND COUNTIES, AGREE TO SHARE PROCEEDS OF ANY TAX LEVY, ALTHOUGH 130
SUCH PROCEEDS MAY BE USED TO MAKE PAYMENTS AUTHORIZED IN A 131
COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT. 132
(E) IF ANY PARTY TO A COOPERATIVE ECONOMIC DEVELOPMENT 134
AGREEMENT BELIEVES ANY OTHER PARTY HAS FAILED TO PERFORM ITS PART 135
OF ANY PROVISION OF THE AGREEMENT, INCLUDING THE FAILURE TO MAKE 136
ANY PAYMENT OF MONEYS DUE UNDER THE AGREEMENT, THE COMPLAINING 137
PARTY SHALL GIVE NOTICE TO THE OTHER PARTY CLEARLY STATING WHAT 138
BREACH THE COMPLAINING PARTY BELIEVES HAS OCCURRED. THE PARTY 139
RECEIVING THE NOTICE HAS NINETY DAYS FROM THE RECEIPT OF THAT
NOTICE TO CURE THE BREACH. IF THE BREACH HAS NOT BEEN CURED 140
WITHIN THAT NINETY-DAY PERIOD, THE COMPLAINING PARTY MAY SUE FOR 141
THE RECOVERY OF THE MONEY DUE UNDER THE AGREEMENT, SUE FOR 142
SPECIFIC ENFORCEMENT OF THE AGREEMENT, OR TERMINATE THE AGREEMENT 143
BY GIVING NOTICE OF TERMINATION TO ALL OTHER PARTIES.
(F) IN ORDER TO ASSIST ECONOMIC DEVELOPMENT OR TO PROVIDE 145
APPROPRIATE STATE FUNCTIONS AND SERVICES TO ANY PART OF THE 146
STATE, THE STATE OR ANY STATE AGENCY MAY BECOME A PARTY TO A 147
COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT UPON THE APPROVAL OF 148
THE GOVERNOR AND THE WRITTEN CONSENT OF THE LEGISLATIVE AUTHORITY 149
OR GOVERNING BOARD OF EACH GOVERNMENT ENTITY THAT IS A PARTY TO 150
THE AGREEMENT AND UPON THE APPROVAL OF EACH PERSON OR PRIVATE
ENTITY DESCRIBED IN DIVISION (C)(10) OF THIS SECTION THAT IS 151
PARTY TO THE AGREEMENT. 152
(G) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT ENTERED 154
5
INTO UNDER THIS SECTION IS IN ADDITION TO ANY OTHER AGREEMENTS 155
AUTHORIZED BY LAW BETWEEN MUNICIPAL CORPORATIONS AND COUNTIES OR 156
BETWEEN MUNICIPAL CORPORATIONS AND TOWNSHIPS. 157
(H) THE POWERS AND AUTHORIZATIONS PROVIDED FOR UNDER THIS 159
SECTION AND UNDER ANY COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT 160
ENTERED INTO PURSUANT TO THIS SECTION SHALL BE LIBERALLY 161
CONSTRUED TO ALLOW PARTIES TO ENTER INTO COOPERATIVE ECONOMIC 162
DEVELOPMENT AGREEMENTS AND TO CARRY OUT SUCH AN AGREEMENT BY 163
PROVIDING GOVERNMENT IMPROVEMENTS AND FACILITIES AND SERVICES, BY
PROMOTING AND SUPPORTING ECONOMIC DEVELOPMENT, BY CREATING AND 164
PRESERVING EMPLOYMENT OPPORTUNITIES, AND BY ALLOWING FOR THE 165
SHARING BY COUNTIES AND TOWNSHIPS IN THE BENEFITS OF ECONOMIC 166
DEVELOPMENT EVEN IF THE ECONOMIC DEVELOPMENT DOES NOT OCCUR IN AN 167
UNINCORPORATED AREA.
Sec. 715.70. (A) This section and section 715.71 of the 177
Revised Code apply only to: 178
(1) Municipal corporations and townships within a county 180
that has adopted a charter under Sections 3 and 4 of Article X, 181
Ohio Constitution.; 182
(2) Municipal corporations and townships that have created 184
a joint economic development district comprised entirely of real 185
property owned by a municipal corporation. The real property 186
owned by the municipal corporation shall include an airport owned 187
by the municipal corporation and located entirely beyond the 188
municipal corporation's corporate boundary. 189
(3) Municipal corporations or townships that are part of 191
or contiguous to a transportation improvement district created 193
under Chapter 5540. of the Revised Code and that have created a 194
joint economic development district under this section or section 195
715.71 of the Revised Code prior to the effective date of this 197
amendment NOVEMBER 15, 1995. 198
(B)(1) One or more municipal corporations and one or more 200
townships may enter into a contract approved by the legislative 201
authority of each contracting party pursuant to which they create 202
6
as a joint economic development district an area or areas for the 203
purpose of facilitating economic development to create or 204
preserve jobs and employment opportunities and to improve the 205
economic welfare of the people in the state and in the area of 206
the contracting parties. Any interested person, other than a 207
political subdivision, may bring a civil action within thirty 208
days after the executed copy of the contract is filed with the 209
county recorder pursuant to division (B)(5) of this section 210
challenging whether the contract satisfies the purposes of a 212
joint economic development district as described in this section. 213
The area OR AREAS of land to be included in the district shall 215
not include any parcel of land owned in fee by a municipal 216
corporation or a township or parcel of land that is leased to a 217
municipal corporation or a township, unless the municipal 218
corporation or township is a party to the contract or unless the 219
municipal corporation or township has given its consent to have 220
its parcel of land included in the district by the adoption of a 221
resolution. As used in this division, "parcel of land" means any 222
parcel of land owned by a municipal corporation or a township for 223
at least a six-month period within a five-year period prior to 224
the creation of a district, but "parcel of land" does not include 225
streets or public ways and sewer, water, and other utility lines 226
whether owned in fee or otherwise. 227
The district created shall be located within the territory 229
of one or more of the participating parties and may consist of 230
all or a portion of such territory. The boundaries of the 231
district shall be described in the contract or in an addendum to 232
the contract. 233
(2) Where a municipal corporation is located within 235
one-quarter mile of a proposed joint economic development 237
district and is not otherwise a party to the proposed contract, 238
the participating parties shall afford the municipal corporation 239
the reasonable opportunity, for a period of not less than thirty 240
days following receipt of notice of such opportunity from the 241
7
participating parties, to meet and confer with the participating 242
parties to determine whether the municipal corporation will 243
participate in the joint economic development district. 244
Prior to the public hearing to be held pursuant to division 246
(D)(2) of this section, the participating parties shall give a 247
copy of the proposed contract to each municipal corporation 248
located within one-quarter mile of the proposed joint economic 249
development district and not otherwise a party to the contract, 251
and afford the municipal corporation the reasonable opportunity, 252
for a period of thirty days following receipt of the proposed 253
contract, to make comments and suggestions to the participating 254
parties regarding elements contained in the proposed contract. 255
Prior to the public hearing, the participating parties may 256
include in the contract any of the suggestions or recommendations 257
made by any such municipal corporation. 258
(3) The district shall not exceed two thousand acres in 260
area. The territory of the district shall not completely 261
surround territory that is not included within the boundaries of 262
the district. 263
(4) Sections 503.07 to 503.12 of the Revised Code do not 265
apply to territory included within a district created pursuant to 266
this section as long as the contract creating the district is in 267
effect, unless the legislative authority of each municipal 268
corporation and the board of township trustees of each township 269
included in the district consent, by ordinance or resolution, to 270
the application of those sections of the Revised Code. 271
(5) Upon the execution of the contract creating the 273
district by the parties to the contract, a participating 274
municipal corporation or township included within the district 275
shall file a copy of the fully executed contract with the county 276
recorder of each county within which a party to the contract is 277
located, in the miscellaneous records of the county. No 278
annexation proceeding pursuant to Chapter 709. of the Revised 279
Code that proposes the annexation to, merger, or consolidation 280
8
with a municipal corporation of any unincorporated territory 281
within the district shall be commenced for a period of three 282
years after the contract is filed with the county recorder of 283
each county within which a party to the contract is located AND 284
THE INCOME TAX PROVIDED FOR IN THAT CONTRACT HAS BEEN LEVIED AS 285
PROVIDED IN DIVISION (F) OF THIS SECTION AND REMAINS IN EFFECT 286
unless each board of township trustees whose territory is 287
included, in whole or part, within the district and the territory 288
proposed to be annexed, merged, or consolidated adopts a 289
resolution consenting to the commencement of the proceeding and a 290
copy of the resolution is filed with the clerk of the board of 291
county commissioners LEGISLATIVE AUTHORITY of each county within 293
which a party to the contract is located or unless the contract 294
is terminated during this period.
The contract entered into between the municipal 296
corporations and townships pursuant to this section may provide 297
for the prohibition of any annexation by the participating 298
municipal corporations of any unincorporated territory within the 299
district beyond the three-year mandatory prohibition of any 300
annexation provided for in division (B)(5) of this section. 301
(C)(1) After the legislative authority of a municipal 303
corporation and the board of township trustees have adopted an 304
ordinance and resolution approving a contract to create a joint 305
economic development district pursuant to this section, and after 306
a contract has been signed, the municipal corporations and 307
townships shall jointly file a petition with the legislative 308
authority of each county within which a party to the contract is 309
located. Copies of the ordinances, resolutions, and contract 311
shall be attached to the petition. The
(a) THE petition shall contain all of the following: 314
(a)(i) A statement that the area OR AREAS of the district 317
is not greater than two thousand acres and is located within the 318
territory of one or more of the contracting parties; 319
(b)(ii) A brief summary of the services to be provided by 321
9
each party to the contract OR A REFERENCE TO THE PORTION OF THE 323
CONTRACT DESCRIBING THOSE SERVICES; 324
(c)(iii) A legal description of the area OR AREAS to be 327
designated as the district; 328
(d)(iv) The signature of a representative of each of the 330
contracting parties;. 331
(b) THE FOLLOWING DOCUMENTS SHALL BE FILED WITH THE 333
PETITION:
(i) A SIGNED COPY OF THE CONTRACT, TOGETHER WITH COPIES OF 335
DISTRICT MAPS AND PLANS RELATED TO OR PART OF THE CONTRACT; 336
(ii) A CERTIFIED COPY OF THE ORDINANCES AND RESOLUTIONS OF 338
THE CONTRACTING PARTIES APPROVING THE CONTRACT; 339
(iii) A CERTIFICATE FROM EACH OF THE CONTRACTING PARTIES 341
INDICATING THAT THE PUBLIC HEARINGS REQUIRED BY DIVISION (D)(2) 342
OF THIS SECTION HAVE BEEN HELD, THE DATE OF THE HEARINGS, AND 343
EVIDENCE OF PUBLICATION OF THE NOTICE OF THE HEARINGS; 344
(e) The signatures of a majority (iv) ONE OR MORE SIGNED 346
STATEMENTS of those persons who are owners of property located IN 348
WHOLE OR IN PART within the area to be designated as the district 350
and the signatures of those, REQUESTING THAT SUCH PROPERTY BE 351
INCLUDED WITHIN THE DISTRICT, PROVIDED THAT THOSE STATEMENTS
SHALL REPRESENT A MAJORITY OF THE PERSONS OWNING PROPERTY LOCATED 352
IN WHOLE OR IN PART WITHIN THE DISTRICT AND persons who are 353
owners of the OWNING A majority of THE acreage located within the 354
district. A SIGNATURE MAY BE WITHDRAWN BY THE SIGNER UP TO BUT 355
NOT AFTER THE TIME OF THE PUBLIC HEARING REQUIRED BY DIVISION 356
(D)(2) OF THIS SECTION. 357
The legislative authority of each county within which a 359
party to the contract is located shall hold a public hearing 362
concerning the joint economic development district contract 363
within thirty days after the filing of the petition and shall 364
publish notice of the time and place of the public hearing in a 365
newspaper of general circulation in the county at least fourteen 366
days prior to the hearing.
10
During the thirty-day period prior to the public hearing, a 368
copy of the text of the contract together with copies of district 369
maps and plans related to or part of the contract shall be on 370
file, for public examination, in the offices of the clerk of the 371
legislative authority of each county within which a party to the 372
contract is located. 373
(2) After the public hearing on the petition relating to 375
the creation of a joint economic development district has been 376
held, the THE legislative authority of each county within which a 377
party to the contract is located shall adopt a resolution 380
approving the petition for the creation of the district if the 381
petition meets AND OTHER DOCUMENTS HAVE BEEN FILED IN ACCORDANCE 382
WITH the requirements of division (C)(1) of this section. If the 383
petition does AND OTHER DOCUMENTS DO not SUBSTANTIALLY meet the 384
requirements of that division, the legislative authority of any 385
county within which a party to the contract is located may adopt 386
a resolution disapproving the petition for the creation of the 387
district. The legislative authority of each county within which 388
a party to the contract is located shall adopt a resolution
approving or disapproving the petition within sixty THIRTY days 390
after the public hearing PETITION was held FILED. If the 391
legislative authority of each such county does not adopt the 392
resolution within the sixty-day THIRTY-DAY period, the petition 394
shall be deemed approved and the contract shall go into effect no 395
sooner than thirty days IMMEDIATELY after that approval OR AT 396
SUCH OTHER TIME AS THE CONTRACT SPECIFIES.
(D)(1) The contract creating the district shall set forth 398
or provide for the amount or nature of the contribution of each 399
municipal corporation and township to the development and 400
operation of the district and may provide for the sharing of the 401
costs of the operation of and improvements for the district. The 402
contributions may be in any form to which the contracting 403
municipal corporations and townships agree and may include but 404
are not limited to the provision of services, money, real or 405
11
personal property, facilities, or equipment. THE CONTRACT MAY 407
PROVIDE FOR THE CONTRACTING PARTIES TO SHARE REVENUE FROM TAXES 408
LEVIED ON PROPERTY BY ONE OR MORE OF THE CONTRACTING PARTIES IF 409
THOSE REVENUES MAY LAWFULLY BE APPLIED TO THAT PURPOSE UNDER THE 410
LEGISLATION BY WHICH THOSE TAXES ARE LEVIED. The contract shall 411
provide for new, expanded, or additional services, facilities, or 412
improvements, including expanded or additional capacity for or 413
other enhancement of existing services, facilities, or 414
improvements, provided that those services, facilities, or 415
improvements, or expanded or additional capacity for or 416
enhancement of existing services, facilities, or improvements, 417
required herein have been provided within the two-year period 418
prior to the execution of the contract. 419
(2) Before the legislative authority of a municipal 421
corporation or a board of township trustees passes any ordinance 422
or resolution approving a contract to create a joint economic 423
development district pursuant to this section, the legislative 424
authority of the municipal corporation and the board of township 425
trustees shall EACH hold a public hearing concerning the joint 426
economic development district contract and shall provide thirty 427
days' public notice of the time and place of the public hearing 428
in a newspaper of general circulation in the municipal 429
corporation and the township. The board of township trustees 430
shall MAY provide ADDITIONAL notice to township residents in 432
accordance with section 505.07 of the Revised Code and the ANY 433
SUCH ADDITIONAL notice shall include: the public hearing 435
announcement; a summary of the terms of the contract; a 436
disclosure of the fact STATEMENT that the entire text of the 437
contract and district maps and plans are on file for public 438
examination in the office of the township clerk; and information 439
pertaining to any tax changes which will or may occur as a result 440
of the contract. 441
During the thirty-day period prior to the public hearing, a 443
copy of the text of the contract together with copies of district 444
12
maps and plans related to or part of the contract shall be on 445
file, for public examination, in the offices of the clerk of the 446
legislative authority of the municipal corporation and of the 447
township clerk. The public hearing provided for in division 448
(D)(2) of this section shall allow for public comment and 449
recommendations from the public on the proposed contract. THE 450
CONTRACTING PARTIES MAY INCLUDE IN THE CONTRACT ANY OF THOSE 451
RECOMMENDATIONS PRIOR TO THE APPROVAL OF THE CONTRACT. 452
(3) Any resolution of the board of township trustees that 454
approves a contract that creates a joint economic development 455
district pursuant to this section shall be subject to a 456
referendum of the electors of the township. When a referendum 457
petition, signed by ten per cent of the number of electors in the 458
township who voted for the office of governor at the most recent 460
general election for the office of governor, is presented to the 461
board of township trustees within thirty days after the board of 462
township trustees adopted the resolution, ordering that the 463
resolution be submitted to the electors of the township for their 464
approval or rejection, the board of township trustees shall, 465
after ten days and not later than four p.m. of the seventy-fifth 466
day before the election, certify the text of the resolution to 467
the board of elections. The board of elections shall submit the 468
resolution to the electors of the township for their approval or 469
rejection at the next general, primary, or special election 470
occurring subsequent to seventy-five days after the certifying of 471
the petition to the board of elections. 472
(E) The district created by the contract shall be governed 474
by a board of directors that shall be established by or pursuant 475
to the contract. The board is a public body for the purposes of 476
section 121.22 of the Revised Code. The provisions of Chapter 477
2744. of the Revised Code apply to the board and the district. 478
The members of the board shall be appointed as provided in the 479
contract from among the elected members of the legislative 480
authorities and the elected chief executive officers of the 481
13
contracting parties, provided that there shall be at least two 482
members appointed from each of the contracting parties. 483
(F) The contract shall enumerate the specific powers, 485
duties, and functions of the board of directors of a district, 486
and the contract shall provide for the determination of 487
procedures that are to govern the board of directors. The 488
contract may grant to the board the power to adopt a resolution 489
to levy an income tax within the district. The income tax shall 490
be used for the purposes of the district and for the purposes of 491
the contracting municipal corporations and townships pursuant to 492
the contract. The income tax may be levied in the district based 493
upon ON income earned by persons working or residing within the 494
district and upon BASED ON the net profits of businesses located 495
in the district. The income tax is subject to SHALL FOLLOW THE 497
PROVISIONS OF Chapter 718. of the Revised Code, except that a 499
vote shall be required by the electors residing in the district 500
to approve the rate of income tax. If no electors reside within 501
the district, then division (F)(4) of this section applies. The 502
rate of the income tax shall be no higher than the highest rate 503
being levied by a municipal corporation that is a party to the 504
contract.
(1) Within one hundred eighty days after the first meeting 506
of the board of directors, the board may levy an income tax at a 507
rate that is not higher than the highest rate being levied by a 508
municipal corporation that is a party to the contract, provided 509
that the rate of the income tax is first submitted to and 510
approved by the electors of the district at the succeeding 511
regular or primary election, or a special election called by the 512
board, occurring subsequent to seventy-five days after a 513
certified copy of the resolution levying the income tax and 514
calling for the election is filed with the board of elections. 515
If the voters approve the levy of the income tax, the income tax 516
shall be in force for the full period of the contract 517
establishing the district. Any increase in the rate of an income 518
14
tax that was first levied within one hundred eighty days after 519
the first meeting of the board of directors shall be approved by 520
a vote of the electors of the district and, shall be in force for 522
the remaining period of the contract establishing the district, 523
AND SHALL NOT BE SUBJECT TO DIVISION (F)(2) OF THIS SECTION. 524
(2) Any resolution of the board of directors levying an 526
income tax that is adopted subsequent to one hundred eighty days 527
after the first meeting of the board of directors shall be 528
subject to a referendum as provided in division (F)(2) of this 529
section. Any resolution of the board of directors levying an 530
income tax that is adopted subsequent to one hundred eighty days 531
after the first meeting of the board of directors shall be 532
subject to an initiative proceeding to amend or repeal the 533
resolution levying the income tax as provided in division (F)(2) 534
of this section. When a referendum petition, signed by ten per 535
cent of the number of electors in the district who voted for the 536
office of governor at the most recent general election for the 537
office of governor, is filed with the county auditor of each 538
county within which a party to the contract is located within 539
thirty days after the resolution is adopted by the board or when 540
an initiative petition, signed by ten per cent of the number of 541
electors in the district who voted for the office of governor at 542
the most recent general election for the office of governor, is 544
filed with the county auditor of each such county ordering that a
resolution to amend or repeal a prior resolution levying an 546
income tax be submitted to the electors within the district for 547
their approval or rejection, the county auditor of each such 548
county, after ten days and not later than four p.m. of the 549
seventy-fifth day before the election, shall certify the text of 550
the resolution to the board of elections of that county. The 551
county auditor of each such county shall retain the petition. 552
The board of elections shall submit the resolution to such 553
electors, for their approval or rejection, at the next general, 554
primary, or special election occurring subsequent to seventy-five 556
15
days after the certifying of such petition to the board of 557
elections.
(3) Whenever a district is located in the territory of 559
more than one contracting party, a majority vote of the electors, 560
IF ANY, in each of the several portions of the territory of the 562
contracting parties constituting the district approving the levy 563
of the tax is required before it may be imposed pursuant to this 564
division. 565
(4) If there are no electors residing in the district, no 567
election for the approval or rejection of an income tax shall be 568
held pursuant to this section, provided that where no electors 569
reside in the district, the maximum rate of the income tax that 570
may be levied shall not exceed one per cent. 571
(5) The board of directors of a district levying an income 573
tax shall enter into an agreement with one of the municipal 574
corporations that is a party to the contract to administer, 575
collect, and enforce the income tax on behalf of the district. 576
The resolution levying the income tax shall provide the same 577
credits, if any, to residents of the district for income taxes 578
paid to other such districts or municipal corporations where the 579
residents work, as credits provided to residents of the municipal 580
corporation administering the income tax. 581
(6)(a) The board shall publish or post public notice 583
within the district of any resolution adopted levying an income 584
tax in the same manner required of municipal corporations under 585
sections 731.21 and 731.25 of the Revised Code. 586
(b) Except as otherwise specified by this division, any 588
referendum or initiative proceeding within a district shall be 589
conducted in the same manner as is required for such proceedings 590
within a municipal corporation pursuant to sections 731.28 to 591
731.40 of the Revised Code. 592
(G) Membership on the board of directors does not 594
constitute the holding of a public office or employment within 595
the meaning of any section of the Revised Code or any charter 596
16
provision prohibiting the holding of other public office or 597
employment, and shall not constitute an interest, either direct 598
or indirect, in a contract or expenditure of money by any 599
municipal corporation, township, county, or other political 600
subdivision with which the member may be connected. No member of 601
a board of directors shall be disqualified from holding any 602
public office or employment, nor shall such member forfeit or be 603
disqualified from holding any such office or employment, by 604
reason of the member's membership on the board of directors, 605
notwithstanding any law or charter provision to the contrary. 606
(H) The powers and authorizations granted pursuant to this 608
section or section 715.71 of the Revised Code are in addition to 609
and not in the derogation of all other powers granted to 611
municipal corporations and townships pursuant to law. When 612
exercising a power or performing a function or duty under a 613
contract authorized pursuant to this section or section 715.71 of
the Revised Code, a municipal corporation may exercise all of the 615
powers of a municipal corporation, and may perform all the 616
functions and duties of a municipal corporation, within the 617
district, pursuant to and to the extent consistent with the 618
contract. When exercising a power or performing a function or 619
duty under a contract authorized pursuant to this section or 620
section 715.71 of the Revised Code, a township may exercise all 621
of the powers of a township, and may perform all the functions 622
and duties of a township, within the district, pursuant to and to 623
the extent consistent with the contract. The district board of 624
directors has no powers except those specifically set forth in 625
the contract as agreed to by the participating parties. No 626
political subdivision shall authorize or grant any tax exemption 628
pursuant to Chapter 1728. or section 3735.67, 5709.62, 5709.63, 630
or 5709.632 of the Revised Code on any property located within 631
the district, EXCEPT THAT A POLITICAL SUBDIVISION THAT IS A 632
CONTRACTING PARTY MAY GRANT A TAX EXEMPTION UNDER SECTION 633
5709.62, 5709.63, OR 5709.632 OF THE REVISED CODE ON PROPERTY 634
17
LOCATED WITHIN THE DISTRICT, WITH THE CONSENT OF THE OTHER
CONTRACTING PARTIES. The prohibition for any tax exemption 635
pursuant to this division shall not apply to any exemption filed, 636
pending, or approved, OR FOR WHICH AN AGREEMENT HAS BEEN ENTERED 637
INTO, before the effective date of the contract entered into by 639
the parties.
(I) Municipal corporations and townships may enter into 641
binding agreements pursuant to a contract authorized under this 642
section or section 715.71 of the Revised Code with respect to the 643
substance and administration of zoning and other land use 645
regulations, building codes, public permanent improvements, and 646
other regulatory and proprietary matters that are determined, 647
pursuant to the contract, to be for a public purpose and to be 648
desirable with respect to the operation of the district or to 649
facilitate new or expanded economic development in the state or 650
the district, provided that no contract shall exempt the 651
territory within the district from the procedures and processes 652
of land use regulation applicable pursuant to municipal 653
corporation, township, and county regulations, including but not 654
limited to procedures and processes concerning zoning. 655
(J) A contract entered into pursuant to this section or 657
section 715.71 of the Revised Code may be amended and it may be 659
renewed, canceled, or terminated as provided in or pursuant to 660
the contract. The contract shall continue in existence 661
throughout its term and shall be binding on the contracting 662
parties and on any entities succeeding to such parties, whether 663
by annexation, merger, or otherwise. The income tax levied by 664
the board pursuant to this section or section 715.71 of the
Revised Code shall apply in the entire district throughout the 666
term of the contract, notwithstanding that all or a portion of 667
the district becomes subject to annexation, merger, or 668
incorporation. No township or municipal corporation is divested 669
of its rights or obligations under the contract because of 670
annexation, merger, or succession of interests. 671
18
Sec. 715.71. (A) This section provides alternative 680
procedures and requirements to those set forth in section 715.70 681
of the Revised Code for creating and operating a joint economic 682
development district. Divisions (B), (C), (D), and (F) of 683
section 715.70 of the Revised Code do not apply to a joint 684
economic development district established under this section. 685
However, divisions (A), (E), (G), (H), (I), and (J) of section 686
715.70 of the Revised Code do apply to a district established 687
under this section. 688
(B) One or more municipal corporations and one or more 690
townships may enter into a contract approved by the legislative 691
authority of each contracting party pursuant to which they create 692
as a joint economic development district one or more areas for 693
the purpose of facilitating economic development to create or 694
preserve jobs and employment opportunities and to improve the 695
economic welfare of the people in this state and in the area of 696
the contracting parties. The district created shall be located 697
within the territory of one or more of the contracting parties 698
and may consist of all or a portion of such territory. The 699
boundaries of the district shall be described in the contract or 700
in an addendum to the contract. The area or areas of land to be 701
included in the district shall not include any parcel of land 702
owned in fee by or leased to a municipal corporation or township, 703
unless the municipal corporation or township is a party to the 704
contract or has given its consent to have its parcel of land 705
included in the district by the adoption of a resolution. As 706
used in this division, "parcel of land" has the same meaning as 707
in division (B) of section 715.70 of the Revised Code. 708
(C) Before the legislative authority of a municipal 710
corporation or a board of township trustees adopts an ordinance 711
or resolution approving a contract to create a joint economic 712
development district under this section, it shall hold a public 713
hearing concerning the joint economic development district 714
contract and shall provide thirty days' public notice of the time 715
19
and place of the public hearing in a newspaper of general 716
circulation in the municipal corporation and the township. Each 717
municipal corporation and township that is a party to the 718
contract shall hold a public hearing. During the thirty-day 719
period prior to a public hearing, a copy of the text of the 720
contract together with copies of district maps and plans related 721
to or part of the contract shall be on file, for public 722
examination, in the offices of the clerk of the legislative 723
authority of the municipal corporation and of the township clerk. 724
The public hearings provided for in this division shall allow for 725
public comment and recommendations on the proposed contract. The 726
participating parties may include in the contract any of those 727
recommendations prior to approval of the contract. 728
(D) After the legislative authority of a municipal 730
corporation and the board of township trustees have adopted an 731
ordinance and resolution approving a contract to create a joint 732
economic development district, the municipal corporation and the 733
township jointly shall file with the legislative authority of 734
each county within which a party to the contract is located all 735
of the following: 736
(1) A signed copy of the contract, together with copies of 738
district maps and plans related to or part of the contract; 739
(2) Certified copies of the ordinances and resolutions of 741
the contracting parties relating to the district and the 742
contract; 743
(3) A certificate of each of the contracting parties that 745
the public hearings provided for in division (C) of this section 746
have been held, the date of such hearings, and evidence of 747
publication of the notice of such hearings. 748
(E) Within thirty days after the filing under division (D) 750
of this section, the legislative authority of each county within 751
which a party to the contract is located shall adopt a resolution 752
acknowledging the receipt of the required documents, approving 753
the creation of the joint economic development district, and 754
20
directing that the resolution of the board of township trustees 755
approving the contract be submitted to the electors of the 756
township for approval at the next succeeding general, primary, or 757
special election. The legislative authority of the county shall 758
file with the board of elections at least seventy-five days 759
before the day of the election a copy of the resolution of the 760
board of township trustees approving the contract. The 761
resolution of the legislative authority of the county also shall 762
specify the date the election is to be held and shall direct the 763
board of elections to conduct the election in the township. If 764
the resolution of the legislative authority of the county is not 765
adopted within the thirty-day period after the filing under 766
division (D) of this section, the joint economic development 767
district shall be deemed approved by the county legislative 768
authority and the board of township trustees shall file its 769
resolution with the board of elections for submission to the 770
electors of the township for approval at the next succeeding 771
general, primary, or special election. Such filing shall occur 772
at least seventy-five days before the specified date the election 773
is to be held and shall direct the board of elections to conduct 774
the election in the township. 775
The ballot shall be in the following form: 777
"Shall the resolution of the board of township trustees 779
approving the contract with ............... (here insert name of 780
each municipal corporation and other township that is a party to 781
the contract) for the creation of a joint economic development 782
district be approved? 783
________________________________________________ 786
FOR THE RESOLUTION AND CONTRACT 787
________________________________________________ 788
AGAINST THE RESOLUTION AND CONTRACT 789
________________________________________________ " 790
If a majority of the electors of the township voting on the issue 793
vote for the resolution and contract, the resolution shall become 794
21
effective immediately and the contract shall go into effect 795
immediately or in accordance with its terms. 796
(F) The contract creating the district shall set forth or 798
provide for the amount or nature of the contribution of each 799
municipal corporation and township to the development and 800
operation of the district and may provide for the sharing of the 801
costs of the operation of and improvements for the district. The 802
contributions may be in any form to which the contracting 803
municipal corporations and townships agree and may include but 804
are not limited to the provision of services, money, real or 805
personal property, facilities, or equipment. THE CONTRACT MAY 806
PROVIDE FOR THE CONTRACTING PARTIES TO SHARE REVENUE FROM TAXES 808
LEVIED ON PROPERTY BY ONE OR MORE OF THE CONTRACTING PARTIES IF 809
THOSE REVENUES MAY LAWFULLY BE APPLIED TO THAT PURPOSE UNDER THE 810
LEGISLATION BY WHICH THOSE TAXES ARE LEVIED. The contract shall 811
provide for new, expanded, or additional services, facilities, or 812
improvements, including expanded or additional capacity for or 813
other enhancement of existing services, facilities, or 814
improvements, provided that the existing services, facilities, or 815
improvements, or the expanded or additional capacity for or 816
enhancement of the existing services, facilities, or 817
improvements, have been provided within the two-year period prior 818
to the execution of the contract. 819
(G) The contract shall enumerate the specific powers, 821
duties, and functions of the board of directors of the district 822
and shall provide for the determination of procedures that are to 823
govern the board of directors. The contract may grant to the 824
board the power to adopt a resolution to levy an income tax 825
within the district. The income tax shall be used for the 826
purposes of the district and for the purposes of the contracting 827
municipal corporations and townships pursuant to the contract. 828
The income tax may be levied in the district based on income 829
earned by persons working or residing within the district and 830
based on the net profits of businesses located in the district. 831
22
The income tax of the district shall follow the provisions of 832
Chapter 718. of the Revised Code, except that no vote shall be 833
required by the electors residing in the district. The rate of 834
the income tax shall be no higher than the highest rate being 835
levied by a municipal corporation that is a party to the 836
contract. 837
The board of directors of a district levying an income tax 839
shall enter into an agreement with one of the municipal 840
corporations that is a party to the contract to administer, 841
collect, and enforce the income tax on behalf of the district. 842
The resolution levying the income tax shall provide the same 843
credits, if any, to residents of the district for income taxes 844
paid to other such districts or municipal corporations where the 845
residents work, as credits provided to residents of the municipal 846
corporation administering the income tax. 847
(H) No annexation proceeding pursuant to Chapter 709. of 849
the Revised Code that proposes the annexation to or merger or 850
consolidation with a municipal corporation, except a municipal 851
corporation that is a party to the contract, of any 852
unincorporated territory within the district shall be commenced 853
for a period of three years after the contract is filed with the 854
legislative authority of each county within which a party to the 855
contract is located in accordance with division (D) of this 856
section unless each board of township trustees whose territory is 857
included, in whole or part, within the district and the territory 858
proposed to be annexed, merged, or consolidated adopts a 859
resolution consenting to the commencement of the proceeding and a 860
copy of the resolution is filed with the legislative authority of 861
each such county or unless the contract is terminated during this 862
three-year period. The contract entered into between the 863
municipal corporations and townships pursuant to this section may 864
provide for the prohibition of any annexation by the 865
participating municipal corporations of any unincorporated 866
territory within the district. 867
23
Sec. 715.72. (A) As used in sections 715.72 to 715.81 of 876
the Revised Code: 877
(1) "Contracting parties" means one or more municipal 879
corporations and one or more townships that have entered into a 880
contract under this section to create a joint economic 881
development district. 882
(2) "District" means a joint economic development district 884
created under sections 715.72 to 715.81 of the Revised Code. 885
(3) "Contract for utility services" means a contract under 887
which a municipal corporation agrees to provide to a township or 888
another municipal corporation water, sewer, electric, or other 889
utility services necessary to the public health, safety, and 890
welfare.
(B) Sections 715.72 to 715.81 of the Revised Code provide 892
alternative procedures and requirements to those set forth in 893
sections 715.70 and 715.71 of the Revised Code for creating and 894
operating a joint economic development district. Sections 715.72 895
to 715.81 of the Revised Code apply to municipal corporations and 896
townships that are located in the same county or in adjacent 897
counties.
(C) One or more municipal corporations and one or more 899
townships may enter into a contract pursuant to which they create 900
as a joint economic development district one or more areas for 901
the purpose of facilitating economic development to create or 902
preserve jobs and employment opportunities and to improve the 903
economic welfare of the people in this state and in the area of 904
the contracting parties. The 905
(1) EXCEPT AS OTHERWISE PROVIDED IN DIVISION (C)(2) OF 907
THIS SECTION, THE territory of each of the contracting parties 909
shall be contiguous to the territory of at least one other 910
contracting party, unless the contracting parties have entered 911
into a contract under section 715.70 or 715.71 of the Revised 912
Code creating a joint economic development district prior to the 914
effective date of this section. Contracting OR CONTIGUOUS TO THE
24
TERRITORY OF A TOWNSHIP OR MUNICIPAL CORPORATION THAT IS 915
CONTIGUOUS TO ANOTHER CONTRACTING PARTY, EVEN IF THE INTERVENING 916
TOWNSHIP OR MUNICIPAL CORPORATION IS NOT A CONTRACTING PARTY. 917
(2) CONTRACTING parties that have entered into a contract 920
under section 715.70 or 715.71 of the Revised Code creating a
joint economic development district prior to the effective date 922
of this section NOVEMBER 15, 1995, may enter into a contract 924
under this section even if the territory of each of the
contracting parties is not contiguous to the territory of at 925
least one other contracting party, OR CONTIGUOUS TO THE TERRITORY 926
OF A TOWNSHIP OR MUNICIPAL CORPORATION THAT IS CONTIGUOUS TO 927
ANOTHER CONTRACTING PARTY AS OTHERWISE REQUIRED UNDER DIVISION 928
(C)(1) OF THIS SECTION. The contract and district shall meet the 930
requirements of sections 715.72 to 715.81 of the Revised Code. 931
Sec. 715.74. (A) The contract creating a joint economic 940
development district shall provide for the amount or nature of 942
the contribution of each contracting party to the development and 943
operation of the district and may provide for the sharing of the 944
costs of the operation of and improvements for the district. The 945
contributions may be in any form to which the contracting parties 947
agree and may include, but are not limited to, the provision of 948
services, money, real or personal property, facilities, or 949
equipment. THE CONTRACT MAY PROVIDE FOR THE CONTRACTING PARTIES 950
TO SHARE REVENUE FROM TAXES LEVIED ON PROPERTY BY ONE OR MORE OF 951
THE CONTRACTING PARTIES IF THOSE REVENUES MAY LAWFULLY BE APPLIED
TO THAT PURPOSE UNDER THE LEGISLATION BY WHICH THOSE TAXES ARE 953
LEVIED. The contract shall specify and provide for new, 955
expanded, or additional services, facilities, or improvements. 956
The contract may provide for expanded or additional capacity for 957
or other enhancement of existing services, facilities, or
improvements.
(B) The contract shall enumerate the specific powers, 959
duties, and functions of the board of directors of the district 960
described under section 715.78 of the Revised Code and shall 961
25
provide for the determination of procedures that are to govern 962
the board.
(C)(1) The contract may grant to the board the power to 965
adopt a resolution to levy an income tax within the district. 966
The income tax shall be used for the purposes of the district and 967
for the purposes of the contracting parties pursuant to the 968
contract. The income tax may be levied in the district based on 969
income earned by persons working within the district and based on 971
the net profits of businesses located in the district. The
income tax of the district shall follow the provisions of Chapter 972
718. of the Revised Code, except that no vote shall be required. 973
The rate of the income tax shall be no higher than the highest 974
rate being levied by a municipal corporation that is a 975
contracting party.
(2) If the board adopts a resolution to levy an income 977
tax, it shall enter into an agreement with a municipal 978
corporation that is a contracting party to administer, collect, 980
and enforce the income tax on behalf of the district.
(3) A resolution levying an income tax under this section 982
shall require the contracting parties to annually set aside a 983
percentage, to be stated in the resolution, of the amount of the 984
income tax collected for the long-term maintenance of the 985
district. 986
(4) An income tax levied under this section shall apply in 988
the entire district throughout the term of the contract creating 989
the district, notwithstanding that all or a portion of the 990
district becomes subject to annexation, merger, or consolidation. 992
(D) The contract creating a joint economic development 995
district shall continue in existence throughout its term and 996
shall be binding on the contracting parties and on any parties 997
succeeding to the contracting parties, whether by annexation, 998
merger, or consolidation. Except as provided in division (E) of 999
this section, the contract may be amended, renewed, or terminated 1,000
with the approval of the contracting parties or any parties 1,001
26
succeeding to the contracting parties. IF THE CONTRACT IS 1,002
AMENDED TO ADD AREA TO AN EXISTING DISTRICT, THE AMENDMENT SHALL 1,003
BE ADOPTED IN THE MANNER PRESCRIBED UNDER SECTION 715.761 OF THE 1,004
REVISED CODE.
(E) If two or more contracting parties previously have 1,006
entered into a separate contract for utility services, then 1,008
amendment, renewal, or termination of the separate contract for 1,009
utility services shall not constitute any part of the 1,010
consideration for the contract creating a joint economic 1,011
development district. A contract creating a joint economic 1,012
development district shall be rebuttably presumed to violate this 1,013
division if it is entered into within two years prior or five 1,014
years subsequent to the amendment, renewal, or termination of a 1,015
separate contract for utility services that two or more 1,016
contracting parties previously have entered into. The
presumption stated in this division may be rebutted by clear and 1,017
convincing evidence of both of the following: 1,018
(1) That other substantial consideration existed to 1,021
support the contract creating a joint economic development
district; 1,022
(2) That the contracting parties entered into the contract 1,025
creating a joint economic development district freely and without
duress or coercion related to the amendment, renewal, or 1,026
termination of the separate contract for utility services. 1,027
(F) A contract creating a joint economic development 1,029
district that violates division (E) of this section is void and 1,031
unenforceable.
Sec. 715.761. (A) THE CONTRACTING PARTIES MAY AMEND THE 1,034
CONTRACT TO ADD TO A JOINT ECONOMIC DEVELOPMENT DISTRICT ANY AREA 1,035
THAT WAS NOT ORIGINALLY INCLUDED IN THE DISTRICT WHEN THE 1,036
CONTRACT TOOK EFFECT. AREA MAY BE ADDED ONLY IF THE AREA 1,037
SATISFIES THE CRITERIA PRESCRIBED UNDER SECTION 715.73 OF THE 1,039
REVISED CODE. 1,040
(B) AN AMENDMENT ADDING AREA TO A DISTRICT SHALL BE 1,043
27
APPROVED BY A RESOLUTION OR ORDINANCE ADOPTED BY EACH OF THE 1,044
CONTRACTING PARTIES. THE CONTRACTING PARTIES SHALL CONDUCT 1,045
PUBLIC HEARINGS ON THE AMENDMENT, PROVIDE NOTICE, AND DELIVER A 1,046
COPY OF THE AMENDMENT TO THE LEGISLATIVE AUTHORITY OF THE COUNTY 1,047
IN WHICH THE ADDED AREA IS LOCATED IN THE MANNER REQUIRED UNDER 1,048
SECTION 715.75 OF THE REVISED CODE FOR ORIGINAL CONTRACTS. THE 1,051
CONTRACTING PARTIES SHALL MAKE AVAILABLE FOR PUBLIC INSPECTION A 1,052
COPY OF THE AMENDMENT, A DESCRIPTION OF THE AREA TO BE ADDED TO 1,053
THE DISTRICT, AND A MAP OF THAT AREA IN SUFFICIENT DETAIL TO 1,054
DENOTE THE SPECIFIC BOUNDARIES OF THE AREA AND TO INDICATE ANY 1,055
ZONING RESTRICTIONS APPLICABLE TO THE AREA.
(C) AFTER ADOPTING RESOLUTIONS OR ORDINANCES APPROVING THE 1,058
ADDITION OF THE AREA, THE CONTRACTING PARTIES JOINTLY SHALL FILE 1,059
WITH THE LEGISLATIVE AUTHORITY OF THE COUNTY IN WHICH THE ADDED 1,060
AREA IS LOCATED THE DOCUMENTS REQUIRED TO BE FILED UNDER SECTION 1,061
715.76 OF THE REVISED CODE, EXCEPT THAT: 1,063
(1) A COPY OF THE AMENDMENT TO THE CONTRACT SHALL BE FILED 1,065
IN LIEU OF A COPY OF THE CONTRACT. 1,066
(2) THE DESCRIPTION AND MAP SHALL BE OF THE AREA TO BE 1,068
ADDED INSTEAD OF THE ENTIRE AREA OF THE DISTRICT. 1,069
(3) THE ECONOMIC DEVELOPMENT PLAN NEED NOT BE FILED. 1,072
(4) CERTIFIED COPIES OF THE RESOLUTIONS AND ORDINANCES 1,074
APPROVING THE AMENDMENT SHALL BE FILED. 1,075
(5) THE CERTIFICATES OTHERWISE REQUIRED UNDER DIVISION (E) 1,078
OF SECTION 715.76 OF THE REVISED CODE SHALL CERTIFY THAT THE 1,079
HEARINGS REQUIRED UNDER DIVISION (B) OF THIS SECTION HAVE BEEN 1,080
HELD, SHALL INDICATE THE DATE OF THOSE HEARINGS, AND SHALL 1,081
INCLUDE EVIDENCE THAT NOTICE OF THE HEARINGS WAS PUBLISHED. 1,083
(6) THE PETITION OTHERWISE REQUIRED UNDER DIVISION (F) OF 1,086
SECTION 715.76 OF THE REVISED CODE SHALL BE SIGNED BY A MAJORITY 1,087
OF THE OWNERS OF PROPERTY LOCATED IN THE AREA TO BE ADDED TO THE 1,088
DISTRICT, THE PETITION OTHERWISE REQUIRED UNDER DIVISION (G) OF 1,089
THAT SECTION SHALL BE SIGNED BY A MAJORITY OF THE OWNERS OF 1,090
BUSINESSES, IF ANY, LOCATED IN THE AREA TO BE ADDED TO THE 1,091
28
DISTRICT, AND THE PETITIONS SHALL SPECIFY THAT THE DOCUMENTS 1,092
DESCRIBED IN DIVISION (B) OF THIS SECTION ARE AVAILABLE FOR 1,094
PUBLIC INSPECTION AS OTHERWISE REQUIRED UNDER SECTION 715.75 OF 1,095
THE REVISED CODE. 1,097
(D) THE RESOLUTION OF A BOARD OF TOWNSHIP TRUSTEES 1,100
APPROVING AN AMENDMENT ADDING AREA TO AN EXISTING JOINT ECONOMIC 1,101
DEVELOPMENT DISTRICT IS NOT REQUIRED TO BE SUBMITTED TO THE 1,102
ELECTORS OF THE TOWNSHIP.
Sec. 715.82. A MUNICIPAL CORPORATION MAY ISSUE BONDS AND 1,104
EXERCISE ALL OTHER POWERS UNDER CHAPTER 165. OF THE REVISED CODE 1,105
FOR ONE OR MORE PROJECTS OR PARTS THEREOF LOCATED IN A JOINT 1,106
ECONOMIC DEVELOPMENT DISTRICT CREATED PURSUANT TO A CONTRACT 1,107
ENTERED INTO UNDER SECTION 715.70, 715.71, OR 715.72 TO 715.82 OF 1,108
THE REVISED CODE TO WHICH THE MUNICIPAL CORPORATION IS A PARTY, 1,109
OR IN A TOWNSHIP ADJACENT TO THAT MUNICIPAL CORPORATION, IF THE 1,110
LEGISLATIVE AUTHORITY OF THE MUNICIPAL CORPORATION DETERMINES 1,111
THAT THE PROJECT IS IN FURTHERANCE OF THE PUBLIC PURPOSES OF THE
STATE TO CREATE OR PRESERVE JOBS AND EMPLOYMENT OPPORTUNITIES AND 1,112
TO IMPROVE THE ECONOMIC WELFARE OF THE PEOPLE OF THE MUNICIPAL 1,113
CORPORATION AND THE TOWNSHIP. AS USED IN THIS SECTION, "PROJECT" 1,114
HAS THE SAME MEANING AS IN DIVISION (H) OF SECTION 165.01 OF THE 1,115
REVISED CODE, EXCEPT THAT A PROJECT DESCRIBED IN THIS SECTION IS 1,116
NOT REQUIRED TO BE LOCATED WITHIN THE TERRITORIAL BOUNDARIES OF 1,117
THE MUNICIPAL CORPORATION.
Sec. 718.03. A municipal corporation shall grant a credit 1,126
against its tax on income to a resident of the municipal 1,127
corporation who works in a joint economic development zone 1,128
created under section 715.691 or a joint economic development 1,129
district created under section 715.70, 715.71, OR 715.72 of the 1,130
Revised Code to the same extent that it grants a credit against 1,131
its tax on income to its residents who are employed in another 1,132
municipal corporation.
Sec. 5709.411. (A) AS USED IN THIS SECTION, "DETACHED 1,135
IMPROVEMENT" MEANS AN IMPROVEMENT AS DEFINED IN SECTION 5709.41 1,136
29
OF THE REVISED CODE THAT SATISFIES ALL OF THE FOLLOWING: 1,139
(1) THE ORDINANCE DECLARING THE IMPROVEMENT TO BE A PUBLIC 1,142
PURPOSE WAS ADOPTED UNDER SECTION 5709.41 OF THE REVISED CODE BY 1,144
A MUNICIPAL CORPORATION THAT IS A PARTY TO A CONTRACT CREATING A 1,145
JOINT ECONOMIC DEVELOPMENT DISTRICT UNDER SECTION 715.70 OR 1,146
715.71 OF THE REVISED CODE. 1,148
(2) THE IMPROVEMENT RELATES TO A PARCEL OF PROPERTY 1,150
LOCATED IN TERRITORY THAT IS DETACHED BY THAT MUNICIPAL 1,151
CORPORATION TO A TOWNSHIP THAT IS A PARTY TO THE SAME CONTRACT 1,152
CREATING THE JOINT ECONOMIC DEVELOPMENT DISTRICT, PURSUANT TO 1,153
THAT CONTRACT AND SECTION 709.38 OF THE REVISED CODE. 1,155
(3) THE ORDINANCE DECLARING THE IMPROVEMENTS TO BE A 1,157
PUBLIC PURPOSE IS ADOPTED PRIOR TO THE DETACHMENT OF THAT 1,158
TERRITORY. 1,159
(B) THE EXEMPTION FROM TAXATION FOR DETACHED IMPROVEMENTS 1,162
UNDER SECTION 5709.41 OF THE REVISED CODE SHALL CONTINUE FOR THE 1,164
PERIOD PRESCRIBED IN THAT SECTION AND THE ORDINANCE UNDER WHICH 1,165
THE IMPROVEMENTS ARE DECLARED TO BE A PUBLIC PURPOSE, OR ANY 1,166
AMENDMENTS TO THE ORDINANCE, EVEN IF THE DETACHMENT OCCURS PRIOR 1,168
TO THE END OF THAT PERIOD.
(C)(1) THE MUNICIPAL CORPORATION MAY REQUIRE THE OWNER OF 1,171
ANY BUILDING OR STRUCTURE LOCATED ON A PARCEL TO WHICH THE 1,172
DETACHED IMPROVEMENT RELATES TO PAY SERVICE PAYMENTS IN LIEU OF 1,173
TAXES UNDER SECTION 5709.42 OF THE REVISED CODE AFTER THE 1,175
TERRITORY INCLUDING THE DETACHED IMPROVEMENT IS DETACHED. THE 1,176
SERVICE PAYMENTS SHALL BE DISTRIBUTED TO THE MUNICIPAL 1,177
CORPORATION AS PROVIDED IN THAT SECTION. 1,178
(2) THE MUNICIPAL CORPORATION MAY USE THE SERVICE PAYMENTS 1,181
RECEIVED UNDER DIVISION (C)(1) OF THIS SECTION AS PRESCRIBED BY 1,183
SECTION 5709.43 OF THE REVISED CODE AND THE ORDINANCE DECLARING 1,186
THE DETACHED IMPROVEMENTS TO BE A PUBLIC PURPOSE. THE
LEGISLATIVE AUTHORITY OF THE MUNICIPAL CORPORATION MAY AMEND THE 1,187
ORDINANCE TO PERMIT THE SERVICE PAYMENTS TO BE USED TO PAY THE 1,188
COST OF STREETS, ROADS, WATER LINES, SEWERS, AND OTHER PUBLIC 1,189
30
IMPROVEMENTS EXTENDING FROM THE MUNICIPAL CORPORATION TO THE 1,190
DETACHED TERRITORY OR TO THE JOINT ECONOMIC DEVELOPMENT DISTRICT, 1,192
OR LOCATED ON THE DETACHED TERRITORY OR IN THE JOINT ECONOMIC 1,193
DEVELOPMENT DISTRICT, OR TO PAY DEBT SERVICE CHARGES ON
SECURITIES ISSUED BY THE MUNICIPAL CORPORATION TO FINANCE THOSE 1,194
PUBLIC IMPROVEMENTS. 1,195
Sec. 5709.82. (A) As used in this section: 1,204
(1) "New employee" means both of the following: 1,206
(a) Persons employed in the construction of real property 1,208
exempted from taxation under the chapters or sections of the 1,209
Revised Code enumerated in division (B) of this section; 1,210
(b) Persons not described by division (A)(1)(a) of this 1,212
section who are first employed at the site of such property and 1,213
who within the two previous years have not been subject, prior to 1,214
being employed at that site, to income taxation by the municipal 1,215
corporation within whose territory the site is located on income 1,216
derived from employment for the person's current employer. "New 1,217
employee" does not include any person who replaces a person who 1,218
is not a new employee under division (A)(1) of this section. 1,219
(2) "Infrastructure costs" means costs incurred by a 1,221
municipal corporation in a calendar year to acquire, construct, 1,222
reconstruct, improve, plan, or equip real or tangible personal 1,223
property that directly benefits or will directly benefit the 1,224
exempted property. If the municipal corporation finances the 1,225
acquisition, construction, reconstruction, improvement, planning, 1,226
or equipping of real or tangible personal property that directly 1,227
benefits the exempted property by issuing debt, "infrastructure 1,228
costs" means the annual debt charges incurred by the municipal 1,229
corporation from the issuance of such debt. Real or tangible 1,230
personal property directly benefits exempted property only if the 1,231
exempted property places or will place direct, additional demand 1,232
on the real or tangible personal property for which such costs 1,233
were or will be incurred. 1,234
(B) Except as otherwise provided under division (C) of 1,236
31
this section, the legislative authority of any political 1,237
subdivision that has acted under the authority of Chapter 725. or 1,238
1728., sections 3735.65 to 3735.70, or section 5709.40, 5709.41, 1,239
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, 5709.84, or 5709.88 1,240
of the Revised Code to grant an exemption from taxation for real 1,241
or tangible personal property may negotiate with the board of 1,242
education of each city, local, or exempted village school 1,243
district within the territory of which the exempted property is 1,244
located, and enter into an agreement whereby the school district 1,245
is compensated for tax revenue that the school district would 1,246
have received had the property not been exempted from taxation. 1,247
(C) This division does not apply to the following: 1,249
(1) The legislative authority of a municipal corporation 1,253
that has acted under the authority of DIVISION (H) OF SECTION 1,254
715.70 OR section 715.81 of the Revised Code to consent to the 1,256
granting of an exemption from taxation for real or tangible
personal property in a joint economic development district. 1,257
(2) The legislative authority of a municipal corporation 1,260
that has specified in an ordinance adopted under section 5709.40 1,261
or 5709.41 of the Revised Code that payments in lieu of taxes 1,263
provided for under section 5709.42 of the Revised Code shall be 1,264
paid to the city, local, or exempted village school district in 1,266
which the improvements are located in the amount of taxes that
would have been payable to the school district if the 1,267
improvements had not been exempted from taxation, as directed in 1,268
the ordinance.
If the legislative authority of any municipal corporation 1,271
has acted under the authority of Chapter 725. or 1728. or section 1,272
3735.671, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, or 1,273
5709.88, or a housing officer under section 3735.67 of the 1,274
Revised Code, to grant or consent to the granting of an exemption 1,275
from taxation for real or tangible personal property on or after 1,276
July 1, 1994, the municipal corporation imposes a tax on incomes, 1,277
and the payroll of new employees resulting from the exercise of 1,278
32
that authority equals or exceeds one million dollars in any tax 1,279
year for which such property is exempted, the legislative 1,280
authority and the board of education of each city, local, or 1,281
exempted village school district within the territory of which 1,282
the exempted property is located shall attempt to negotiate an 1,283
agreement providing for compensation to the school district for 1,284
all or a portion of the tax revenue the school district would 1,285
have received had the property not been exempted from taxation. 1,286
The agreement may include as a party the owner of the property 1,287
exempted or to be exempted from taxation and may include 1,288
provisions obligating the owner to compensate the school district 1,289
by paying cash or providing property or services by gift, loan, 1,290
or otherwise. Such an obligation is enforceable by the board of 1,291
education of the school district pursuant to the terms of the 1,292
agreement.
If the legislative authority and board of education fail to 1,294
negotiate an agreement that is mutually acceptable within six 1,295
months of formal approval by the legislative authority of the 1,296
instrument granting the exemption, the legislative authority 1,297
shall compensate the school district in the amount and manner 1,298
prescribed by division (D) of this section. 1,299
(D) Annually, the legislative authority of a municipal 1,301
corporation subject to this division shall pay to the city, 1,302
local, or exempted village school district within the territory 1,303
of which the exempted property is located an amount equal to 1,304
fifty per cent of the difference between the amount of taxes 1,305
levied and collected by the municipal corporation on the incomes 1,306
of new employees in the calendar year ending on the day the 1,307
payment is required to be made, and the amount of any 1,308
infrastructure costs incurred in that calendar year. For 1,309
purposes of such computation, the amount of infrastructure costs 1,310
shall not exceed thirty-five per cent of the amount of those 1,311
taxes unless the board of education of the school district, by 1,312
resolution adopted by a majority of the board, approves an amount 1,313
33
in excess of that percentage. If the amount of those taxes or 1,314
infrastructure costs must be estimated at the time the payment is 1,315
made, payments in subsequent years shall be adjusted to 1,316
compensate for any departure of those estimates from the actual 1,317
amount of those taxes. 1,318
A municipal corporation required to make a payment under 1,320
this section shall make the payment from its general fund or a 1,321
special fund established for the purpose. The payment is payable 1,322
on the thirty-first day of December of the tax year for or in 1,323
which the exemption from taxation commences and on that day for 1,324
each subsequent tax year property is exempted and the legislative 1,325
authority and board fail to negotiate an acceptable agreement 1,326
under division (C) of this section. 1,327
Section 2. That existing sections 715.70, 715.71, 715.72, 1,329
715.74, 718.03, and 5709.82 of the Revised Code are hereby 1,331
repealed.
Section 3. Section 13 of Article VIII, Ohio Constitution, 1,333
is in part implemented by sections 715.69 to 715.82 of the 1,334
Revised Code in furtherance of the public purposes of this state 1,335
to create or preserve jobs and employment opportunities and to 1,336
improve the economic welfare of the people of the state.
Section 4. The amendments to sections 715.70, 715.71, 1,338
715.72, and 715.74 of the Revised Code in this act apply to any 1,340
proceedings commenced after their effective date, and, so far as 1,341
their provisions support the actions taken, also apply to any
proceedings that on their effective date are pending, in 1,342
progress, or, in the case of elections or otherwise, completed, 1,343
and to the contracts authorized pursuant to those proceedings, 1,344
notwithstanding the applicable law previously in effect or any 1,345
provision to the contrary in a prior resolution, ordinance,
order, advertisement, notice, or other proceeding. Any 1,346
proceedings pending or in progress on the effective date of those 1,347
amendments, and contracts entered into or approved pursuant to 1,348
those proceedings, shall be deemed to have been taken, and 1,349
34
authorized, entered into, and approved, in conformity with those
amendments. 1,350
Section 5. Section 715.70 of the Revised Code is presented 1,352
in this act as a composite of the section as amended by both Am. 1,354
Sub. H.B. 269 and Am. Sub. H.B. 99 of the 121st General Assembly, 1,355
with the new language of neither of the acts shown in capital 1,356
letters. This is in recognition of the principle stated in 1,357
division (B) of section 1.52 of the Revised Code that such 1,358
amendments are to be harmonized where not substantively 1,359
irreconcilable and constitutes a legislative finding that such is 1,360
the resulting version in effect prior to the effective date of 1,361
this act.