As Re-reported by the Senate Economic Development, 1
Technology and Aerospace 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-VESPER-GRENDELL-VERICH- 11
JOLIVETTE-REID-O'BRIEN-LEWIS-HARRIS-WILLAMOWSKI-KRUPINSKI- 12
CAREY-HEALY-CORBIN-WESTON 13
16
A B I L L
To amend sections 122.15, 122.151, 122.152, 122.154, 18
715.70, 715.71, 715.72, 715.74, 715.76, 715.77, 20
715.78, 718.03, and 5709.82 and to enact sections 21
701.07, 715.761, 715.771, 715.82, 715.83, and 22
5709.411 of the Revised Code and to repeal 23
Section 4 of Sub. H.B. 481 of the 119th General 24
Assembly to make various changes in procedures 25
governing the creation of joint economic 26
development zones and certain joint economic 27
development districts, to grant additional 28
authority to subdivisions joining in certain 29
kinds of joint economic development zones 31
regarding the issuance of industrial development 32
bonds, sharing property taxes, and granting 33
property tax exemptions, to authorize municipal 34
corporations, counties, townships, the state, and 35
certain persons and private entities to enter
into cooperative economic development agreements, 36
and to make changes in the technology investment 37
tax credit program.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 39
2
Section 1. That sections 122.15, 122.151, 122.152, 41
122.154, 715.70, 715.71, 715.72, 715.74, 715.76, 715.77, 715.78, 43
718.03, and 5709.82 be amended and sections 701.07, 715.761, 44
715.771, 715.82, 715.83, and 5709.411 of the Revised Code be 46
enacted to read as follows:
Sec. 122.15. As used in sections 122.15 to 122.154 of the 56
Revised Code:
(A) "Edison center" means a cooperative research and 58
development facility that receives funding through the Thomas 59
Alva Edison grant program under division (C) of section 122.33 of 61
the Revised Code.
(B) "Ohio entity" means any corporation, limited liability 64
company, or unincorporated business organization, including a 65
general or limited partnership, that has its principal place of 66
business located in this state and has at least fifty per cent of 67
its gross assets and fifty per cent of its employees located in 68
this state. If a corporation, limited liability company, or 70
unincorporated business organization is a member of an affiliated 71
group, the gross assets and the number of employees of all of the 73
members of that affiliated group, wherever those assets and 74
employees are located, shall be included for the purpose of 75
determining the percentage of the corporation's, company's, or
organization's gross assets and employees that are located in 76
this state. 77
(C) "Qualified trade or business" means any trade or 80
business that primarily involves research and development,
technology transfer, bio-technology, or the application of new 81
technology developed through research and development or acquired 83
through technology transfer. "Qualified trade or business" does 85
not include any of the following:
(1) Any trade or business involving the performance of 87
services in the field of law, engineering, architecture, 88
accounting, actuarial science, performing arts, consulting, 89
athletics, financial services, or brokerage services, or any 90
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trade or business where the principal asset of the trade or 91
business is the reputation or skill of one or more of its 92
employees; 93
(2) Any banking, insurance, financing, leasing, rental, 95
investing, or similar business; 96
(3) Any farming business, including the business of 98
raising or harvesting trees; 99
(4) Any business involving the production or extraction of 102
products of a character with respect to which a deduction is
allowable under section 611, 613, or 613A of the "Internal 104
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 611, 613, or 106
613A;
(5) Any business of operating a hotel, motel, restaurant, 109
or similar business;
(6) Any trade or business involving a hospital, a private 111
office of a licensed health care professional, a group practice 112
of licensed health care professionals, or a nursing home. As 113
used in division (C)(6) of this section: 114
(a) "Nursing home" has the same meaning as in section 116
3721.50 of the Revised Code. 117
(b) "Hospital" has the same meaning as in section 3727.01 119
of the Revised Code. 120
(D) "Insider" means an individual who owns, controls, or 122
holds power to vote five per cent or more of the outstanding 123
securities of a business. FOR PURPOSES OF DETERMINING WHETHER AN 124
INVESTOR IS AN INSIDER, THE PERCENTAGE OF VOTING POWER IN THE 125
OHIO ENTITY HELD BY A PERSON RELATED TO THE INVESTOR SHALL BE 126
ADDED TO THE INVESTOR'S PERCENTAGE OF VOTING POWER IN THE SAME 127
OHIO ENTITY, IF THE INVESTOR CLAIMED THE PERSON RELATED TO THE 128
INVESTOR AS A DEPENDENT OR A SPOUSE ON THE INVESTOR'S FEDERAL
INCOME TAX RETURN FOR THE PREVIOUS TAX YEAR. 129
(E) "Related to" means being the spouse, parent, child, or 131
sibling of an individual. 132
(F) "Research and development" means designing, creating, 135
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or formulating new or enhanced products, equipment, or processes, 136
and conducting scientific or technological inquiry and 137
experimentation in the physical sciences with the goal of 138
increasing scientific knowledge that may reveal the bases for new 139
or enhanced products, equipment, or processes. 140
(G) "State tax liability" means any tax liability incurred 144
under division (D) of section 5707.03, section 5727.38 or 145
5747.02, or Chapter 5733. of the Revised Code. 146
(H) "Technology transfer" means the transfer of technology 149
from one sector of the economy to another, including the transfer 150
of military technology to civilian applications, civilian 151
technology to military applications, or technology from public or 152
private research laboratories to military or civilian 153
applications.
(I) "Affiliated group" means two or more persons related 156
in such a way that one of the persons owns or controls the 157
business operations of another of those persons. In the case of 158
a corporation issuing capital stock, one corporation owns or 159
controls the business operations of another corporation if it 161
owns more than fifty per cent of the other corporation's capital 162
stock with voting rights. In the case of a limited liability 163
company, one person owns or controls the business operations of 164
the company if that person's membership interest, as defined in 165
section 1705.01 of the Revised Code, is greater than fifty per 166
cent of combined membership interest of all persons owning such
interests in the company. In the case of an unincorporated 167
business organization, one person owns or controls the business 168
operations of the organization if, under the articles of 169
organization or other instrument governing the affairs of the 170
organization, that person has a beneficial interest in the 171
organization's profits, surpluses, losses, or other distributions 172
greater than fifty per cent of the combined beneficial interests
of all persons having such an interest in the organization. 173
(J) "Money" means United States currency, or a check, 176
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draft, or cashier's check for United States currency, payable on 177
demand and drawn on a bank.
Sec. 122.151. (A) An investor who proposes to make an 186
investment of money in an Ohio entity may apply to an Edison 188
center for a tax credit under this section. The Edison center 189
shall prescribe the form of the application and any information 190
that the investor must submit with the application. The investor 192
shall include with the application a fee of two hundred dollars. 193
The center, within three weeks after receiving the application, 194
shall review it, determine whether the investor should be 195
recommended for the tax credit, and send written notice of its 196
initial determination to the industrial technology and enterprise 197
advisory council and to the investor. If the center determines 199
the investor should not be recommended for the tax credit, it 200
shall include in the notice the reasons for the determination. 202
Subject to divisions (C) and (D) of this section, an investor is 205
eligible for a tax credit if all of the following requirements 206
are met:
(1) The investor's investment of money is in an Ohio 208
entity engaged in a qualified trade or business;. 210
(2) The Ohio entity had less than one million dollars of 213
gross revenue during its most recently completed fiscal year or 214
had a net book value of less than one million dollars at the end 215
of that fiscal year;. 216
(3) The investment takes the form of the purchase of 218
common or preferred stock, a membership interest, a partnership 219
interest, or any other ownership interest;. 220
(4) The amount of the investment for which the credit is 222
being claimed does not exceed one hundred fifty thousand 224
dollars;.
(5) The money invested is entirely at risk of loss, where 226
repayment depends upon the success of the business operations of 227
the Ohio entity;. 228
(6) If the money invested is to be repaid to the investor 231
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if the Ohio entity is successful, no NO repayment, except for 233
dividends or interest, OF PRINCIPAL INVESTED will be made for at 236
least three years from the date the investment is made;.
(7) The annual COMBINED amount of any dividend and 238
interest payments to be made to the investor will not exceed ten 240
per cent of the amount of the investment; FOR AT LEAST THREE 242
YEARS FROM THE DATE THE INVESTMENT IS MADE.
(8) THE INVESTOR IS NOT AN EMPLOYEE WITH PROPRIETARY 245
DECISION-MAKING AUTHORITY OF THE OHIO ENTITY IN WHICH THE 246
INVESTMENT OF MONEY IS PROPOSED, OR RELATED TO SUCH AN 248
INDIVIDUAL. The Ohio entity is not an individual related to the 250
investor or the. FOR PURPOSES OF THIS DIVISION, THE INDUSTRIAL 251
TECHNOLOGY AND ENTERPRISE ADVISORY COUNCIL SHALL DEFINE "AN 252
EMPLOYEE WITH PROPRIETARY DECISION-MAKING AUTHORITY." 253
(9) THE investor is not an insider. 255
For the purposes of determining the net book value of an 257
Ohio entity under division (A)(1) or (2) of this section, if the 259
entity is a member of an affiliated group, the combined net book 260
values of all of the members of that affiliated group shall be 261
used.
NOTHING IN DIVISION (A)(6) OR (7) OF THIS SECTION LIMITS OR 265
DISALLOWS THE DISTRIBUTION TO AN INVESTOR IN A PASS-THROUGH 266
ENTITY OF A PORTION OF THE ENTITY'S PROFITS EQUAL TO THE 267
INVESTOR'S FEDERAL, STATE, AND LOCAL INCOME TAX OBLIGATIONS 268
ATTRIBUTABLE TO THE INVESTOR'S ALLOCABLE SHARE OF THE ENTITY'S 269
PROFITS. NOTHING IN DIVISION (A)(6) OR (7) OF THIS SECTION 270
LIMITS OR DISALLOWS THE SALE BY AN INVESTOR OF PART OR ALL OF THE
INVESTOR'S INTERESTS IN AN OHIO ENTITY BY WAY OF A PUBLIC 272
OFFERING OF SHARES IN THE OHIO ENTITY. 273
(B) A group of two but not more than twenty investors, 276
each of whom proposes to make an investment of money in the same 278
Ohio entity, may submit an application for tax credits under 279
division (A) of this section. The group shall include with the 281
application a fee of eight hundred dollars. The application 282
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shall identify each investor in the group and the amount of money 283
each investor proposes to invest in the Ohio entity, and shall 286
name a contact person for the group. The Edison center, within 287
three weeks after receiving the application, shall review it, 288
determine whether each investor of the group should be 289
recommended for a tax credit under the conditions set forth in 290
division (A) of this section, and send written notice of its 292
determination to the industrial technology and enterprise 293
advisory council and to the contact person. The center shall not 295
recommend that a group of investors receive a tax credit unless 296
each investor is eligible under those conditions. The center may 297
disqualify from a group any investor who is not eligible under 298
the conditions and recommend that the remaining group of 299
investors receive the tax credit. If the center determines the 300
group should not be recommended for the tax credit, it shall 301
include in the notice the reasons for the determination. 302
(C) The industrial technology and enterprise advisory 304
council shall establish from among its members a three-person 306
committee. Within four weeks after the council receives a notice 308
of recommendation from an Edison center, the committee shall 310
review the recommendation and issue a final determination of 311
whether the investor or group is eligible for a tax credit under 313
the conditions set forth in division (A) of this section. The 314
committee may require the investor or group to submit additional 316
information to support the application. The vote of at least two 318
members of the committee is necessary for the issuance of a final 321
determination or any other action of the committee. Upon making 322
the final determination, the committee shall send written notice 324
of approval or disapproval of the tax credit o TO the investor or 325
group contact person, the director of development, and the Edison 329
center. If the committee disapproves the tax credit, it shall 331
include in the notice the reasons for the disapproval.
(D)(1) The industrial technology and enterprise advisory 333
council committee shall not approve more than one million dollars 336
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of investments in any one Ohio entity. However, if a proposed 338
investment of money in an Ohio entity has been approved but the 339
investor does not actually make the investment, the committee may 340
reassign the amount of that investment to another investor, as 342
long as the total amount invested in the entity under this 343
section does not exceed one million dollars. 344
If the one-million-dollar limit for an Ohio entity has not 347
yet been reached and an application proposes an investment of 348
money that would exceed the limit for that entity, the committee 349
shall send written notice to the investor, or for a group, the 351
contact person, that the investment cannot be approved as 353
requested. Upon receipt of the notice, the investor or group may 354
amend the application to propose an investment of money that does 355
not exceed the limit. 356
(2) Not more than ten million dollars of tax credits shall 359
be issued under sections 122.15 to 122.154 of the Revised Code. 361
(E) If an investor makes an approved investment of money 363
in an Ohio entity of less than one hundred fifty thousand 365
dollars, the investor may apply for approval of another 366
investment of money in that entity, as long as the total amount 367
invested in that entity by the investor under this section does
not exceed one hundred fifty thousand dollars. An investor who 368
receives approval of an investment of money as part of a group 369
may subsequently apply on an individual basis for approval of an 370
additional investment of money in the Ohio entity. 371
(F) The industrial technology and enterprise advisory 373
council committee shall approve or disapprove tax credit 374
applications under this section in the order in which they are 376
received by the council. 377
(G) The director of development may disapprove any 379
application recommended by an Edison center and approved by the 381
industrial technology and enterprise advisory council committee, 382
or may disapprove a credit for which a tax credit certificate has 383
been issued under section 122.152 of the Revised Code, if the 386
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director determines that the entity in which the applicant 387
proposes to invest or has invested is not an Ohio entity eligible 388
to receive investments that qualify for the credit. If the 389
director disapproves an application, the director shall certify 390
the action to the investor, the Edison center that recommended 391
the application, the industrial technology and enterprise 392
advisory council, and the tax commissioner, together with a 394
written explanation of the reasons for the disapproval. If the 395
director disapproves a tax credit after a tax credit certificate 396
is issued, the investor shall not claim the credit for the
taxable year that includes the day the director disapproves the 397
credit, or for any subsequent taxable year. 398
The director of development, in accordance with section 400
111.15 of the Revised Code and with the advice of the industrial 401
technology and enterprise advisory council, may adopt, amend, and 402
rescind rules necessary to implement sections 122.15 to 122.154 403
of the Revised Code.
(H) An Edison center shall use application fees received 406
under this section only for the costs of administering sections
122.15 to 122.154 of the Revised Code. 407
Sec. 122.152. (A) An investor who receives AFTER 416
RECEIVING notice of approval for an investment of money from the 418
industrial technology and enterprise advisory council committee 420
under section 122.151 of the Revised Code, not more than thirty 421
days after receiving the notice AN INVESTOR, WITHIN A PERIOD OF 422
TIME DETERMINED BY THE COMMITTEE, may make the investment and 423
apply to the council for a tax credit certificate. If the 425
council is satisfied the investor has made the investment in the 426
proper form, it shall issue to the investor a tax credit 427
certificate indicating that the investor is allowed a tax credit 428
in an amount equal to twenty-five per cent of the investment. 429
An investor who receives approval of a proposed investment 431
of money through a group application, after making the 432
investment, shall apply for a tax credit certificate on an 434
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individual basis.
(B) An investor who is issued a tax credit certificate 437
under this section may claim a nonrefundable credit equal to the 438
amount indicated on the certificate against any state tax 439
liability. The investor shall claim the credit for the taxable 440
year in which the certificate is issued. 441
(1) If the credit to which a taxpayer otherwise would be 444
entitled under this section for any taxable year is greater than 445
the tax otherwise due under division (D) of section 5707.03 or 446
section 5727.38 of the Revised Code, the excess shall be allowed 449
as a credit in each of the ensuing fifteen taxable years, but the 450
amount of any excess credit allowed in an ensuing taxable year 451
shall be deducted from the balance carried forward to the next 452
taxable year.
(2) If the credit to which a taxpayer otherwise would be 455
entitled under this section for any taxable year is greater than 456
the tax otherwise due under section 5747.02 or Chapter 5733. of 457
the Revised Code, after allowing for any other credits that 458
precede the credit allowed under this section in the order 459
required under section 5733.98 or 5747.98 of the Revised Code, 460
the excess shall be allowed as a credit in each of the ensuing 461
fifteen taxable years, but the amount of any excess credit 462
allowed in an ensuing taxable year shall be deducted from the 463
balance carried forward to the next taxable year. 464
(C) Any portion of a credit allowed under this section 467
that is utilized by an investor to reduce the investor's state 468
tax liability shall not be utilized by any other person.
(D) To claim a tax credit allowed under this section, an 471
investor shall attach to the appropriate return a copy of the 472
certificate issued to the investor under this section. 473
(E) Nothing in this section shall limit or disallow 476
pass-through treatment of a pass-through entity's income, 477
deductions, or credits, or other amounts necessary to compute a 478
state tax liability. 479
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(F) A tax credit certificate issued to an investor under 482
this section may not be transferred by that investor to any other 483
person.
(G)(1) The industrial technology and enterprise advisory 485
council shall develop the form of the tax credit certificate and 487
shall use that form when issuing a tax credit certificate under 488
this section.
(2) The industrial technology and enterprise advisory 491
council shall report to the tax commissioner any information 492
requested by the commissioner concerning tax credit certificates 493
issued under this section. 494
(H) AN INVESTMENT MADE BY AN INVESTOR OR GROUP OF 496
INVESTORS WHO ENTER INTO A CONTRACTUAL AGREEMENT WITH AN OHIO 499
ENTITY TO INVEST MONEY IN THE OHIO ENTITY IS AN ACCEPTABLE 500
INVESTMENT IF ALL OF THE FOLLOWING CONDITIONS ARE MET: 501
(1) THE INVESTMENT IS MADE PURSUANT TO A SUBSCRIPTION 503
AGREEMENT PROVIDING THAT THE INVESTOR OR GROUP OF INVESTORS IS 504
ENTITLED TO RECEIVE A REFUND OF FUNDS IF THE INVESTMENT IS NOT 505
APPROVED BY THE INDUSTRIAL TECHNOLOGY AND ENTERPRISE ADVISORY 506
COUNCIL. 507
(2) THE INVESTMENT IS PLACED IN ESCROW UNTIL THE 509
INVESTMENT IS APPROVED BY THE INDUSTRIAL TECHNOLOGY AND 510
ENTERPRISE ADVISORY COUNCIL. 511
(3) THE INVESTOR OR GROUP OF INVESTORS SHOWS PROOF OF THE 513
WITHDRAWAL OF THE FUNDS BY THE OHIO ENTITY AFTER THE INVESTMENT 515
IS APPROVED BY THE INDUSTRIAL TECHNOLOGY AND ENTERPRISE ADVISORY 516
COUNCIL.
Sec. 122.154. (A) A business may apply to an Edison 526
center for a determination as to whether the business is an Ohio 527
entity eligible to receive investments of money under section 528
122.151 of the Revised Code that qualify the investor for a tax 531
credit under section 122.152 of the Revised Code. The business 533
shall include with the application a fee of one hundred fifty 534
dollars and a business plan. The Edison center shall prescribe 535
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any other information the business must submit with the 536
application and the form of the application. The center, within 537
three weeks after receiving the application, shall review it, 538
determine whether the business is an Ohio entity eligible to 540
receive investments of money that qualify for the tax credit, and 541
send written notice to the industrial technology and enterprise 542
advisory council and the business of its initial determination. 543
If the center determines that the business is not an Ohio entity 544
eligible to receive investments of money that qualify for the tax 545
credit, it shall include in the notice the reasons for the 546
determination.
Within four weeks after the council receives a notice of 548
recommendation from an Edison center, the industrial technology 549
and enterprise advisory council committee established under 550
section 122.152 of the Revised Code shall review the 551
recommendation and issue a final determination of whether the
business is an Ohio entity eligible to receive investments of 552
money under section 122.151 of the Revised Code that qualify an 553
investor for a tax credit under section 122.152 of the Revised 554
Code. The committee may require the business to submit
additional information to support the application. The vote of 555
at least two members of the committee is necessary for the 556
issuance of a final determination. On making the final 557
determination, the committee shall send written notice of 558
approval or disapproval to the business, the director of
development, and the Edison center. If the committee determines 559
that the business is not an Ohio entity eligible to receive 560
investments of money that qualify for the tax credit, it shall 561
include in the notice the reasons for the determination. 562
(B) An Edison center THE DEPARTMENT OF DEVELOPMENT shall 565
maintain a list of the businesses that have been determined to be 566
Ohio entities eligible to receive investments of money that 567
qualify for the tax credit. The center DEPARTMENT shall furnish 568
copies of the list to the public upon request. 570
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(C) The Edison center DEPARTMENT OF DEVELOPMENT may 572
prescribe a schedule under which businesses periodically must 574
submit information to enable the center to maintain the accuracy 575
of the list. At the times required in the schedule, each 576
business on the list shall submit any information the center 577
requires to determine if the business continues to be an Ohio 578
entity eligible to receive investments of money that qualify for 579
the tax credit.
(D) An Edison center shall use fees received under this 582
section only for the costs of administering sections 122.15 to 583
122.154 of the Revised Code.
(E) The Edison centers and the industrial technology and 586
enterprise advisory council do not assume any responsibility for 587
the accuracy or truthfulness of information furnished by an Ohio 588
entity or its agents.
An investor in an Ohio entity is solely responsible for due 591
diligence in verifying information submitted by an Ohio entity. 592
An Edison center is not liable for any action resulting from its 594
provision of such information to investors in accordance with 596
sections 122.15 to 122.154 of the Revised Code.
Sec. 701.07. (A) THE LEGISLATIVE AUTHORITY OF ONE OR MORE 598
MUNICIPAL CORPORATIONS, BY ORDINANCE OR RESOLUTION, AND THE BOARD 599
OF TOWNSHIP TRUSTEES OF ONE OR MORE TOWNSHIPS, BY RESOLUTION, MAY 601
ENTER INTO A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT UNDER 602
THIS SECTION. THE BOARD OF COUNTY COMMISSIONERS OF ONE OR MORE 603
COUNTIES MAY BECOME A PARTY TO A COOPERATIVE ECONOMIC DEVELOPMENT 604
AGREEMENT UPON THE WRITTEN CONSENT OF THE LEGISLATIVE AUTHORITY
OF EACH MUNICIPAL CORPORATION AND THE BOARD OF TOWNSHIP TRUSTEES 605
OF EACH TOWNSHIP THAT IS A PARTY TO THE AGREEMENT. 606
BEFORE ENTERING INTO A COOPERATIVE ECONOMIC DEVELOPMENT 608
AGREEMENT PURSUANT TO THIS SECTION, THE PARTIES TO THE AGREEMENT 609
SHALL JOINTLY HOLD A PUBLIC HEARING CONCERNING THE AGREEMENT. 610
THE PARTIES SHALL PROVIDE TO RESIDENTS OF THE TERRITORY AFFECTED 611
BY THE AGREEMENT AT LEAST THIRTY DAYS' PUBLIC NOTICE OF THE TIME 612
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AND PLACE OF THE PUBLIC HEARING IN ONE OR MORE NEWSPAPERS OF 613
GENERAL CIRCULATION IN THAT TERRITORY. DURING THE THIRTY-DAY 614
PERIOD PRIOR TO THE PUBLIC HEARING, EACH PARTY TO THE AGREEMENT, 615
EXCEPT THE STATE OR ANY STATE AGENCY OR ANY PERSON OR PRIVATE 616
ENTITY THAT BECOMES A PARTY TO THE AGREEMENT UNDER DIVISION 618
(C)(10) OR (F) OF THIS SECTION, SHALL MAKE AVAILABLE FOR PUBLIC 620
INSPECTION A COPY OF THE PROPOSED AGREEMENT. 621
(B) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT MAY BE 624
AMENDED AT ANY TIME IN THE SAME MANNER AS IT WAS INITIALLY 625
AUTHORIZED. A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT SHALL
DESIGNATE THE TERRITORY THE AGREEMENT COVERS. 626
(C) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT MAY 628
PROVIDE FOR ANY OF THE FOLLOWING: 629
(1) THE PROVISION OF JOINT SERVICES AND PERMANENT 631
IMPROVEMENTS WITHIN INCORPORATED OR UNINCORPORATED AREAS; 632
(2) THE PROVISION OF SERVICES AND IMPROVEMENTS BY A 634
MUNICIPAL CORPORATION IN UNINCORPORATED AREAS; 635
(3) THE PROVISION OF SERVICES AND IMPROVEMENTS BY A COUNTY 637
OR TOWNSHIP WITHIN THE TERRITORY OF A MUNICIPAL CORPORATION; 638
(4) THE PAYMENT OF SERVICE FEES TO A MUNICIPAL CORPORATION 640
BY A TOWNSHIP OR COUNTY; 641
(5) THE PAYMENT OF SERVICE FEES TO A TOWNSHIP OR A COUNTY 643
BY A MUNICIPAL CORPORATION; 644
(6) THE ISSUANCE OF NOTES AND BONDS AND OTHER DEBT 646
OBLIGATIONS BY A MUNICIPAL CORPORATION, COUNTY, OR TOWNSHIP FOR 647
PUBLIC PURPOSES AUTHORIZED BY OR UNDER A COOPERATIVE ECONOMIC 648
DEVELOPMENT AGREEMENT AND PROVISION FOR THE ALLOCATION OF THE 649
PAYMENT OF THE PRINCIPAL OF, INTEREST ON, AND OTHER CHARGES AND 650
COSTS OF ISSUING AND SERVICING THE REPAYMENT OF THE DEBT;
(7) THE ISSUANCE OF INDUSTRIAL DEVELOPMENT NOTES, BONDS, 652
AND DEBT OBLIGATIONS BY A MUNICIPAL CORPORATION TO FINANCE 653
PROJECTS IN TERRITORY LOCATED OUTSIDE THE MUNICIPAL CORPORATION 654
BUT LOCATED WITHIN THE TERRITORY COVERED BY A COOPERATIVE 655
ECONOMIC DEVELOPMENT AGREEMENT AND PROVISION FOR THE ALLOCATION 656
15
OF THE PAYMENT OF THE PRINCIPAL OF, INTEREST ON, AND OTHER
CHARGES AND COSTS OF ISSUING AND SERVICING THE REPAYMENT OF THE 657
DEBT. TO IMPLEMENT DIVISION (C)(10) OF THIS SECTION, A MUNICIPAL 658
CORPORATION MAY UNDERTAKE PROJECTS UNDER CHAPTER 165., 761., OR 659
902. OF THE REVISED CODE EVEN THOUGH THE PROJECT IS IN TERRITORY 660
LOCATED OUTSIDE THE MUNICIPAL CORPORATION.
(8) THE TERRITORY TO BE ANNEXED TO A MUNICIPAL CORPORATION 662
WHEN AGREED TO BY THE MUNICIPAL CORPORATION TO WHICH ANNEXATION 663
IS PROPOSED AND THE TOWNSHIP IN WHICH THE TERRITORY TO BE ANNEXED 664
IS LOCATED;
(9) ANY PERIODS OF TIME DURING WHICH NO ANNEXATIONS WILL 666
OCCUR AND ANY AREAS THAT WILL NOT BE ANNEXED DURING THE PERIOD 667
WHEN AGREED TO BY THE MUNICIPAL CORPORATION AND TOWNSHIP AFFECTED 668
BY THE ANNEXATION MORATORIUM;
(10) AGREEMENTS BY A MUNICIPAL CORPORATION AND A TOWNSHIP, 670
OR BY A MUNICIPAL CORPORATION AND A COUNTY, WITH LANDOWNERS OR 671
DEVELOPERS OF LAND THAT IS TO BE ANNEXED, OR WITH BOTH SUCH 672
LANDOWNERS AND LAND DEVELOPERS, CONCERNING THE PROVISION OF 673
PUBLIC SERVICES, FACILITIES, AND PERMANENT IMPROVEMENTS. ANY 674
PERSON OR OTHER PRIVATE ENTITY DESCRIBED IN DIVISION (C)(10) OF 675
THIS SECTION THAT ENTERS INTO AN AGREEMENT WITH A MUNICIPAL 676
CORPORATION AND A TOWNSHIP, OR WITH A MUNICIPAL CORPORATION AND A 677
COUNTY, PURSUANT TO THIS DIVISION SHALL BE CONSIDERED TO BE A 678
PARTY TO THE AGREEMENT. 679
(11) THE APPLICATION OF TAX ABATEMENT STATUTES WITHIN THE 681
TERRITORY COVERED BY THE COOPERATIVE ECONOMIC DEVELOPMENT 682
AGREEMENT;
(12) CHANGING TOWNSHIP BOUNDARIES UNDER CHAPTER 503. OF 684
THE REVISED CODE TO EXCLUDE NEWLY ANNEXED TERRITORY FROM THE 685
ORIGINAL TOWNSHIP AND PROVIDING SERVICES TO THAT TERRITORY; 686
(13) THE EARMARKING BY A MUNICIPAL CORPORATION FOR ITS 688
GENERAL REVENUE FUND OF A PORTION OF THE UTILITY CHARGES IT 689
COLLECTS IN TERRITORY LOCATED OUTSIDE THE MUNICIPAL CORPORATION 690
BUT LOCATED WITHIN THE TERRITORY COVERED BY A COOPERATIVE 691
16
ECONOMIC DEVELOPMENT AGREEMENT, BUT ONLY IF THE COOPERATIVE
ECONOMIC DEVELOPMENT AGREEMENT DOES NOT COVER ANY MATTERS 692
RELATING TO ANNEXATION; 693
(14) PAYMENTS IN LIEU OF TAXES, IF ANY, TO BE PAID TO A 695
TOWNSHIP BY A MUNICIPAL CORPORATION. THESE PAYMENTS MAY BE IN 696
ADDITION TO OR IN LIEU OF OTHER PAYMENTS REQUIRED BY LAW TO BE 697
MADE TO THE TOWNSHIP BY THAT MUNICIPAL CORPORATION. 698
(15) ANY OTHER MATTER PERTAINING TO THE ANNEXATION OR 700
DEVELOPMENT OF TERRITORY, WHETHER THE TERRITORY IS OWNED BY A 701
GOVERNMENTAL ENTITY OR A PERSON OR PRIVATE ENTITY. 702
AS USED IN DIVISION (C)(2) OF THIS SECTION, "IMPROVEMENT" 704
INCLUDES, BUT IS NOT LIMITED TO, SEWERS, ROADWAYS, PUBLIC 705
UTILITIES, AND THE ACQUISITION OF LAND. 706
(D) COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENTS SHALL NOT 708
BE IN DEROGATION OF THE POWERS GRANTED TO MUNICIPAL CORPORATIONS 709
BY ARTICLE XVIII, OHIO CONSTITUTION, OR ANY OTHER PROVISIONS OF 711
THE OHIO CONSTITUTION OR OF A MUNICIPAL CHARTER, NOR SHALL 712
MUNICIPAL CORPORATIONS AND TOWNSHIPS, OR MUNICIPAL CORPORATIONS
AND COUNTIES, AGREE TO SHARE PROCEEDS OF ANY TAX LEVY, ALTHOUGH 713
SUCH PROCEEDS MAY BE USED TO MAKE PAYMENTS AUTHORIZED IN A 714
COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT. 715
(E) IF ANY PARTY TO A COOPERATIVE ECONOMIC DEVELOPMENT 717
AGREEMENT BELIEVES ANY OTHER PARTY HAS FAILED TO PERFORM ITS PART 718
OF ANY PROVISION OF THE AGREEMENT, INCLUDING THE FAILURE TO MAKE 719
ANY PAYMENT OF MONEYS DUE UNDER THE AGREEMENT, THE COMPLAINING 720
PARTY SHALL GIVE NOTICE TO THE OTHER PARTY CLEARLY STATING WHAT 721
BREACH THE COMPLAINING PARTY BELIEVES HAS OCCURRED. THE PARTY 722
RECEIVING THE NOTICE HAS NINETY DAYS FROM THE RECEIPT OF THAT
NOTICE TO CURE THE BREACH. IF THE BREACH HAS NOT BEEN CURED 723
WITHIN THAT NINETY-DAY PERIOD, THE COMPLAINING PARTY MAY SUE FOR 724
THE RECOVERY OF THE MONEY DUE UNDER THE AGREEMENT, SUE FOR 725
SPECIFIC ENFORCEMENT OF THE AGREEMENT, OR TERMINATE THE AGREEMENT 726
BY GIVING NOTICE OF TERMINATION TO ALL OTHER PARTIES.
(F) IN ORDER TO ASSIST ECONOMIC DEVELOPMENT OR TO PROVIDE 728
17
APPROPRIATE STATE FUNCTIONS AND SERVICES TO ANY PART OF THE 729
STATE, THE STATE OR ANY STATE AGENCY MAY BECOME A PARTY TO A 730
COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT UPON THE APPROVAL OF 731
THE GOVERNOR AND THE WRITTEN CONSENT OF THE LEGISLATIVE AUTHORITY 732
OR GOVERNING BOARD OF EACH GOVERNMENT ENTITY THAT IS A PARTY TO 733
THE AGREEMENT AND UPON THE APPROVAL OF EACH PERSON OR PRIVATE
ENTITY DESCRIBED IN DIVISION (C)(10) OF THIS SECTION THAT IS 734
PARTY TO THE AGREEMENT. 735
(G) A COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT ENTERED 737
INTO UNDER THIS SECTION IS IN ADDITION TO ANY OTHER AGREEMENTS 738
AUTHORIZED BY LAW BETWEEN MUNICIPAL CORPORATIONS AND COUNTIES OR 739
BETWEEN MUNICIPAL CORPORATIONS AND TOWNSHIPS. 740
(H) THE POWERS AND AUTHORIZATIONS PROVIDED FOR UNDER THIS 742
SECTION AND UNDER ANY COOPERATIVE ECONOMIC DEVELOPMENT AGREEMENT 743
ENTERED INTO PURSUANT TO THIS SECTION SHALL BE LIBERALLY 744
CONSTRUED TO ALLOW PARTIES TO ENTER INTO COOPERATIVE ECONOMIC 745
DEVELOPMENT AGREEMENTS AND TO CARRY OUT SUCH AN AGREEMENT BY 746
PROVIDING GOVERNMENT IMPROVEMENTS AND FACILITIES AND SERVICES, BY
PROMOTING AND SUPPORTING ECONOMIC DEVELOPMENT, BY CREATING AND 747
PRESERVING EMPLOYMENT OPPORTUNITIES, AND BY ALLOWING FOR THE 748
SHARING BY COUNTIES AND TOWNSHIPS IN THE BENEFITS OF ECONOMIC 749
DEVELOPMENT EVEN IF THE ECONOMIC DEVELOPMENT DOES NOT OCCUR IN AN 750
UNINCORPORATED AREA.
Sec. 715.70. (A) This section and section 715.71 of the 760
Revised Code apply only to: 761
(1) Municipal corporations and townships within a county 763
that has adopted a charter under Sections 3 and 4 of Article X, 764
Ohio Constitution.; 765
(2) Municipal corporations and townships that have created 767
a joint economic development district comprised entirely of real 768
property owned by a municipal corporation AT THE TIME THE 769
DISTRICT WAS CREATED UNDER THIS SECTION. The real property owned 770
by the municipal corporation shall include an airport owned by 771
the municipal corporation and located entirely beyond the 772
18
municipal corporation's corporate boundary. 773
(3) Municipal corporations or townships that are part of 775
or contiguous to a transportation improvement district created 777
under Chapter 5540. of the Revised Code and that have created a 778
joint economic development district under this section or section 779
715.71 of the Revised Code prior to the effective date of this 781
amendment NOVEMBER 15, 1995;
(4) MUNICIPAL CORPORATIONS THAT HAVE PREVIOUSLY ENTERED 783
INTO A CONTRACT CREATING A JOINT ECONOMIC DEVELOPMENT DISTRICT 784
PURSUANT TO DIVISION (A)(2) OF THIS SECTION, EVEN IF THE 786
TERRITORY TO BE INCLUDED IN THE DISTRICT DOES NOT MEET THE 787
REQUIREMENTS OF THAT DIVISION.
(B)(1) One or more municipal corporations and one or more 789
townships may enter into a contract approved by the legislative 790
authority of each contracting party pursuant to which they create 791
as a joint economic development district an area or areas for the 792
purpose of facilitating economic development to create or 793
preserve jobs and employment opportunities and to improve the 794
economic welfare of the people in the state and in the area of 795
the contracting parties. Any interested person, other than a 796
political subdivision, may bring a civil action within thirty 797
days after the executed copy of the contract is filed with the 798
county recorder pursuant to division (B)(5) of this section 799
challenging whether the contract satisfies the purposes of a 801
joint economic development district as described in this section 802
A MUNICIPAL CORPORATION DESCRIBED IN DIVISION (A)(4) OF THIS 804
SECTION MAY ENTER INTO A CONTRACT WITH OTHER MUNICIPAL
CORPORATIONS AND TOWNSHIPS TO CREATE A NEW JOINT ECONOMIC 805
DEVELOPMENT DISTRICT. IN A DISTRICT THAT INCLUDES A MUNICIPAL 806
CORPORATION DESCRIBED IN DIVISION (A)(4) OF THIS SECTION, THE 808
TERRITORY OF EACH OF THE CONTRACTING PARTIES SHALL BE CONTIGUOUS 809
TO THE TERRITORY OF AT LEAST ONE OTHER CONTRACTING PARTY, OR 810
CONTIGUOUS TO THE TERRITORY OF A TOWNSHIP OR MUNICIPAL 811
CORPORATION THAT IS CONTIGUOUS TO ANOTHER CONTRACTING PARTY, EVEN 812
19
IF THE INTERVENING TOWNSHIP OR MUNICIPAL CORPORATION IS NOT A 813
CONTRACTING PARTY. The area OR AREAS of land to be included in 815
the district shall not include any parcel of land owned in fee by 816
a municipal corporation or a township or parcel of land that is 817
leased to a municipal corporation or a township, unless the 818
municipal corporation or township is a party to the contract or 819
unless the municipal corporation or township has given its 820
consent to have its parcel of land included in the district by 821
the adoption of a resolution. As used in this division, "parcel 822
of land" means any parcel of land owned by a municipal 823
corporation or a township for at least a six-month period within 824
a five-year period prior to the creation of a district, but 825
"parcel of land" does not include streets or public ways and 826
sewer, water, and other utility lines whether owned in fee or 827
otherwise.
The district created shall be located within the territory 829
of one or more of the participating parties and may consist of 830
all or a portion of such territory. The boundaries of the 831
district shall be described in the contract or in an addendum to 832
the contract. 833
(2) Where a municipal corporation is located within 835
one-quarter mile of a proposed joint economic development 837
district and is not otherwise a party to the proposed contract, 838
the participating parties shall afford the municipal corporation 839
the reasonable opportunity, for a period of not less than thirty 840
days following receipt of notice of such opportunity from the 841
participating parties, to meet and confer with the participating 842
parties to determine whether the municipal corporation will 843
participate in the joint economic development district. 844
Prior to the public hearing to be held pursuant to division 846
(D)(2) of this section, the participating parties shall give a 847
copy of the proposed contract to each municipal corporation 848
located within one-quarter mile of the proposed joint economic 849
development district and not otherwise a party to the contract, 851
20
and afford the municipal corporation the reasonable opportunity, 852
for a period of thirty days following receipt of the proposed 853
contract, to make comments and suggestions to the participating 854
parties regarding elements contained in the proposed contract. 855
Prior to the public hearing, the participating parties may 856
include in the contract any of the suggestions or recommendations 857
made by any such municipal corporation. 858
(3) The district shall not exceed two thousand acres in 860
area. The territory of the district shall not completely 861
surround territory that is not included within the boundaries of 862
the district. 863
(4) Sections 503.07 to 503.12 of the Revised Code do not 865
apply to territory included within a district created pursuant to 866
this section as long as the contract creating the district is in 867
effect, unless the legislative authority of each municipal 868
corporation and the board of township trustees of each township 869
included in the district consent, by ordinance or resolution, to 870
the application of those sections of the Revised Code. 871
(5) Upon the execution of the contract creating the 873
district by the parties to the contract, a participating 874
municipal corporation or township included within the district 875
shall file a copy of the fully executed contract with the county 876
recorder of each county within which a party to the contract is 877
located, in the miscellaneous records of the county. No 878
annexation proceeding pursuant to Chapter 709. of the Revised 879
Code that proposes the annexation to, merger, or consolidation 880
with a municipal corporation of any unincorporated territory 881
within the district shall be commenced for a period of three 882
years after the contract is filed with the county recorder of 883
each county within which a party to the contract is located 884
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
21
copy of the resolution is filed with the clerk of the board of 889
county commissioners LEGISLATIVE AUTHORITY of each county within 891
which a party to the contract is located or unless the contract 892
is terminated during this period.
The contract entered into between the municipal 894
corporations and townships pursuant to this section may provide 895
for the prohibition of any annexation by the participating 896
municipal corporations of any unincorporated territory within the 897
district beyond the three-year mandatory prohibition of any 898
annexation provided for in division (B)(5) of this section. 899
(C)(1) After the legislative authority of a municipal 901
corporation and the board of township trustees have adopted an 902
ordinance and resolution approving a contract to create a joint 903
economic development district pursuant to this section, and after 904
a contract has been signed, the municipal corporations and 905
townships shall jointly file a petition with the legislative 906
authority of each county within which a party to the contract is 907
located. Copies of the ordinances, resolutions, and contract 909
shall be attached to the petition. The
(a) THE petition shall contain all of the following: 912
(a)(i) A statement that the area OR AREAS of the district 915
is not greater than two thousand acres and is located within the 916
territory of one or more of the contracting parties; 917
(b)(ii) A brief summary of the services to be provided by 919
each party to the contract OR A REFERENCE TO THE PORTION OF THE 921
CONTRACT DESCRIBING THOSE SERVICES; 922
(c)(iii) A legal description of the area OR AREAS to be 925
designated as the district; 926
(d)(iv) The signature of a representative of each of the 928
contracting parties;. 929
(b) THE FOLLOWING DOCUMENTS SHALL BE FILED WITH THE 931
PETITION:
(i) A SIGNED COPY OF THE CONTRACT, TOGETHER WITH COPIES OF 933
DISTRICT MAPS AND PLANS RELATED TO OR PART OF THE CONTRACT; 934
22
(ii) A CERTIFIED COPY OF THE ORDINANCES AND RESOLUTIONS OF 936
THE CONTRACTING PARTIES APPROVING THE CONTRACT; 937
(iii) A CERTIFICATE FROM EACH OF THE CONTRACTING PARTIES 939
INDICATING THAT THE PUBLIC HEARINGS REQUIRED BY DIVISION (D)(2) 940
OF THIS SECTION HAVE BEEN HELD, THE DATE OF THE HEARINGS, AND 941
EVIDENCE OF PUBLICATION OF THE NOTICE OF THE HEARINGS; 942
(e) The signatures of a majority (iv) ONE OR MORE SIGNED 944
STATEMENTS of those persons who are owners of property located IN 946
WHOLE OR IN PART within the area to be designated as the district 948
and the signatures of those, REQUESTING THAT SUCH PROPERTY BE 949
INCLUDED WITHIN THE DISTRICT, PROVIDED THAT THOSE STATEMENTS
SHALL REPRESENT A MAJORITY OF THE PERSONS OWNING PROPERTY LOCATED 950
IN WHOLE OR IN PART WITHIN THE DISTRICT AND persons who are 951
owners of the OWNING A majority of THE acreage located within the 952
district. A SIGNATURE MAY BE WITHDRAWN BY THE SIGNER UP TO BUT 953
NOT AFTER THE TIME OF THE PUBLIC HEARING REQUIRED BY DIVISION 954
(D)(2) OF THIS SECTION. 955
The legislative authority of each county within which a 957
party to the contract is located shall hold a public hearing 960
concerning the joint economic development district contract 961
within thirty days after the filing of the petition and shall 962
publish notice of the time and place of the public hearing in a 963
newspaper of general circulation in the county at least fourteen 964
days prior to the hearing.
During the thirty-day period prior to the public hearing, a 966
copy of the text of the contract together with copies of district 967
maps and plans related to or part of the contract shall be on 968
file, for public examination, in the offices of the clerk of the 969
legislative authority of each county within which a party to the 970
contract is located. 971
(2) After the public hearing on the petition relating to 973
the creation of a joint economic development district has been 974
held, the THE legislative authority of each county within which a 975
party to the contract is located shall adopt a resolution 978
23
approving the petition for the creation of the district if the 979
petition meets AND OTHER DOCUMENTS HAVE BEEN FILED IN ACCORDANCE 980
WITH the requirements of division (C)(1) of this section. If the 981
petition does AND OTHER DOCUMENTS DO not SUBSTANTIALLY meet the 982
requirements of that division, the legislative authority of any 983
county within which a party to the contract is located may adopt 984
a resolution disapproving the petition for the creation of the 985
district. The legislative authority of each county within which 986
a party to the contract is located shall adopt a resolution
approving or disapproving the petition within sixty THIRTY days 988
after the public hearing PETITION was held FILED. If the 989
legislative authority of each such county does not adopt the 990
resolution within the sixty-day THIRTY-DAY period, the petition 992
shall be deemed approved and the contract shall go into effect no 993
sooner than thirty days IMMEDIATELY after that approval OR AT 994
SUCH OTHER TIME AS THE CONTRACT SPECIFIES.
(D)(1) The contract creating the district shall set forth 996
or provide for the amount or nature of the contribution of each 997
municipal corporation and township to the development and 998
operation of the district and may provide for the sharing of the 999
costs of the operation of and improvements for the district. The 1,000
contributions may be in any form to which the contracting 1,001
municipal corporations and townships agree and may include but 1,002
are not limited to the provision of services, money, real or 1,003
personal property, facilities, or equipment. THE CONTRACT MAY 1,005
PROVIDE FOR THE CONTRACTING PARTIES TO SHARE REVENUE FROM TAXES 1,006
LEVIED ON PROPERTY BY ONE OR MORE OF THE CONTRACTING PARTIES IF 1,007
THOSE REVENUES MAY LAWFULLY BE APPLIED TO THAT PURPOSE UNDER THE 1,008
LEGISLATION BY WHICH THOSE TAXES ARE LEVIED. The contract shall 1,009
provide for new, expanded, or additional services, facilities, or 1,010
improvements, including expanded or additional capacity for or 1,011
other enhancement of existing services, facilities, or 1,012
improvements, provided that those services, facilities, or 1,013
improvements, or expanded or additional capacity for or 1,014
24
enhancement of existing services, facilities, or improvements, 1,015
required herein have been provided within the two-year period 1,016
prior to the execution of the contract. 1,017
(2) Before the legislative authority of a municipal 1,019
corporation or a board of township trustees passes any ordinance 1,020
or resolution approving a contract to create a joint economic 1,021
development district pursuant to this section, the legislative 1,022
authority of the municipal corporation and the board of township 1,023
trustees shall EACH hold a public hearing concerning the joint 1,024
economic development district contract and shall provide thirty 1,025
days' public notice of the time and place of the public hearing 1,026
in a newspaper of general circulation in the municipal 1,027
corporation and the township. The board of township trustees 1,028
shall MAY provide ADDITIONAL notice to township residents in 1,030
accordance with section 505.07 of the Revised Code and the ANY 1,031
SUCH ADDITIONAL notice shall include: the public hearing 1,033
announcement; a summary of the terms of the contract; a 1,034
disclosure of the fact STATEMENT that the entire text of the 1,035
contract and district maps and plans are on file for public 1,036
examination in the office of the township clerk; and information 1,037
pertaining to any tax changes which will or may occur as a result 1,038
of the contract. 1,039
During the thirty-day period prior to the public hearing, a 1,041
copy of the text of the contract together with copies of district 1,042
maps and plans related to or part of the contract shall be on 1,043
file, for public examination, in the offices of the clerk of the 1,044
legislative authority of the municipal corporation and of the 1,045
township clerk. The public hearing provided for in division 1,046
(D)(2) of this section shall allow for public comment and 1,047
recommendations from the public on the proposed contract. THE 1,048
CONTRACTING PARTIES MAY INCLUDE IN THE CONTRACT ANY OF THOSE 1,049
RECOMMENDATIONS PRIOR TO THE APPROVAL OF THE CONTRACT. 1,050
(3) Any resolution of the board of township trustees that 1,052
approves a contract that creates a joint economic development 1,053
25
district pursuant to this section shall be subject to a 1,054
referendum of the electors of the township. When a referendum 1,055
petition, signed by ten per cent of the number of electors in the 1,056
township who voted for the office of governor at the most recent 1,058
general election for the office of governor, is presented to the 1,059
board of township trustees within thirty days after the board of 1,060
township trustees adopted the resolution, ordering that the 1,061
resolution be submitted to the electors of the township for their 1,062
approval or rejection, the board of township trustees shall, 1,063
after ten days and not later than four p.m. of the seventy-fifth 1,064
day before the election, certify the text of the resolution to 1,065
the board of elections. The board of elections shall submit the 1,066
resolution to the electors of the township for their approval or 1,067
rejection at the next general, primary, or special election 1,068
occurring subsequent to seventy-five days after the certifying of 1,069
the petition to the board of elections. 1,070
(4) UPON THE CREATION OF A DISTRICT UNDER THIS SECTION OR 1,072
SECTION 715.71 OF THE REVISED CODE, ONE OF THE CONTRACTING 1,073
PARTIES SHALL FILE A COPY OF THE FOLLOWING WITH THE DIRECTOR OF 1,074
DEVELOPMENT:
(a) THE PETITION AND OTHER DOCUMENTS DESCRIBED IN DIVISION 1,076
(C)(1) OF THIS SECTION, IF THE DISTRICT IS CREATED UNDER THIS 1,077
SECTION; 1,078
(b) THE DOCUMENTS DESCRIBED IN DIVISION (D) OF SECTION 1,080
715.71 OF THE REVISED CODE, IF THE DISTRICT IS CREATED UNDER THAT 1,081
SECTION.
(E) The district created by the contract shall be governed 1,083
by a board of directors that shall be established by or pursuant 1,084
to the contract. The board is a public body for the purposes of 1,085
section 121.22 of the Revised Code. The provisions of Chapter 1,086
2744. of the Revised Code apply to the board and the district. 1,087
The members of the board shall be appointed as provided in the 1,088
contract from among the elected members of the legislative 1,089
authorities and the elected chief executive officers of the 1,090
26
contracting parties, provided that there shall be at least two 1,091
members appointed from each of the contracting parties. 1,092
(F) The contract shall enumerate the specific powers, 1,094
duties, and functions of the board of directors of a district, 1,095
and the contract shall provide for the determination of 1,096
procedures that are to govern the board of directors. The 1,097
contract may grant to the board the power to adopt a resolution 1,098
to levy an income tax within the district. The income tax shall 1,099
be used for the purposes of the district and for the purposes of 1,100
the contracting municipal corporations and townships pursuant to 1,101
the contract. The income tax may be levied in the district based 1,102
upon ON income earned by persons working or residing within the 1,103
district and upon BASED ON the net profits of businesses located 1,104
in the district. The income tax is subject to SHALL FOLLOW THE 1,106
PROVISIONS OF Chapter 718. of the Revised Code, except that a 1,108
vote shall be required by the electors residing in the district 1,109
to approve the rate of income tax. If no electors reside within 1,110
the district, then division (F)(4) of this section applies. The 1,111
rate of the income tax shall be no higher than the highest rate 1,112
being levied by a municipal corporation that is a party to the 1,113
contract.
(1) Within one hundred eighty days after the first meeting 1,115
of the board of directors, the board may levy an income tax at a 1,116
rate that is not higher than the highest rate being levied by a 1,117
municipal corporation that is a party to the contract, provided 1,118
that the rate of the income tax is first submitted to and 1,119
approved by the electors of the district at the succeeding 1,120
regular or primary election, or a special election called by the 1,121
board, occurring subsequent to seventy-five days after a 1,122
certified copy of the resolution levying the income tax and 1,123
calling for the election is filed with the board of elections. 1,124
If the voters approve the levy of the income tax, the income tax 1,125
shall be in force for the full period of the contract 1,126
establishing the district. Any increase in the rate of an income 1,127
27
tax that was first levied within one hundred eighty days after 1,128
the first meeting of the board of directors shall be approved by 1,129
a vote of the electors of the district and, shall be in force for 1,131
the remaining period of the contract establishing the district, 1,132
AND SHALL NOT BE SUBJECT TO DIVISION (F)(2) OF THIS SECTION. 1,133
(2) Any resolution of the board of directors levying an 1,135
income tax that is adopted subsequent to one hundred eighty days 1,136
after the first meeting of the board of directors shall be 1,137
subject to a referendum as provided in division (F)(2) of this 1,138
section. Any resolution of the board of directors levying an 1,139
income tax that is adopted subsequent to one hundred eighty days 1,140
after the first meeting of the board of directors shall be 1,141
subject to an initiative proceeding to amend or repeal the 1,142
resolution levying the income tax as provided in division (F)(2) 1,143
of this section. When a referendum petition, signed by ten per 1,144
cent of the number of electors in the district who voted for the 1,145
office of governor at the most recent general election for the 1,146
office of governor, is filed with the county auditor of each 1,147
county within which a party to the contract is located within 1,148
thirty days after the resolution is adopted by the board or when 1,149
an initiative petition, signed by ten per cent of the number of 1,150
electors in the district who voted for the office of governor at 1,151
the most recent general election for the office of governor, is 1,153
filed with the county auditor of each such county ordering that a
resolution to amend or repeal a prior resolution levying an 1,155
income tax be submitted to the electors within the district for 1,156
their approval or rejection, the county auditor of each such 1,157
county, after ten days and not later than four p.m. of the 1,158
seventy-fifth day before the election, shall certify the text of 1,159
the resolution to the board of elections of that county. The 1,160
county auditor of each such county shall retain the petition. 1,161
The board of elections shall submit the resolution to such 1,162
electors, for their approval or rejection, at the next general, 1,163
primary, or special election occurring subsequent to seventy-five 1,165
28
days after the certifying of such petition to the board of 1,166
elections.
(3) Whenever a district is located in the territory of 1,168
more than one contracting party, a majority vote of the electors, 1,169
IF ANY, in each of the several portions of the territory of the 1,171
contracting parties constituting the district approving the levy 1,172
of the tax is required before it may be imposed pursuant to this 1,173
division. 1,174
(4) If there are no electors residing in the district, no 1,176
election for the approval or rejection of an income tax shall be 1,177
held pursuant to this section, provided that where no electors 1,178
reside in the district, the maximum rate of the income tax that 1,179
may be levied shall not exceed one per cent. 1,180
(5) The board of directors of a district levying an income 1,182
tax shall enter into an agreement with one of the municipal 1,183
corporations that is a party to the contract to administer, 1,184
collect, and enforce the income tax on behalf of the district. 1,185
The resolution levying the income tax shall provide the same 1,186
credits, if any, to residents of the district for income taxes 1,187
paid to other such districts or municipal corporations where the 1,188
residents work, as credits provided to residents of the municipal 1,189
corporation administering the income tax. 1,190
(6)(a) The board shall publish or post public notice 1,192
within the district of any resolution adopted levying an income 1,193
tax in the same manner required of municipal corporations under 1,194
sections 731.21 and 731.25 of the Revised Code. 1,195
(b) Except as otherwise specified by this division, any 1,197
referendum or initiative proceeding within a district shall be 1,198
conducted in the same manner as is required for such proceedings 1,199
within a municipal corporation pursuant to sections 731.28 to 1,200
731.40 of the Revised Code. 1,201
(G) Membership on the board of directors does not 1,203
constitute the holding of a public office or employment within 1,204
the meaning of any section of the Revised Code or any charter 1,205
29
provision prohibiting the holding of other public office or 1,206
employment, and shall not constitute an interest, either direct 1,207
or indirect, in a contract or expenditure of money by any 1,208
municipal corporation, township, county, or other political 1,209
subdivision with which the member may be connected. No member of 1,210
a board of directors shall be disqualified from holding any 1,211
public office or employment, nor shall such member forfeit or be 1,212
disqualified from holding any such office or employment, by 1,213
reason of the member's membership on the board of directors, 1,214
notwithstanding any law or charter provision to the contrary. 1,215
(H) The powers and authorizations granted pursuant to this 1,217
section or section 715.71 of the Revised Code are in addition to 1,218
and not in the derogation of all other powers granted to 1,220
municipal corporations and townships pursuant to law. When 1,221
exercising a power or performing a function or duty under a 1,222
contract authorized pursuant to this section or section 715.71 of
the Revised Code, a municipal corporation may exercise all of the 1,224
powers of a municipal corporation, and may perform all the 1,225
functions and duties of a municipal corporation, within the 1,226
district, pursuant to and to the extent consistent with the 1,227
contract. When exercising a power or performing a function or 1,228
duty under a contract authorized pursuant to this section or 1,229
section 715.71 of the Revised Code, a township may exercise all 1,230
of the powers of a township, and may perform all the functions 1,231
and duties of a township, within the district, pursuant to and to 1,232
the extent consistent with the contract. The district board of 1,233
directors has no powers except those specifically set forth in 1,234
the contract as agreed to by the participating parties. No 1,235
political subdivision shall authorize or grant any tax exemption 1,237
pursuant to Chapter 1728. or section 3735.67, 5709.62, 5709.63, 1,239
or 5709.632 of the Revised Code on any property located within 1,240
the district, EXCEPT THAT A POLITICAL SUBDIVISION THAT IS A 1,241
CONTRACTING PARTY MAY GRANT A TAX EXEMPTION UNDER SECTION 1,242
5709.62, 5709.63, OR 5709.632 OF THE REVISED CODE ON PROPERTY 1,243
30
LOCATED WITHIN THE DISTRICT, WITH THE CONSENT OF THE OTHER
CONTRACTING PARTIES. The prohibition for any tax exemption 1,244
pursuant to this division shall not apply to any exemption filed, 1,245
pending, or approved, OR FOR WHICH AN AGREEMENT HAS BEEN ENTERED 1,246
INTO, before the effective date of the contract entered into by 1,248
the parties.
(I) Municipal corporations and townships may enter into 1,250
binding agreements pursuant to a contract authorized under this 1,251
section or section 715.71 of the Revised Code with respect to the 1,252
substance and administration of zoning and other land use 1,254
regulations, building codes, public permanent improvements, and 1,255
other regulatory and proprietary matters that are determined, 1,256
pursuant to the contract, to be for a public purpose and to be 1,257
desirable with respect to the operation of the district or to 1,258
facilitate new or expanded economic development in the state or 1,259
the district, provided that no contract shall exempt the 1,260
territory within the district from the procedures and processes 1,261
of land use regulation applicable pursuant to municipal 1,262
corporation, township, and county regulations, including but not 1,263
limited to procedures and processes concerning zoning. 1,264
(J) A contract entered into pursuant to this section or 1,266
section 715.71 of the Revised Code may be amended and it may be 1,268
renewed, canceled, or terminated as provided in or pursuant to 1,269
the contract. THE CONTRACT MAY BE AMENDED TO ADD PROPERTY OWNED 1,270
BY ONE OF THE CONTRACTING PARTIES TO THE DISTRICT, OR MAY BE 1,271
AMENDED TO DELETE PROPERTY FROM THE DISTRICT WHETHER OR NOT ONE
OF THE CONTRACTING PARTIES OWNS THE DELETED PROPERTY. The 1,272
contract shall continue in existence throughout its term and 1,273
shall be binding on the contracting parties and on any entities 1,274
succeeding to such parties, whether by annexation, merger, or 1,275
otherwise. The income tax levied by the board pursuant to this 1,276
section or section 715.71 of the Revised Code shall apply in the 1,278
entire district throughout the term of the contract,
notwithstanding that all or a portion of the district becomes 1,279
31
subject to annexation, merger, or incorporation. No township or 1,280
municipal corporation is divested of its rights or obligations 1,281
under the contract because of annexation, merger, or succession 1,282
of interests. 1,283
(K) AFTER THE CREATION OF A JOINT ECONOMIC DEVELOPMENT 1,285
DISTRICT DESCRIBED IN DIVISION (A)(2) OF THIS SECTION, A 1,286
MUNICIPAL CORPORATION THAT IS A CONTRACTING PARTY MAY CEASE TO 1,287
OWN PROPERTY INCLUDED IN THE DISTRICT, BUT SUCH PROPERTY SHALL 1,288
CONTINUE TO BE INCLUDED IN THE DISTRICT AND SUBJECT TO THE TERMS 1,289
OF THE CONTRACT.
Sec. 715.71. (A) This section provides alternative 1,298
procedures and requirements to those set forth in section 715.70 1,299
of the Revised Code for creating and operating a joint economic 1,300
development district. Divisions (B), (C), (D)(1) TO (3), and (F) 1,302
of section 715.70 of the Revised Code do not apply to a joint 1,303
economic development district established under this section. 1,304
However, divisions (A), (D)(4), (E), (G), (H), (I), and (J), AND 1,306
(K) of section 715.70 of the Revised Code do apply to a district 1,308
established under this section. 1,309
(B) One or more municipal corporations and one or more 1,311
townships may enter into a contract approved by the legislative 1,312
authority of each contracting party pursuant to which they create 1,313
as a joint economic development district one or more areas for 1,314
the purpose of facilitating economic development to create or 1,315
preserve jobs and employment opportunities and to improve the 1,316
economic welfare of the people in this state and in the area of 1,317
the contracting parties. The district created shall be located 1,318
within the territory of one or more of the contracting parties 1,319
and may consist of all or a portion of such territory. The 1,320
boundaries of the district shall be described in the contract or 1,321
in an addendum to the contract. The area or areas of land to be 1,322
included in the district shall not include any parcel of land 1,323
owned in fee by or leased to a municipal corporation or township, 1,324
unless the municipal corporation or township is a party to the 1,325
32
contract or has given its consent to have its parcel of land 1,326
included in the district by the adoption of a resolution. As 1,327
used in this division, "parcel of land" has the same meaning as 1,328
in division (B) of section 715.70 of the Revised Code. 1,329
(C) Before the legislative authority of a municipal 1,331
corporation or a board of township trustees adopts an ordinance 1,332
or resolution approving a contract to create a joint economic 1,333
development district under this section, it shall hold a public 1,334
hearing concerning the joint economic development district 1,335
contract and shall provide thirty days' public notice of the time 1,336
and place of the public hearing in a newspaper of general 1,337
circulation in the municipal corporation and the township. Each 1,338
municipal corporation and township that is a party to the 1,339
contract shall hold a public hearing. During the thirty-day 1,340
period prior to a public hearing, a copy of the text of the 1,341
contract together with copies of district maps and plans related 1,342
to or part of the contract shall be on file, for public 1,343
examination, in the offices of the clerk of the legislative 1,344
authority of the municipal corporation and of the township clerk. 1,345
The public hearings provided for in this division shall allow for 1,346
public comment and recommendations on the proposed contract. The 1,347
participating parties may include in the contract any of those 1,348
recommendations prior to approval of the contract. 1,349
(D) After the legislative authority of a municipal 1,351
corporation and the board of township trustees have adopted an 1,352
ordinance and resolution approving a contract to create a joint 1,353
economic development district, the municipal corporation and the 1,354
township jointly shall file with the legislative authority of 1,355
each county within which a party to the contract is located all 1,356
of the following: 1,357
(1) A signed copy of the contract, together with copies of 1,359
district maps and plans related to or part of the contract; 1,360
(2) Certified copies of the ordinances and resolutions of 1,362
the contracting parties relating to the district and the 1,363
33
contract; 1,364
(3) A certificate of each of the contracting parties that 1,366
the public hearings provided for in division (C) of this section 1,367
have been held, the date of such hearings, and evidence of 1,368
publication of the notice of such hearings. 1,369
(E) Within thirty days after the filing under division (D) 1,371
of this section, the legislative authority of each county within 1,372
which a party to the contract is located shall adopt a resolution 1,373
acknowledging the receipt of the required documents, approving 1,374
the creation of the joint economic development district, and 1,375
directing that the resolution of the board of township trustees 1,376
approving the contract be submitted to the electors of the 1,377
township for approval at the next succeeding general, primary, or 1,378
special election. The legislative authority of the county shall 1,379
file with the board of elections at least seventy-five days 1,380
before the day of the election a copy of the resolution of the 1,381
board of township trustees approving the contract. The 1,382
resolution of the legislative authority of the county also shall 1,383
specify the date the election is to be held and shall direct the 1,384
board of elections to conduct the election in the township. If 1,385
the resolution of the legislative authority of the county is not 1,386
adopted within the thirty-day period after the filing under 1,387
division (D) of this section, the joint economic development 1,388
district shall be deemed approved by the county legislative 1,389
authority and the board of township trustees shall file its 1,390
resolution with the board of elections for submission to the 1,391
electors of the township for approval at the next succeeding 1,392
general, primary, or special election. Such filing shall occur 1,393
at least seventy-five days before the specified date the election 1,394
is to be held and shall direct the board of elections to conduct 1,395
the election in the township. 1,396
The ballot shall be in the following form: 1,398
"Shall the resolution of the board of township trustees 1,400
approving the contract with ............... (here insert name of 1,401
34
each municipal corporation and other township that is a party to 1,402
the contract) for the creation of a joint economic development 1,403
district be approved? 1,404
________________________________________________ 1,407
FOR THE RESOLUTION AND CONTRACT 1,408
________________________________________________ 1,409
AGAINST THE RESOLUTION AND CONTRACT 1,410
________________________________________________ " 1,411
If a majority of the electors of the township voting on the issue 1,414
vote for the resolution and contract, the resolution shall become 1,415
effective immediately and the contract shall go into effect 1,416
immediately or in accordance with its terms. 1,417
(F) The contract creating the district shall set forth or 1,419
provide for the amount or nature of the contribution of each 1,420
municipal corporation and township to the development and 1,421
operation of the district and may provide for the sharing of the 1,422
costs of the operation of and improvements for the district. The 1,423
contributions may be in any form to which the contracting 1,424
municipal corporations and townships agree and may include but 1,425
are not limited to the provision of services, money, real or 1,426
personal property, facilities, or equipment. THE CONTRACT MAY 1,427
PROVIDE FOR THE CONTRACTING PARTIES TO SHARE REVENUE FROM TAXES 1,429
LEVIED ON PROPERTY BY ONE OR MORE OF THE CONTRACTING PARTIES IF 1,430
THOSE REVENUES MAY LAWFULLY BE APPLIED TO THAT PURPOSE UNDER THE 1,431
LEGISLATION BY WHICH THOSE TAXES ARE LEVIED. The contract shall 1,432
provide for new, expanded, or additional services, facilities, or 1,433
improvements, including expanded or additional capacity for or 1,434
other enhancement of existing services, facilities, or 1,435
improvements, provided that the existing services, facilities, or 1,436
improvements, or the expanded or additional capacity for or 1,437
enhancement of the existing services, facilities, or 1,438
improvements, have been provided within the two-year period prior 1,439
to the execution of the contract. 1,440
(G) The contract shall enumerate the specific powers, 1,442
35
duties, and functions of the board of directors of the district 1,443
and shall provide for the determination of procedures that are to 1,444
govern the board of directors. The contract may grant to the 1,445
board the power to adopt a resolution to levy an income tax 1,446
within the district. The income tax shall be used for the 1,447
purposes of the district and for the purposes of the contracting 1,448
municipal corporations and townships pursuant to the contract. 1,449
The income tax may be levied in the district based on income 1,450
earned by persons working or residing within the district and 1,451
based on the net profits of businesses located in the district. 1,452
The income tax of the district shall follow the provisions of 1,453
Chapter 718. of the Revised Code, except that no vote shall be 1,454
required by the electors residing in the district. The rate of 1,455
the income tax shall be no higher than the highest rate being 1,456
levied by a municipal corporation that is a party to the 1,457
contract. 1,458
The board of directors of a district levying an income tax 1,460
shall enter into an agreement with one of the municipal 1,461
corporations that is a party to the contract to administer, 1,462
collect, and enforce the income tax on behalf of the district. 1,463
The resolution levying the income tax shall provide the same 1,464
credits, if any, to residents of the district for income taxes 1,465
paid to other such districts or municipal corporations where the 1,466
residents work, as credits provided to residents of the municipal 1,467
corporation administering the income tax. 1,468
(H) No annexation proceeding pursuant to Chapter 709. of 1,470
the Revised Code that proposes the annexation to or merger or 1,471
consolidation with a municipal corporation, except a municipal 1,472
corporation that is a party to the contract, of any 1,473
unincorporated territory within the district shall be commenced 1,474
for a period of three years after the contract is filed with the 1,475
legislative authority of each county within which a party to the 1,476
contract is located in accordance with division (D) of this 1,477
section unless each board of township trustees whose territory is 1,478
36
included, in whole or part, within the district and the territory 1,479
proposed to be annexed, merged, or consolidated adopts a 1,480
resolution consenting to the commencement of the proceeding and a 1,481
copy of the resolution is filed with the legislative authority of 1,482
each such county or unless the contract is terminated during this 1,483
three-year period. The contract entered into between the 1,484
municipal corporations and townships pursuant to this section may 1,485
provide for the prohibition of any annexation by the 1,486
participating municipal corporations of any unincorporated 1,487
territory within the district. 1,488
Sec. 715.72. (A) As used in sections 715.72 to 715.81 of 1,497
the Revised Code: 1,498
(1) "Contracting parties" means one or more municipal 1,500
corporations and one or more townships that have entered into a 1,501
contract under this section to create a joint economic 1,502
development district. 1,503
(2) "District" means a joint economic development district 1,505
created under sections 715.72 to 715.81 of the Revised Code. 1,506
(3) "Contract for utility services" means a contract under 1,508
which a municipal corporation agrees to provide to a township or 1,509
another municipal corporation water, sewer, electric, or other 1,510
utility services necessary to the public health, safety, and 1,511
welfare.
(B) Sections 715.72 to 715.81 of the Revised Code provide 1,513
alternative procedures and requirements to those set forth in 1,514
sections 715.70 and 715.71 of the Revised Code for creating and 1,515
operating a joint economic development district. Sections 715.72 1,516
to 715.81 of the Revised Code apply to municipal corporations and 1,517
townships that are located in the same county or in adjacent 1,518
counties.
(C) One or more municipal corporations and one or more 1,520
townships may enter into a contract pursuant to which they create 1,521
as a joint economic development district one or more areas for 1,522
the purpose of facilitating economic development to create or 1,523
37
preserve jobs and employment opportunities and to improve the 1,524
economic welfare of the people in this state and in the area of 1,525
the contracting parties. The 1,526
(1) EXCEPT AS OTHERWISE PROVIDED IN DIVISION (C)(2) OF 1,528
THIS SECTION, THE territory of each of the contracting parties 1,530
shall be contiguous to the territory of at least one other 1,531
contracting party, unless the contracting parties have entered 1,532
into a contract under section 715.70 or 715.71 of the Revised 1,533
Code creating a joint economic development district prior to the 1,535
effective date of this section. Contracting OR CONTIGUOUS TO THE
TERRITORY OF A TOWNSHIP OR MUNICIPAL CORPORATION THAT IS 1,536
CONTIGUOUS TO ANOTHER CONTRACTING PARTY, EVEN IF THE INTERVENING 1,537
TOWNSHIP OR MUNICIPAL CORPORATION IS NOT A CONTRACTING PARTY. 1,538
(2) CONTRACTING parties that have entered into a contract 1,541
under section 715.70 or 715.71 of the Revised Code creating a
joint economic development district prior to the effective date 1,543
of this section NOVEMBER 15, 1995, may enter into a contract 1,545
under this section even if the territory of each of the
contracting parties is not contiguous to the territory of at 1,546
least one other contracting party, OR CONTIGUOUS TO THE TERRITORY 1,547
OF A TOWNSHIP OR MUNICIPAL CORPORATION THAT IS CONTIGUOUS TO 1,548
ANOTHER CONTRACTING PARTY AS OTHERWISE REQUIRED UNDER DIVISION 1,549
(C)(1) OF THIS SECTION. The contract and district shall meet the 1,551
requirements of sections 715.72 to 715.81 of the Revised Code. 1,552
Sec. 715.74. (A) The contract creating a joint economic 1,561
development district shall provide for the amount or nature of 1,563
the contribution of each contracting party to the development and 1,564
operation of the district and may provide for the sharing of the 1,565
costs of the operation of and improvements for the district. The 1,566
contributions may be in any form to which the contracting parties 1,568
agree and may include, but are not limited to, the provision of 1,569
services, money, real or personal property, facilities, or 1,570
equipment. THE CONTRACT MAY PROVIDE FOR THE CONTRACTING PARTIES 1,571
TO SHARE REVENUE FROM TAXES LEVIED ON PROPERTY BY ONE OR MORE OF 1,572
38
THE CONTRACTING PARTIES IF THOSE REVENUES MAY LAWFULLY BE APPLIED
TO THAT PURPOSE UNDER THE LEGISLATION BY WHICH THOSE TAXES ARE 1,574
LEVIED. The contract shall specify and provide for new, 1,576
expanded, or additional services, facilities, or improvements. 1,577
The contract may provide for expanded or additional capacity for 1,578
or other enhancement of existing services, facilities, or
improvements.
(B) The contract shall enumerate the specific powers, 1,580
duties, and functions of the board of directors of the district 1,581
described under section 715.78 of the Revised Code and shall 1,582
provide for the determination of procedures that are to govern 1,583
the board.
(C)(1) The contract may grant to the board the power to 1,586
adopt a resolution to levy an income tax within the district AND 1,587
THE CONTRACT MAY DESGINATE CERTAIN PORTIONS OF THE DISTRICT WHERE 1,588
SUCH AN INCOME TAX MAY BE LEVIED. The income tax shall be used 1,589
for the purposes of the district OR ANY PORTION OF THE DISTRICT 1,590
IN WHICH THE CONTRACT AUTHORIZES AN INCOME TAX and for the 1,591
purposes of the contracting parties pursuant to the contract. 1,592
The income tax may be levied in the district based on income 1,593
earned by persons working within the district and based on the 1,595
net profits of businesses located in the district. The income
tax of the district shall follow the provisions of Chapter 718. 1,596
of the Revised Code, except that no vote shall be required. The 1,597
rate of the income tax shall be no higher than the highest rate 1,598
being levied by a municipal corporation that is a contracting 1,599
party.
(2) If the board adopts a resolution to levy an income 1,601
tax, it shall enter into an agreement with a municipal 1,602
corporation that is a contracting party to administer, collect, 1,604
and enforce the income tax on behalf of the district.
(3) A resolution levying an income tax under this section 1,606
shall require the contracting parties to annually set aside a 1,607
percentage, to be stated in the resolution, of the amount of the 1,608
39
income tax collected for the long-term maintenance of the 1,609
district. 1,610
(4) An income tax levied under this section shall apply in 1,612
the entire district OR ANY PORTION OF THE DISTRICT IN WHICH THE 1,613
CONTRACT AUTHORIZES AN INCOME TAX throughout the term of the 1,614
contract creating the district, notwithstanding that all or a 1,616
portion of the district becomes subject to annexation, merger, or 1,617
consolidation. 1,618
(D) The contract creating a joint economic development 1,621
district shall continue in existence throughout its term and 1,622
shall be binding on the contracting parties and on any parties 1,623
succeeding to the contracting parties, whether by annexation, 1,624
merger, or consolidation. Except as provided in division (E) of 1,625
this section, the contract may be amended, renewed, or terminated 1,626
with the approval of the contracting parties or any parties 1,627
succeeding to the contracting parties. IF THE CONTRACT IS 1,628
AMENDED TO ADD AREA TO AN EXISTING DISTRICT, THE AMENDMENT SHALL 1,629
BE ADOPTED IN THE MANNER PRESCRIBED UNDER SECTION 715.761 OF THE 1,630
REVISED CODE.
(E) If two or more contracting parties previously have 1,632
entered into a separate contract for utility services, then 1,634
amendment, renewal, or termination of the separate contract for 1,635
utility services shall not constitute any part of the 1,636
consideration for the contract creating a joint economic 1,637
development district. A contract creating a joint economic 1,638
development district shall be rebuttably presumed to violate this 1,639
division if it is entered into within two years prior or five 1,640
years subsequent to the amendment, renewal, or termination of a 1,641
separate contract for utility services that two or more 1,642
contracting parties previously have entered into. The
presumption stated in this division may be rebutted by clear and 1,643
convincing evidence of both of the following: 1,644
(1) That other substantial consideration existed to 1,647
support the contract creating a joint economic development
40
district; 1,648
(2) That the contracting parties entered into the contract 1,651
creating a joint economic development district freely and without
duress or coercion related to the amendment, renewal, or 1,652
termination of the separate contract for utility services. 1,653
(F) A contract creating a joint economic development 1,655
district that violates division (E) of this section is void and 1,657
unenforceable.
Sec. 715.76. After the public hearings required under 1,666
section 715.75 of the Revised Code have been held, each 1,667
contracting party may adopt an ordinance or resolution approving 1,668
the contract to create a joint economic development district. 1,669
After each contracting party has adopted such an ordinance or 1,670
resolution, the contracting parties jointly shall file with the 1,671
legislative authority of each county within which a contracting 1,672
party is located all of the following documents: 1,673
(A) A signed copy of the contract; 1,675
(B) A description of the area or areas to be included in 1,677
the district, including a map in sufficient detail to denote the 1,679
specific boundaries of the area or areas and to indicate any 1,680
zoning restrictions applicable to the area or areas; 1,681
(C) The economic development plan described in division 1,683
(C) of section 715.75 of the Revised Code; 1,684
(D) Certified copies of the ordinances and resolutions of 1,686
the contracting parties relating to the contract and district; 1,688
(E) A certificate of each contracting party that the 1,690
public hearings required by section 715.75 of the Revised Code 1,692
have been held, the date of the hearings, and evidence of 1,693
publication of the notice of the hearings; 1,694
(F) A petition signed by a majority of the owners of 1,696
property located within the area or areas to be included in the 1,697
district;
(G) A petition signed by a majority of the owners of 1,699
businesses, if any, located within the area or areas to be 1,700
41
included in the district. 1,701
The petitions described in divisions (F) and (G) of this 1,704
section shall specify that all of the documents described in 1,705
divisions (A) through (C) of section 715.75 of the Revised Code
are available for public inspection in the office of the clerk of 1,706
the legislative authority of each municipal corporation that is a 1,708
contracting party or the office of the township clerk of each 1,709
township that is a contracting party. 1,710
NOT LATER THAN TEN DAYS AFTER ALL OF THE DOCUMENTS 1,712
DESCRIBED IN DIVISIONS (A) TO (G) OF THIS SECTION HAVE BEEN 1,714
FILED, EACH CONTRACTING PARTY SHALL GIVE NOTICE TO THOSE OWNERS 1,715
OF PROPERTY WITHIN THE AREA OR AREAS TO BE INCLUDED IN THE
DISTRICT WHO DID NOT SIGN THE PETITION DESCRIBED IN DIVISION (F) 1,716
OF THIS SECTION AND WHOSE PROPERTY IS LOCATED WITHIN THE 1,717
BOUNDARIES OF THAT CONTRACTING PARTY AND TO THOSE OWNERS OF 1,718
BUSINESSES, IF ANY, WITHIN THE AREA OR AREAS TO BE INCLUDED IN 1,719
THE DISTRICT WHO DID NOT SIGN THE PETITION DESCRIBED IN DIVISION
(G) OF THIS SECTION AND WHOSE PROPERTY IS LOCATED WITHIN THE 1,720
BOUNDARIES OF THAT CONTRACTING PARTY. NOTICE SHALL BE GIVEN BY 1,721
CERTIFIED MAIL AND SHALL SPECIFY THAT THE OWNERS OF PROPERTY AND 1,722
BUSINESSES ARE LOCATED WITHIN THE AREA OR AREAS TO BE INCLUDED IN 1,723
THE DISTRICT AND THAT ALL OF THE DOCUMENTS DESCRIBED IN DIVISIONS 1,724
(A) TO (C) OF SECTION 715.75 OF THE REVISED CODE ARE AVAILABLE 1,725
FOR PUBLIC INSPECTION IN THE OFFICE OF THE CLERK OF THE 1,726
LEGISLATIVE AUTHORITY OF EACH MUNICIPAL CORPORATION THAT IS A
CONTRACTING PARTY OR THE OFFICE OF THE TOWNSHIP CLERK OF EACH 1,727
TOWNSHIP THAT IS A CONTRACTING PARTY. THE CONTRACTING PARTIES 1,728
SHALL EQUALLY BEAR THE COST OF PROVIDING NOTICE UNDER THIS 1,729
SECTION.
If the contracting parties do not file all of the documents 1,732
described in divisions (A) through (G) of this section, the
legislative authority of a county within which a contracting 1,733
party is located may adopt a resolution disapproving the creation 1,735
of the joint economic development district. In addition, the 1,736
42
legislative authority of such a county may adopt a resolution 1,737
disapproving the creation of the district if it determines, in 1,738
written findings of fact, that each contracting party did not 1,739
enter into the contract freely and without duress or coercion. 1,740
Sec. 715.761. (A) THE CONTRACTING PARTIES MAY AMEND THE 1,743
CONTRACT TO ADD TO A JOINT ECONOMIC DEVELOPMENT DISTRICT ANY AREA 1,744
THAT WAS NOT ORIGINALLY INCLUDED IN THE DISTRICT WHEN THE 1,745
CONTRACT TOOK EFFECT. AREA MAY BE ADDED ONLY IF THE AREA 1,746
SATISFIES THE CRITERIA PRESCRIBED UNDER SECTION 715.73 OF THE 1,748
REVISED CODE. 1,749
(B) AN AMENDMENT ADDING AREA TO A DISTRICT SHALL BE 1,752
APPROVED BY A RESOLUTION OR ORDINANCE ADOPTED BY EACH OF THE 1,753
CONTRACTING PARTIES. THE CONTRACTING PARTIES SHALL CONDUCT 1,754
PUBLIC HEARINGS ON THE AMENDMENT, PROVIDE NOTICE, AND DELIVER A 1,755
COPY OF THE AMENDMENT TO THE LEGISLATIVE AUTHORITY OF THE COUNTY 1,756
IN WHICH THE ADDED AREA IS LOCATED IN THE MANNER REQUIRED UNDER 1,757
SECTION 715.75 OF THE REVISED CODE FOR ORIGINAL CONTRACTS. THE 1,760
CONTRACTING PARTIES SHALL MAKE AVAILABLE FOR PUBLIC INSPECTION A 1,761
COPY OF THE AMENDMENT, A DESCRIPTION OF THE AREA TO BE ADDED TO 1,762
THE DISTRICT, AND A MAP OF THAT AREA IN SUFFICIENT DETAIL TO 1,763
DENOTE THE SPECIFIC BOUNDARIES OF THE AREA AND TO INDICATE ANY 1,764
ZONING RESTRICTIONS APPLICABLE TO THE AREA.
(C) AFTER ADOPTING RESOLUTIONS OR ORDINANCES APPROVING THE 1,767
ADDITION OF THE AREA, THE CONTRACTING PARTIES JOINTLY SHALL FILE 1,768
WITH THE LEGISLATIVE AUTHORITY OF THE COUNTY IN WHICH THE ADDED 1,769
AREA IS LOCATED THE DOCUMENTS REQUIRED TO BE FILED UNDER SECTION 1,770
715.76 OF THE REVISED CODE, EXCEPT THAT: 1,772
(1) A COPY OF THE AMENDMENT TO THE CONTRACT SHALL BE FILED 1,774
IN LIEU OF A COPY OF THE CONTRACT. 1,775
(2) THE DESCRIPTION AND MAP SHALL BE OF THE AREA TO BE 1,777
ADDED INSTEAD OF THE ENTIRE AREA OF THE DISTRICT. 1,778
(3) THE ECONOMIC DEVELOPMENT PLAN NEED NOT BE FILED. 1,781
(4) CERTIFIED COPIES OF THE RESOLUTIONS AND ORDINANCES 1,783
APPROVING THE AMENDMENT SHALL BE FILED. 1,784
43
(5) THE CERTIFICATES OTHERWISE REQUIRED UNDER DIVISION (E) 1,787
OF SECTION 715.76 OF THE REVISED CODE SHALL CERTIFY THAT THE 1,788
HEARINGS REQUIRED UNDER DIVISION (B) OF THIS SECTION HAVE BEEN 1,789
HELD, SHALL INDICATE THE DATE OF THOSE HEARINGS, AND SHALL 1,790
INCLUDE EVIDENCE THAT NOTICE OF THE HEARINGS WAS PUBLISHED. 1,792
(6) THE PETITION OTHERWISE REQUIRED UNDER DIVISION (F) OF 1,795
SECTION 715.76 OF THE REVISED CODE SHALL BE SIGNED BY A MAJORITY 1,796
OF THE OWNERS OF PROPERTY LOCATED IN THE AREA TO BE ADDED TO THE 1,797
DISTRICT, THE PETITION OTHERWISE REQUIRED UNDER DIVISION (G) OF 1,798
THAT SECTION SHALL BE SIGNED BY A MAJORITY OF THE OWNERS OF 1,799
BUSINESSES, IF ANY, LOCATED IN THE AREA TO BE ADDED TO THE 1,800
DISTRICT, AND THE PETITIONS SHALL SPECIFY THAT THE DOCUMENTS 1,801
DESCRIBED IN DIVISION (B) OF THIS SECTION ARE AVAILABLE FOR 1,803
PUBLIC INSPECTION AS OTHERWISE REQUIRED UNDER SECTION 715.75 OF 1,804
THE REVISED CODE. 1,806
(D) THE RESOLUTION OF A BOARD OF TOWNSHIP TRUSTEES 1,809
APPROVING AN AMENDMENT ADDING AREA TO AN EXISTING JOINT ECONOMIC 1,810
DEVELOPMENT DISTRICT IS NOT REQUIRED TO BE SUBMITTED TO THE 1,811
ELECTORS OF THE TOWNSHIP.
Sec. 715.77. (A)(1) A BOARD OF TOWNSHIP TRUSTEES THAT IS 1,820
A PARTY TO A CONTRACT CREATING A JOINT ECONOMIC DEVELOPMENT 1,821
DISTRICT PURSUANT TO SECTIONS 715.72 TO 715.82 OF THE REVISED 1,822
CODE MAY CHOOSE TO NOT SUBMIT ITS RESOLUTION APPROVING THE
CONTRACT TO THE ELECTORS OF THE TOWNSHIP IF ALL OF THE FOLLOWING 1,823
CONDITIONS ARE SATISFIED: 1,824
(a) THE RESOLUTION HAS BEEN APPROVED BY A UNANIMOUS VOTE 1,826
OF THE MEMBERS OF THE BOARD OF TOWNSHIP TRUSTEES; 1,827
(b) THE CREATION OF THE JOINT ECONOMIC DEVELOPMENT 1,829
DISTRICT IS PROPOSED AT THE REQUEST OF A MAJORITY OF THE OWNERS 1,830
OF LAND INCLUDED WITHIN THE PROPOSED DISTRICT; 1,831
(c) THE TERRITORY TO BE INCLUDED IN THE PROPOSED JOINT 1,833
ECONOMIC DEVELOPMENT DISTRICT IS ZONED IN A MANNER APPROPRIATE TO 1,834
THE FUNCTION OF THE PROPOSED DISTRICT. 1,835
(2) Unless the legislative authority of a couinty COUNTY 1,839
44
adopts a resolution under section 715.76 of the Revised Code 1,840
disapproving the creation of a joint economic development 1,842
district within thirty days after the filing made under that 1,844
section, the legislative authority of each such county shall
adopt a resolution acknowledging the receipt of the required 1,846
documents, approving the creation of the joint economic 1,847
development district, and, IF THE BOARD OF TOWNSHIP TRUSTEES HAS 1,848
NOT INVOKED ITS AUTHORITY UNDER DIVISION (A)(1) OF THIS SECTION, 1,849
directing that the resolution of the board of township trustees 1,850
approving the contract creating the joint economic development 1,851
district be submitted to the electors of the township for 1,853
approval at the next succeeding general, primary, or special 1,854
election. The IF THE BOARD OF TOWNSHIP TRUSTEES CHOOSES TO
SUBMIT APPROVAL OF THE CONTRACT TO THE ELECTORS OF THE TOWNSHIP, 1,855
THE legislative authority of the county shall file with the board 1,857
of elections at least seventy-five days before the day of the 1,858
election a copy of the resolution of the board of township 1,859
trustees approving the contract. The resolution of the 1,860
legislative authority of the county also shall specify the date 1,861
the election is to be held and shall direct the board of 1,862
elections to conduct the election in the township.
(2)(3) If the resolution of the legislative authority of 1,864
the county is not adopted within the thirty-day period after the 1,866
filing made under section 715.76 of the Revised Code, the joint 1,867
economic development district shall be deemed approved by the 1,868
county legislative authority and, IF THE BOARD OF TOWNSHIP 1,869
TRUSTEES HAS NOT INVOKED ITS AUTHORITY UNDER DIVISION (A)(1) OF 1,870
THIS SECTION, the board of township trustees shall file its 1,871
resolution with the board of elections for submission to the 1,872
electors of the township for approval at the next succeeding 1,873
general, primary, or special election. The IN SUCH CASE, THE 1,874
board of township trustees shall file the resolution at least 1,877
seventy-five days before the specified date the election is to be 1,878
held and shall direct the board of elections to conduct the 1,879
45
election in the township.
(4) ANY CONTRACT CREATING A JOINT ECONOMIC DEVELOPMENT 1,881
DISTRICT IN WHICH A BOARD OF TOWNSHIP TRUSTEES IS A PARTY SHALL 1,882
PROVIDE THAT THE CONTRACT IS NOT EFFECTIVE EARLIER THAN THE 1,883
THIRTY-FIRST DAY AFTER ITS APPROVAL, INCLUDING ANY APPROVAL BY 1,884
ELECTORS REQUIRED IN THIS SECTION.
IF THE BOARD OF TOWNSHIP TRUSTEES CHOOSES PURSUANT TO 1,886
DIVISION (A)(1) OF THIS SECTION NOT TO SUBMIT THE APPROVAL OF THE 1,887
CONTRACT TO THE ELECTORS, THE RESOLUTION OF THE BOARD OF TOWNSHIP 1,888
TRUSTEES APPROVING THE CONTRACT IS SUBJECT TO A REFERENDUM OF THE 1,889
ELECTORS OF THE TOWNSHIP WHEN REQUESTED THROUGH A PETITION. WHEN 1,890
SIGNED BY TEN PER CENT OF THE NUMBER OF ELECTORS IN THE TOWNSHIP 1,891
WHO VOTED FOR THE OFFICE OF GOVERNOR AT THE MOST RECENT GENERAL 1,892
ELECTION, A REFERENDUM PETITION ASKING THAT THE RESOLUTION BE
SUBMITTED TO THE ELECTORS OF THE TOWNSHIP MAY BE PRESENTED TO THE 1,893
BOARD OF TOWNSHIP TRUSTEES. SUCH A PETITION SHALL BE PRESENTED 1,894
WITHIN THIRTY DAYS AFTER THE BOARD OF TOWNSHIP TRUSTEES ADOPTS 1,895
THE RESOLUTION. THE BOARD OF TOWNSHIP TRUSTEES SHALL, NOT LATER 1,896
THAN FOUR p.m. OF THE TENTH DAY AFTER RECEIPT OF THE PETITION, 1,898
CERTIFY THE TEXT OF THE RESOLUTION TO THE BOARD OF ELECTIONS. 1,899
THE BOARD OF ELECTIONS SHALL SUBMIT THE RESOLUTION TO THE
ELECTORS OF THE TOWNSHIP FOR THEIR APPROVAL OR REJECTION AT THE 1,900
NEXT GENERAL, PRIMARY, OR SPECIAL ELECTION OCCURRING AT LEAST 1,901
SEVENTY-FIVE DAYS AFTER SUCH CERTIFICATION. 1,902
(B) The ballot shall be in the following form: 1,904
"Shall the resolution of the board of township trustees 1,906
approving the contract with ............... (here insert name of 1,907
each municipal corporation and other township that is a 1,908
contracting party) for the creation of a joint economic 1,909
development district be approved? 1,910
46
________________________________________________ 1,913
FOR THE RESOLUTION AND CONTRACT 1,914
________________________________________________ 1,915
AGAINST THE RESOLUTION AND CONTRACT 1,916
________________________________________________ " 1,917
If a majority of the electors of the township voting on the issue 1,920
vote for the resolution and contract, the resolution shall become 1,921
effective immediately and the contract shall go into effect 1,922
immediately ON THE THIRTY-FIRST DAY AFTER THIS ELECTION or 1,923
THEREAFTER in accordance with its terms OF THE CONTRACT. 1,924
Sec. 715.771. UPON THE CREATION OF A JOINT ECONOMIC 1,926
DEVELOPMENT DISTRICT UNDER SECTION 715.72 OF THE REVISED CODE, 1,927
ONE OF THE CONTRACTING PARTIES SHALL FILE A COPY OF EACH OF THE 1,928
DOCUMENTS DESCRIBED IN DIVISIONS (A) TO (G) OF SECTION 715.76 OF 1,929
THE REVISED CODE WITH THE DIRECTOR OF DEVELOPMENT.
Sec. 715.78. (A) A board of directors shall govern each 1,939
joint economic development district created under section 715.72 1,940
of the Revised Code.
(1) If there are businesses located and persons working 1,942
within the area or areas to be included in the district, the 1,943
board shall be composed of the following members: 1,944
(a) One member representing the municipal corporations 1,946
that are contracting parties; 1,947
(b) One member representing the townships that are 1,949
contracting parties; 1,950
(c) One member representing the owners of businesses 1,952
located within the district; 1,954
(d) One member representing the persons working within the 1,956
district; 1,957
(e) One member selected by the members described in 1,960
divisions (A)(1)(a) to (d) of this section. 1,961
The members of the board shall be appointed as provided in 1,963
the contract. Of the members initially appointed to the board, 1,964
the member described in division (A)(1)(a) of this section shall 1,966
47
serve a term of one year; the member described in division 1,967
(A)(1)(b) of this section shall serve a term of two years; the 1,968
member described in division (A)(1)(c) of this section shall 1,969
serve a term of three years; and the members described in 1,971
divisions (A)(1)(d) and (e) of this section shall serve terms of 1,972
four years. Thereafter, terms for each member shall be for four 1,973
years, each term ending on the same day of the same month of the 1,974
year as did the term that it succeeds. A MEMBER MAY BE 1,975
REAPPOINTED TO THE BOARD, BUT NO MEMBER SHALL SERVE MORE THAN TWO 1,976
CONSECUTIVE TERMS ON THE BOARD.
The member described in division (A)(1)(e) of this section 1,979
shall serve as chairperson of a board described under division 1,980
(A)(1) of this section.
(2) If there are no businesses located or persons working 1,982
within the area or areas to be included in the district, the 1,983
board shall be composed of the following members: 1,984
(a) One member representing the municipal corporations 1,986
that are contracting parties; 1,987
(b) One member representing the townships that are 1,989
contracting parties; 1,990
(c) One member selected by the members described in 1,993
divisions (A)(2)(a) and (b) of this section.
The members of the board shall be appointed as provided in 1,995
the contract. Of the members initially appointed to the board, 1,996
the member described in division (A)(2)(a) of this section shall 1,998
serve a term of one year; the member described in division 1,999
(A)(2)(b) of this section shall serve a term of two years; and 2,000
the member described in division (A)(2)(c) of this section shall 2,001
serve a term of three years. Thereafter, terms for each member 2,003
shall be for four years, each term ending on the same day of the 2,004
same month of the year as did the term that it succeeds. A 2,005
member may be reappointed to the board, but no member shall serve 2,006
more than two consecutive terms on the board. 2,007
The member described in division (A)(2)(c) of this section 2,010
48
shall serve as chairperson of a board described under division 2,011
(A)(2) of this section.
(B) A board described under division (A)(1) or (2) of this 2,014
section has no powers except as described in sections 715.72 to 2,015
715.81 of the Revised Code and in the contract creating the joint
economic development district. 2,016
(C) Membership on the board of directors of a joint 2,018
economic development district is not the holding of a public 2,020
office or employment within the meaning of any section of the 2,021
Revised Code or any charter provision prohibiting the holding of 2,022
other public office or employment. Membership on such a board is 2,024
not a direct or indirect interest in a contract or expenditure of 2,025
money by a municipal corporation, township, county, or other 2,026
political subdivision with which a member may be affiliated. 2,027
Notwithstanding any provision of law or a charter to the 2,028
contrary, no member of a board of directors of a joint economic 2,029
development district shall forfeit or be disqualified from 2,030
holding any public office or employment by reason of membership 2,031
on the board.
(D) The board of directors of a joint economic development 2,034
district is a public body for the purposes of section 121.22 of 2,035
the Revised Code. Chapter 2744. of the Revised Code applies to 2,036
such a board and the district.
Sec. 715.82. A MUNICIPAL CORPORATION MAY ISSUE BONDS AND 2,038
EXERCISE ALL OTHER POWERS UNDER CHAPTER 165. OF THE REVISED CODE 2,039
FOR ONE OR MORE PROJECTS OR PARTS THEREOF LOCATED IN A JOINT 2,040
ECONOMIC DEVELOPMENT DISTRICT CREATED PURSUANT TO A CONTRACT 2,041
ENTERED INTO UNDER SECTION 715.70, 715.71, OR 715.72 TO 715.82 OF 2,042
THE REVISED CODE TO WHICH THE MUNICIPAL CORPORATION IS A PARTY, 2,043
OR IN A TOWNSHIP ADJACENT TO THAT MUNICIPAL CORPORATION, IF THE 2,044
LEGISLATIVE AUTHORITY OF THE MUNICIPAL CORPORATION DETERMINES 2,045
THAT THE PROJECT IS IN FURTHERANCE OF THE PUBLIC PURPOSES OF THE
STATE TO CREATE OR PRESERVE JOBS AND EMPLOYMENT OPPORTUNITIES AND 2,046
TO IMPROVE THE ECONOMIC WELFARE OF THE PEOPLE OF THE MUNICIPAL 2,047
49
CORPORATION AND THE TOWNSHIP. AS USED IN THIS SECTION, "PROJECT" 2,048
HAS THE SAME MEANING AS IN DIVISION (H) OF SECTION 165.01 OF THE 2,049
REVISED CODE, EXCEPT THAT A PROJECT DESCRIBED IN THIS SECTION IS 2,050
NOT REQUIRED TO BE LOCATED WITHIN THE TERRITORIAL BOUNDARIES OF 2,051
THE MUNICIPAL CORPORATION.
Sec. 715.83. IF ANY UNINCORPORATED AREA OR TOWNSHIP IS A 2,053
PARTY TO A JOINT ECONOMIC DEVELOPMENT DISTRICT CREATED PURSUANT 2,054
TO A CONTRACT ENTERED INTO UNDER SECTION 715.70, 715.71, OR 2,055
715.72 TO 715.82 OF THE REVISED CODE THAT ALSO INCLUDES AS A 2,056
PARTY A MUNICIPAL CORPORATION THAT IS AN ELIGIBLE AREA AS DEFINED 2,058
IN DIVISION (A)(2) OF SECTION 122.16 OR DIVISION (A)(9) OF 2,060
SECTION 5733.33 OF THE REVISED CODE, THEN ANY PROJECT LOCATED 2,062
ANYWHERE WITHIN THE UNINCORPORATED AREA OR TOWNSHIP CONTAINED 2,063
WITHIN THE JOINT ECONOMIC DEVELOPMENT DISTRICT IS ELIGIBLE FOR 2,064
ANY STATE ASSISTANCE UNDER CHAPTER 122. OR SECTION 5733.33 OF THE 2,067
REVISED CODE FOR WHICH DESIGNATION AS AN ELIGIBLE AREA IS A 2,069
CRITERION.
Sec. 718.03. A municipal corporation shall grant a credit 2,078
against its tax on income to a resident of the municipal 2,079
corporation who works in a joint economic development zone 2,080
created under section 715.691 or a joint economic development 2,081
district created under section 715.70, 715.71, OR 715.72 of the 2,082
Revised Code to the same extent that it grants a credit against 2,083
its tax on income to its residents who are employed in another 2,084
municipal corporation.
Sec. 5709.411. (A) AS USED IN THIS SECTION, "DETACHED 2,087
IMPROVEMENT" MEANS AN IMPROVEMENT AS DEFINED IN SECTION 5709.41 2,088
OF THE REVISED CODE THAT SATISFIES ALL OF THE FOLLOWING: 2,091
(1) THE ORDINANCE DECLARING THE IMPROVEMENT TO BE A PUBLIC 2,094
PURPOSE WAS ADOPTED UNDER SECTION 5709.41 OF THE REVISED CODE BY 2,096
A MUNICIPAL CORPORATION THAT IS A PARTY TO A CONTRACT CREATING A 2,097
JOINT ECONOMIC DEVELOPMENT DISTRICT UNDER SECTION 715.70 OR 2,098
715.71 OF THE REVISED CODE. 2,100
(2) THE IMPROVEMENT RELATES TO A PARCEL OF PROPERTY 2,102
50
LOCATED IN TERRITORY THAT IS DETACHED BY THAT MUNICIPAL 2,103
CORPORATION TO A TOWNSHIP THAT IS A PARTY TO THE SAME CONTRACT 2,104
CREATING THE JOINT ECONOMIC DEVELOPMENT DISTRICT, PURSUANT TO 2,105
THAT CONTRACT AND SECTION 709.38 OF THE REVISED CODE. 2,107
(3) THE ORDINANCE DECLARING THE IMPROVEMENTS TO BE A 2,109
PUBLIC PURPOSE IS ADOPTED PRIOR TO THE DETACHMENT OF THAT 2,110
TERRITORY. 2,111
(B) THE EXEMPTION FROM TAXATION FOR DETACHED IMPROVEMENTS 2,114
UNDER SECTION 5709.41 OF THE REVISED CODE SHALL CONTINUE FOR THE 2,116
PERIOD PRESCRIBED IN THAT SECTION AND THE ORDINANCE UNDER WHICH 2,117
THE IMPROVEMENTS ARE DECLARED TO BE A PUBLIC PURPOSE, OR ANY 2,118
AMENDMENTS TO THE ORDINANCE, EVEN IF THE DETACHMENT OCCURS PRIOR 2,120
TO THE END OF THAT PERIOD.
(C)(1) THE MUNICIPAL CORPORATION MAY REQUIRE THE OWNER OF 2,123
ANY BUILDING OR STRUCTURE LOCATED ON A PARCEL TO WHICH THE 2,124
DETACHED IMPROVEMENT RELATES TO PAY SERVICE PAYMENTS IN LIEU OF 2,125
TAXES UNDER SECTION 5709.42 OF THE REVISED CODE AFTER THE 2,127
TERRITORY INCLUDING THE DETACHED IMPROVEMENT IS DETACHED. THE 2,128
SERVICE PAYMENTS SHALL BE DISTRIBUTED TO THE MUNICIPAL 2,129
CORPORATION AS PROVIDED IN THAT SECTION. 2,130
(2) THE MUNICIPAL CORPORATION MAY USE THE SERVICE PAYMENTS 2,133
RECEIVED UNDER DIVISION (C)(1) OF THIS SECTION AS PRESCRIBED BY 2,135
SECTION 5709.43 OF THE REVISED CODE AND THE ORDINANCE DECLARING 2,138
THE DETACHED IMPROVEMENTS TO BE A PUBLIC PURPOSE. THE
LEGISLATIVE AUTHORITY OF THE MUNICIPAL CORPORATION MAY AMEND THE 2,139
ORDINANCE TO PERMIT THE SERVICE PAYMENTS TO BE USED TO PAY THE 2,140
COST OF STREETS, ROADS, WATER LINES, SEWERS, AND OTHER PUBLIC 2,141
IMPROVEMENTS EXTENDING FROM THE MUNICIPAL CORPORATION TO THE 2,142
DETACHED TERRITORY OR TO THE JOINT ECONOMIC DEVELOPMENT DISTRICT, 2,144
OR LOCATED ON THE DETACHED TERRITORY OR IN THE JOINT ECONOMIC 2,145
DEVELOPMENT DISTRICT, OR TO PAY DEBT SERVICE CHARGES ON
SECURITIES ISSUED BY THE MUNICIPAL CORPORATION TO FINANCE THOSE 2,146
PUBLIC IMPROVEMENTS. 2,147
Sec. 5709.82. (A) As used in this section: 2,156
51
(1) "New employee" means both of the following: 2,158
(a) Persons employed in the construction of real property 2,160
exempted from taxation under the chapters or sections of the 2,161
Revised Code enumerated in division (B) of this section; 2,162
(b) Persons not described by division (A)(1)(a) of this 2,164
section who are first employed at the site of such property and 2,165
who within the two previous years have not been subject, prior to 2,166
being employed at that site, to income taxation by the municipal 2,167
corporation within whose territory the site is located on income 2,168
derived from employment for the person's current employer. "New 2,169
employee" does not include any person who replaces a person who 2,170
is not a new employee under division (A)(1) of this section. 2,171
(2) "Infrastructure costs" means costs incurred by a 2,173
municipal corporation in a calendar year to acquire, construct, 2,174
reconstruct, improve, plan, or equip real or tangible personal 2,175
property that directly benefits or will directly benefit the 2,176
exempted property. If the municipal corporation finances the 2,177
acquisition, construction, reconstruction, improvement, planning, 2,178
or equipping of real or tangible personal property that directly 2,179
benefits the exempted property by issuing debt, "infrastructure 2,180
costs" means the annual debt charges incurred by the municipal 2,181
corporation from the issuance of such debt. Real or tangible 2,182
personal property directly benefits exempted property only if the 2,183
exempted property places or will place direct, additional demand 2,184
on the real or tangible personal property for which such costs 2,185
were or will be incurred. 2,186
(B) Except as otherwise provided under division (C) of 2,188
this section, the legislative authority of any political 2,189
subdivision that has acted under the authority of Chapter 725. or 2,190
1728., sections 3735.65 to 3735.70, or section 5709.40, 5709.41, 2,191
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, 5709.84, or 5709.88 2,192
of the Revised Code to grant an exemption from taxation for real 2,193
or tangible personal property may negotiate with the board of 2,194
education of each city, local, or exempted village school 2,195
52
district within the territory of which the exempted property is 2,196
located, and enter into an agreement whereby the school district 2,197
is compensated for tax revenue that the school district would 2,198
have received had the property not been exempted from taxation. 2,199
(C) This division does not apply to the following: 2,201
(1) The legislative authority of a municipal corporation 2,205
that has acted under the authority of DIVISION (H) OF SECTION 2,206
715.70 OR section 715.81 of the Revised Code to consent to the 2,208
granting of an exemption from taxation for real or tangible
personal property in a joint economic development district. 2,209
(2) The legislative authority of a municipal corporation 2,212
that has specified in an ordinance adopted under section 5709.40 2,213
or 5709.41 of the Revised Code that payments in lieu of taxes 2,215
provided for under section 5709.42 of the Revised Code shall be 2,216
paid to the city, local, or exempted village school district in 2,218
which the improvements are located in the amount of taxes that
would have been payable to the school district if the 2,219
improvements had not been exempted from taxation, as directed in 2,220
the ordinance.
If the legislative authority of any municipal corporation 2,223
has acted under the authority of Chapter 725. or 1728. or section 2,224
3735.671, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, or 2,225
5709.88, or a housing officer under section 3735.67 of the 2,226
Revised Code, to grant or consent to the granting of an exemption 2,227
from taxation for real or tangible personal property on or after 2,228
July 1, 1994, the municipal corporation imposes a tax on incomes, 2,229
and the payroll of new employees resulting from the exercise of 2,230
that authority equals or exceeds one million dollars in any tax 2,231
year for which such property is exempted, the legislative 2,232
authority and the board of education of each city, local, or 2,233
exempted village school district within the territory of which 2,234
the exempted property is located shall attempt to negotiate an 2,235
agreement providing for compensation to the school district for 2,236
all or a portion of the tax revenue the school district would 2,237
53
have received had the property not been exempted from taxation. 2,238
The agreement may include as a party the owner of the property 2,239
exempted or to be exempted from taxation and may include 2,240
provisions obligating the owner to compensate the school district 2,241
by paying cash or providing property or services by gift, loan, 2,242
or otherwise. Such an obligation is enforceable by the board of 2,243
education of the school district pursuant to the terms of the 2,244
agreement.
If the legislative authority and board of education fail to 2,246
negotiate an agreement that is mutually acceptable within six 2,247
months of formal approval by the legislative authority of the 2,248
instrument granting the exemption, the legislative authority 2,249
shall compensate the school district in the amount and manner 2,250
prescribed by division (D) of this section. 2,251
(D) Annually, the legislative authority of a municipal 2,253
corporation subject to this division shall pay to the city, 2,254
local, or exempted village school district within the territory 2,255
of which the exempted property is located an amount equal to 2,256
fifty per cent of the difference between the amount of taxes 2,257
levied and collected by the municipal corporation on the incomes 2,258
of new employees in the calendar year ending on the day the 2,259
payment is required to be made, and the amount of any 2,260
infrastructure costs incurred in that calendar year. For 2,261
purposes of such computation, the amount of infrastructure costs 2,262
shall not exceed thirty-five per cent of the amount of those 2,263
taxes unless the board of education of the school district, by 2,264
resolution adopted by a majority of the board, approves an amount 2,265
in excess of that percentage. If the amount of those taxes or 2,266
infrastructure costs must be estimated at the time the payment is 2,267
made, payments in subsequent years shall be adjusted to 2,268
compensate for any departure of those estimates from the actual 2,269
amount of those taxes. 2,270
A municipal corporation required to make a payment under 2,272
this section shall make the payment from its general fund or a 2,273
54
special fund established for the purpose. The payment is payable 2,274
on the thirty-first day of December of the tax year for or in 2,275
which the exemption from taxation commences and on that day for 2,276
each subsequent tax year property is exempted and the legislative 2,277
authority and board fail to negotiate an acceptable agreement 2,278
under division (C) of this section. 2,279
Section 2. That existing sections 122.15, 122.151, 2,281
122.152, 122.154, 715.70, 715.71, 715.72, 715.74, 715.76, 715.77, 2,283
715.78, 718.03, and 5709.82 of the Revised Code are hereby 2,284
repealed.
Section 3. That Section 4 of Sub. H.B. 481 of the 119th 2,286
General Assembly is hereby repealed. 2,287
Section 4. Section 13 of Article VIII, Ohio Constitution, 2,289
is in part implemented by sections 715.69 to 715.83 of the 2,290
Revised Code in furtherance of the public purposes of this state 2,291
to create or preserve jobs and employment opportunities and to 2,292
improve the economic welfare of the people of the state.
Section 5. The amendments to sections 715.70, 715.71, 2,294
715.72, 715.74, 715.76, and 715.78 of the Revised Code in this 2,296
act apply to any proceedings commenced after their effective
date, and, so far as their provisions support the actions taken, 2,297
also apply to any proceedings that on their effective date are 2,298
pending, in progress, or, in the case of elections or otherwise, 2,299
completed, and to the contracts authorized pursuant to those 2,300
proceedings, notwithstanding the applicable law previously in 2,301
effect or any provision to the contrary in a prior resolution,
ordinance, order, advertisement, notice, or other proceeding. 2,302
Any proceedings pending or in progress on the effective date of 2,303
those amendments, and contracts entered into or approved pursuant 2,304
to those proceedings, shall be deemed to have been taken, and 2,305
authorized, entered into, and approved, in conformity with those
amendments. 2,306
Section 6. Section 715.70 of the Revised Code is presented 2,308
in this act as a composite of the section as amended by both Am. 2,310
55
Sub. H.B. 269 and Am. Sub. H.B. 99 of the 121st General Assembly, 2,311
with the new language of neither of the acts shown in capital 2,312
letters. This is in recognition of the principle stated in 2,313
division (B) of section 1.52 of the Revised Code that such 2,314
amendments are to be harmonized where not substantively 2,315
irreconcilable and constitutes a legislative finding that such is 2,316
the resulting version in effect prior to the effective date of 2,317
this act.