As Reported by the House Economic Development and 1
Small Business Committee* 2
122nd General Assembly 5
Regular Session Sub. H. B. No. 434 6
1997-1998 7
REPRESENTATIVES SCHURING-MAIER-OLMAN-TIBERI-GARCIA-PATTON- 9
THOMPSON-CATES-SAWYER-COLONNA-PRENTISS-TERWILLEGER-METZGER- 10
MOTTLEY-KREBS-BRADING-BOYD-SCHULER 11
13
A B I L L
To amend sections 715.70, 715.71, 715.72, 715.74, 15
715.76, 715.78, 718.03, and 5709.82 and to enact 17
sections 701.07, 715.761, 715.771, 715.82, and 18
5709.411 of the Revised Code and to repeal 19
Section 4 of Sub. H.B. 481 of the 119th General 20
Assembly to make various changes in procedures 21
governing the creation of joint economic 22
development zones and certain joint economic 23
development districts, to grant additional 24
authority to subdivisions joining in certain 25
kinds of joint economic development zones 27
regarding the issuance of industrial development 28
bonds, sharing property taxes, and granting 29
property tax exemptions, and to authorize 30
municipal corporations, counties, townships, the 31
state, and certain persons and private entities 32
to enter into cooperative economic development 33
agreements. 34
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 36
Section 1. That sections 715.70, 715.71, 715.72, 715.74, 38
715.76, 715.78, 718.03, and 5709.82 be amended and sections 39
701.07, 715.761, 715.771, 715.82, and 5709.411 of the Revised 41
Code be enacted to read as follows:
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Sec. 701.07. (A) THE LEGISLATIVE AUTHORITY OF ONE OR MORE 43
MUNICIPAL CORPORATIONS, BY ORDINANCE OR RESOLUTION, AND THE BOARD 44
OF TOWNSHIP TRUSTEES OF ONE OR MORE TOWNSHIPS, BY RESOLUTION, MAY 46
ENTER INTO A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT UNDER 47
THIS SECTION. THE BOARD OF COUNTY COMMISSIONERS OF ONE OR MORE 48
COUNTIES MAY BECOME A PARTY TO A COOPERATIVE ECONOMIC DEVELOPMENT 49
AGREEMENT UPON THE WRITTEN CONSENT OF THE LEGISLATIVE AUTHORITY
OF EACH MUNICIPAL CORPORATION AND THE BOARD OF TOWNSHIP TRUSTEES 50
OF EACH TOWNSHIP THAT IS A PARTY TO THE AGREEMENT. 51
(B) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT MAY BE 54
AMENDED AT ANY TIME IN THE SAME MANNER AS IT WAS INITIALLY 55
AUTHORIZED. A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT SHALL
DESIGNATE THE TERRITORY THE AGREEMENT COVERS. 56
(C) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT MAY 58
PROVIDE FOR ANY OF THE FOLLOWING: 59
(1) THE PROVISION OF JOINT SERVICES AND PERMANENT 61
IMPROVEMENTS WITHIN INCORPORATED OR UNINCORPORATED AREAS; 62
(2) THE PROVISION OF SERVICES AND IMPROVEMENTS BY A 64
MUNICIPAL CORPORATION IN UNINCORPORATED AREAS; 65
(3) THE PROVISION OF SERVICES AND IMPROVEMENTS BY A COUNTY 67
OR TOWNSHIP WITHIN THE TERRITORY OF A MUNICIPAL CORPORATION; 68
(4) THE PAYMENT OF SERVICE FEES TO A MUNICIPAL CORPORATION 70
BY A TOWNSHIP OR COUNTY; 71
(5) THE PAYMENT OF SERVICE FEES TO A TOWNSHIP OR A COUNTY 73
BY A MUNICIPAL CORPORATION; 74
(6) THE ISSUANCE OF NOTES AND BONDS AND OTHER DEBT 76
OBLIGATIONS BY A MUNICIPAL CORPORATION, COUNTY, OR TOWNSHIP FOR 77
PUBLIC PURPOSES AUTHORIZED BY OR UNDER A COOPERATIVE ECONOMIC 78
DEVELOPMENT AGREEMENT AND PROVISION FOR THE ALLOCATION OF THE 79
PAYMENT OF THE PRINCIPAL OF, INTEREST ON, AND OTHER CHARGES AND 80
COSTS OF ISSUING AND SERVICING THE REPAYMENT OF THE DEBT;
(7) THE ISSUANCE OF INDUSTRIAL DEVELOPMENT NOTES, BONDS, 82
AND DEBT OBLIGATIONS BY A MUNICIPAL CORPORATION TO FINANCE 83
PROJECTS IN TERRITORY LOCATED OUTSIDE THE MUNICIPAL CORPORATION 84
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BUT LOCATED WITHIN THE TERRITORY COVERED BY A COOPERATIVE 85
ECONOMIC DEVELOPMENT AGREEMENT AND PROVISION FOR THE ALLOCATION 86
OF THE PAYMENT OF THE PRINCIPAL OF, INTEREST ON, AND OTHER
CHARGES AND COSTS OF ISSUING AND SERVICING THE REPAYMENT OF THE 87
DEBT. TO IMPLEMENT DIVISION (C)(10) OF THIS SECTION, A MUNICIPAL 88
CORPORATION MAY UNDERTAKE PROJECTS UNDER CHAPTER 165., 761., OR 89
902. OF THE REVISED CODE EVEN THOUGH THE PROJECT IS IN TERRITORY 90
LOCATED OUTSIDE THE MUNICIPAL CORPORATION.
(8) THE TERRITORY TO BE ANNEXED TO A MUNICIPAL CORPORATION 92
WHEN AGREED TO BY THE MUNICIPAL CORPORATION TO WHICH ANNEXATION 93
IS PROPOSED AND THE TOWNSHIP IN WHICH THE TERRITORY TO BE ANNEXED 94
IS LOCATED;
(9) ANY PERIODS OF TIME DURING WHICH NO ANNEXATIONS WILL 96
OCCUR AND ANY AREAS THAT WILL NOT BE ANNEXED DURING THE PERIOD 97
WHEN AGREED TO BY THE MUNICIPAL CORPORATION AND TOWNSHIP AFFECTED 98
BY THE ANNEXATION MORATORIUM;
(10) AGREEMENTS BY A MUNICIPAL CORPORATION AND A TOWNSHIP, 100
OR BY A MUNICIPAL CORPORATION AND A COUNTY, WITH LANDOWNERS OR 101
DEVELOPERS OF LAND THAT IS TO BE ANNEXED, OR WITH BOTH SUCH 102
LANDOWNERS AND LAND DEVELOPERS, CONCERNING THE PROVISION OF 103
PUBLIC SERVICES, FACILITIES, AND PERMANENT IMPROVEMENTS;
(11) THE APPLICATION OF TAX ABATEMENT STATUTES WITHIN THE 105
TERRITORY COVERED BY THE COOPERATIVE ECONOMIC DEVELOPMENT 106
AGREEMENT;
(12) CHANGING TOWNSHIP BOUNDARIES UNDER CHAPTER 503. OF 108
THE REVISED CODE TO EXCLUDE NEWLY ANNEXED TERRITORY FROM THE 109
ORIGINAL TOWNSHIP AND PROVIDING SERVICES TO THAT TERRITORY; 110
(13) THE EARMARKING BY A MUNICIPAL CORPORATION FOR ITS 112
GENERAL REVENUE FUND OF A PORTION OF THE UTILITY CHARGES IT 113
COLLECTS IN TERRITORY LOCATED OUTSIDE THE MUNICIPAL CORPORATION 114
BUT LOCATED WITHIN THE TERRITORY COVERED BY A COOPERATIVE 115
ECONOMIC DEVELOPMENT AGREEMENT, BUT ONLY IF THE COOPERATIVE
ECONOMIC DEVELOPMENT AGREEMENT DOES NOT COVER ANY MATTERS 116
RELATING TO ANNEXATION; 117
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(14) PAYMENTS IN LIEU OF TAXES, IF ANY, TO BE PAID TO A 119
TOWNSHIP BY A MUNICIPAL CORPORATION. THESE PAYMENTS MAY BE IN 120
ADDITION TO OR IN LIEU OF OTHER PAYMENTS REQUIRED BY LAW TO BE 121
MADE TO THE TOWNSHIP BY THAT MUNICIPAL CORPORATION. 122
(15) ANY OTHER MATTER PERTAINING TO THE ANNEXATION OR 124
DEVELOPMENT OF TERRITORY, WHETHER THE TERRITORY IS OWNED BY A 125
GOVERNMENTAL ENTITY OR A PERSON OR PRIVATE ENTITY. 126
AS USED IN DIVISION (C)(2) OF THIS SECTION, "IMPROVEMENT" 128
INCLUDES, BUT IS NOT LIMITED TO, SEWERS, ROADWAYS, PUBLIC 129
UTILITIES, AND THE ACQUISITION OF LAND. 130
(D) COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENTS SHALL NOT 132
BE IN DEROGATION OF THE POWERS GRANTED TO MUNICIPAL CORPORATIONS 133
BY ARTICLE XVIII, OHIO CONSTITUTION, OR ANY OTHER PROVISIONS OF 135
THE OHIO CONSTITUTION OR OF A MUNICIPAL CHARTER, NOR SHALL 136
MUNICIPAL CORPORATIONS AND TOWNSHIPS, OR MUNICIPAL CORPORATIONS
AND COUNTIES, AGREE TO SHARE PROCEEDS OF ANY TAX LEVY, ALTHOUGH 137
SUCH PROCEEDS MAY BE USED TO MAKE PAYMENTS AUTHORIZED IN A 138
COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT. 139
(E) IF ANY PARTY TO A COOPERATIVE ECONOMIC DEVELOPMENT 141
AGREEMENT BELIEVES ANY OTHER PARTY HAS FAILED TO PERFORM ITS PART 142
OF ANY PROVISION OF THE AGREEMENT, INCLUDING THE FAILURE TO MAKE 143
ANY PAYMENT OF MONEYS DUE UNDER THE AGREEMENT, THE COMPLAINING 144
PARTY SHALL GIVE NOTICE TO THE OTHER PARTY CLEARLY STATING WHAT 145
BREACH THE COMPLAINING PARTY BELIEVES HAS OCCURRED. THE PARTY 146
RECEIVING THE NOTICE HAS NINETY DAYS FROM THE RECEIPT OF THAT
NOTICE TO CURE THE BREACH. IF THE BREACH HAS NOT BEEN CURED 147
WITHIN THAT NINETY-DAY PERIOD, THE COMPLAINING PARTY MAY SUE FOR 148
THE RECOVERY OF THE MONEY DUE UNDER THE AGREEMENT, SUE FOR 149
SPECIFIC ENFORCEMENT OF THE AGREEMENT, OR TERMINATE THE AGREEMENT 150
BY GIVING NOTICE OF TERMINATION TO ALL OTHER PARTIES.
(F) IN ORDER TO ASSIST ECONOMIC DEVELOPMENT OR TO PROVIDE 152
APPROPRIATE STATE FUNCTIONS AND SERVICES TO ANY PART OF THE 153
STATE, THE STATE OR ANY STATE AGENCY MAY BECOME A PARTY TO A 154
COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT UPON THE APPROVAL OF 155
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THE GOVERNOR AND THE WRITTEN CONSENT OF THE LEGISLATIVE AUTHORITY 156
OR GOVERNING BOARD OF EACH GOVERNMENT ENTITY THAT IS A PARTY TO 157
THE AGREEMENT AND UPON THE APPROVAL OF EACH PERSON OR PRIVATE
ENTITY DESCRIBED IN DIVISION (C)(10) OF THIS SECTION THAT IS 158
PARTY TO THE AGREEMENT. 159
(G) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT ENTERED 161
INTO UNDER THIS SECTION IS IN ADDITION TO ANY OTHER AGREEMENTS 162
AUTHORIZED BY LAW BETWEEN MUNICIPAL CORPORATIONS AND COUNTIES OR 163
BETWEEN MUNICIPAL CORPORATIONS AND TOWNSHIPS. 164
(H) THE POWERS AND AUTHORIZATIONS PROVIDED FOR UNDER THIS 166
SECTION AND UNDER ANY COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT 167
ENTERED INTO PURSUANT TO THIS SECTION SHALL BE LIBERALLY 168
CONSTRUED TO ALLOW PARTIES TO ENTER INTO COOPERATIVE ECONOMIC 169
DEVELOPMENT AGREEMENTS AND TO CARRY OUT SUCH AN AGREEMENT BY 170
PROVIDING GOVERNMENT IMPROVEMENTS AND FACILITIES AND SERVICES, BY
PROMOTING AND SUPPORTING ECONOMIC DEVELOPMENT, BY CREATING AND 171
PRESERVING EMPLOYMENT OPPORTUNITIES, AND BY ALLOWING FOR THE 172
SHARING BY COUNTIES AND TOWNSHIPS IN THE BENEFITS OF ECONOMIC 173
DEVELOPMENT EVEN IF THE ECONOMIC DEVELOPMENT DOES NOT OCCUR IN AN 174
UNINCORPORATED AREA.
Sec. 715.70. (A) This section and section 715.71 of the 184
Revised Code apply only to: 185
(1) Municipal corporations and townships within a county 187
that has adopted a charter under Sections 3 and 4 of Article X, 188
Ohio Constitution.; 189
(2) Municipal corporations and townships that have created 191
a joint economic development district comprised entirely of real 192
property owned by a municipal corporation AT THE TIME THE 193
DISTRICT WAS CREATED UNDER THIS SECTION. The real property owned 194
by the municipal corporation shall include an airport owned by 195
the municipal corporation and located entirely beyond the 196
municipal corporation's corporate boundary. 197
(3) Municipal corporations or townships that are part of 199
or contiguous to a transportation improvement district created 201
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under Chapter 5540. of the Revised Code and that have created a 202
joint economic development district under this section or section 203
715.71 of the Revised Code prior to the effective date of this 205
amendment NOVEMBER 15, 1995. 206
(B)(1) One or more municipal corporations and one or more 208
townships may enter into a contract approved by the legislative 209
authority of each contracting party pursuant to which they create 210
as a joint economic development district an area or areas for the 211
purpose of facilitating economic development to create or 212
preserve jobs and employment opportunities and to improve the 213
economic welfare of the people in the state and in the area of 214
the contracting parties. Any interested person, other than a 215
political subdivision, may bring a civil action within thirty 216
days after the executed copy of the contract is filed with the 217
county recorder pursuant to division (B)(5) of this section 218
challenging whether the contract satisfies the purposes of a 220
joint economic development district as described in this section. 221
The area OR AREAS of land to be included in the district shall 223
not include any parcel of land owned in fee by a municipal 224
corporation or a township or parcel of land that is leased to a 225
municipal corporation or a township, unless the municipal 226
corporation or township is a party to the contract or unless the 227
municipal corporation or township has given its consent to have 228
its parcel of land included in the district by the adoption of a 229
resolution. As used in this division, "parcel of land" means any 230
parcel of land owned by a municipal corporation or a township for 231
at least a six-month period within a five-year period prior to 232
the creation of a district, but "parcel of land" does not include 233
streets or public ways and sewer, water, and other utility lines 234
whether owned in fee or otherwise. 235
The district created shall be located within the territory 237
of one or more of the participating parties and may consist of 238
all or a portion of such territory. The boundaries of the 239
district shall be described in the contract or in an addendum to 240
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the contract. 241
(2) Where a municipal corporation is located within 243
one-quarter mile of a proposed joint economic development 245
district and is not otherwise a party to the proposed contract, 246
the participating parties shall afford the municipal corporation 247
the reasonable opportunity, for a period of not less than thirty 248
days following receipt of notice of such opportunity from the 249
participating parties, to meet and confer with the participating 250
parties to determine whether the municipal corporation will 251
participate in the joint economic development district. 252
Prior to the public hearing to be held pursuant to division 254
(D)(2) of this section, the participating parties shall give a 255
copy of the proposed contract to each municipal corporation 256
located within one-quarter mile of the proposed joint economic 257
development district and not otherwise a party to the contract, 259
and afford the municipal corporation the reasonable opportunity, 260
for a period of thirty days following receipt of the proposed 261
contract, to make comments and suggestions to the participating 262
parties regarding elements contained in the proposed contract. 263
Prior to the public hearing, the participating parties may 264
include in the contract any of the suggestions or recommendations 265
made by any such municipal corporation. 266
(3) The district shall not exceed two thousand acres in 268
area. The territory of the district shall not completely 269
surround territory that is not included within the boundaries of 270
the district. 271
(4) Sections 503.07 to 503.12 of the Revised Code do not 273
apply to territory included within a district created pursuant to 274
this section as long as the contract creating the district is in 275
effect, unless the legislative authority of each municipal 276
corporation and the board of township trustees of each township 277
included in the district consent, by ordinance or resolution, to 278
the application of those sections of the Revised Code. 279
(5) Upon the execution of the contract creating the 281
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district by the parties to the contract, a participating 282
municipal corporation or township included within the district 283
shall file a copy of the fully executed contract with the county 284
recorder of each county within which a party to the contract is 285
located, in the miscellaneous records of the county. No 286
annexation proceeding pursuant to Chapter 709. of the Revised 287
Code that proposes the annexation to, merger, or consolidation 288
with a municipal corporation of any unincorporated territory 289
within the district shall be commenced for a period of three 290
years after the contract is filed with the county recorder of 291
each county within which a party to the contract is located 292
unless each board of township trustees whose territory is 293
included, in whole or part, within the district and the territory 294
proposed to be annexed, merged, or consolidated adopts a 295
resolution consenting to the commencement of the proceeding and a 296
copy of the resolution is filed with the clerk of the board of 297
county commissioners LEGISLATIVE AUTHORITY of each county within 299
which a party to the contract is located or unless the contract 300
is terminated during this period.
The contract entered into between the municipal 302
corporations and townships pursuant to this section may provide 303
for the prohibition of any annexation by the participating 304
municipal corporations of any unincorporated territory within the 305
district beyond the three-year mandatory prohibition of any 306
annexation provided for in division (B)(5) of this section. 307
(C)(1) After the legislative authority of a municipal 309
corporation and the board of township trustees have adopted an 310
ordinance and resolution approving a contract to create a joint 311
economic development district pursuant to this section, and after 312
a contract has been signed, the municipal corporations and 313
townships shall jointly file a petition with the legislative 314
authority of each county within which a party to the contract is 315
located. Copies of the ordinances, resolutions, and contract 317
shall be attached to the petition. The
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(a) THE petition shall contain all of the following: 320
(a)(i) A statement that the area OR AREAS of the district 323
is not greater than two thousand acres and is located within the 324
territory of one or more of the contracting parties; 325
(b)(ii) A brief summary of the services to be provided by 327
each party to the contract OR A REFERENCE TO THE PORTION OF THE 329
CONTRACT DESCRIBING THOSE SERVICES; 330
(c)(iii) A legal description of the area OR AREAS to be 333
designated as the district; 334
(d)(iv) The signature of a representative of each of the 336
contracting parties;. 337
(b) THE FOLLOWING DOCUMENTS SHALL BE FILED WITH THE 339
PETITION:
(i) A SIGNED COPY OF THE CONTRACT, TOGETHER WITH COPIES OF 341
DISTRICT MAPS AND PLANS RELATED TO OR PART OF THE CONTRACT; 342
(ii) A CERTIFIED COPY OF THE ORDINANCES AND RESOLUTIONS OF 344
THE CONTRACTING PARTIES APPROVING THE CONTRACT; 345
(iii) A CERTIFICATE FROM EACH OF THE CONTRACTING PARTIES 347
INDICATING THAT THE PUBLIC HEARINGS REQUIRED BY DIVISION (D)(2) 348
OF THIS SECTION HAVE BEEN HELD, THE DATE OF THE HEARINGS, AND 349
EVIDENCE OF PUBLICATION OF THE NOTICE OF THE HEARINGS; 350
(e) The signatures of a majority (iv) ONE OR MORE SIGNED 352
STATEMENTS of those persons who are owners of property located IN 354
WHOLE OR IN PART within the area to be designated as the district 356
and the signatures of those, REQUESTING THAT SUCH PROPERTY BE 357
INCLUDED WITHIN THE DISTRICT, PROVIDED THAT THOSE STATEMENTS
SHALL REPRESENT A MAJORITY OF THE PERSONS OWNING PROPERTY LOCATED 358
IN WHOLE OR IN PART WITHIN THE DISTRICT AND persons who are 359
owners of the OWNING A majority of THE acreage located within the 360
district. A SIGNATURE MAY BE WITHDRAWN BY THE SIGNER UP TO BUT 361
NOT AFTER THE TIME OF THE PUBLIC HEARING REQUIRED BY DIVISION 362
(D)(2) OF THIS SECTION. 363
The legislative authority of each county within which a 365
party to the contract is located shall hold a public hearing 368
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concerning the joint economic development district contract 369
within thirty days after the filing of the petition and shall 370
publish notice of the time and place of the public hearing in a 371
newspaper of general circulation in the county at least fourteen 372
days prior to the hearing.
During the thirty-day period prior to the public hearing, a 374
copy of the text of the contract together with copies of district 375
maps and plans related to or part of the contract shall be on 376
file, for public examination, in the offices of the clerk of the 377
legislative authority of each county within which a party to the 378
contract is located. 379
(2) After the public hearing on the petition relating to 381
the creation of a joint economic development district has been 382
held, the THE legislative authority of each county within which a 383
party to the contract is located shall adopt a resolution 386
approving the petition for the creation of the district if the 387
petition meets AND OTHER DOCUMENTS HAVE BEEN FILED IN ACCORDANCE 388
WITH the requirements of division (C)(1) of this section. If the 389
petition does AND OTHER DOCUMENTS DO not SUBSTANTIALLY meet the 390
requirements of that division, the legislative authority of any 391
county within which a party to the contract is located may adopt 392
a resolution disapproving the petition for the creation of the 393
district. The legislative authority of each county within which 394
a party to the contract is located shall adopt a resolution
approving or disapproving the petition within sixty THIRTY days 396
after the public hearing PETITION was held FILED. If the 397
legislative authority of each such county does not adopt the 398
resolution within the sixty-day THIRTY-DAY period, the petition 400
shall be deemed approved and the contract shall go into effect no 401
sooner than thirty days IMMEDIATELY after that approval OR AT 402
SUCH OTHER TIME AS THE CONTRACT SPECIFIES.
(D)(1) The contract creating the district shall set forth 404
or provide for the amount or nature of the contribution of each 405
municipal corporation and township to the development and 406
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operation of the district and may provide for the sharing of the 407
costs of the operation of and improvements for the district. The 408
contributions may be in any form to which the contracting 409
municipal corporations and townships agree and may include but 410
are not limited to the provision of services, money, real or 411
personal property, facilities, or equipment. THE CONTRACT MAY 413
PROVIDE FOR THE CONTRACTING PARTIES TO SHARE REVENUE FROM TAXES 414
LEVIED ON PROPERTY BY ONE OR MORE OF THE CONTRACTING PARTIES IF 415
THOSE REVENUES MAY LAWFULLY BE APPLIED TO THAT PURPOSE UNDER THE 416
LEGISLATION BY WHICH THOSE TAXES ARE LEVIED. The contract shall 417
provide for new, expanded, or additional services, facilities, or 418
improvements, including expanded or additional capacity for or 419
other enhancement of existing services, facilities, or 420
improvements, provided that those services, facilities, or 421
improvements, or expanded or additional capacity for or 422
enhancement of existing services, facilities, or improvements, 423
required herein have been provided within the two-year period 424
prior to the execution of the contract. 425
(2) Before the legislative authority of a municipal 427
corporation or a board of township trustees passes any ordinance 428
or resolution approving a contract to create a joint economic 429
development district pursuant to this section, the legislative 430
authority of the municipal corporation and the board of township 431
trustees shall EACH hold a public hearing concerning the joint 432
economic development district contract and shall provide thirty 433
days' public notice of the time and place of the public hearing 434
in a newspaper of general circulation in the municipal 435
corporation and the township. The board of township trustees 436
shall MAY provide ADDITIONAL notice to township residents in 438
accordance with section 505.07 of the Revised Code and the ANY 439
SUCH ADDITIONAL notice shall include: the public hearing 441
announcement; a summary of the terms of the contract; a 442
disclosure of the fact STATEMENT that the entire text of the 443
contract and district maps and plans are on file for public 444
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examination in the office of the township clerk; and information 445
pertaining to any tax changes which will or may occur as a result 446
of the contract. 447
During the thirty-day period prior to the public hearing, a 449
copy of the text of the contract together with copies of district 450
maps and plans related to or part of the contract shall be on 451
file, for public examination, in the offices of the clerk of the 452
legislative authority of the municipal corporation and of the 453
township clerk. The public hearing provided for in division 454
(D)(2) of this section shall allow for public comment and 455
recommendations from the public on the proposed contract. THE 456
CONTRACTING PARTIES MAY INCLUDE IN THE CONTRACT ANY OF THOSE 457
RECOMMENDATIONS PRIOR TO THE APPROVAL OF THE CONTRACT. 458
(3) Any resolution of the board of township trustees that 460
approves a contract that creates a joint economic development 461
district pursuant to this section shall be subject to a 462
referendum of the electors of the township. When a referendum 463
petition, signed by ten per cent of the number of electors in the 464
township who voted for the office of governor at the most recent 466
general election for the office of governor, is presented to the 467
board of township trustees within thirty days after the board of 468
township trustees adopted the resolution, ordering that the 469
resolution be submitted to the electors of the township for their 470
approval or rejection, the board of township trustees shall, 471
after ten days and not later than four p.m. of the seventy-fifth 472
day before the election, certify the text of the resolution to 473
the board of elections. The board of elections shall submit the 474
resolution to the electors of the township for their approval or 475
rejection at the next general, primary, or special election 476
occurring subsequent to seventy-five days after the certifying of 477
the petition to the board of elections. 478
(4) UPON THE CREATION OF A DISTRICT UNDER THIS SECTION OR 480
SECTION 715.71 OF THE REVISED CODE, ONE OF THE CONTRACTING 481
PARTIES SHALL FILE A COPY OF THE FOLLOWING WITH THE DIRECTOR OF 482
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DEVELOPMENT:
(a) THE PETITION AND OTHER DOCUMENTS DESCRIBED IN DIVISION 484
(C)(1) OF THIS SECTION, IF THE DISTRICT IS CREATED UNDER THIS 485
SECTION; 486
(b) THE DOCUMENTS DESCRIBED IN DIVISION (D) OF SECTION 488
715.71 OF THE REVISED CODE, IF THE DISTRICT IS CREATED UNDER THAT 489
SECTION.
(E) The district created by the contract shall be governed 491
by a board of directors that shall be established by or pursuant 492
to the contract. The board is a public body for the purposes of 493
section 121.22 of the Revised Code. The provisions of Chapter 494
2744. of the Revised Code apply to the board and the district. 495
The members of the board shall be appointed as provided in the 496
contract from among the elected members of the legislative 497
authorities and the elected chief executive officers of the 498
contracting parties, provided that there shall be at least two 499
members appointed from each of the contracting parties. 500
(F) The contract shall enumerate the specific powers, 502
duties, and functions of the board of directors of a district, 503
and the contract shall provide for the determination of 504
procedures that are to govern the board of directors. The 505
contract may grant to the board the power to adopt a resolution 506
to levy an income tax within the district. The income tax shall 507
be used for the purposes of the district and for the purposes of 508
the contracting municipal corporations and townships pursuant to 509
the contract. The income tax may be levied in the district based 510
upon ON income earned by persons working or residing within the 511
district and upon BASED ON the net profits of businesses located 512
in the district. The income tax is subject to SHALL FOLLOW THE 514
PROVISIONS OF Chapter 718. of the Revised Code, except that a 516
vote shall be required by the electors residing in the district 517
to approve the rate of income tax. If no electors reside within 518
the district, then division (F)(4) of this section applies. The 519
rate of the income tax shall be no higher than the highest rate 520
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being levied by a municipal corporation that is a party to the 521
contract.
(1) Within one hundred eighty days after the first meeting 523
of the board of directors, the board may levy an income tax at a 524
rate that is not higher than the highest rate being levied by a 525
municipal corporation that is a party to the contract, provided 526
that the rate of the income tax is first submitted to and 527
approved by the electors of the district at the succeeding 528
regular or primary election, or a special election called by the 529
board, occurring subsequent to seventy-five days after a 530
certified copy of the resolution levying the income tax and 531
calling for the election is filed with the board of elections. 532
If the voters approve the levy of the income tax, the income tax 533
shall be in force for the full period of the contract 534
establishing the district. Any increase in the rate of an income 535
tax that was first levied within one hundred eighty days after 536
the first meeting of the board of directors shall be approved by 537
a vote of the electors of the district and, shall be in force for 539
the remaining period of the contract establishing the district, 540
AND SHALL NOT BE SUBJECT TO DIVISION (F)(2) OF THIS SECTION. 541
(2) Any resolution of the board of directors levying an 543
income tax that is adopted subsequent to one hundred eighty days 544
after the first meeting of the board of directors shall be 545
subject to a referendum as provided in division (F)(2) of this 546
section. Any resolution of the board of directors levying an 547
income tax that is adopted subsequent to one hundred eighty days 548
after the first meeting of the board of directors shall be 549
subject to an initiative proceeding to amend or repeal the 550
resolution levying the income tax as provided in division (F)(2) 551
of this section. When a referendum petition, signed by ten per 552
cent of the number of electors in the district who voted for the 553
office of governor at the most recent general election for the 554
office of governor, is filed with the county auditor of each 555
county within which a party to the contract is located within 556
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thirty days after the resolution is adopted by the board or when 557
an initiative petition, signed by ten per cent of the number of 558
electors in the district who voted for the office of governor at 559
the most recent general election for the office of governor, is 561
filed with the county auditor of each such county ordering that a
resolution to amend or repeal a prior resolution levying an 563
income tax be submitted to the electors within the district for 564
their approval or rejection, the county auditor of each such 565
county, after ten days and not later than four p.m. of the 566
seventy-fifth day before the election, shall certify the text of 567
the resolution to the board of elections of that county. The 568
county auditor of each such county shall retain the petition. 569
The board of elections shall submit the resolution to such 570
electors, for their approval or rejection, at the next general, 571
primary, or special election occurring subsequent to seventy-five 573
days after the certifying of such petition to the board of 574
elections.
(3) Whenever a district is located in the territory of 576
more than one contracting party, a majority vote of the electors, 577
IF ANY, in each of the several portions of the territory of the 579
contracting parties constituting the district approving the levy 580
of the tax is required before it may be imposed pursuant to this 581
division. 582
(4) If there are no electors residing in the district, no 584
election for the approval or rejection of an income tax shall be 585
held pursuant to this section, provided that where no electors 586
reside in the district, the maximum rate of the income tax that 587
may be levied shall not exceed one per cent. 588
(5) The board of directors of a district levying an income 590
tax shall enter into an agreement with one of the municipal 591
corporations that is a party to the contract to administer, 592
collect, and enforce the income tax on behalf of the district. 593
The resolution levying the income tax shall provide the same 594
credits, if any, to residents of the district for income taxes 595
16
paid to other such districts or municipal corporations where the 596
residents work, as credits provided to residents of the municipal 597
corporation administering the income tax. 598
(6)(a) The board shall publish or post public notice 600
within the district of any resolution adopted levying an income 601
tax in the same manner required of municipal corporations under 602
sections 731.21 and 731.25 of the Revised Code. 603
(b) Except as otherwise specified by this division, any 605
referendum or initiative proceeding within a district shall be 606
conducted in the same manner as is required for such proceedings 607
within a municipal corporation pursuant to sections 731.28 to 608
731.40 of the Revised Code. 609
(G) Membership on the board of directors does not 611
constitute the holding of a public office or employment within 612
the meaning of any section of the Revised Code or any charter 613
provision prohibiting the holding of other public office or 614
employment, and shall not constitute an interest, either direct 615
or indirect, in a contract or expenditure of money by any 616
municipal corporation, township, county, or other political 617
subdivision with which the member may be connected. No member of 618
a board of directors shall be disqualified from holding any 619
public office or employment, nor shall such member forfeit or be 620
disqualified from holding any such office or employment, by 621
reason of the member's membership on the board of directors, 622
notwithstanding any law or charter provision to the contrary. 623
(H) The powers and authorizations granted pursuant to this 625
section or section 715.71 of the Revised Code are in addition to 626
and not in the derogation of all other powers granted to 628
municipal corporations and townships pursuant to law. When 629
exercising a power or performing a function or duty under a 630
contract authorized pursuant to this section or section 715.71 of
the Revised Code, a municipal corporation may exercise all of the 632
powers of a municipal corporation, and may perform all the 633
functions and duties of a municipal corporation, within the 634
17
district, pursuant to and to the extent consistent with the 635
contract. When exercising a power or performing a function or 636
duty under a contract authorized pursuant to this section or 637
section 715.71 of the Revised Code, a township may exercise all 638
of the powers of a township, and may perform all the functions 639
and duties of a township, within the district, pursuant to and to 640
the extent consistent with the contract. The district board of 641
directors has no powers except those specifically set forth in 642
the contract as agreed to by the participating parties. No 643
political subdivision shall authorize or grant any tax exemption 645
pursuant to Chapter 1728. or section 3735.67, 5709.62, 5709.63, 647
or 5709.632 of the Revised Code on any property located within 648
the district, EXCEPT THAT A POLITICAL SUBDIVISION THAT IS A 649
CONTRACTING PARTY MAY GRANT A TAX EXEMPTION UNDER SECTION 650
5709.62, 5709.63, OR 5709.632 OF THE REVISED CODE ON PROPERTY 651
LOCATED WITHIN THE DISTRICT, WITH THE CONSENT OF THE OTHER
CONTRACTING PARTIES. The prohibition for any tax exemption 652
pursuant to this division shall not apply to any exemption filed, 653
pending, or approved, OR FOR WHICH AN AGREEMENT HAS BEEN ENTERED 654
INTO, before the effective date of the contract entered into by 656
the parties.
(I) Municipal corporations and townships may enter into 658
binding agreements pursuant to a contract authorized under this 659
section or section 715.71 of the Revised Code with respect to the 660
substance and administration of zoning and other land use 662
regulations, building codes, public permanent improvements, and 663
other regulatory and proprietary matters that are determined, 664
pursuant to the contract, to be for a public purpose and to be 665
desirable with respect to the operation of the district or to 666
facilitate new or expanded economic development in the state or 667
the district, provided that no contract shall exempt the 668
territory within the district from the procedures and processes 669
of land use regulation applicable pursuant to municipal 670
corporation, township, and county regulations, including but not 671
18
limited to procedures and processes concerning zoning. 672
(J) A contract entered into pursuant to this section or 674
section 715.71 of the Revised Code may be amended and it may be 676
renewed, canceled, or terminated as provided in or pursuant to 677
the contract. THE CONTRACT MAY BE AMENDED TO ADD PROPERTY OWNED 678
BY ONE OF THE CONTRACTING PARTIES TO THE DISTRICT, OR MAY BE 679
AMENDED TO DELETE PROPERTY FROM THE DISTRICT WHETHER OR NOT ONE
OF THE CONTRACTING PARTIES OWNS THE DELETED PROPERTY. The 680
contract shall continue in existence throughout its term and 681
shall be binding on the contracting parties and on any entities 682
succeeding to such parties, whether by annexation, merger, or 683
otherwise. The income tax levied by the board pursuant to this 684
section or section 715.71 of the Revised Code shall apply in the 686
entire district throughout the term of the contract,
notwithstanding that all or a portion of the district becomes 687
subject to annexation, merger, or incorporation. No township or 688
municipal corporation is divested of its rights or obligations 689
under the contract because of annexation, merger, or succession 690
of interests. 691
(K) AFTER THE CREATION OF A JOINT ECONOMIC DEVELOPMENT 693
DISTRICT DESCRIBED IN DIVISION (A)(2) OF THIS SECTION, A 694
MUNICIPAL CORPORATION THAT IS A CONTRACTING PARTY MAY CEASE TO 695
OWN PROPERTY INCLUDED IN THE DISTRICT, BUT SUCH PROPERTY SHALL 696
CONTINUE TO BE INCLUDED IN THIS DISTRICT AND SUBJECT TO THE TERMS 697
OF THE CONTRACT.
Sec. 715.71. (A) This section provides alternative 706
procedures and requirements to those set forth in section 715.70 707
of the Revised Code for creating and operating a joint economic 708
development district. Divisions (B), (C), (D)(1) TO (3), and (F) 710
of section 715.70 of the Revised Code do not apply to a joint 711
economic development district established under this section. 712
However, divisions (A), (D)(4), (E), (G), (H), (I), and (J) of 713
section 715.70 of the Revised Code do apply to a district 715
established under this section. 716
19
(B) One or more municipal corporations and one or more 718
townships may enter into a contract approved by the legislative 719
authority of each contracting party pursuant to which they create 720
as a joint economic development district one or more areas for 721
the purpose of facilitating economic development to create or 722
preserve jobs and employment opportunities and to improve the 723
economic welfare of the people in this state and in the area of 724
the contracting parties. The district created shall be located 725
within the territory of one or more of the contracting parties 726
and may consist of all or a portion of such territory. The 727
boundaries of the district shall be described in the contract or 728
in an addendum to the contract. The area or areas of land to be 729
included in the district shall not include any parcel of land 730
owned in fee by or leased to a municipal corporation or township, 731
unless the municipal corporation or township is a party to the 732
contract or has given its consent to have its parcel of land 733
included in the district by the adoption of a resolution. As 734
used in this division, "parcel of land" has the same meaning as 735
in division (B) of section 715.70 of the Revised Code. 736
(C) Before the legislative authority of a municipal 738
corporation or a board of township trustees adopts an ordinance 739
or resolution approving a contract to create a joint economic 740
development district under this section, it shall hold a public 741
hearing concerning the joint economic development district 742
contract and shall provide thirty days' public notice of the time 743
and place of the public hearing in a newspaper of general 744
circulation in the municipal corporation and the township. Each 745
municipal corporation and township that is a party to the 746
contract shall hold a public hearing. During the thirty-day 747
period prior to a public hearing, a copy of the text of the 748
contract together with copies of district maps and plans related 749
to or part of the contract shall be on file, for public 750
examination, in the offices of the clerk of the legislative 751
authority of the municipal corporation and of the township clerk. 752
20
The public hearings provided for in this division shall allow for 753
public comment and recommendations on the proposed contract. The 754
participating parties may include in the contract any of those 755
recommendations prior to approval of the contract. 756
(D) After the legislative authority of a municipal 758
corporation and the board of township trustees have adopted an 759
ordinance and resolution approving a contract to create a joint 760
economic development district, the municipal corporation and the 761
township jointly shall file with the legislative authority of 762
each county within which a party to the contract is located all 763
of the following: 764
(1) A signed copy of the contract, together with copies of 766
district maps and plans related to or part of the contract; 767
(2) Certified copies of the ordinances and resolutions of 769
the contracting parties relating to the district and the 770
contract; 771
(3) A certificate of each of the contracting parties that 773
the public hearings provided for in division (C) of this section 774
have been held, the date of such hearings, and evidence of 775
publication of the notice of such hearings. 776
(E) Within thirty days after the filing under division (D) 778
of this section, the legislative authority of each county within 779
which a party to the contract is located shall adopt a resolution 780
acknowledging the receipt of the required documents, approving 781
the creation of the joint economic development district, and 782
directing that the resolution of the board of township trustees 783
approving the contract be submitted to the electors of the 784
township for approval at the next succeeding general, primary, or 785
special election. The legislative authority of the county shall 786
file with the board of elections at least seventy-five days 787
before the day of the election a copy of the resolution of the 788
board of township trustees approving the contract. The 789
resolution of the legislative authority of the county also shall 790
specify the date the election is to be held and shall direct the 791
21
board of elections to conduct the election in the township. If 792
the resolution of the legislative authority of the county is not 793
adopted within the thirty-day period after the filing under 794
division (D) of this section, the joint economic development 795
district shall be deemed approved by the county legislative 796
authority and the board of township trustees shall file its 797
resolution with the board of elections for submission to the 798
electors of the township for approval at the next succeeding 799
general, primary, or special election. Such filing shall occur 800
at least seventy-five days before the specified date the election 801
is to be held and shall direct the board of elections to conduct 802
the election in the township. 803
The ballot shall be in the following form: 805
"Shall the resolution of the board of township trustees 807
approving the contract with ............... (here insert name of 808
each municipal corporation and other township that is a party to 809
the contract) for the creation of a joint economic development 810
district be approved? 811
________________________________________________ 814
FOR THE RESOLUTION AND CONTRACT 815
________________________________________________ 816
AGAINST THE RESOLUTION AND CONTRACT 817
________________________________________________ " 818
If a majority of the electors of the township voting on the issue 821
vote for the resolution and contract, the resolution shall become 822
effective immediately and the contract shall go into effect 823
immediately or in accordance with its terms. 824
(F) The contract creating the district shall set forth or 826
provide for the amount or nature of the contribution of each 827
municipal corporation and township to the development and 828
operation of the district and may provide for the sharing of the 829
costs of the operation of and improvements for the district. The 830
contributions may be in any form to which the contracting 831
municipal corporations and townships agree and may include but 832
22
are not limited to the provision of services, money, real or 833
personal property, facilities, or equipment. THE CONTRACT MAY 834
PROVIDE FOR THE CONTRACTING PARTIES TO SHARE REVENUE FROM TAXES 836
LEVIED ON PROPERTY BY ONE OR MORE OF THE CONTRACTING PARTIES IF 837
THOSE REVENUES MAY LAWFULLY BE APPLIED TO THAT PURPOSE UNDER THE 838
LEGISLATION BY WHICH THOSE TAXES ARE LEVIED. The contract shall 839
provide for new, expanded, or additional services, facilities, or 840
improvements, including expanded or additional capacity for or 841
other enhancement of existing services, facilities, or 842
improvements, provided that the existing services, facilities, or 843
improvements, or the expanded or additional capacity for or 844
enhancement of the existing services, facilities, or 845
improvements, have been provided within the two-year period prior 846
to the execution of the contract. 847
(G) The contract shall enumerate the specific powers, 849
duties, and functions of the board of directors of the district 850
and shall provide for the determination of procedures that are to 851
govern the board of directors. The contract may grant to the 852
board the power to adopt a resolution to levy an income tax 853
within the district. The income tax shall be used for the 854
purposes of the district and for the purposes of the contracting 855
municipal corporations and townships pursuant to the contract. 856
The income tax may be levied in the district based on income 857
earned by persons working or residing within the district and 858
based on the net profits of businesses located in the district. 859
The income tax of the district shall follow the provisions of 860
Chapter 718. of the Revised Code, except that no vote shall be 861
required by the electors residing in the district. The rate of 862
the income tax shall be no higher than the highest rate being 863
levied by a municipal corporation that is a party to the 864
contract. 865
The board of directors of a district levying an income tax 867
shall enter into an agreement with one of the municipal 868
corporations that is a party to the contract to administer, 869
23
collect, and enforce the income tax on behalf of the district. 870
The resolution levying the income tax shall provide the same 871
credits, if any, to residents of the district for income taxes 872
paid to other such districts or municipal corporations where the 873
residents work, as credits provided to residents of the municipal 874
corporation administering the income tax. 875
(H) No annexation proceeding pursuant to Chapter 709. of 877
the Revised Code that proposes the annexation to or merger or 878
consolidation with a municipal corporation, except a municipal 879
corporation that is a party to the contract, of any 880
unincorporated territory within the district shall be commenced 881
for a period of three years after the contract is filed with the 882
legislative authority of each county within which a party to the 883
contract is located in accordance with division (D) of this 884
section unless each board of township trustees whose territory is 885
included, in whole or part, within the district and the territory 886
proposed to be annexed, merged, or consolidated adopts a 887
resolution consenting to the commencement of the proceeding and a 888
copy of the resolution is filed with the legislative authority of 889
each such county or unless the contract is terminated during this 890
three-year period. The contract entered into between the 891
municipal corporations and townships pursuant to this section may 892
provide for the prohibition of any annexation by the 893
participating municipal corporations of any unincorporated 894
territory within the district. 895
Sec. 715.72. (A) As used in sections 715.72 to 715.81 of 904
the Revised Code: 905
(1) "Contracting parties" means one or more municipal 907
corporations and one or more townships that have entered into a 908
contract under this section to create a joint economic 909
development district. 910
(2) "District" means a joint economic development district 912
created under sections 715.72 to 715.81 of the Revised Code. 913
(3) "Contract for utility services" means a contract under 915
24
which a municipal corporation agrees to provide to a township or 916
another municipal corporation water, sewer, electric, or other 917
utility services necessary to the public health, safety, and 918
welfare.
(B) Sections 715.72 to 715.81 of the Revised Code provide 920
alternative procedures and requirements to those set forth in 921
sections 715.70 and 715.71 of the Revised Code for creating and 922
operating a joint economic development district. Sections 715.72 923
to 715.81 of the Revised Code apply to municipal corporations and 924
townships that are located in the same county or in adjacent 925
counties.
(C) One or more municipal corporations and one or more 927
townships may enter into a contract pursuant to which they create 928
as a joint economic development district one or more areas for 929
the purpose of facilitating economic development to create or 930
preserve jobs and employment opportunities and to improve the 931
economic welfare of the people in this state and in the area of 932
the contracting parties. The 933
(1) EXCEPT AS OTHERWISE PROVIDED IN DIVISION (C)(2) OF 935
THIS SECTION, THE territory of each of the contracting parties 937
shall be contiguous to the territory of at least one other 938
contracting party, unless the contracting parties have entered 939
into a contract under section 715.70 or 715.71 of the Revised 940
Code creating a joint economic development district prior to the 942
effective date of this section. Contracting OR CONTIGUOUS TO THE
TERRITORY OF A TOWNSHIP OR MUNICIPAL CORPORATION THAT IS 943
CONTIGUOUS TO ANOTHER CONTRACTING PARTY, EVEN IF THE INTERVENING 944
TOWNSHIP OR MUNICIPAL CORPORATION IS NOT A CONTRACTING PARTY. 945
(2) CONTRACTING parties that have entered into a contract 948
under section 715.70 or 715.71 of the Revised Code creating a
joint economic development district prior to the effective date 950
of this section NOVEMBER 15, 1995, may enter into a contract 952
under this section even if the territory of each of the
contracting parties is not contiguous to the territory of at 953
25
least one other contracting party, OR CONTIGUOUS TO THE TERRITORY 954
OF A TOWNSHIP OR MUNICIPAL CORPORATION THAT IS CONTIGUOUS TO 955
ANOTHER CONTRACTING PARTY AS OTHERWISE REQUIRED UNDER DIVISION 956
(C)(1) OF THIS SECTION. The contract and district shall meet the 958
requirements of sections 715.72 to 715.81 of the Revised Code. 959
Sec. 715.74. (A) The contract creating a joint economic 968
development district shall provide for the amount or nature of 970
the contribution of each contracting party to the development and 971
operation of the district and may provide for the sharing of the 972
costs of the operation of and improvements for the district. The 973
contributions may be in any form to which the contracting parties 975
agree and may include, but are not limited to, the provision of 976
services, money, real or personal property, facilities, or 977
equipment. THE CONTRACT MAY PROVIDE FOR THE CONTRACTING PARTIES 978
TO SHARE REVENUE FROM TAXES LEVIED ON PROPERTY BY ONE OR MORE OF 979
THE CONTRACTING PARTIES IF THOSE REVENUES MAY LAWFULLY BE APPLIED
TO THAT PURPOSE UNDER THE LEGISLATION BY WHICH THOSE TAXES ARE 981
LEVIED. The contract shall specify and provide for new, 983
expanded, or additional services, facilities, or improvements. 984
The contract may provide for expanded or additional capacity for 985
or other enhancement of existing services, facilities, or
improvements.
(B) The contract shall enumerate the specific powers, 987
duties, and functions of the board of directors of the district 988
described under section 715.78 of the Revised Code and shall 989
provide for the determination of procedures that are to govern 990
the board.
(C)(1) The contract may grant to the board the power to 993
adopt a resolution to levy an income tax within the district. 994
The income tax shall be used for the purposes of the district and 995
for the purposes of the contracting parties pursuant to the 996
contract. The income tax may be levied in the district based on 997
income earned by persons working within the district and based on 999
the net profits of businesses located in the district. The
26
income tax of the district shall follow the provisions of Chapter 1,000
718. of the Revised Code, except that no vote shall be required. 1,001
The rate of the income tax shall be no higher than the highest 1,002
rate being levied by a municipal corporation that is a 1,003
contracting party.
(2) If the board adopts a resolution to levy an income 1,005
tax, it shall enter into an agreement with a municipal 1,006
corporation that is a contracting party to administer, collect, 1,008
and enforce the income tax on behalf of the district.
(3) A resolution levying an income tax under this section 1,010
shall require the contracting parties to annually set aside a 1,011
percentage, to be stated in the resolution, of the amount of the 1,012
income tax collected for the long-term maintenance of the 1,013
district. 1,014
(4) An income tax levied under this section shall apply in 1,016
the entire district throughout the term of the contract creating 1,017
the district, notwithstanding that all or a portion of the 1,018
district becomes subject to annexation, merger, or consolidation. 1,020
(D) The contract creating a joint economic development 1,023
district shall continue in existence throughout its term and 1,024
shall be binding on the contracting parties and on any parties 1,025
succeeding to the contracting parties, whether by annexation, 1,026
merger, or consolidation. Except as provided in division (E) of 1,027
this section, the contract may be amended, renewed, or terminated 1,028
with the approval of the contracting parties or any parties 1,029
succeeding to the contracting parties. IF THE CONTRACT IS 1,030
AMENDED TO ADD AREA TO AN EXISTING DISTRICT, THE AMENDMENT SHALL 1,031
BE ADOPTED IN THE MANNER PRESCRIBED UNDER SECTION 715.761 OF THE 1,032
REVISED CODE.
(E) If two or more contracting parties previously have 1,034
entered into a separate contract for utility services, then 1,036
amendment, renewal, or termination of the separate contract for 1,037
utility services shall not constitute any part of the 1,038
consideration for the contract creating a joint economic 1,039
27
development district. A contract creating a joint economic 1,040
development district shall be rebuttably presumed to violate this 1,041
division if it is entered into within two years prior or five 1,042
years subsequent to the amendment, renewal, or termination of a 1,043
separate contract for utility services that two or more 1,044
contracting parties previously have entered into. The
presumption stated in this division may be rebutted by clear and 1,045
convincing evidence of both of the following: 1,046
(1) That other substantial consideration existed to 1,049
support the contract creating a joint economic development
district; 1,050
(2) That the contracting parties entered into the contract 1,053
creating a joint economic development district freely and without
duress or coercion related to the amendment, renewal, or 1,054
termination of the separate contract for utility services. 1,055
(F) A contract creating a joint economic development 1,057
district that violates division (E) of this section is void and 1,059
unenforceable.
Sec. 715.76. After the public hearings required under 1,068
section 715.75 of the Revised Code have been held, each 1,069
contracting party may adopt an ordinance or resolution approving 1,070
the contract to create a joint economic development district. 1,071
After each contracting party has adopted such an ordinance or 1,072
resolution, the contracting parties jointly shall file with the 1,073
legislative authority of each county within which a contracting 1,074
party is located all of the following documents: 1,075
(A) A signed copy of the contract; 1,077
(B) A description of the area or areas to be included in 1,079
the district, including a map in sufficient detail to denote the 1,081
specific boundaries of the area or areas and to indicate any 1,082
zoning restrictions applicable to the area or areas; 1,083
(C) The economic development plan described in division 1,085
(C) of section 715.75 of the Revised Code; 1,086
(D) Certified copies of the ordinances and resolutions of 1,088
28
the contracting parties relating to the contract and district; 1,090
(E) A certificate of each contracting party that the 1,092
public hearings required by section 715.75 of the Revised Code 1,094
have been held, the date of the hearings, and evidence of 1,095
publication of the notice of the hearings; 1,096
(F) A petition signed by a majority of the owners of 1,098
property located within the area or areas to be included in the 1,099
district;
(G) A petition signed by a majority of the owners of 1,101
businesses, if any, located within the area or areas to be 1,102
included in the district. 1,103
The petitions described in divisions (F) and (G) of this 1,106
section shall specify that all of the documents described in 1,107
divisions (A) through (C) of section 715.75 of the Revised Code
are available for public inspection in the office of the clerk of 1,108
the legislative authority of each municipal corporation that is a 1,110
contracting party or the office of the township clerk of each 1,111
township that is a contracting party. 1,112
NOT LATER THAN TEN DAYS AFTER ALL OF THE DOCUMENTS 1,114
DESCRIBED IN DIVISIONS (A) TO (G) OF THIS SECTION HAVE BEEN 1,116
FILED, EACH CONTRACTING PARTY SHALL GIVE NOTICE TO THOSE OWNERS 1,117
OF PROPERTY WITHIN THE AREA OR AREAS TO BE INCLUDED IN THE
DISTRICT WHO DID NOT SIGN THE PETITION DESCRIBED IN DIVISION (F) 1,118
OF THIS SECTION AND WHOSE PROPERTY IS LOCATED WITHIN THE 1,119
BOUNDARIES OF THAT CONTRACTING PARTY AND TO THOSE OWNERS OF 1,120
BUSINESSES, IF ANY, WITHIN THE AREA OR AREAS TO BE INCLUDED IN 1,121
THE DISTRICT WHO DID NOT SIGN THE PETITION DESCRIBED IN DIVISION
(G) OF THIS SECTION AND WHOSE PROPERTY IS LOCATED WITHIN THE 1,122
BOUNDARIES OF THAT CONTRACTING PARTY. NOTICE SHALL BE GIVEN BY 1,123
CERTIFIED MAIL AND SHALL SPECIFY THAT THE OWNERS OF PROPERTY AND 1,124
BUSINESSES ARE LOCATED WITHIN THE AREA OR AREAS TO BE INCLUDED IN 1,125
THE DISTRICT AND THAT ALL OF THE DOCUMENTS DESCRIBED IN DIVISIONS 1,126
(A) TO (C) OF SECTION 715.75 OF THE REVISED CODE ARE AVAILABLE 1,127
FOR PUBLIC INSPECTION IN THE OFFICE OF THE CLERK OF THE 1,128
29
LEGISLATIVE AUTHORITY OF EACH MUNICIPAL CORPORATION THAT IS A
CONTRACTING PARTY OR THE OFFICE OF THE TOWNSHIP CLERK OF EACH 1,129
TOWNSHIP THAT IS A CONTRACTING PARTY. THE CONTRACTING PARTIES 1,130
SHALL EQUALLY BEAR THE COST OF PROVIDING NOTICE UNDER THIS 1,131
SECTION.
If the contracting parties do not file all of the documents 1,134
described in divisions (A) through (G) of this section, the
legislative authority of a county within which a contracting 1,135
party is located may adopt a resolution disapproving the creation 1,137
of the joint economic development district. In addition, the 1,138
legislative authority of such a county may adopt a resolution 1,139
disapproving the creation of the district if it determines, in 1,140
written findings of fact, that each contracting party did not 1,141
enter into the contract freely and without duress or coercion. 1,142
Sec. 715.761. (A) THE CONTRACTING PARTIES MAY AMEND THE 1,145
CONTRACT TO ADD TO A JOINT ECONOMIC DEVELOPMENT DISTRICT ANY AREA 1,146
THAT WAS NOT ORIGINALLY INCLUDED IN THE DISTRICT WHEN THE 1,147
CONTRACT TOOK EFFECT. AREA MAY BE ADDED ONLY IF THE AREA 1,148
SATISFIES THE CRITERIA PRESCRIBED UNDER SECTION 715.73 OF THE 1,150
REVISED CODE. 1,151
(B) AN AMENDMENT ADDING AREA TO A DISTRICT SHALL BE 1,154
APPROVED BY A RESOLUTION OR ORDINANCE ADOPTED BY EACH OF THE 1,155
CONTRACTING PARTIES. THE CONTRACTING PARTIES SHALL CONDUCT 1,156
PUBLIC HEARINGS ON THE AMENDMENT, PROVIDE NOTICE, AND DELIVER A 1,157
COPY OF THE AMENDMENT TO THE LEGISLATIVE AUTHORITY OF THE COUNTY 1,158
IN WHICH THE ADDED AREA IS LOCATED IN THE MANNER REQUIRED UNDER 1,159
SECTION 715.75 OF THE REVISED CODE FOR ORIGINAL CONTRACTS. THE 1,162
CONTRACTING PARTIES SHALL MAKE AVAILABLE FOR PUBLIC INSPECTION A 1,163
COPY OF THE AMENDMENT, A DESCRIPTION OF THE AREA TO BE ADDED TO 1,164
THE DISTRICT, AND A MAP OF THAT AREA IN SUFFICIENT DETAIL TO 1,165
DENOTE THE SPECIFIC BOUNDARIES OF THE AREA AND TO INDICATE ANY 1,166
ZONING RESTRICTIONS APPLICABLE TO THE AREA.
(C) AFTER ADOPTING RESOLUTIONS OR ORDINANCES APPROVING THE 1,169
ADDITION OF THE AREA, THE CONTRACTING PARTIES JOINTLY SHALL FILE 1,170
30
WITH THE LEGISLATIVE AUTHORITY OF THE COUNTY IN WHICH THE ADDED 1,171
AREA IS LOCATED THE DOCUMENTS REQUIRED TO BE FILED UNDER SECTION 1,172
715.76 OF THE REVISED CODE, EXCEPT THAT: 1,174
(1) A COPY OF THE AMENDMENT TO THE CONTRACT SHALL BE FILED 1,176
IN LIEU OF A COPY OF THE CONTRACT. 1,177
(2) THE DESCRIPTION AND MAP SHALL BE OF THE AREA TO BE 1,179
ADDED INSTEAD OF THE ENTIRE AREA OF THE DISTRICT. 1,180
(3) THE ECONOMIC DEVELOPMENT PLAN NEED NOT BE FILED. 1,183
(4) CERTIFIED COPIES OF THE RESOLUTIONS AND ORDINANCES 1,185
APPROVING THE AMENDMENT SHALL BE FILED. 1,186
(5) THE CERTIFICATES OTHERWISE REQUIRED UNDER DIVISION (E) 1,189
OF SECTION 715.76 OF THE REVISED CODE SHALL CERTIFY THAT THE 1,190
HEARINGS REQUIRED UNDER DIVISION (B) OF THIS SECTION HAVE BEEN 1,191
HELD, SHALL INDICATE THE DATE OF THOSE HEARINGS, AND SHALL 1,192
INCLUDE EVIDENCE THAT NOTICE OF THE HEARINGS WAS PUBLISHED. 1,194
(6) THE PETITION OTHERWISE REQUIRED UNDER DIVISION (F) OF 1,197
SECTION 715.76 OF THE REVISED CODE SHALL BE SIGNED BY A MAJORITY 1,198
OF THE OWNERS OF PROPERTY LOCATED IN THE AREA TO BE ADDED TO THE 1,199
DISTRICT, THE PETITION OTHERWISE REQUIRED UNDER DIVISION (G) OF 1,200
THAT SECTION SHALL BE SIGNED BY A MAJORITY OF THE OWNERS OF 1,201
BUSINESSES, IF ANY, LOCATED IN THE AREA TO BE ADDED TO THE 1,202
DISTRICT, AND THE PETITIONS SHALL SPECIFY THAT THE DOCUMENTS 1,203
DESCRIBED IN DIVISION (B) OF THIS SECTION ARE AVAILABLE FOR 1,205
PUBLIC INSPECTION AS OTHERWISE REQUIRED UNDER SECTION 715.75 OF 1,206
THE REVISED CODE. 1,208
(D) THE RESOLUTION OF A BOARD OF TOWNSHIP TRUSTEES 1,211
APPROVING AN AMENDMENT ADDING AREA TO AN EXISTING JOINT ECONOMIC 1,212
DEVELOPMENT DISTRICT IS NOT REQUIRED TO BE SUBMITTED TO THE 1,213
ELECTORS OF THE TOWNSHIP.
Sec. 715.771. UPON THE CREATION OF A JOINT ECONOMIC 1,215
DEVELOPMENT DISTRICT UNDER SECTION 715.72 OF THE REVISED CODE, 1,216
ONE OF THE CONTRACTING PARTIES SHALL FILE A COPY OF EACH OF THE 1,217
DOCUMENTS DESCRIBED IN DIVISIONS (A) TO (G) OF SECTION 715.76 OF 1,218
THE REVISED CODE WITH THE DIRECTOR OF DEVELOPMENT.
31
Sec. 715.78. (A) A board of directors shall govern each 1,228
joint economic development district created under section 715.72 1,229
of the Revised Code.
(1) If there are businesses located and persons working 1,231
within the area or areas to be included in the district, the 1,232
board shall be composed of the following members: 1,233
(a) One member representing the municipal corporations 1,235
that are contracting parties; 1,236
(b) One member representing the townships that are 1,238
contracting parties; 1,239
(c) One member representing the owners of businesses 1,241
located within the district; 1,243
(d) One member representing the persons working within the 1,245
district; 1,246
(e) One member selected by the members described in 1,249
divisions (A)(1)(a) to (d) of this section. 1,250
The members of the board shall be appointed as provided in 1,252
the contract. Of the members initially appointed to the board, 1,253
the member described in division (A)(1)(a) of this section shall 1,255
serve a term of one year; the member described in division 1,256
(A)(1)(b) of this section shall serve a term of two years; the 1,257
member described in division (A)(1)(c) of this section shall 1,258
serve a term of three years; and the members described in 1,260
divisions (A)(1)(d) and (e) of this section shall serve terms of 1,261
four years. Thereafter, terms for each member shall be for four 1,262
years, each term ending on the same day of the same month of the 1,263
year as did the term that it succeeds. A MEMBER MAY BE 1,264
REAPPOINTED TO THE BOARD, BUT NO MEMBER SHALL SERVE MORE THAN TWO 1,265
CONSECUTIVE TERMS ON THE BOARD.
The member described in division (A)(1)(e) of this section 1,268
shall serve as chairperson of a board described under division 1,269
(A)(1) of this section.
(2) If there are no businesses located or persons working 1,271
within the area or areas to be included in the district, the 1,272
32
board shall be composed of the following members: 1,273
(a) One member representing the municipal corporations 1,275
that are contracting parties; 1,276
(b) One member representing the townships that are 1,278
contracting parties; 1,279
(c) One member selected by the members described in 1,282
divisions (A)(2)(a) and (b) of this section.
The members of the board shall be appointed as provided in 1,284
the contract. Of the members initially appointed to the board, 1,285
the member described in division (A)(2)(a) of this section shall 1,287
serve a term of one year; the member described in division 1,288
(A)(2)(b) of this section shall serve a term of two years; and 1,289
the member described in division (A)(2)(c) of this section shall 1,290
serve a term of three years. Thereafter, terms for each member 1,292
shall be for four years, each term ending on the same day of the 1,293
same month of the year as did the term that it succeeds. A 1,294
member may be reappointed to the board, but no member shall serve 1,295
more than two consecutive terms on the board. 1,296
The member described in division (A)(2)(c) of this section 1,299
shall serve as chairperson of a board described under division 1,300
(A)(2) of this section.
(B) A board described under division (A)(1) or (2) of this 1,303
section has no powers except as described in sections 715.72 to 1,304
715.81 of the Revised Code and in the contract creating the joint
economic development district. 1,305
(C) Membership on the board of directors of a joint 1,307
economic development district is not the holding of a public 1,309
office or employment within the meaning of any section of the 1,310
Revised Code or any charter provision prohibiting the holding of 1,311
other public office or employment. Membership on such a board is 1,313
not a direct or indirect interest in a contract or expenditure of 1,314
money by a municipal corporation, township, county, or other 1,315
political subdivision with which a member may be affiliated. 1,316
Notwithstanding any provision of law or a charter to the 1,317
33
contrary, no member of a board of directors of a joint economic 1,318
development district shall forfeit or be disqualified from 1,319
holding any public office or employment by reason of membership 1,320
on the board.
(D) The board of directors of a joint economic development 1,323
district is a public body for the purposes of section 121.22 of 1,324
the Revised Code. Chapter 2744. of the Revised Code applies to 1,325
such a board and the district.
Sec. 715.82. A MUNICIPAL CORPORATION MAY ISSUE BONDS AND 1,327
EXERCISE ALL OTHER POWERS UNDER CHAPTER 165. OF THE REVISED CODE 1,328
FOR ONE OR MORE PROJECTS OR PARTS THEREOF LOCATED IN A JOINT 1,329
ECONOMIC DEVELOPMENT DISTRICT CREATED PURSUANT TO A CONTRACT 1,330
ENTERED INTO UNDER SECTION 715.70, 715.71, OR 715.72 TO 715.82 OF 1,331
THE REVISED CODE TO WHICH THE MUNICIPAL CORPORATION IS A PARTY, 1,332
OR IN A TOWNSHIP ADJACENT TO THAT MUNICIPAL CORPORATION, IF THE 1,333
LEGISLATIVE AUTHORITY OF THE MUNICIPAL CORPORATION DETERMINES 1,334
THAT THE PROJECT IS IN FURTHERANCE OF THE PUBLIC PURPOSES OF THE
STATE TO CREATE OR PRESERVE JOBS AND EMPLOYMENT OPPORTUNITIES AND 1,335
TO IMPROVE THE ECONOMIC WELFARE OF THE PEOPLE OF THE MUNICIPAL 1,336
CORPORATION AND THE TOWNSHIP. AS USED IN THIS SECTION, "PROJECT" 1,337
HAS THE SAME MEANING AS IN DIVISION (H) OF SECTION 165.01 OF THE 1,338
REVISED CODE, EXCEPT THAT A PROJECT DESCRIBED IN THIS SECTION IS 1,339
NOT REQUIRED TO BE LOCATED WITHIN THE TERRITORIAL BOUNDARIES OF 1,340
THE MUNICIPAL CORPORATION.
Sec. 718.03. A municipal corporation shall grant a credit 1,349
against its tax on income to a resident of the municipal 1,350
corporation who works in a joint economic development zone 1,351
created under section 715.691 or a joint economic development 1,352
district created under section 715.70, 715.71, OR 715.72 of the 1,353
Revised Code to the same extent that it grants a credit against 1,354
its tax on income to its residents who are employed in another 1,355
municipal corporation.
Sec. 5709.411. (A) AS USED IN THIS SECTION, "DETACHED 1,358
IMPROVEMENT" MEANS AN IMPROVEMENT AS DEFINED IN SECTION 5709.41 1,359
34
OF THE REVISED CODE THAT SATISFIES ALL OF THE FOLLOWING: 1,362
(1) THE ORDINANCE DECLARING THE IMPROVEMENT TO BE A PUBLIC 1,365
PURPOSE WAS ADOPTED UNDER SECTION 5709.41 OF THE REVISED CODE BY 1,367
A MUNICIPAL CORPORATION THAT IS A PARTY TO A CONTRACT CREATING A 1,368
JOINT ECONOMIC DEVELOPMENT DISTRICT UNDER SECTION 715.70 OR 1,369
715.71 OF THE REVISED CODE. 1,371
(2) THE IMPROVEMENT RELATES TO A PARCEL OF PROPERTY 1,373
LOCATED IN TERRITORY THAT IS DETACHED BY THAT MUNICIPAL 1,374
CORPORATION TO A TOWNSHIP THAT IS A PARTY TO THE SAME CONTRACT 1,375
CREATING THE JOINT ECONOMIC DEVELOPMENT DISTRICT, PURSUANT TO 1,376
THAT CONTRACT AND SECTION 709.38 OF THE REVISED CODE. 1,378
(3) THE ORDINANCE DECLARING THE IMPROVEMENTS TO BE A 1,380
PUBLIC PURPOSE IS ADOPTED PRIOR TO THE DETACHMENT OF THAT 1,381
TERRITORY. 1,382
(B) THE EXEMPTION FROM TAXATION FOR DETACHED IMPROVEMENTS 1,385
UNDER SECTION 5709.41 OF THE REVISED CODE SHALL CONTINUE FOR THE 1,387
PERIOD PRESCRIBED IN THAT SECTION AND THE ORDINANCE UNDER WHICH 1,388
THE IMPROVEMENTS ARE DECLARED TO BE A PUBLIC PURPOSE, OR ANY 1,389
AMENDMENTS TO THE ORDINANCE, EVEN IF THE DETACHMENT OCCURS PRIOR 1,391
TO THE END OF THAT PERIOD.
(C)(1) THE MUNICIPAL CORPORATION MAY REQUIRE THE OWNER OF 1,394
ANY BUILDING OR STRUCTURE LOCATED ON A PARCEL TO WHICH THE 1,395
DETACHED IMPROVEMENT RELATES TO PAY SERVICE PAYMENTS IN LIEU OF 1,396
TAXES UNDER SECTION 5709.42 OF THE REVISED CODE AFTER THE 1,398
TERRITORY INCLUDING THE DETACHED IMPROVEMENT IS DETACHED. THE 1,399
SERVICE PAYMENTS SHALL BE DISTRIBUTED TO THE MUNICIPAL 1,400
CORPORATION AS PROVIDED IN THAT SECTION. 1,401
(2) THE MUNICIPAL CORPORATION MAY USE THE SERVICE PAYMENTS 1,404
RECEIVED UNDER DIVISION (C)(1) OF THIS SECTION AS PRESCRIBED BY 1,406
SECTION 5709.43 OF THE REVISED CODE AND THE ORDINANCE DECLARING 1,409
THE DETACHED IMPROVEMENTS TO BE A PUBLIC PURPOSE. THE
LEGISLATIVE AUTHORITY OF THE MUNICIPAL CORPORATION MAY AMEND THE 1,410
ORDINANCE TO PERMIT THE SERVICE PAYMENTS TO BE USED TO PAY THE 1,411
COST OF STREETS, ROADS, WATER LINES, SEWERS, AND OTHER PUBLIC 1,412
35
IMPROVEMENTS EXTENDING FROM THE MUNICIPAL CORPORATION TO THE 1,413
DETACHED TERRITORY OR TO THE JOINT ECONOMIC DEVELOPMENT DISTRICT, 1,415
OR LOCATED ON THE DETACHED TERRITORY OR IN THE JOINT ECONOMIC 1,416
DEVELOPMENT DISTRICT, OR TO PAY DEBT SERVICE CHARGES ON
SECURITIES ISSUED BY THE MUNICIPAL CORPORATION TO FINANCE THOSE 1,417
PUBLIC IMPROVEMENTS. 1,418
Sec. 5709.82. (A) As used in this section: 1,427
(1) "New employee" means both of the following: 1,429
(a) Persons employed in the construction of real property 1,431
exempted from taxation under the chapters or sections of the 1,432
Revised Code enumerated in division (B) of this section; 1,433
(b) Persons not described by division (A)(1)(a) of this 1,435
section who are first employed at the site of such property and 1,436
who within the two previous years have not been subject, prior to 1,437
being employed at that site, to income taxation by the municipal 1,438
corporation within whose territory the site is located on income 1,439
derived from employment for the person's current employer. "New 1,440
employee" does not include any person who replaces a person who 1,441
is not a new employee under division (A)(1) of this section. 1,442
(2) "Infrastructure costs" means costs incurred by a 1,444
municipal corporation in a calendar year to acquire, construct, 1,445
reconstruct, improve, plan, or equip real or tangible personal 1,446
property that directly benefits or will directly benefit the 1,447
exempted property. If the municipal corporation finances the 1,448
acquisition, construction, reconstruction, improvement, planning, 1,449
or equipping of real or tangible personal property that directly 1,450
benefits the exempted property by issuing debt, "infrastructure 1,451
costs" means the annual debt charges incurred by the municipal 1,452
corporation from the issuance of such debt. Real or tangible 1,453
personal property directly benefits exempted property only if the 1,454
exempted property places or will place direct, additional demand 1,455
on the real or tangible personal property for which such costs 1,456
were or will be incurred. 1,457
(B) Except as otherwise provided under division (C) of 1,459
36
this section, the legislative authority of any political 1,460
subdivision that has acted under the authority of Chapter 725. or 1,461
1728., sections 3735.65 to 3735.70, or section 5709.40, 5709.41, 1,462
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, 5709.84, or 5709.88 1,463
of the Revised Code to grant an exemption from taxation for real 1,464
or tangible personal property may negotiate with the board of 1,465
education of each city, local, or exempted village school 1,466
district within the territory of which the exempted property is 1,467
located, and enter into an agreement whereby the school district 1,468
is compensated for tax revenue that the school district would 1,469
have received had the property not been exempted from taxation. 1,470
(C) This division does not apply to the following: 1,472
(1) The legislative authority of a municipal corporation 1,476
that has acted under the authority of DIVISION (H) OF SECTION 1,477
715.70 OR section 715.81 of the Revised Code to consent to the 1,479
granting of an exemption from taxation for real or tangible
personal property in a joint economic development district. 1,480
(2) The legislative authority of a municipal corporation 1,483
that has specified in an ordinance adopted under section 5709.40 1,484
or 5709.41 of the Revised Code that payments in lieu of taxes 1,486
provided for under section 5709.42 of the Revised Code shall be 1,487
paid to the city, local, or exempted village school district in 1,489
which the improvements are located in the amount of taxes that
would have been payable to the school district if the 1,490
improvements had not been exempted from taxation, as directed in 1,491
the ordinance.
If the legislative authority of any municipal corporation 1,494
has acted under the authority of Chapter 725. or 1728. or section 1,495
3735.671, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, or 1,496
5709.88, or a housing officer under section 3735.67 of the 1,497
Revised Code, to grant or consent to the granting of an exemption 1,498
from taxation for real or tangible personal property on or after 1,499
July 1, 1994, the municipal corporation imposes a tax on incomes, 1,500
and the payroll of new employees resulting from the exercise of 1,501
37
that authority equals or exceeds one million dollars in any tax 1,502
year for which such property is exempted, the legislative 1,503
authority and the board of education of each city, local, or 1,504
exempted village school district within the territory of which 1,505
the exempted property is located shall attempt to negotiate an 1,506
agreement providing for compensation to the school district for 1,507
all or a portion of the tax revenue the school district would 1,508
have received had the property not been exempted from taxation. 1,509
The agreement may include as a party the owner of the property 1,510
exempted or to be exempted from taxation and may include 1,511
provisions obligating the owner to compensate the school district 1,512
by paying cash or providing property or services by gift, loan, 1,513
or otherwise. Such an obligation is enforceable by the board of 1,514
education of the school district pursuant to the terms of the 1,515
agreement.
If the legislative authority and board of education fail to 1,517
negotiate an agreement that is mutually acceptable within six 1,518
months of formal approval by the legislative authority of the 1,519
instrument granting the exemption, the legislative authority 1,520
shall compensate the school district in the amount and manner 1,521
prescribed by division (D) of this section. 1,522
(D) Annually, the legislative authority of a municipal 1,524
corporation subject to this division shall pay to the city, 1,525
local, or exempted village school district within the territory 1,526
of which the exempted property is located an amount equal to 1,527
fifty per cent of the difference between the amount of taxes 1,528
levied and collected by the municipal corporation on the incomes 1,529
of new employees in the calendar year ending on the day the 1,530
payment is required to be made, and the amount of any 1,531
infrastructure costs incurred in that calendar year. For 1,532
purposes of such computation, the amount of infrastructure costs 1,533
shall not exceed thirty-five per cent of the amount of those 1,534
taxes unless the board of education of the school district, by 1,535
resolution adopted by a majority of the board, approves an amount 1,536
38
in excess of that percentage. If the amount of those taxes or 1,537
infrastructure costs must be estimated at the time the payment is 1,538
made, payments in subsequent years shall be adjusted to 1,539
compensate for any departure of those estimates from the actual 1,540
amount of those taxes. 1,541
A municipal corporation required to make a payment under 1,543
this section shall make the payment from its general fund or a 1,544
special fund established for the purpose. The payment is payable 1,545
on the thirty-first day of December of the tax year for or in 1,546
which the exemption from taxation commences and on that day for 1,547
each subsequent tax year property is exempted and the legislative 1,548
authority and board fail to negotiate an acceptable agreement 1,549
under division (C) of this section. 1,550
Section 2. That existing sections 715.70, 715.71, 715.72, 1,552
715.74, 715.76, 715.78, 718.03, and 5709.82 of the Revised Code 1,554
are hereby repealed.
Section 3. That Section 4 of Sub. H.B. 481 of the 119th 1,556
General Assembly is hereby repealed. 1,557
Section 4. Section 13 of Article VIII, Ohio Constitution, 1,559
is in part implemented by sections 715.69 to 715.82 of the 1,560
Revised Code in furtherance of the public purposes of this state 1,561
to create or preserve jobs and employment opportunities and to 1,562
improve the economic welfare of the people of the state.
Section 5. The amendments to sections 715.70, 715.71, 1,564
715.72, 715.74, 715.76, and 715.78 of the Revised Code in this 1,566
act apply to any proceedings commenced after their effective
date, and, so far as their provisions support the actions taken, 1,567
also apply to any proceedings that on their effective date are 1,568
pending, in progress, or, in the case of elections or otherwise, 1,569
completed, and to the contracts authorized pursuant to those 1,570
proceedings, notwithstanding the applicable law previously in 1,571
effect or any provision to the contrary in a prior resolution,
ordinance, order, advertisement, notice, or other proceeding. 1,572
Any proceedings pending or in progress on the effective date of 1,573
39
those amendments, and contracts entered into or approved pursuant 1,574
to those proceedings, shall be deemed to have been taken, and 1,575
authorized, entered into, and approved, in conformity with those
amendments. 1,576
Section 6. Section 715.70 of the Revised Code is presented 1,578
in this act as a composite of the section as amended by both Am. 1,580
Sub. H.B. 269 and Am. Sub. H.B. 99 of the 121st General Assembly, 1,581
with the new language of neither of the acts shown in capital 1,582
letters. This is in recognition of the principle stated in 1,583
division (B) of section 1.52 of the Revised Code that such 1,584
amendments are to be harmonized where not substantively 1,585
irreconcilable and constitutes a legislative finding that such is 1,586
the resulting version in effect prior to the effective date of 1,587
this act.