As Passed by the House* 1
122nd General Assembly 4
Regular Session Am. Sub. 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-SCHULER-VESPER-GRENDELL-VERICH- 10
JOLIVETTE-REID-O'BRIEN-LEWIS-HARRIS-WILLAMOWSKI-KRUPINSKI- 11
CAREY-HEALY-CORBIN-WESTON 12
15
A B I L L
To amend sections 715.70, 715.71, 715.72, 715.74, 17
715.76, 715.78, 718.03, and 5709.82 and to enact 19
sections 701.07, 715.761, 715.771, 715.82, and 20
5709.411 of the Revised Code and to repeal 21
Section 4 of Sub. H.B. 481 of the 119th General 22
Assembly to make various changes in procedures 23
governing the creation of joint economic 24
development zones and certain joint economic 25
development districts, to grant additional 26
authority to subdivisions joining in certain 27
kinds of joint economic development zones 29
regarding the issuance of industrial development 30
bonds, sharing property taxes, and granting 31
property tax exemptions, and to authorize 32
municipal corporations, counties, townships, the 33
state, and certain persons and private entities 34
to enter into cooperative economic development 35
agreements. 36
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 38
Section 1. That sections 715.70, 715.71, 715.72, 715.74, 40
715.76, 715.78, 718.03, and 5709.82 be amended and sections 41
701.07, 715.761, 715.771, 715.82, and 5709.411 of the Revised 43
2
Code be enacted to read as follows:
Sec. 701.07. (A) THE LEGISLATIVE AUTHORITY OF ONE OR MORE 45
MUNICIPAL CORPORATIONS, BY ORDINANCE OR RESOLUTION, AND THE BOARD 46
OF TOWNSHIP TRUSTEES OF ONE OR MORE TOWNSHIPS, BY RESOLUTION, MAY 48
ENTER INTO A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT UNDER 49
THIS SECTION. THE BOARD OF COUNTY COMMISSIONERS OF ONE OR MORE 50
COUNTIES MAY BECOME A PARTY TO A COOPERATIVE ECONOMIC DEVELOPMENT 51
AGREEMENT UPON THE WRITTEN CONSENT OF THE LEGISLATIVE AUTHORITY
OF EACH MUNICIPAL CORPORATION AND THE BOARD OF TOWNSHIP TRUSTEES 52
OF EACH TOWNSHIP THAT IS A PARTY TO THE AGREEMENT. 53
(B) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT MAY BE 56
AMENDED AT ANY TIME IN THE SAME MANNER AS IT WAS INITIALLY 57
AUTHORIZED. A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT SHALL
DESIGNATE THE TERRITORY THE AGREEMENT COVERS. 58
(C) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT MAY 60
PROVIDE FOR ANY OF THE FOLLOWING: 61
(1) THE PROVISION OF JOINT SERVICES AND PERMANENT 63
IMPROVEMENTS WITHIN INCORPORATED OR UNINCORPORATED AREAS; 64
(2) THE PROVISION OF SERVICES AND IMPROVEMENTS BY A 66
MUNICIPAL CORPORATION IN UNINCORPORATED AREAS; 67
(3) THE PROVISION OF SERVICES AND IMPROVEMENTS BY A COUNTY 69
OR TOWNSHIP WITHIN THE TERRITORY OF A MUNICIPAL CORPORATION; 70
(4) THE PAYMENT OF SERVICE FEES TO A MUNICIPAL CORPORATION 72
BY A TOWNSHIP OR COUNTY; 73
(5) THE PAYMENT OF SERVICE FEES TO A TOWNSHIP OR A COUNTY 75
BY A MUNICIPAL CORPORATION; 76
(6) THE ISSUANCE OF NOTES AND BONDS AND OTHER DEBT 78
OBLIGATIONS BY A MUNICIPAL CORPORATION, COUNTY, OR TOWNSHIP FOR 79
PUBLIC PURPOSES AUTHORIZED BY OR UNDER A COOPERATIVE ECONOMIC 80
DEVELOPMENT AGREEMENT AND PROVISION FOR THE ALLOCATION OF THE 81
PAYMENT OF THE PRINCIPAL OF, INTEREST ON, AND OTHER CHARGES AND 82
COSTS OF ISSUING AND SERVICING THE REPAYMENT OF THE DEBT;
(7) THE ISSUANCE OF INDUSTRIAL DEVELOPMENT NOTES, BONDS, 84
AND DEBT OBLIGATIONS BY A MUNICIPAL CORPORATION TO FINANCE 85
3
PROJECTS IN TERRITORY LOCATED OUTSIDE THE MUNICIPAL CORPORATION 86
BUT LOCATED WITHIN THE TERRITORY COVERED BY A COOPERATIVE 87
ECONOMIC DEVELOPMENT AGREEMENT AND PROVISION FOR THE ALLOCATION 88
OF THE PAYMENT OF THE PRINCIPAL OF, INTEREST ON, AND OTHER
CHARGES AND COSTS OF ISSUING AND SERVICING THE REPAYMENT OF THE 89
DEBT. TO IMPLEMENT DIVISION (C)(10) OF THIS SECTION, A MUNICIPAL 90
CORPORATION MAY UNDERTAKE PROJECTS UNDER CHAPTER 165., 761., OR 91
902. OF THE REVISED CODE EVEN THOUGH THE PROJECT IS IN TERRITORY 92
LOCATED OUTSIDE THE MUNICIPAL CORPORATION.
(8) THE TERRITORY TO BE ANNEXED TO A MUNICIPAL CORPORATION 94
WHEN AGREED TO BY THE MUNICIPAL CORPORATION TO WHICH ANNEXATION 95
IS PROPOSED AND THE TOWNSHIP IN WHICH THE TERRITORY TO BE ANNEXED 96
IS LOCATED;
(9) ANY PERIODS OF TIME DURING WHICH NO ANNEXATIONS WILL 98
OCCUR AND ANY AREAS THAT WILL NOT BE ANNEXED DURING THE PERIOD 99
WHEN AGREED TO BY THE MUNICIPAL CORPORATION AND TOWNSHIP AFFECTED 100
BY THE ANNEXATION MORATORIUM;
(10) AGREEMENTS BY A MUNICIPAL CORPORATION AND A TOWNSHIP, 102
OR BY A MUNICIPAL CORPORATION AND A COUNTY, WITH LANDOWNERS OR 103
DEVELOPERS OF LAND THAT IS TO BE ANNEXED, OR WITH BOTH SUCH 104
LANDOWNERS AND LAND DEVELOPERS, CONCERNING THE PROVISION OF 105
PUBLIC SERVICES, FACILITIES, AND PERMANENT IMPROVEMENTS;
(11) THE APPLICATION OF TAX ABATEMENT STATUTES WITHIN THE 107
TERRITORY COVERED BY THE COOPERATIVE ECONOMIC DEVELOPMENT 108
AGREEMENT;
(12) CHANGING TOWNSHIP BOUNDARIES UNDER CHAPTER 503. OF 110
THE REVISED CODE TO EXCLUDE NEWLY ANNEXED TERRITORY FROM THE 111
ORIGINAL TOWNSHIP AND PROVIDING SERVICES TO THAT TERRITORY; 112
(13) THE EARMARKING BY A MUNICIPAL CORPORATION FOR ITS 114
GENERAL REVENUE FUND OF A PORTION OF THE UTILITY CHARGES IT 115
COLLECTS IN TERRITORY LOCATED OUTSIDE THE MUNICIPAL CORPORATION 116
BUT LOCATED WITHIN THE TERRITORY COVERED BY A COOPERATIVE 117
ECONOMIC DEVELOPMENT AGREEMENT, BUT ONLY IF THE COOPERATIVE
ECONOMIC DEVELOPMENT AGREEMENT DOES NOT COVER ANY MATTERS 118
4
RELATING TO ANNEXATION; 119
(14) PAYMENTS IN LIEU OF TAXES, IF ANY, TO BE PAID TO A 121
TOWNSHIP BY A MUNICIPAL CORPORATION. THESE PAYMENTS MAY BE IN 122
ADDITION TO OR IN LIEU OF OTHER PAYMENTS REQUIRED BY LAW TO BE 123
MADE TO THE TOWNSHIP BY THAT MUNICIPAL CORPORATION. 124
(15) ANY OTHER MATTER PERTAINING TO THE ANNEXATION OR 126
DEVELOPMENT OF TERRITORY, WHETHER THE TERRITORY IS OWNED BY A 127
GOVERNMENTAL ENTITY OR A PERSON OR PRIVATE ENTITY. 128
AS USED IN DIVISION (C)(2) OF THIS SECTION, "IMPROVEMENT" 130
INCLUDES, BUT IS NOT LIMITED TO, SEWERS, ROADWAYS, PUBLIC 131
UTILITIES, AND THE ACQUISITION OF LAND. 132
(D) COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENTS SHALL NOT 134
BE IN DEROGATION OF THE POWERS GRANTED TO MUNICIPAL CORPORATIONS 135
BY ARTICLE XVIII, OHIO CONSTITUTION, OR ANY OTHER PROVISIONS OF 137
THE OHIO CONSTITUTION OR OF A MUNICIPAL CHARTER, NOR SHALL 138
MUNICIPAL CORPORATIONS AND TOWNSHIPS, OR MUNICIPAL CORPORATIONS
AND COUNTIES, AGREE TO SHARE PROCEEDS OF ANY TAX LEVY, ALTHOUGH 139
SUCH PROCEEDS MAY BE USED TO MAKE PAYMENTS AUTHORIZED IN A 140
COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT. 141
(E) IF ANY PARTY TO A COOPERATIVE ECONOMIC DEVELOPMENT 143
AGREEMENT BELIEVES ANY OTHER PARTY HAS FAILED TO PERFORM ITS PART 144
OF ANY PROVISION OF THE AGREEMENT, INCLUDING THE FAILURE TO MAKE 145
ANY PAYMENT OF MONEYS DUE UNDER THE AGREEMENT, THE COMPLAINING 146
PARTY SHALL GIVE NOTICE TO THE OTHER PARTY CLEARLY STATING WHAT 147
BREACH THE COMPLAINING PARTY BELIEVES HAS OCCURRED. THE PARTY 148
RECEIVING THE NOTICE HAS NINETY DAYS FROM THE RECEIPT OF THAT
NOTICE TO CURE THE BREACH. IF THE BREACH HAS NOT BEEN CURED 149
WITHIN THAT NINETY-DAY PERIOD, THE COMPLAINING PARTY MAY SUE FOR 150
THE RECOVERY OF THE MONEY DUE UNDER THE AGREEMENT, SUE FOR 151
SPECIFIC ENFORCEMENT OF THE AGREEMENT, OR TERMINATE THE AGREEMENT 152
BY GIVING NOTICE OF TERMINATION TO ALL OTHER PARTIES.
(F) IN ORDER TO ASSIST ECONOMIC DEVELOPMENT OR TO PROVIDE 154
APPROPRIATE STATE FUNCTIONS AND SERVICES TO ANY PART OF THE 155
STATE, THE STATE OR ANY STATE AGENCY MAY BECOME A PARTY TO A 156
5
COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT UPON THE APPROVAL OF 157
THE GOVERNOR AND THE WRITTEN CONSENT OF THE LEGISLATIVE AUTHORITY 158
OR GOVERNING BOARD OF EACH GOVERNMENT ENTITY THAT IS A PARTY TO 159
THE AGREEMENT AND UPON THE APPROVAL OF EACH PERSON OR PRIVATE
ENTITY DESCRIBED IN DIVISION (C)(10) OF THIS SECTION THAT IS 160
PARTY TO THE AGREEMENT. 161
(G) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT ENTERED 163
INTO UNDER THIS SECTION IS IN ADDITION TO ANY OTHER AGREEMENTS 164
AUTHORIZED BY LAW BETWEEN MUNICIPAL CORPORATIONS AND COUNTIES OR 165
BETWEEN MUNICIPAL CORPORATIONS AND TOWNSHIPS. 166
(H) THE POWERS AND AUTHORIZATIONS PROVIDED FOR UNDER THIS 168
SECTION AND UNDER ANY COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT 169
ENTERED INTO PURSUANT TO THIS SECTION SHALL BE LIBERALLY 170
CONSTRUED TO ALLOW PARTIES TO ENTER INTO COOPERATIVE ECONOMIC 171
DEVELOPMENT AGREEMENTS AND TO CARRY OUT SUCH AN AGREEMENT BY 172
PROVIDING GOVERNMENT IMPROVEMENTS AND FACILITIES AND SERVICES, BY
PROMOTING AND SUPPORTING ECONOMIC DEVELOPMENT, BY CREATING AND 173
PRESERVING EMPLOYMENT OPPORTUNITIES, AND BY ALLOWING FOR THE 174
SHARING BY COUNTIES AND TOWNSHIPS IN THE BENEFITS OF ECONOMIC 175
DEVELOPMENT EVEN IF THE ECONOMIC DEVELOPMENT DOES NOT OCCUR IN AN 176
UNINCORPORATED AREA.
Sec. 715.70. (A) This section and section 715.71 of the 186
Revised Code apply only to: 187
(1) Municipal corporations and townships within a county 189
that has adopted a charter under Sections 3 and 4 of Article X, 190
Ohio Constitution.; 191
(2) Municipal corporations and townships that have created 193
a joint economic development district comprised entirely of real 194
property owned by a municipal corporation AT THE TIME THE 195
DISTRICT WAS CREATED UNDER THIS SECTION. The real property owned 196
by the municipal corporation shall include an airport owned by 197
the municipal corporation and located entirely beyond the 198
municipal corporation's corporate boundary. 199
(3) Municipal corporations or townships that are part of 201
6
or contiguous to a transportation improvement district created 203
under Chapter 5540. of the Revised Code and that have created a 204
joint economic development district under this section or section 205
715.71 of the Revised Code prior to the effective date of this 207
amendment NOVEMBER 15, 1995. 208
(B)(1) One or more municipal corporations and one or more 210
townships may enter into a contract approved by the legislative 211
authority of each contracting party pursuant to which they create 212
as a joint economic development district an area or areas for the 213
purpose of facilitating economic development to create or 214
preserve jobs and employment opportunities and to improve the 215
economic welfare of the people in the state and in the area of 216
the contracting parties. Any interested person, other than a 217
political subdivision, may bring a civil action within thirty 218
days after the executed copy of the contract is filed with the 219
county recorder pursuant to division (B)(5) of this section 220
challenging whether the contract satisfies the purposes of a 222
joint economic development district as described in this section. 223
The area OR AREAS of land to be included in the district shall 225
not include any parcel of land owned in fee by a municipal 226
corporation or a township or parcel of land that is leased to a 227
municipal corporation or a township, unless the municipal 228
corporation or township is a party to the contract or unless the 229
municipal corporation or township has given its consent to have 230
its parcel of land included in the district by the adoption of a 231
resolution. As used in this division, "parcel of land" means any 232
parcel of land owned by a municipal corporation or a township for 233
at least a six-month period within a five-year period prior to 234
the creation of a district, but "parcel of land" does not include 235
streets or public ways and sewer, water, and other utility lines 236
whether owned in fee or otherwise. 237
The district created shall be located within the territory 239
of one or more of the participating parties and may consist of 240
all or a portion of such territory. The boundaries of the 241
7
district shall be described in the contract or in an addendum to 242
the contract. 243
(2) Where a municipal corporation is located within 245
one-quarter mile of a proposed joint economic development 247
district and is not otherwise a party to the proposed contract, 248
the participating parties shall afford the municipal corporation 249
the reasonable opportunity, for a period of not less than thirty 250
days following receipt of notice of such opportunity from the 251
participating parties, to meet and confer with the participating 252
parties to determine whether the municipal corporation will 253
participate in the joint economic development district. 254
Prior to the public hearing to be held pursuant to division 256
(D)(2) of this section, the participating parties shall give a 257
copy of the proposed contract to each municipal corporation 258
located within one-quarter mile of the proposed joint economic 259
development district and not otherwise a party to the contract, 261
and afford the municipal corporation the reasonable opportunity, 262
for a period of thirty days following receipt of the proposed 263
contract, to make comments and suggestions to the participating 264
parties regarding elements contained in the proposed contract. 265
Prior to the public hearing, the participating parties may 266
include in the contract any of the suggestions or recommendations 267
made by any such municipal corporation. 268
(3) The district shall not exceed two thousand acres in 270
area. The territory of the district shall not completely 271
surround territory that is not included within the boundaries of 272
the district. 273
(4) Sections 503.07 to 503.12 of the Revised Code do not 275
apply to territory included within a district created pursuant to 276
this section as long as the contract creating the district is in 277
effect, unless the legislative authority of each municipal 278
corporation and the board of township trustees of each township 279
included in the district consent, by ordinance or resolution, to 280
the application of those sections of the Revised Code. 281
8
(5) Upon the execution of the contract creating the 283
district by the parties to the contract, a participating 284
municipal corporation or township included within the district 285
shall file a copy of the fully executed contract with the county 286
recorder of each county within which a party to the contract is 287
located, in the miscellaneous records of the county. No 288
annexation proceeding pursuant to Chapter 709. of the Revised 289
Code that proposes the annexation to, merger, or consolidation 290
with a municipal corporation of any unincorporated territory 291
within the district shall be commenced for a period of three 292
years after the contract is filed with the county recorder of 293
each county within which a party to the contract is located 294
unless each board of township trustees whose territory is 295
included, in whole or part, within the district and the territory 296
proposed to be annexed, merged, or consolidated adopts a 297
resolution consenting to the commencement of the proceeding and a 298
copy of the resolution is filed with the clerk of the board of 299
county commissioners LEGISLATIVE AUTHORITY of each county within 301
which a party to the contract is located or unless the contract 302
is terminated during this period.
The contract entered into between the municipal 304
corporations and townships pursuant to this section may provide 305
for the prohibition of any annexation by the participating 306
municipal corporations of any unincorporated territory within the 307
district beyond the three-year mandatory prohibition of any 308
annexation provided for in division (B)(5) of this section. 309
(C)(1) After the legislative authority of a municipal 311
corporation and the board of township trustees have adopted an 312
ordinance and resolution approving a contract to create a joint 313
economic development district pursuant to this section, and after 314
a contract has been signed, the municipal corporations and 315
townships shall jointly file a petition with the legislative 316
authority of each county within which a party to the contract is 317
located. Copies of the ordinances, resolutions, and contract 319
9
shall be attached to the petition. The
(a) THE petition shall contain all of the following: 322
(a)(i) A statement that the area OR AREAS of the district 325
is not greater than two thousand acres and is located within the 326
territory of one or more of the contracting parties; 327
(b)(ii) A brief summary of the services to be provided by 329
each party to the contract OR A REFERENCE TO THE PORTION OF THE 331
CONTRACT DESCRIBING THOSE SERVICES; 332
(c)(iii) A legal description of the area OR AREAS to be 335
designated as the district; 336
(d)(iv) The signature of a representative of each of the 338
contracting parties;. 339
(b) THE FOLLOWING DOCUMENTS SHALL BE FILED WITH THE 341
PETITION:
(i) A SIGNED COPY OF THE CONTRACT, TOGETHER WITH COPIES OF 343
DISTRICT MAPS AND PLANS RELATED TO OR PART OF THE CONTRACT; 344
(ii) A CERTIFIED COPY OF THE ORDINANCES AND RESOLUTIONS OF 346
THE CONTRACTING PARTIES APPROVING THE CONTRACT; 347
(iii) A CERTIFICATE FROM EACH OF THE CONTRACTING PARTIES 349
INDICATING THAT THE PUBLIC HEARINGS REQUIRED BY DIVISION (D)(2) 350
OF THIS SECTION HAVE BEEN HELD, THE DATE OF THE HEARINGS, AND 351
EVIDENCE OF PUBLICATION OF THE NOTICE OF THE HEARINGS; 352
(e) The signatures of a majority (iv) ONE OR MORE SIGNED 354
STATEMENTS of those persons who are owners of property located IN 356
WHOLE OR IN PART within the area to be designated as the district 358
and the signatures of those, REQUESTING THAT SUCH PROPERTY BE 359
INCLUDED WITHIN THE DISTRICT, PROVIDED THAT THOSE STATEMENTS
SHALL REPRESENT A MAJORITY OF THE PERSONS OWNING PROPERTY LOCATED 360
IN WHOLE OR IN PART WITHIN THE DISTRICT AND persons who are 361
owners of the OWNING A majority of THE acreage located within the 362
district. A SIGNATURE MAY BE WITHDRAWN BY THE SIGNER UP TO BUT 363
NOT AFTER THE TIME OF THE PUBLIC HEARING REQUIRED BY DIVISION 364
(D)(2) OF THIS SECTION. 365
The legislative authority of each county within which a 367
10
party to the contract is located shall hold a public hearing 370
concerning the joint economic development district contract 371
within thirty days after the filing of the petition and shall 372
publish notice of the time and place of the public hearing in a 373
newspaper of general circulation in the county at least fourteen 374
days prior to the hearing.
During the thirty-day period prior to the public hearing, a 376
copy of the text of the contract together with copies of district 377
maps and plans related to or part of the contract shall be on 378
file, for public examination, in the offices of the clerk of the 379
legislative authority of each county within which a party to the 380
contract is located. 381
(2) After the public hearing on the petition relating to 383
the creation of a joint economic development district has been 384
held, the THE legislative authority of each county within which a 385
party to the contract is located shall adopt a resolution 388
approving the petition for the creation of the district if the 389
petition meets AND OTHER DOCUMENTS HAVE BEEN FILED IN ACCORDANCE 390
WITH the requirements of division (C)(1) of this section. If the 391
petition does AND OTHER DOCUMENTS DO not SUBSTANTIALLY meet the 392
requirements of that division, the legislative authority of any 393
county within which a party to the contract is located may adopt 394
a resolution disapproving the petition for the creation of the 395
district. The legislative authority of each county within which 396
a party to the contract is located shall adopt a resolution
approving or disapproving the petition within sixty THIRTY days 398
after the public hearing PETITION was held FILED. If the 399
legislative authority of each such county does not adopt the 400
resolution within the sixty-day THIRTY-DAY period, the petition 402
shall be deemed approved and the contract shall go into effect no 403
sooner than thirty days IMMEDIATELY after that approval OR AT 404
SUCH OTHER TIME AS THE CONTRACT SPECIFIES.
(D)(1) The contract creating the district shall set forth 406
or provide for the amount or nature of the contribution of each 407
11
municipal corporation and township to the development and 408
operation of the district and may provide for the sharing of the 409
costs of the operation of and improvements for the district. The 410
contributions may be in any form to which the contracting 411
municipal corporations and townships agree and may include but 412
are not limited to the provision of services, money, real or 413
personal property, facilities, or equipment. THE CONTRACT MAY 415
PROVIDE FOR THE CONTRACTING PARTIES TO SHARE REVENUE FROM TAXES 416
LEVIED ON PROPERTY BY ONE OR MORE OF THE CONTRACTING PARTIES IF 417
THOSE REVENUES MAY LAWFULLY BE APPLIED TO THAT PURPOSE UNDER THE 418
LEGISLATION BY WHICH THOSE TAXES ARE LEVIED. The contract shall 419
provide for new, expanded, or additional services, facilities, or 420
improvements, including expanded or additional capacity for or 421
other enhancement of existing services, facilities, or 422
improvements, provided that those services, facilities, or 423
improvements, or expanded or additional capacity for or 424
enhancement of existing services, facilities, or improvements, 425
required herein have been provided within the two-year period 426
prior to the execution of the contract. 427
(2) Before the legislative authority of a municipal 429
corporation or a board of township trustees passes any ordinance 430
or resolution approving a contract to create a joint economic 431
development district pursuant to this section, the legislative 432
authority of the municipal corporation and the board of township 433
trustees shall EACH hold a public hearing concerning the joint 434
economic development district contract and shall provide thirty 435
days' public notice of the time and place of the public hearing 436
in a newspaper of general circulation in the municipal 437
corporation and the township. The board of township trustees 438
shall MAY provide ADDITIONAL notice to township residents in 440
accordance with section 505.07 of the Revised Code and the ANY 441
SUCH ADDITIONAL notice shall include: the public hearing 443
announcement; a summary of the terms of the contract; a 444
disclosure of the fact STATEMENT that the entire text of the 445
12
contract and district maps and plans are on file for public 446
examination in the office of the township clerk; and information 447
pertaining to any tax changes which will or may occur as a result 448
of the contract. 449
During the thirty-day period prior to the public hearing, a 451
copy of the text of the contract together with copies of district 452
maps and plans related to or part of the contract shall be on 453
file, for public examination, in the offices of the clerk of the 454
legislative authority of the municipal corporation and of the 455
township clerk. The public hearing provided for in division 456
(D)(2) of this section shall allow for public comment and 457
recommendations from the public on the proposed contract. THE 458
CONTRACTING PARTIES MAY INCLUDE IN THE CONTRACT ANY OF THOSE 459
RECOMMENDATIONS PRIOR TO THE APPROVAL OF THE CONTRACT. 460
(3) Any resolution of the board of township trustees that 462
approves a contract that creates a joint economic development 463
district pursuant to this section shall be subject to a 464
referendum of the electors of the township. When a referendum 465
petition, signed by ten per cent of the number of electors in the 466
township who voted for the office of governor at the most recent 468
general election for the office of governor, is presented to the 469
board of township trustees within thirty days after the board of 470
township trustees adopted the resolution, ordering that the 471
resolution be submitted to the electors of the township for their 472
approval or rejection, the board of township trustees shall, 473
after ten days and not later than four p.m. of the seventy-fifth 474
day before the election, certify the text of the resolution to 475
the board of elections. The board of elections shall submit the 476
resolution to the electors of the township for their approval or 477
rejection at the next general, primary, or special election 478
occurring subsequent to seventy-five days after the certifying of 479
the petition to the board of elections. 480
(4) UPON THE CREATION OF A DISTRICT UNDER THIS SECTION OR 482
SECTION 715.71 OF THE REVISED CODE, ONE OF THE CONTRACTING 483
13
PARTIES SHALL FILE A COPY OF THE FOLLOWING WITH THE DIRECTOR OF 484
DEVELOPMENT:
(a) THE PETITION AND OTHER DOCUMENTS DESCRIBED IN DIVISION 486
(C)(1) OF THIS SECTION, IF THE DISTRICT IS CREATED UNDER THIS 487
SECTION; 488
(b) THE DOCUMENTS DESCRIBED IN DIVISION (D) OF SECTION 490
715.71 OF THE REVISED CODE, IF THE DISTRICT IS CREATED UNDER THAT 491
SECTION.
(E) The district created by the contract shall be governed 493
by a board of directors that shall be established by or pursuant 494
to the contract. The board is a public body for the purposes of 495
section 121.22 of the Revised Code. The provisions of Chapter 496
2744. of the Revised Code apply to the board and the district. 497
The members of the board shall be appointed as provided in the 498
contract from among the elected members of the legislative 499
authorities and the elected chief executive officers of the 500
contracting parties, provided that there shall be at least two 501
members appointed from each of the contracting parties. 502
(F) The contract shall enumerate the specific powers, 504
duties, and functions of the board of directors of a district, 505
and the contract shall provide for the determination of 506
procedures that are to govern the board of directors. The 507
contract may grant to the board the power to adopt a resolution 508
to levy an income tax within the district. The income tax shall 509
be used for the purposes of the district and for the purposes of 510
the contracting municipal corporations and townships pursuant to 511
the contract. The income tax may be levied in the district based 512
upon ON income earned by persons working or residing within the 513
district and upon BASED ON the net profits of businesses located 514
in the district. The income tax is subject to SHALL FOLLOW THE 516
PROVISIONS OF Chapter 718. of the Revised Code, except that a 518
vote shall be required by the electors residing in the district 519
to approve the rate of income tax. If no electors reside within 520
the district, then division (F)(4) of this section applies. The 521
14
rate of the income tax shall be no higher than the highest rate 522
being levied by a municipal corporation that is a party to the 523
contract.
(1) Within one hundred eighty days after the first meeting 525
of the board of directors, the board may levy an income tax at a 526
rate that is not higher than the highest rate being levied by a 527
municipal corporation that is a party to the contract, provided 528
that the rate of the income tax is first submitted to and 529
approved by the electors of the district at the succeeding 530
regular or primary election, or a special election called by the 531
board, occurring subsequent to seventy-five days after a 532
certified copy of the resolution levying the income tax and 533
calling for the election is filed with the board of elections. 534
If the voters approve the levy of the income tax, the income tax 535
shall be in force for the full period of the contract 536
establishing the district. Any increase in the rate of an income 537
tax that was first levied within one hundred eighty days after 538
the first meeting of the board of directors shall be approved by 539
a vote of the electors of the district and, shall be in force for 541
the remaining period of the contract establishing the district, 542
AND SHALL NOT BE SUBJECT TO DIVISION (F)(2) OF THIS SECTION. 543
(2) Any resolution of the board of directors levying an 545
income tax that is adopted subsequent to one hundred eighty days 546
after the first meeting of the board of directors shall be 547
subject to a referendum as provided in division (F)(2) of this 548
section. Any resolution of the board of directors levying an 549
income tax that is adopted subsequent to one hundred eighty days 550
after the first meeting of the board of directors shall be 551
subject to an initiative proceeding to amend or repeal the 552
resolution levying the income tax as provided in division (F)(2) 553
of this section. When a referendum petition, signed by ten per 554
cent of the number of electors in the district who voted for the 555
office of governor at the most recent general election for the 556
office of governor, is filed with the county auditor of each 557
15
county within which a party to the contract is located within 558
thirty days after the resolution is adopted by the board or when 559
an initiative petition, signed by ten per cent of the number of 560
electors in the district who voted for the office of governor at 561
the most recent general election for the office of governor, is 563
filed with the county auditor of each such county ordering that a
resolution to amend or repeal a prior resolution levying an 565
income tax be submitted to the electors within the district for 566
their approval or rejection, the county auditor of each such 567
county, after ten days and not later than four p.m. of the 568
seventy-fifth day before the election, shall certify the text of 569
the resolution to the board of elections of that county. The 570
county auditor of each such county shall retain the petition. 571
The board of elections shall submit the resolution to such 572
electors, for their approval or rejection, at the next general, 573
primary, or special election occurring subsequent to seventy-five 575
days after the certifying of such petition to the board of 576
elections.
(3) Whenever a district is located in the territory of 578
more than one contracting party, a majority vote of the electors, 579
IF ANY, in each of the several portions of the territory of the 581
contracting parties constituting the district approving the levy 582
of the tax is required before it may be imposed pursuant to this 583
division. 584
(4) If there are no electors residing in the district, no 586
election for the approval or rejection of an income tax shall be 587
held pursuant to this section, provided that where no electors 588
reside in the district, the maximum rate of the income tax that 589
may be levied shall not exceed one per cent. 590
(5) The board of directors of a district levying an income 592
tax shall enter into an agreement with one of the municipal 593
corporations that is a party to the contract to administer, 594
collect, and enforce the income tax on behalf of the district. 595
The resolution levying the income tax shall provide the same 596
16
credits, if any, to residents of the district for income taxes 597
paid to other such districts or municipal corporations where the 598
residents work, as credits provided to residents of the municipal 599
corporation administering the income tax. 600
(6)(a) The board shall publish or post public notice 602
within the district of any resolution adopted levying an income 603
tax in the same manner required of municipal corporations under 604
sections 731.21 and 731.25 of the Revised Code. 605
(b) Except as otherwise specified by this division, any 607
referendum or initiative proceeding within a district shall be 608
conducted in the same manner as is required for such proceedings 609
within a municipal corporation pursuant to sections 731.28 to 610
731.40 of the Revised Code. 611
(G) Membership on the board of directors does not 613
constitute the holding of a public office or employment within 614
the meaning of any section of the Revised Code or any charter 615
provision prohibiting the holding of other public office or 616
employment, and shall not constitute an interest, either direct 617
or indirect, in a contract or expenditure of money by any 618
municipal corporation, township, county, or other political 619
subdivision with which the member may be connected. No member of 620
a board of directors shall be disqualified from holding any 621
public office or employment, nor shall such member forfeit or be 622
disqualified from holding any such office or employment, by 623
reason of the member's membership on the board of directors, 624
notwithstanding any law or charter provision to the contrary. 625
(H) The powers and authorizations granted pursuant to this 627
section or section 715.71 of the Revised Code are in addition to 628
and not in the derogation of all other powers granted to 630
municipal corporations and townships pursuant to law. When 631
exercising a power or performing a function or duty under a 632
contract authorized pursuant to this section or section 715.71 of
the Revised Code, a municipal corporation may exercise all of the 634
powers of a municipal corporation, and may perform all the 635
17
functions and duties of a municipal corporation, within the 636
district, pursuant to and to the extent consistent with the 637
contract. When exercising a power or performing a function or 638
duty under a contract authorized pursuant to this section or 639
section 715.71 of the Revised Code, a township may exercise all 640
of the powers of a township, and may perform all the functions 641
and duties of a township, within the district, pursuant to and to 642
the extent consistent with the contract. The district board of 643
directors has no powers except those specifically set forth in 644
the contract as agreed to by the participating parties. No 645
political subdivision shall authorize or grant any tax exemption 647
pursuant to Chapter 1728. or section 3735.67, 5709.62, 5709.63, 649
or 5709.632 of the Revised Code on any property located within 650
the district, EXCEPT THAT A POLITICAL SUBDIVISION THAT IS A 651
CONTRACTING PARTY MAY GRANT A TAX EXEMPTION UNDER SECTION 652
5709.62, 5709.63, OR 5709.632 OF THE REVISED CODE ON PROPERTY 653
LOCATED WITHIN THE DISTRICT, WITH THE CONSENT OF THE OTHER
CONTRACTING PARTIES. The prohibition for any tax exemption 654
pursuant to this division shall not apply to any exemption filed, 655
pending, or approved, OR FOR WHICH AN AGREEMENT HAS BEEN ENTERED 656
INTO, before the effective date of the contract entered into by 658
the parties.
(I) Municipal corporations and townships may enter into 660
binding agreements pursuant to a contract authorized under this 661
section or section 715.71 of the Revised Code with respect to the 662
substance and administration of zoning and other land use 664
regulations, building codes, public permanent improvements, and 665
other regulatory and proprietary matters that are determined, 666
pursuant to the contract, to be for a public purpose and to be 667
desirable with respect to the operation of the district or to 668
facilitate new or expanded economic development in the state or 669
the district, provided that no contract shall exempt the 670
territory within the district from the procedures and processes 671
of land use regulation applicable pursuant to municipal 672
18
corporation, township, and county regulations, including but not 673
limited to procedures and processes concerning zoning. 674
(J) A contract entered into pursuant to this section or 676
section 715.71 of the Revised Code may be amended and it may be 678
renewed, canceled, or terminated as provided in or pursuant to 679
the contract. THE CONTRACT MAY BE AMENDED TO ADD PROPERTY OWNED 680
BY ONE OF THE CONTRACTING PARTIES TO THE DISTRICT, OR MAY BE 681
AMENDED TO DELETE PROPERTY FROM THE DISTRICT WHETHER OR NOT ONE
OF THE CONTRACTING PARTIES OWNS THE DELETED PROPERTY. The 682
contract shall continue in existence throughout its term and 683
shall be binding on the contracting parties and on any entities 684
succeeding to such parties, whether by annexation, merger, or 685
otherwise. The income tax levied by the board pursuant to this 686
section or section 715.71 of the Revised Code shall apply in the 688
entire district throughout the term of the contract,
notwithstanding that all or a portion of the district becomes 689
subject to annexation, merger, or incorporation. No township or 690
municipal corporation is divested of its rights or obligations 691
under the contract because of annexation, merger, or succession 692
of interests. 693
(K) AFTER THE CREATION OF A JOINT ECONOMIC DEVELOPMENT 695
DISTRICT DESCRIBED IN DIVISION (A)(2) OF THIS SECTION, A 696
MUNICIPAL CORPORATION THAT IS A CONTRACTING PARTY MAY CEASE TO 697
OWN PROPERTY INCLUDED IN THE DISTRICT, BUT SUCH PROPERTY SHALL 698
CONTINUE TO BE INCLUDED IN THE DISTRICT AND SUBJECT TO THE TERMS 699
OF THE CONTRACT.
Sec. 715.71. (A) This section provides alternative 708
procedures and requirements to those set forth in section 715.70 709
of the Revised Code for creating and operating a joint economic 710
development district. Divisions (B), (C), (D)(1) TO (3), and (F) 712
of section 715.70 of the Revised Code do not apply to a joint 713
economic development district established under this section. 714
However, divisions (A), (D)(4), (E), (G), (H), (I), and (J) of 715
section 715.70 of the Revised Code do apply to a district 717
19
established under this section. 718
(B) One or more municipal corporations and one or more 720
townships may enter into a contract approved by the legislative 721
authority of each contracting party pursuant to which they create 722
as a joint economic development district one or more areas for 723
the purpose of facilitating economic development to create or 724
preserve jobs and employment opportunities and to improve the 725
economic welfare of the people in this state and in the area of 726
the contracting parties. The district created shall be located 727
within the territory of one or more of the contracting parties 728
and may consist of all or a portion of such territory. The 729
boundaries of the district shall be described in the contract or 730
in an addendum to the contract. The area or areas of land to be 731
included in the district shall not include any parcel of land 732
owned in fee by or leased to a municipal corporation or township, 733
unless the municipal corporation or township is a party to the 734
contract or has given its consent to have its parcel of land 735
included in the district by the adoption of a resolution. As 736
used in this division, "parcel of land" has the same meaning as 737
in division (B) of section 715.70 of the Revised Code. 738
(C) Before the legislative authority of a municipal 740
corporation or a board of township trustees adopts an ordinance 741
or resolution approving a contract to create a joint economic 742
development district under this section, it shall hold a public 743
hearing concerning the joint economic development district 744
contract and shall provide thirty days' public notice of the time 745
and place of the public hearing in a newspaper of general 746
circulation in the municipal corporation and the township. Each 747
municipal corporation and township that is a party to the 748
contract shall hold a public hearing. During the thirty-day 749
period prior to a public hearing, a copy of the text of the 750
contract together with copies of district maps and plans related 751
to or part of the contract shall be on file, for public 752
examination, in the offices of the clerk of the legislative 753
20
authority of the municipal corporation and of the township clerk. 754
The public hearings provided for in this division shall allow for 755
public comment and recommendations on the proposed contract. The 756
participating parties may include in the contract any of those 757
recommendations prior to approval of the contract. 758
(D) After the legislative authority of a municipal 760
corporation and the board of township trustees have adopted an 761
ordinance and resolution approving a contract to create a joint 762
economic development district, the municipal corporation and the 763
township jointly shall file with the legislative authority of 764
each county within which a party to the contract is located all 765
of the following: 766
(1) A signed copy of the contract, together with copies of 768
district maps and plans related to or part of the contract; 769
(2) Certified copies of the ordinances and resolutions of 771
the contracting parties relating to the district and the 772
contract; 773
(3) A certificate of each of the contracting parties that 775
the public hearings provided for in division (C) of this section 776
have been held, the date of such hearings, and evidence of 777
publication of the notice of such hearings. 778
(E) Within thirty days after the filing under division (D) 780
of this section, the legislative authority of each county within 781
which a party to the contract is located shall adopt a resolution 782
acknowledging the receipt of the required documents, approving 783
the creation of the joint economic development district, and 784
directing that the resolution of the board of township trustees 785
approving the contract be submitted to the electors of the 786
township for approval at the next succeeding general, primary, or 787
special election. The legislative authority of the county shall 788
file with the board of elections at least seventy-five days 789
before the day of the election a copy of the resolution of the 790
board of township trustees approving the contract. The 791
resolution of the legislative authority of the county also shall 792
21
specify the date the election is to be held and shall direct the 793
board of elections to conduct the election in the township. If 794
the resolution of the legislative authority of the county is not 795
adopted within the thirty-day period after the filing under 796
division (D) of this section, the joint economic development 797
district shall be deemed approved by the county legislative 798
authority and the board of township trustees shall file its 799
resolution with the board of elections for submission to the 800
electors of the township for approval at the next succeeding 801
general, primary, or special election. Such filing shall occur 802
at least seventy-five days before the specified date the election 803
is to be held and shall direct the board of elections to conduct 804
the election in the township. 805
The ballot shall be in the following form: 807
"Shall the resolution of the board of township trustees 809
approving the contract with ............... (here insert name of 810
each municipal corporation and other township that is a party to 811
the contract) for the creation of a joint economic development 812
district be approved? 813
________________________________________________ 816
FOR THE RESOLUTION AND CONTRACT 817
________________________________________________ 818
AGAINST THE RESOLUTION AND CONTRACT 819
________________________________________________ " 820
If a majority of the electors of the township voting on the issue 823
vote for the resolution and contract, the resolution shall become 824
effective immediately and the contract shall go into effect 825
immediately or in accordance with its terms. 826
(F) The contract creating the district shall set forth or 828
provide for the amount or nature of the contribution of each 829
municipal corporation and township to the development and 830
operation of the district and may provide for the sharing of the 831
costs of the operation of and improvements for the district. The 832
contributions may be in any form to which the contracting 833
22
municipal corporations and townships agree and may include but 834
are not limited to the provision of services, money, real or 835
personal property, facilities, or equipment. THE CONTRACT MAY 836
PROVIDE FOR THE CONTRACTING PARTIES TO SHARE REVENUE FROM TAXES 838
LEVIED ON PROPERTY BY ONE OR MORE OF THE CONTRACTING PARTIES IF 839
THOSE REVENUES MAY LAWFULLY BE APPLIED TO THAT PURPOSE UNDER THE 840
LEGISLATION BY WHICH THOSE TAXES ARE LEVIED. The contract shall 841
provide for new, expanded, or additional services, facilities, or 842
improvements, including expanded or additional capacity for or 843
other enhancement of existing services, facilities, or 844
improvements, provided that the existing services, facilities, or 845
improvements, or the expanded or additional capacity for or 846
enhancement of the existing services, facilities, or 847
improvements, have been provided within the two-year period prior 848
to the execution of the contract. 849
(G) The contract shall enumerate the specific powers, 851
duties, and functions of the board of directors of the district 852
and shall provide for the determination of procedures that are to 853
govern the board of directors. The contract may grant to the 854
board the power to adopt a resolution to levy an income tax 855
within the district. The income tax shall be used for the 856
purposes of the district and for the purposes of the contracting 857
municipal corporations and townships pursuant to the contract. 858
The income tax may be levied in the district based on income 859
earned by persons working or residing within the district and 860
based on the net profits of businesses located in the district. 861
The income tax of the district shall follow the provisions of 862
Chapter 718. of the Revised Code, except that no vote shall be 863
required by the electors residing in the district. The rate of 864
the income tax shall be no higher than the highest rate being 865
levied by a municipal corporation that is a party to the 866
contract. 867
The board of directors of a district levying an income tax 869
shall enter into an agreement with one of the municipal 870
23
corporations that is a party to the contract to administer, 871
collect, and enforce the income tax on behalf of the district. 872
The resolution levying the income tax shall provide the same 873
credits, if any, to residents of the district for income taxes 874
paid to other such districts or municipal corporations where the 875
residents work, as credits provided to residents of the municipal 876
corporation administering the income tax. 877
(H) No annexation proceeding pursuant to Chapter 709. of 879
the Revised Code that proposes the annexation to or merger or 880
consolidation with a municipal corporation, except a municipal 881
corporation that is a party to the contract, of any 882
unincorporated territory within the district shall be commenced 883
for a period of three years after the contract is filed with the 884
legislative authority of each county within which a party to the 885
contract is located in accordance with division (D) of this 886
section unless each board of township trustees whose territory is 887
included, in whole or part, within the district and the territory 888
proposed to be annexed, merged, or consolidated adopts a 889
resolution consenting to the commencement of the proceeding and a 890
copy of the resolution is filed with the legislative authority of 891
each such county or unless the contract is terminated during this 892
three-year period. The contract entered into between the 893
municipal corporations and townships pursuant to this section may 894
provide for the prohibition of any annexation by the 895
participating municipal corporations of any unincorporated 896
territory within the district. 897
Sec. 715.72. (A) As used in sections 715.72 to 715.81 of 906
the Revised Code: 907
(1) "Contracting parties" means one or more municipal 909
corporations and one or more townships that have entered into a 910
contract under this section to create a joint economic 911
development district. 912
(2) "District" means a joint economic development district 914
created under sections 715.72 to 715.81 of the Revised Code. 915
24
(3) "Contract for utility services" means a contract under 917
which a municipal corporation agrees to provide to a township or 918
another municipal corporation water, sewer, electric, or other 919
utility services necessary to the public health, safety, and 920
welfare.
(B) Sections 715.72 to 715.81 of the Revised Code provide 922
alternative procedures and requirements to those set forth in 923
sections 715.70 and 715.71 of the Revised Code for creating and 924
operating a joint economic development district. Sections 715.72 925
to 715.81 of the Revised Code apply to municipal corporations and 926
townships that are located in the same county or in adjacent 927
counties.
(C) One or more municipal corporations and one or more 929
townships may enter into a contract pursuant to which they create 930
as a joint economic development district one or more areas for 931
the purpose of facilitating economic development to create or 932
preserve jobs and employment opportunities and to improve the 933
economic welfare of the people in this state and in the area of 934
the contracting parties. The 935
(1) EXCEPT AS OTHERWISE PROVIDED IN DIVISION (C)(2) OF 937
THIS SECTION, THE territory of each of the contracting parties 939
shall be contiguous to the territory of at least one other 940
contracting party, unless the contracting parties have entered 941
into a contract under section 715.70 or 715.71 of the Revised 942
Code creating a joint economic development district prior to the 944
effective date of this section. Contracting OR CONTIGUOUS TO THE
TERRITORY OF A TOWNSHIP OR MUNICIPAL CORPORATION THAT IS 945
CONTIGUOUS TO ANOTHER CONTRACTING PARTY, EVEN IF THE INTERVENING 946
TOWNSHIP OR MUNICIPAL CORPORATION IS NOT A CONTRACTING PARTY. 947
(2) CONTRACTING parties that have entered into a contract 950
under section 715.70 or 715.71 of the Revised Code creating a
joint economic development district prior to the effective date 952
of this section NOVEMBER 15, 1995, may enter into a contract 954
under this section even if the territory of each of the
25
contracting parties is not contiguous to the territory of at 955
least one other contracting party, OR CONTIGUOUS TO THE TERRITORY 956
OF A TOWNSHIP OR MUNICIPAL CORPORATION THAT IS CONTIGUOUS TO 957
ANOTHER CONTRACTING PARTY AS OTHERWISE REQUIRED UNDER DIVISION 958
(C)(1) OF THIS SECTION. The contract and district shall meet the 960
requirements of sections 715.72 to 715.81 of the Revised Code. 961
Sec. 715.74. (A) The contract creating a joint economic 970
development district shall provide for the amount or nature of 972
the contribution of each contracting party to the development and 973
operation of the district and may provide for the sharing of the 974
costs of the operation of and improvements for the district. The 975
contributions may be in any form to which the contracting parties 977
agree and may include, but are not limited to, the provision of 978
services, money, real or personal property, facilities, or 979
equipment. THE CONTRACT MAY PROVIDE FOR THE CONTRACTING PARTIES 980
TO SHARE REVENUE FROM TAXES LEVIED ON PROPERTY BY ONE OR MORE OF 981
THE CONTRACTING PARTIES IF THOSE REVENUES MAY LAWFULLY BE APPLIED
TO THAT PURPOSE UNDER THE LEGISLATION BY WHICH THOSE TAXES ARE 983
LEVIED. The contract shall specify and provide for new, 985
expanded, or additional services, facilities, or improvements. 986
The contract may provide for expanded or additional capacity for 987
or other enhancement of existing services, facilities, or
improvements.
(B) The contract shall enumerate the specific powers, 989
duties, and functions of the board of directors of the district 990
described under section 715.78 of the Revised Code and shall 991
provide for the determination of procedures that are to govern 992
the board.
(C)(1) The contract may grant to the board the power to 995
adopt a resolution to levy an income tax within the district. 996
The income tax shall be used for the purposes of the district and 997
for the purposes of the contracting parties pursuant to the 998
contract. The income tax may be levied in the district based on 999
income earned by persons working within the district and based on 1,001
26
the net profits of businesses located in the district. The
income tax of the district shall follow the provisions of Chapter 1,002
718. of the Revised Code, except that no vote shall be required. 1,003
The rate of the income tax shall be no higher than the highest 1,004
rate being levied by a municipal corporation that is a 1,005
contracting party.
(2) If the board adopts a resolution to levy an income 1,007
tax, it shall enter into an agreement with a municipal 1,008
corporation that is a contracting party to administer, collect, 1,010
and enforce the income tax on behalf of the district.
(3) A resolution levying an income tax under this section 1,012
shall require the contracting parties to annually set aside a 1,013
percentage, to be stated in the resolution, of the amount of the 1,014
income tax collected for the long-term maintenance of the 1,015
district. 1,016
(4) An income tax levied under this section shall apply in 1,018
the entire district throughout the term of the contract creating 1,019
the district, notwithstanding that all or a portion of the 1,020
district becomes subject to annexation, merger, or consolidation. 1,022
(D) The contract creating a joint economic development 1,025
district shall continue in existence throughout its term and 1,026
shall be binding on the contracting parties and on any parties 1,027
succeeding to the contracting parties, whether by annexation, 1,028
merger, or consolidation. Except as provided in division (E) of 1,029
this section, the contract may be amended, renewed, or terminated 1,030
with the approval of the contracting parties or any parties 1,031
succeeding to the contracting parties. IF THE CONTRACT IS 1,032
AMENDED TO ADD AREA TO AN EXISTING DISTRICT, THE AMENDMENT SHALL 1,033
BE ADOPTED IN THE MANNER PRESCRIBED UNDER SECTION 715.761 OF THE 1,034
REVISED CODE.
(E) If two or more contracting parties previously have 1,036
entered into a separate contract for utility services, then 1,038
amendment, renewal, or termination of the separate contract for 1,039
utility services shall not constitute any part of the 1,040
27
consideration for the contract creating a joint economic 1,041
development district. A contract creating a joint economic 1,042
development district shall be rebuttably presumed to violate this 1,043
division if it is entered into within two years prior or five 1,044
years subsequent to the amendment, renewal, or termination of a 1,045
separate contract for utility services that two or more 1,046
contracting parties previously have entered into. The
presumption stated in this division may be rebutted by clear and 1,047
convincing evidence of both of the following: 1,048
(1) That other substantial consideration existed to 1,051
support the contract creating a joint economic development
district; 1,052
(2) That the contracting parties entered into the contract 1,055
creating a joint economic development district freely and without
duress or coercion related to the amendment, renewal, or 1,056
termination of the separate contract for utility services. 1,057
(F) A contract creating a joint economic development 1,059
district that violates division (E) of this section is void and 1,061
unenforceable.
Sec. 715.76. After the public hearings required under 1,070
section 715.75 of the Revised Code have been held, each 1,071
contracting party may adopt an ordinance or resolution approving 1,072
the contract to create a joint economic development district. 1,073
After each contracting party has adopted such an ordinance or 1,074
resolution, the contracting parties jointly shall file with the 1,075
legislative authority of each county within which a contracting 1,076
party is located all of the following documents: 1,077
(A) A signed copy of the contract; 1,079
(B) A description of the area or areas to be included in 1,081
the district, including a map in sufficient detail to denote the 1,083
specific boundaries of the area or areas and to indicate any 1,084
zoning restrictions applicable to the area or areas; 1,085
(C) The economic development plan described in division 1,087
(C) of section 715.75 of the Revised Code; 1,088
28
(D) Certified copies of the ordinances and resolutions of 1,090
the contracting parties relating to the contract and district; 1,092
(E) A certificate of each contracting party that the 1,094
public hearings required by section 715.75 of the Revised Code 1,096
have been held, the date of the hearings, and evidence of 1,097
publication of the notice of the hearings; 1,098
(F) A petition signed by a majority of the owners of 1,100
property located within the area or areas to be included in the 1,101
district;
(G) A petition signed by a majority of the owners of 1,103
businesses, if any, located within the area or areas to be 1,104
included in the district. 1,105
The petitions described in divisions (F) and (G) of this 1,108
section shall specify that all of the documents described in 1,109
divisions (A) through (C) of section 715.75 of the Revised Code
are available for public inspection in the office of the clerk of 1,110
the legislative authority of each municipal corporation that is a 1,112
contracting party or the office of the township clerk of each 1,113
township that is a contracting party. 1,114
NOT LATER THAN TEN DAYS AFTER ALL OF THE DOCUMENTS 1,116
DESCRIBED IN DIVISIONS (A) TO (G) OF THIS SECTION HAVE BEEN 1,118
FILED, EACH CONTRACTING PARTY SHALL GIVE NOTICE TO THOSE OWNERS 1,119
OF PROPERTY WITHIN THE AREA OR AREAS TO BE INCLUDED IN THE
DISTRICT WHO DID NOT SIGN THE PETITION DESCRIBED IN DIVISION (F) 1,120
OF THIS SECTION AND WHOSE PROPERTY IS LOCATED WITHIN THE 1,121
BOUNDARIES OF THAT CONTRACTING PARTY AND TO THOSE OWNERS OF 1,122
BUSINESSES, IF ANY, WITHIN THE AREA OR AREAS TO BE INCLUDED IN 1,123
THE DISTRICT WHO DID NOT SIGN THE PETITION DESCRIBED IN DIVISION
(G) OF THIS SECTION AND WHOSE PROPERTY IS LOCATED WITHIN THE 1,124
BOUNDARIES OF THAT CONTRACTING PARTY. NOTICE SHALL BE GIVEN BY 1,125
CERTIFIED MAIL AND SHALL SPECIFY THAT THE OWNERS OF PROPERTY AND 1,126
BUSINESSES ARE LOCATED WITHIN THE AREA OR AREAS TO BE INCLUDED IN 1,127
THE DISTRICT AND THAT ALL OF THE DOCUMENTS DESCRIBED IN DIVISIONS 1,128
(A) TO (C) OF SECTION 715.75 OF THE REVISED CODE ARE AVAILABLE 1,129
29
FOR PUBLIC INSPECTION IN THE OFFICE OF THE CLERK OF THE 1,130
LEGISLATIVE AUTHORITY OF EACH MUNICIPAL CORPORATION THAT IS A
CONTRACTING PARTY OR THE OFFICE OF THE TOWNSHIP CLERK OF EACH 1,131
TOWNSHIP THAT IS A CONTRACTING PARTY. THE CONTRACTING PARTIES 1,132
SHALL EQUALLY BEAR THE COST OF PROVIDING NOTICE UNDER THIS 1,133
SECTION.
If the contracting parties do not file all of the documents 1,136
described in divisions (A) through (G) of this section, the
legislative authority of a county within which a contracting 1,137
party is located may adopt a resolution disapproving the creation 1,139
of the joint economic development district. In addition, the 1,140
legislative authority of such a county may adopt a resolution 1,141
disapproving the creation of the district if it determines, in 1,142
written findings of fact, that each contracting party did not 1,143
enter into the contract freely and without duress or coercion. 1,144
Sec. 715.761. (A) THE CONTRACTING PARTIES MAY AMEND THE 1,147
CONTRACT TO ADD TO A JOINT ECONOMIC DEVELOPMENT DISTRICT ANY AREA 1,148
THAT WAS NOT ORIGINALLY INCLUDED IN THE DISTRICT WHEN THE 1,149
CONTRACT TOOK EFFECT. AREA MAY BE ADDED ONLY IF THE AREA 1,150
SATISFIES THE CRITERIA PRESCRIBED UNDER SECTION 715.73 OF THE 1,152
REVISED CODE. 1,153
(B) AN AMENDMENT ADDING AREA TO A DISTRICT SHALL BE 1,156
APPROVED BY A RESOLUTION OR ORDINANCE ADOPTED BY EACH OF THE 1,157
CONTRACTING PARTIES. THE CONTRACTING PARTIES SHALL CONDUCT 1,158
PUBLIC HEARINGS ON THE AMENDMENT, PROVIDE NOTICE, AND DELIVER A 1,159
COPY OF THE AMENDMENT TO THE LEGISLATIVE AUTHORITY OF THE COUNTY 1,160
IN WHICH THE ADDED AREA IS LOCATED IN THE MANNER REQUIRED UNDER 1,161
SECTION 715.75 OF THE REVISED CODE FOR ORIGINAL CONTRACTS. THE 1,164
CONTRACTING PARTIES SHALL MAKE AVAILABLE FOR PUBLIC INSPECTION A 1,165
COPY OF THE AMENDMENT, A DESCRIPTION OF THE AREA TO BE ADDED TO 1,166
THE DISTRICT, AND A MAP OF THAT AREA IN SUFFICIENT DETAIL TO 1,167
DENOTE THE SPECIFIC BOUNDARIES OF THE AREA AND TO INDICATE ANY 1,168
ZONING RESTRICTIONS APPLICABLE TO THE AREA.
(C) AFTER ADOPTING RESOLUTIONS OR ORDINANCES APPROVING THE 1,171
30
ADDITION OF THE AREA, THE CONTRACTING PARTIES JOINTLY SHALL FILE 1,172
WITH THE LEGISLATIVE AUTHORITY OF THE COUNTY IN WHICH THE ADDED 1,173
AREA IS LOCATED THE DOCUMENTS REQUIRED TO BE FILED UNDER SECTION 1,174
715.76 OF THE REVISED CODE, EXCEPT THAT: 1,176
(1) A COPY OF THE AMENDMENT TO THE CONTRACT SHALL BE FILED 1,178
IN LIEU OF A COPY OF THE CONTRACT. 1,179
(2) THE DESCRIPTION AND MAP SHALL BE OF THE AREA TO BE 1,181
ADDED INSTEAD OF THE ENTIRE AREA OF THE DISTRICT. 1,182
(3) THE ECONOMIC DEVELOPMENT PLAN NEED NOT BE FILED. 1,185
(4) CERTIFIED COPIES OF THE RESOLUTIONS AND ORDINANCES 1,187
APPROVING THE AMENDMENT SHALL BE FILED. 1,188
(5) THE CERTIFICATES OTHERWISE REQUIRED UNDER DIVISION (E) 1,191
OF SECTION 715.76 OF THE REVISED CODE SHALL CERTIFY THAT THE 1,192
HEARINGS REQUIRED UNDER DIVISION (B) OF THIS SECTION HAVE BEEN 1,193
HELD, SHALL INDICATE THE DATE OF THOSE HEARINGS, AND SHALL 1,194
INCLUDE EVIDENCE THAT NOTICE OF THE HEARINGS WAS PUBLISHED. 1,196
(6) THE PETITION OTHERWISE REQUIRED UNDER DIVISION (F) OF 1,199
SECTION 715.76 OF THE REVISED CODE SHALL BE SIGNED BY A MAJORITY 1,200
OF THE OWNERS OF PROPERTY LOCATED IN THE AREA TO BE ADDED TO THE 1,201
DISTRICT, THE PETITION OTHERWISE REQUIRED UNDER DIVISION (G) OF 1,202
THAT SECTION SHALL BE SIGNED BY A MAJORITY OF THE OWNERS OF 1,203
BUSINESSES, IF ANY, LOCATED IN THE AREA TO BE ADDED TO THE 1,204
DISTRICT, AND THE PETITIONS SHALL SPECIFY THAT THE DOCUMENTS 1,205
DESCRIBED IN DIVISION (B) OF THIS SECTION ARE AVAILABLE FOR 1,207
PUBLIC INSPECTION AS OTHERWISE REQUIRED UNDER SECTION 715.75 OF 1,208
THE REVISED CODE. 1,210
(D) THE RESOLUTION OF A BOARD OF TOWNSHIP TRUSTEES 1,213
APPROVING AN AMENDMENT ADDING AREA TO AN EXISTING JOINT ECONOMIC 1,214
DEVELOPMENT DISTRICT IS NOT REQUIRED TO BE SUBMITTED TO THE 1,215
ELECTORS OF THE TOWNSHIP.
Sec. 715.771. UPON THE CREATION OF A JOINT ECONOMIC 1,217
DEVELOPMENT DISTRICT UNDER SECTION 715.72 OF THE REVISED CODE, 1,218
ONE OF THE CONTRACTING PARTIES SHALL FILE A COPY OF EACH OF THE 1,219
DOCUMENTS DESCRIBED IN DIVISIONS (A) TO (G) OF SECTION 715.76 OF 1,220
31
THE REVISED CODE WITH THE DIRECTOR OF DEVELOPMENT.
Sec. 715.78. (A) A board of directors shall govern each 1,230
joint economic development district created under section 715.72 1,231
of the Revised Code.
(1) If there are businesses located and persons working 1,233
within the area or areas to be included in the district, the 1,234
board shall be composed of the following members: 1,235
(a) One member representing the municipal corporations 1,237
that are contracting parties; 1,238
(b) One member representing the townships that are 1,240
contracting parties; 1,241
(c) One member representing the owners of businesses 1,243
located within the district; 1,245
(d) One member representing the persons working within the 1,247
district; 1,248
(e) One member selected by the members described in 1,251
divisions (A)(1)(a) to (d) of this section. 1,252
The members of the board shall be appointed as provided in 1,254
the contract. Of the members initially appointed to the board, 1,255
the member described in division (A)(1)(a) of this section shall 1,257
serve a term of one year; the member described in division 1,258
(A)(1)(b) of this section shall serve a term of two years; the 1,259
member described in division (A)(1)(c) of this section shall 1,260
serve a term of three years; and the members described in 1,262
divisions (A)(1)(d) and (e) of this section shall serve terms of 1,263
four years. Thereafter, terms for each member shall be for four 1,264
years, each term ending on the same day of the same month of the 1,265
year as did the term that it succeeds. A MEMBER MAY BE 1,266
REAPPOINTED TO THE BOARD, BUT NO MEMBER SHALL SERVE MORE THAN TWO 1,267
CONSECUTIVE TERMS ON THE BOARD.
The member described in division (A)(1)(e) of this section 1,270
shall serve as chairperson of a board described under division 1,271
(A)(1) of this section.
(2) If there are no businesses located or persons working 1,273
32
within the area or areas to be included in the district, the 1,274
board shall be composed of the following members: 1,275
(a) One member representing the municipal corporations 1,277
that are contracting parties; 1,278
(b) One member representing the townships that are 1,280
contracting parties; 1,281
(c) One member selected by the members described in 1,284
divisions (A)(2)(a) and (b) of this section.
The members of the board shall be appointed as provided in 1,286
the contract. Of the members initially appointed to the board, 1,287
the member described in division (A)(2)(a) of this section shall 1,289
serve a term of one year; the member described in division 1,290
(A)(2)(b) of this section shall serve a term of two years; and 1,291
the member described in division (A)(2)(c) of this section shall 1,292
serve a term of three years. Thereafter, terms for each member 1,294
shall be for four years, each term ending on the same day of the 1,295
same month of the year as did the term that it succeeds. A 1,296
member may be reappointed to the board, but no member shall serve 1,297
more than two consecutive terms on the board. 1,298
The member described in division (A)(2)(c) of this section 1,301
shall serve as chairperson of a board described under division 1,302
(A)(2) of this section.
(B) A board described under division (A)(1) or (2) of this 1,305
section has no powers except as described in sections 715.72 to 1,306
715.81 of the Revised Code and in the contract creating the joint
economic development district. 1,307
(C) Membership on the board of directors of a joint 1,309
economic development district is not the holding of a public 1,311
office or employment within the meaning of any section of the 1,312
Revised Code or any charter provision prohibiting the holding of 1,313
other public office or employment. Membership on such a board is 1,315
not a direct or indirect interest in a contract or expenditure of 1,316
money by a municipal corporation, township, county, or other 1,317
political subdivision with which a member may be affiliated. 1,318
33
Notwithstanding any provision of law or a charter to the 1,319
contrary, no member of a board of directors of a joint economic 1,320
development district shall forfeit or be disqualified from 1,321
holding any public office or employment by reason of membership 1,322
on the board.
(D) The board of directors of a joint economic development 1,325
district is a public body for the purposes of section 121.22 of 1,326
the Revised Code. Chapter 2744. of the Revised Code applies to 1,327
such a board and the district.
Sec. 715.82. A MUNICIPAL CORPORATION MAY ISSUE BONDS AND 1,329
EXERCISE ALL OTHER POWERS UNDER CHAPTER 165. OF THE REVISED CODE 1,330
FOR ONE OR MORE PROJECTS OR PARTS THEREOF LOCATED IN A JOINT 1,331
ECONOMIC DEVELOPMENT DISTRICT CREATED PURSUANT TO A CONTRACT 1,332
ENTERED INTO UNDER SECTION 715.70, 715.71, OR 715.72 TO 715.82 OF 1,333
THE REVISED CODE TO WHICH THE MUNICIPAL CORPORATION IS A PARTY, 1,334
OR IN A TOWNSHIP ADJACENT TO THAT MUNICIPAL CORPORATION, IF THE 1,335
LEGISLATIVE AUTHORITY OF THE MUNICIPAL CORPORATION DETERMINES 1,336
THAT THE PROJECT IS IN FURTHERANCE OF THE PUBLIC PURPOSES OF THE
STATE TO CREATE OR PRESERVE JOBS AND EMPLOYMENT OPPORTUNITIES AND 1,337
TO IMPROVE THE ECONOMIC WELFARE OF THE PEOPLE OF THE MUNICIPAL 1,338
CORPORATION AND THE TOWNSHIP. AS USED IN THIS SECTION, "PROJECT" 1,339
HAS THE SAME MEANING AS IN DIVISION (H) OF SECTION 165.01 OF THE 1,340
REVISED CODE, EXCEPT THAT A PROJECT DESCRIBED IN THIS SECTION IS 1,341
NOT REQUIRED TO BE LOCATED WITHIN THE TERRITORIAL BOUNDARIES OF 1,342
THE MUNICIPAL CORPORATION.
Sec. 718.03. A municipal corporation shall grant a credit 1,351
against its tax on income to a resident of the municipal 1,352
corporation who works in a joint economic development zone 1,353
created under section 715.691 or a joint economic development 1,354
district created under section 715.70, 715.71, OR 715.72 of the 1,355
Revised Code to the same extent that it grants a credit against 1,356
its tax on income to its residents who are employed in another 1,357
municipal corporation.
Sec. 5709.411. (A) AS USED IN THIS SECTION, "DETACHED 1,360
34
IMPROVEMENT" MEANS AN IMPROVEMENT AS DEFINED IN SECTION 5709.41 1,361
OF THE REVISED CODE THAT SATISFIES ALL OF THE FOLLOWING: 1,364
(1) THE ORDINANCE DECLARING THE IMPROVEMENT TO BE A PUBLIC 1,367
PURPOSE WAS ADOPTED UNDER SECTION 5709.41 OF THE REVISED CODE BY 1,369
A MUNICIPAL CORPORATION THAT IS A PARTY TO A CONTRACT CREATING A 1,370
JOINT ECONOMIC DEVELOPMENT DISTRICT UNDER SECTION 715.70 OR 1,371
715.71 OF THE REVISED CODE. 1,373
(2) THE IMPROVEMENT RELATES TO A PARCEL OF PROPERTY 1,375
LOCATED IN TERRITORY THAT IS DETACHED BY THAT MUNICIPAL 1,376
CORPORATION TO A TOWNSHIP THAT IS A PARTY TO THE SAME CONTRACT 1,377
CREATING THE JOINT ECONOMIC DEVELOPMENT DISTRICT, PURSUANT TO 1,378
THAT CONTRACT AND SECTION 709.38 OF THE REVISED CODE. 1,380
(3) THE ORDINANCE DECLARING THE IMPROVEMENTS TO BE A 1,382
PUBLIC PURPOSE IS ADOPTED PRIOR TO THE DETACHMENT OF THAT 1,383
TERRITORY. 1,384
(B) THE EXEMPTION FROM TAXATION FOR DETACHED IMPROVEMENTS 1,387
UNDER SECTION 5709.41 OF THE REVISED CODE SHALL CONTINUE FOR THE 1,389
PERIOD PRESCRIBED IN THAT SECTION AND THE ORDINANCE UNDER WHICH 1,390
THE IMPROVEMENTS ARE DECLARED TO BE A PUBLIC PURPOSE, OR ANY 1,391
AMENDMENTS TO THE ORDINANCE, EVEN IF THE DETACHMENT OCCURS PRIOR 1,393
TO THE END OF THAT PERIOD.
(C)(1) THE MUNICIPAL CORPORATION MAY REQUIRE THE OWNER OF 1,396
ANY BUILDING OR STRUCTURE LOCATED ON A PARCEL TO WHICH THE 1,397
DETACHED IMPROVEMENT RELATES TO PAY SERVICE PAYMENTS IN LIEU OF 1,398
TAXES UNDER SECTION 5709.42 OF THE REVISED CODE AFTER THE 1,400
TERRITORY INCLUDING THE DETACHED IMPROVEMENT IS DETACHED. THE 1,401
SERVICE PAYMENTS SHALL BE DISTRIBUTED TO THE MUNICIPAL 1,402
CORPORATION AS PROVIDED IN THAT SECTION. 1,403
(2) THE MUNICIPAL CORPORATION MAY USE THE SERVICE PAYMENTS 1,406
RECEIVED UNDER DIVISION (C)(1) OF THIS SECTION AS PRESCRIBED BY 1,408
SECTION 5709.43 OF THE REVISED CODE AND THE ORDINANCE DECLARING 1,411
THE DETACHED IMPROVEMENTS TO BE A PUBLIC PURPOSE. THE
LEGISLATIVE AUTHORITY OF THE MUNICIPAL CORPORATION MAY AMEND THE 1,412
ORDINANCE TO PERMIT THE SERVICE PAYMENTS TO BE USED TO PAY THE 1,413
35
COST OF STREETS, ROADS, WATER LINES, SEWERS, AND OTHER PUBLIC 1,414
IMPROVEMENTS EXTENDING FROM THE MUNICIPAL CORPORATION TO THE 1,415
DETACHED TERRITORY OR TO THE JOINT ECONOMIC DEVELOPMENT DISTRICT, 1,417
OR LOCATED ON THE DETACHED TERRITORY OR IN THE JOINT ECONOMIC 1,418
DEVELOPMENT DISTRICT, OR TO PAY DEBT SERVICE CHARGES ON
SECURITIES ISSUED BY THE MUNICIPAL CORPORATION TO FINANCE THOSE 1,419
PUBLIC IMPROVEMENTS. 1,420
Sec. 5709.82. (A) As used in this section: 1,429
(1) "New employee" means both of the following: 1,431
(a) Persons employed in the construction of real property 1,433
exempted from taxation under the chapters or sections of the 1,434
Revised Code enumerated in division (B) of this section; 1,435
(b) Persons not described by division (A)(1)(a) of this 1,437
section who are first employed at the site of such property and 1,438
who within the two previous years have not been subject, prior to 1,439
being employed at that site, to income taxation by the municipal 1,440
corporation within whose territory the site is located on income 1,441
derived from employment for the person's current employer. "New 1,442
employee" does not include any person who replaces a person who 1,443
is not a new employee under division (A)(1) of this section. 1,444
(2) "Infrastructure costs" means costs incurred by a 1,446
municipal corporation in a calendar year to acquire, construct, 1,447
reconstruct, improve, plan, or equip real or tangible personal 1,448
property that directly benefits or will directly benefit the 1,449
exempted property. If the municipal corporation finances the 1,450
acquisition, construction, reconstruction, improvement, planning, 1,451
or equipping of real or tangible personal property that directly 1,452
benefits the exempted property by issuing debt, "infrastructure 1,453
costs" means the annual debt charges incurred by the municipal 1,454
corporation from the issuance of such debt. Real or tangible 1,455
personal property directly benefits exempted property only if the 1,456
exempted property places or will place direct, additional demand 1,457
on the real or tangible personal property for which such costs 1,458
were or will be incurred. 1,459
36
(B) Except as otherwise provided under division (C) of 1,461
this section, the legislative authority of any political 1,462
subdivision that has acted under the authority of Chapter 725. or 1,463
1728., sections 3735.65 to 3735.70, or section 5709.40, 5709.41, 1,464
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, 5709.84, or 5709.88 1,465
of the Revised Code to grant an exemption from taxation for real 1,466
or tangible personal property may negotiate with the board of 1,467
education of each city, local, or exempted village school 1,468
district within the territory of which the exempted property is 1,469
located, and enter into an agreement whereby the school district 1,470
is compensated for tax revenue that the school district would 1,471
have received had the property not been exempted from taxation. 1,472
(C) This division does not apply to the following: 1,474
(1) The legislative authority of a municipal corporation 1,478
that has acted under the authority of DIVISION (H) OF SECTION 1,479
715.70 OR section 715.81 of the Revised Code to consent to the 1,481
granting of an exemption from taxation for real or tangible
personal property in a joint economic development district. 1,482
(2) The legislative authority of a municipal corporation 1,485
that has specified in an ordinance adopted under section 5709.40 1,486
or 5709.41 of the Revised Code that payments in lieu of taxes 1,488
provided for under section 5709.42 of the Revised Code shall be 1,489
paid to the city, local, or exempted village school district in 1,491
which the improvements are located in the amount of taxes that
would have been payable to the school district if the 1,492
improvements had not been exempted from taxation, as directed in 1,493
the ordinance.
If the legislative authority of any municipal corporation 1,496
has acted under the authority of Chapter 725. or 1728. or section 1,497
3735.671, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, or 1,498
5709.88, or a housing officer under section 3735.67 of the 1,499
Revised Code, to grant or consent to the granting of an exemption 1,500
from taxation for real or tangible personal property on or after 1,501
July 1, 1994, the municipal corporation imposes a tax on incomes, 1,502
37
and the payroll of new employees resulting from the exercise of 1,503
that authority equals or exceeds one million dollars in any tax 1,504
year for which such property is exempted, the legislative 1,505
authority and the board of education of each city, local, or 1,506
exempted village school district within the territory of which 1,507
the exempted property is located shall attempt to negotiate an 1,508
agreement providing for compensation to the school district for 1,509
all or a portion of the tax revenue the school district would 1,510
have received had the property not been exempted from taxation. 1,511
The agreement may include as a party the owner of the property 1,512
exempted or to be exempted from taxation and may include 1,513
provisions obligating the owner to compensate the school district 1,514
by paying cash or providing property or services by gift, loan, 1,515
or otherwise. Such an obligation is enforceable by the board of 1,516
education of the school district pursuant to the terms of the 1,517
agreement.
If the legislative authority and board of education fail to 1,519
negotiate an agreement that is mutually acceptable within six 1,520
months of formal approval by the legislative authority of the 1,521
instrument granting the exemption, the legislative authority 1,522
shall compensate the school district in the amount and manner 1,523
prescribed by division (D) of this section. 1,524
(D) Annually, the legislative authority of a municipal 1,526
corporation subject to this division shall pay to the city, 1,527
local, or exempted village school district within the territory 1,528
of which the exempted property is located an amount equal to 1,529
fifty per cent of the difference between the amount of taxes 1,530
levied and collected by the municipal corporation on the incomes 1,531
of new employees in the calendar year ending on the day the 1,532
payment is required to be made, and the amount of any 1,533
infrastructure costs incurred in that calendar year. For 1,534
purposes of such computation, the amount of infrastructure costs 1,535
shall not exceed thirty-five per cent of the amount of those 1,536
taxes unless the board of education of the school district, by 1,537
38
resolution adopted by a majority of the board, approves an amount 1,538
in excess of that percentage. If the amount of those taxes or 1,539
infrastructure costs must be estimated at the time the payment is 1,540
made, payments in subsequent years shall be adjusted to 1,541
compensate for any departure of those estimates from the actual 1,542
amount of those taxes. 1,543
A municipal corporation required to make a payment under 1,545
this section shall make the payment from its general fund or a 1,546
special fund established for the purpose. The payment is payable 1,547
on the thirty-first day of December of the tax year for or in 1,548
which the exemption from taxation commences and on that day for 1,549
each subsequent tax year property is exempted and the legislative 1,550
authority and board fail to negotiate an acceptable agreement 1,551
under division (C) of this section. 1,552
Section 2. That existing sections 715.70, 715.71, 715.72, 1,554
715.74, 715.76, 715.78, 718.03, and 5709.82 of the Revised Code 1,556
are hereby repealed.
Section 3. That Section 4 of Sub. H.B. 481 of the 119th 1,558
General Assembly is hereby repealed. 1,559
Section 4. Section 13 of Article VIII, Ohio Constitution, 1,561
is in part implemented by sections 715.69 to 715.82 of the 1,562
Revised Code in furtherance of the public purposes of this state 1,563
to create or preserve jobs and employment opportunities and to 1,564
improve the economic welfare of the people of the state.
Section 5. The amendments to sections 715.70, 715.71, 1,566
715.72, 715.74, 715.76, and 715.78 of the Revised Code in this 1,568
act apply to any proceedings commenced after their effective
date, and, so far as their provisions support the actions taken, 1,569
also apply to any proceedings that on their effective date are 1,570
pending, in progress, or, in the case of elections or otherwise, 1,571
completed, and to the contracts authorized pursuant to those 1,572
proceedings, notwithstanding the applicable law previously in 1,573
effect or any provision to the contrary in a prior resolution,
ordinance, order, advertisement, notice, or other proceeding. 1,574
39
Any proceedings pending or in progress on the effective date of 1,575
those amendments, and contracts entered into or approved pursuant 1,576
to those proceedings, shall be deemed to have been taken, and 1,577
authorized, entered into, and approved, in conformity with those
amendments. 1,578
Section 6. Section 715.70 of the Revised Code is presented 1,580
in this act as a composite of the section as amended by both Am. 1,582
Sub. H.B. 269 and Am. Sub. H.B. 99 of the 121st General Assembly, 1,583
with the new language of neither of the acts shown in capital 1,584
letters. This is in recognition of the principle stated in 1,585
division (B) of section 1.52 of the Revised Code that such 1,586
amendments are to be harmonized where not substantively 1,587
irreconcilable and constitutes a legislative finding that such is 1,588
the resulting version in effect prior to the effective date of 1,589
this act.