(B) The obligations of a borrower under each development loan | 39 |
agreement or loan guarantee agreement may be secured by a lien of | 40 |
the secured party on the borrower's real property and personal | 41 |
property the acquisition of which was funded in whole or in part | 42 |
by the proceeds of the loan. Any such lien shall be in an amount | 43 |
not exceeding the amount financed under the development loan | 44 |
agreement, or the amount guaranteed under the loan guarantee | 45 |
agreement, and used to fund acquisition of the property. The lien | 46 |
may be in addition to any other security required by the | 47 |
development loan agreement or loan guarantee agreement, but the | 48 |
sum of the lien amount and the value of any such other security | 49 |
shall not exceed the amount financed, or the amount guaranteed, | 50 |
and used to fund acquisition of the property. Such a lien on real | 51 |
property shall attach, and may be perfected, collected, and | 52 |
enforced, in the same manner as a mortgage lien on real property, | 53 |
and otherwise shall have the same force and effect as a mortgage | 54 |
lien on real property. Such a lien on personal property shall | 55 |
attach, and may be perfected, collected, and enforced, in the same | 56 |
manner as a security interest in goods under Chapter 1309. of the | 57 |
Revised Code, and shall otherwise have the same force and effect | 58 |
as such a security interest. | 59 |
(C) The obligations of a grantee under each development | 60 |
inducement agreement may be secured by a lien of the secured party | 61 |
on the grantee's real property and personal property the | 62 |
acquisition of which was funded in whole or in part by the grant | 63 |
or other thing of value. Any such lien shall be in an amount not | 64 |
exceeding the amount of the grant or other thing of value granted | 65 |
to the grantee under the agreement and used to fund acquisition of | 66 |
the property. The lien may be in addition to any other security | 67 |
required by the development inducement agreement, but the sum of | 68 |
the lien amount and the value of any such other security shall not | 69 |
exceed the amount of the grant, or the value of any other thing of | 70 |
value granted, and used to fund acquisition of the property. Such | 71 |
a lien on real property shall attach, and may be perfected, | 72 |
collected, and enforced, in the same manner as a mortgage lien on | 73 |
real property, and otherwise shall have the same force and effect | 74 |
as a mortgage lien on real property. Such a lien on personal | 75 |
property shall attach, and may be perfected, collected, and | 76 |
enforced, in the same manner as a security interest in goods under | 77 |
Chapter 1309. of the Revised Code, and shall otherwise have the | 78 |
same force and effect as such a security interest. | 79 |
Sec. 166.06. (A) Subject to any limitations as to
aggregate | 87 |
amounts thereof that may from time to time be
prescribed by the | 88 |
general assembly and to other applicable
provisions of this | 89 |
chapter, the director of development may, on
behalf of the state, | 90 |
enter into contracts to guarantee the
repayment or payment of not | 91 |
more than ninety per cent of the
unpaid principal amount of loans | 92 |
made, including bonds, notes, or
other certificates issued or | 93 |
given to provide funds, to pay
allowable costs of eligible | 94 |
projects. Such guarantees shall be
secured solely by and payable | 95 |
solely from the loan guarantee fund
created by this section and
| 96 |
unencumbered and available moneys
in the facilities
establishment | 97 |
fund in the manner and
to the extent provided in
such guarantee | 98 |
contracts consistent
with this section. Such
guarantees shall not | 99 |
constitute general
obligations of the state
or of any political | 100 |
subdivision, and
moneys raised by taxation
shall not be obligated | 101 |
or pledged for
the payment of such
guarantees. | 102 |
(2) The principal amount to be guaranteed does not exceed | 107 |
ninety per cent of the allowable costs of the eligible project as | 108 |
determined by
the director. To assist the director in making
this | 109 |
determination, the director may, in the director's
discretion, | 110 |
engage an independent engineer, architect, appraiser,
or other | 111 |
professional pursuant to a contract to be paid solely
from the | 112 |
facilities
establishment fund,
subject to
controlling board | 113 |
approval. | 114 |
(6) The loan or documents pertaining to the bonds, notes,
or | 124 |
other certificates to be guaranteed contains
provisions
for | 125 |
payment by the
principal
obligor, and is in such form and contains | 126 |
such terms and
provisions for the protection of the lenders as are | 127 |
generally
consistent with commercial practice, including, where | 128 |
applicable,
provisions with respect to property insurance, | 129 |
repairs,
alterations, payment of taxes and assessments, | 130 |
delinquency
charges, default remedies, acceleration of maturity, | 131 |
prior,
additional and secondary liens, and other matters as the | 132 |
director
may approve. | 133 |
(C) The contract of guarantee may make provision for the | 134 |
conditions of, time for and manner of fulfillment of the
guarantee | 135 |
commitment, subrogation of the state to the rights of
the parties | 136 |
guaranteed and exercise of such parties' rights by
the state, | 137 |
giving the state the options of making payment of the
principal | 138 |
amount guaranteed in one or more installments and, if
deferred, to | 139 |
pay interest thereon from the loan guarantee fund
and the | 140 |
facilities establishment fund, any other
terms or conditions | 141 |
customary to such guarantees and as the
director may approve, and | 142 |
may contain provisions for securing the
guarantee in the manner | 143 |
consistent with this section, including, at the discretion of the | 144 |
director, a lien provided for under section 9.661 of the Revised | 145 |
Code, and may contain covenants on
behalf of the state
for the | 146 |
maintenance of the loan guarantee fund
created by this
section and | 147 |
of receipts to it permitted by this
chapter,
including covenants | 148 |
on behalf of the state to issue
obligations
under section 166.08 | 149 |
of the Revised Code to provide
moneys to the
loan guarantee fund | 150 |
to fulfill such guarantees and
covenants
authorized by division | 151 |
(R)(1) of section 166.08 of the
Revised
Code, and covenants | 152 |
restricting the aggregate amount of
guarantees that may be | 153 |
contracted under this section and
obligations that may be issued | 154 |
under section 166.08 of the
Revised
Code, and terms pertinent to | 155 |
either, to better secure the
parties
guaranteed. | 156 |
(D) The "loan guarantee fund" of the economic development | 157 |
program is hereby created as a special revenue fund and a trust | 158 |
fund which shall be in the custody of the treasurer of state but | 159 |
shall be separate and apart from and not a part of the state | 160 |
treasury to consist of all grants, gifts, and contributions of | 161 |
moneys or rights to moneys lawfully designated for or deposited
in | 162 |
such fund, all moneys and rights to moneys lawfully
appropriated | 163 |
and transferred to such fund, including moneys
received from the | 164 |
issuance of obligations under section 166.08 of
the Revised Code, | 165 |
and moneys deposited to such fund pursuant to
division (F) of this | 166 |
section; provided that the loan guarantee
fund shall not be | 167 |
comprised, in any part, of moneys raised by
taxation. | 168 |
(F) The treasurer of state shall serve as agent for the | 173 |
director in the making of deposits and withdrawals and
maintenance | 174 |
of records pertaining to the loan guarantee fund.
Prior to the | 175 |
director's entry into a contract providing for the making of a | 176 |
guarantee payable from the loan guarantee fund, the treasurer of | 177 |
state shall cause to be transferred from the facilities | 178 |
establishment fund to the loan guarantee fund an amount sufficient | 179 |
to make the aggregate balance therein, taking into account the | 180 |
proposed loan guarantee, equal to the loan guarantee reserve | 181 |
requirement. Thereafter, the treasurer of state shall cause the | 182 |
balance in the loan guarantee fund to be at least equal to the | 183 |
loan guarantee reserve requirement. Funds from the loan guarantee | 184 |
fund shall be disbursed under a
guarantee made pursuant to this | 185 |
section to satisfy a guaranteed
repayment or payment which is in | 186 |
default. The treasurer of state
shall first withdraw and transfer | 187 |
moneys then on deposit in the
loan guarantee fund. Whenever these | 188 |
moneys are inadequate to
meet the requirements of a guarantee, the | 189 |
treasurer of state
shall, without need of appropriation or further | 190 |
action by the
director, provide for a withdrawal and transfer to | 191 |
the loan
guarantee fund and then to the guaranteed party of moneys | 192 |
in such
amount as is necessary to meet the guarantee
from | 193 |
unencumbered and available moneys in the facilities
establishment | 194 |
fund. Such disbursements shall be made in the
manner and at the | 195 |
times provided in such guarantees.
Within ninety
days following a | 196 |
disbursement of moneys from the loan guarantee
fund, the treasurer | 197 |
of state, without need of appropriation or
further action by the | 198 |
director, shall provide for a withdrawal and
transfer to the loan | 199 |
guarantee fund from unencumbered and
available moneys in the | 200 |
facilities establishment fund, including
moneys from the repayment | 201 |
of loans made from that fund, of an
amount sufficient to cause the | 202 |
balance in the loan guarantee fund
to be at least equal to the | 203 |
loan guarantee reserve requirement. | 204 |
(G) Any guaranteed parties under this section, except to
the | 205 |
extent that their rights are restricted by the guarantee | 206 |
documents, may by any suitable form of legal proceedings, protect | 207 |
and enforce any rights under the laws of this state or granted by | 208 |
such guarantee or guarantee documents. Such rights include the | 209 |
right to compel the performance of all duties of the director and | 210 |
the treasurer of state required by this section or the guarantee | 211 |
or guarantee documents; and in the event of default with respect | 212 |
to the payment of any guarantees, to apply to a court having | 213 |
jurisdiction of the cause to appoint a receiver to receive and | 214 |
administer the moneys pledged to such guarantee with full power
to | 215 |
pay, and to provide for payment of, such guarantee, and with
such | 216 |
powers, subject to the direction of the court, as are
accorded | 217 |
receivers in general equity cases, excluding any power
to pledge | 218 |
or apply additional revenues or receipts or other
income or moneys | 219 |
of the state or governmental agencies of the
state to the payment | 220 |
of such guarantee. Each duty of the
director and the treasurer of | 221 |
state and their officers and
employees, and of each governmental | 222 |
agency and its officers,
members, or employees, required or | 223 |
undertaken pursuant to this
section or a guarantee made under | 224 |
authority of this section, is
hereby established as a duty of the | 225 |
director and the treasurer of
state, and of each such officer, | 226 |
member, or employee having
authority to perform such duty, | 227 |
specifically enjoined by the law
resulting from
an office,
trust, | 228 |
or station within the
meaning
of section 2731.01 of the
Revised | 229 |
Code. The persons who are at
the time the director and
treasurer | 230 |
of state, or their officers
or employees, are not liable
in their | 231 |
personal capacities on any
guarantees or contracts to
make | 232 |
guarantees by the director. | 233 |
(C) Fees, charges, rates of interest, times of payment of | 272 |
interest and principal, and other terms, conditions, and | 273 |
provisions of and security for loans made from the facilities | 274 |
establishment fund pursuant to this section shall be such as the | 275 |
director determines to be appropriate and in furtherance of the | 276 |
purpose for which the loans are made. The moneys used in making | 277 |
such loans shall be disbursed from the facilities establishment | 278 |
fund upon order of the director. The director shall give special | 279 |
consideration in setting the required job creation ratios and | 280 |
interest rates
for loans that are for voluntary actions. | 281 |
(3) The repayment of the loan from the research and | 301 |
development loan fund will be secured by a mortgage, lien, | 302 |
assignment, pledge, lien provided for under section 9.661 of the | 303 |
Revised Code, or other interest in property or other assets of the | 304 |
borrower, at such level of priority and value as the director | 305 |
considers necessary, provided that, in making such a | 306 |
determination, the director shall take into account the value of | 307 |
any rights granted by the borrower to the director to control the | 308 |
use of any assets of the borrower under the circumstances | 309 |
described in the loan documents. | 310 |
(C) Fees, charges, rates of interest, times of payment of | 315 |
interest and principal, and other terms and conditions of, and | 316 |
security for, loans made from the research and development loan | 317 |
fund shall be such as the director determines to be appropriate | 318 |
and in furtherance of the purpose for which the loans are made. | 319 |
The moneys used in making loans shall be disbursed from the fund | 320 |
upon order of the director. Unless otherwise specified in any | 321 |
indenture or other instrument securing obligations under division | 322 |
(D) of section 166.08 of the Revised Code, any payments of | 323 |
principal and interest from loans made from the fund shall be paid | 324 |
to the fund and used for the purpose of making loans under this | 325 |
section. | 326 |
(2) Each year, the director may, upon request, issue a | 331 |
certificate to a borrower of moneys from the research and | 332 |
development loan fund indicating the amount of the qualified | 333 |
research and development loan payments made by or on behalf of the | 334 |
borrower during the calendar year immediately preceding the tax | 335 |
year, as defined in section 5733.04 of the Revised Code, or | 336 |
taxable year, as defined in section 5747.01 of the Revised Code, | 337 |
for which the certificate is issued. In addition to indicating the | 338 |
amount of qualified research and development loan payments, the | 339 |
certificate shall include a determination of the director that as | 340 |
of the thirty-first day of December of the calendar year for which | 341 |
the certificate is issued, the borrower is not in default under | 342 |
the loan agreement, lease, or other instrument governing repayment | 343 |
of the loan, including compliance with the job creation and | 344 |
retention commitments that are part of the qualified research and | 345 |
development project. The director shall not issue a certificate in | 346 |
an amount that exceeds one hundred fifty thousand dollars. | 347 |
(G)(1) There shall be credited to the research and | 353 |
development loan fund moneys received by this state from the | 354 |
repayment of loans, including interest thereon, made from the | 355 |
fund, and moneys received from the sale, lease, or other | 356 |
disposition of property acquired or constructed with moneys in the | 357 |
fund derived from the proceeds of the sale of obligations under | 358 |
section 166.08 of the Revised Code. Moneys in the fund shall be | 359 |
applied as provided in this chapter pursuant to appropriations | 360 |
made by the general assembly. | 361 |
(2) In addition to the requirements in division (G)(1) of | 362 |
this section, moneys referred to in that division may be deposited | 363 |
to the credit of separate accounts established by the director of | 364 |
development within the research and development loan fund or in | 365 |
the bond service fund and pledged to the security of obligations, | 366 |
applied to the payment of bond service charges without need for | 367 |
appropriation, released from any such pledge and transferred to | 368 |
the research and development loan fund, all as and to the extent | 369 |
provided in the bond proceedings pursuant to written directions of | 370 |
the director of development. Accounts may be established by the | 371 |
director in the research and development loan fund for particular | 372 |
projects or otherwise. The director may withdraw from the fund or, | 373 |
subject to provisions of the applicable bond proceedings, from any | 374 |
special funds established pursuant to the bond proceedings, or | 375 |
from any accounts in such funds, any amounts of investment income | 376 |
required to be rebated and paid to the federal government in order | 377 |
to maintain the exemption from federal income taxation of interest | 378 |
on obligations issued under this chapter, which withdrawal and | 379 |
payment may be made without the necessity for appropriation. | 380 |
Sec. 725.04. A development agreement shall contain an | 381 |
agreement binding on
the owner or owners of the improvements, and | 382 |
all subsequent owners of the
improvements, to make semiannual | 383 |
urban renewal service payments, in lieu of
taxes upon the | 384 |
improvements during the exemption period, equal annually in the | 385 |
aggregate to the amount of real property taxes that would have | 386 |
been paid on
the portion of the assessed valuation of the | 387 |
improvements declared to be a
public purpose had an exemption | 388 |
period not been specified by the municipal
corporation. All | 389 |
semiannual urban renewal service payments shall be collected
at | 390 |
the same time that real property taxes are collected. The entire | 391 |
amount of
these urban renewal service payments, when collected, | 392 |
shall be deposited in an
urban renewal debt retirement fund | 393 |
established pursuant to section 725.03 of
the Revised Code. | 394 |
Sec. 1728.11. The community urban redevelopment
corporation | 404 |
entering into a financial agreement with a municipal
corporation | 405 |
other than an impacted city shall make payment to the
county | 406 |
treasurer on or before the final date for payment of real
estate | 407 |
taxes in the county for each half year of a semi-annual
service | 408 |
charge in lieu of taxes on the real property of the
corporation in | 409 |
the project, whether acquired by purchase or
lease, in a | 410 |
semi-annual amount of not less than seven and
one-half per cent of | 411 |
the annual gross revenues from each unit of
the project, if the | 412 |
project is undertaken in units, or from the
total project if the | 413 |
project is not to be undertaken in units,
for each of the years of | 414 |
operation commencing with the date of
the completion of such unit | 415 |
or of the project, as the case may
be. Where, because of the | 416 |
nature of the development, ownership,
use, or occupancy of the | 417 |
project or any unit thereof if the
project is to be undertaken in | 418 |
units, the total annual gross
rental cannot be reasonably | 419 |
ascertained, the governing body shall
provide in the financial | 420 |
agreement that the annual service charge
shall be a sum of not | 421 |
less than two per cent of the total project
cost or total project | 422 |
unit cost, calculated from the first day of
the month following | 423 |
the substantial completion of the project or
any unit thereof if | 424 |
the project is undertaken in units. In no
event shall such payment | 425 |
together with the taxes on the land, in
any year after first | 426 |
occupancy of the project, be less than the
total taxes assessed on | 427 |
all real property in the area covered by
the project in the | 428 |
calendar year immediately preceding the
acquisition of the said | 429 |
area by the municipality or its agency. | 430 |
Against such annual charge the corporation is entitled to | 431 |
credit for the amount, without interest, of the real estate taxes | 432 |
on land paid by it in the last two preceding semi-annual | 433 |
installments. On or before the fifteenth of January in each year | 434 |
each taxing district shall report to the county auditor, in such | 435 |
form as is approved by the tax commissioner, the amount of the | 436 |
service charge in excess of the taxes on the land chargeable for | 437 |
the preceding calendar year for each project or unit thereof | 438 |
subject to Chapter 1728. of the Revised Code. Such payments
shall | 439 |
be distributed by the county auditor to the taxing
subdivision | 440 |
levying taxes in the subdivisions in which the
property is | 441 |
located, in the same proportions in which the current
general | 442 |
property tax is distributed. The county treasurer may secure the | 443 |
service charge payments, minus the credit, by a lien on the real | 444 |
property of the corporation in the project. Such a lien shall | 445 |
attach, and may be perfected, collected, and enforced, in the same | 446 |
manner as a mortgage lien on real property, and shall otherwise | 447 |
have the same force and effect as a mortgage lien on real | 448 |
property. | 449 |
At the end of thirty years for one, two, or three family | 450 |
residential dwelling units and twenty years for all other uses of | 451 |
the improvements from the date of the execution of a financial | 452 |
agreement or earlier by agreement of the parties thereto, the tax | 453 |
exemption upon any unit, if the project is undertaken in units,
or | 454 |
upon the entire project, if the project is not undertaken in | 455 |
units, ceases and the improvements and any other property of the | 456 |
corporation as well as the land shall be assessed and taxed, | 457 |
according to general law, like other property within the
municipal | 458 |
corporation. | 459 |
Sec. 1728.111. The community urban redevelopment
corporation | 464 |
entering into a financial agreement with an impacted
city shall | 465 |
pay to the county treasurer of an annual
service charge in lieu of | 466 |
taxes on the improvements made by the
corporation in the project | 467 |
that are exempted from taxation
pursuant to section 1728.10 of the | 468 |
Revised Code. The annual
service charge shall be charged and paid | 469 |
in two equal
installments at the same time and in the same manner | 470 |
as real
property taxes. The amount of the annual service charge | 471 |
shall be
set forth in the financial agreement and shall be not | 472 |
more than
the annual amount of real property taxes that would have | 473 |
been
charged against the percentage of the assessed valuation of | 474 |
such improvements
exempted from taxation had that percentage not | 475 |
been exempted from
taxation, and not less than an amount which, | 476 |
together with the
taxes on the land in any year, equals the total | 477 |
taxes assessed on
all real property in the area covered by the | 478 |
project in the
calendar year immediately preceding the initial | 479 |
acquisition of
the area or any part thereof by the municipality or | 480 |
the
corporation, whichever occurred first. The county treasurer | 481 |
may secure the service charge payments by a lien on the exempted | 482 |
improvements. Such a lien shall attach, and may be perfected, | 483 |
collected, and enforced, in the same manner as a mortgage lien on | 484 |
real property, and shall otherwise have the same force and effect | 485 |
as a mortgage lien on real property. | 486 |
The service charge in lieu of taxes shall be distributed by | 487 |
the county auditor to the taxing subdivision levying taxes in the | 488 |
subdivisions in which the property is located, in the same | 489 |
proportions in which the current general property tax is | 490 |
distributed, or upon the adoption of a resolution by the
municipal | 491 |
legislative authority, which shall be certified to the
county | 492 |
auditor, the full amount of the service charge shall be | 493 |
distributed at the same time and in the same manner as real | 494 |
property tax payments to the municipal corporation, and shall be | 495 |
deposited in an urban redevelopment tax increment equivalent fund | 496 |
established pursuant to section 1728.112 of the Revised Code. | 497 |
At the end of thirty years for one, two, or three family | 498 |
residential dwelling units and twenty years for all other uses of | 499 |
the improvements from the date of the execution of a financial | 500 |
agreement, or earlier by agreement of the parties thereto, the | 501 |
exemption from taxation of any unit if the project is undertaken | 502 |
in
units, or of the entire project if the project is not | 503 |
undertaken in units, ceases and the improvements and any other | 504 |
property of the corporation as well as the land shall be assessed | 505 |
and taxed like other property within
the municipal corporation. | 506 |
Sec. 3735.671. (A) If construction or remodeling of | 510 |
commercial or industrial property is to be exempted from taxation | 511 |
pursuant to section 3735.67 of the Revised Code, the legislative | 512 |
authority and the owner of the property, prior to the
commencement | 513 |
of construction or remodeling, shall enter into a
written | 514 |
agreement, binding on both parties for a period of time
that does | 515 |
not end prior to the end of the period of the
exemption, that | 516 |
includes all of the information and statements
prescribed by this | 517 |
section. Agreements may include terms not
prescribed by this | 518 |
section, but such terms shall in no way
derogate from the | 519 |
information and statements prescribed by this
section. | 520 |
(1) Except as otherwise provided in division (A)(2) or (3) of | 521 |
this section, an agreement entered into under this section shall | 522 |
not be approved by the legislative authority unless the board of | 523 |
education of the city, local, or exempted village school district | 524 |
within the territory of which the property is or will be located | 525 |
approves the agreement. For the purpose of obtaining such | 526 |
approval, the legislative authority shall certify a copy of the | 527 |
agreement to the board of education not later than
forty-five
days | 528 |
prior to approving the agreement, excluding Saturday,
Sunday, and | 529 |
a legal holiday as defined in section 1.14 of the
Revised Code. | 530 |
The board of education, by
resolution adopted by a majority of the | 531 |
board, shall approve or
disapprove the agreement and certify a | 532 |
copy of the resolution to
the legislative authority not later than | 533 |
fourteen days prior to
the date stipulated by the legislative | 534 |
authority as the date upon
which approval of the agreement is to | 535 |
be formally considered by
the legislative authority. The board of | 536 |
education may include in
the resolution conditions under which the | 537 |
board would approve the
agreement. The legislative
authority may | 538 |
approve an agreement at any time after the board
of education | 539 |
certifies its resolution approving the agreement to
the | 540 |
legislative authority, or, if the board approves the
agreement | 541 |
conditionally, at any time after the conditions are
agreed to by | 542 |
the board and the legislative authority. | 543 |
(2) Approval of an agreement by the board of education is
not | 544 |
required under division (A)(1) of this
section if, for each tax | 545 |
year the real
property is exempted from taxation, the sum of the | 546 |
following
quantities, as estimated at or prior to the time the | 547 |
agreement is
formally approved by the legislative authority, | 548 |
equals or exceeds
fifty per cent of the amount of taxes, as | 549 |
estimated at or prior
to that time, that would have been charged | 550 |
and payable that year
upon the real property had that property not | 551 |
been exempted from
taxation: | 552 |
(c) The amount of any cash payment by the owner of the new | 562 |
structure or structure to be remodeled to the school district,
the | 563 |
dollar value, as mutually agreed to be the owner and the
board of | 564 |
education, of any property or services provided by the
owner of | 565 |
the property to the school district, whether by gift,
loan, or | 566 |
otherwise, and any payment by the legislative authority
to the | 567 |
school district pursuant to section 5709.82 of the Revised
Code. | 568 |
(3) If a board of education has adopted a resolution waiving | 576 |
its right to approve agreements and the resolution
remains in | 577 |
effect, approval of an agreement by the
board is not required | 578 |
under this division. If a board of
education has adopted a | 579 |
resolution allowing a legislative
authority to deliver the notice | 580 |
required under this division
fewer than forty-five business days | 581 |
prior to the legislative
authority's execution of the agreement, | 582 |
the legislative
authority shall deliver the notice to the board | 583 |
not later than
the number of days prior to such execution as | 584 |
prescribed by the
board in its resolution. If a board of education | 585 |
adopts a
resolution waiving its right to approve agreements or | 586 |
shortening
the notification period, the board shall certify a copy | 587 |
of the
resolution to the legislative authority. If the board of | 588 |
education rescinds such a resolution, it shall certify notice of | 589 |
the rescission to the legislative authority. | 590 |
(2) A description of the remodeling or construction,
whether | 593 |
or not to be exempted from taxation, including existing
or new | 594 |
structure size and cost thereof; the value of machinery, | 595 |
equipment, furniture, and fixtures, including an itemization of | 596 |
the value of machinery, equipment, furniture, and fixtures used
at | 597 |
another location in this state prior to the agreement and | 598 |
relocated or to be relocated from that location to the property, | 599 |
and the value of machinery, equipment, furniture, and fixtures at | 600 |
the facility prior to the execution of the agreement; the value
of | 601 |
inventory at the property, including an itemization of the
value | 602 |
of inventory held at another location in this state prior
to the | 603 |
agreement and relocated or to be relocated from that
location to | 604 |
the property, and the value of inventory held at the
property | 605 |
prior to the execution of the agreement; | 606 |
(3) ".......... (insert name of owner) hereby certifies
that | 642 |
at the time this agreement is executed, .......... (insert
name of | 643 |
owner) does not owe any delinquent real or tangible
personal | 644 |
property taxes to any taxing authority of the State of
Ohio, and | 645 |
does not owe delinquent taxes for which ..........
(insert name of | 646 |
owner) is liable under Chapter 5733., 5735.,
5739., 5741., 5743., | 647 |
5747., or 5753. of the Ohio Revised Code,
or, if such delinquent | 648 |
taxes are owed, .......... (insert name of
owner) currently is | 649 |
paying the delinquent taxes pursuant to an
undertaking enforceable | 650 |
by the State of Ohio or an agent or
instrumentality thereof, has | 651 |
filed a petition in bankruptcy under
11 U.S.C.A. 101, et seq., or | 652 |
such a petition has been filed
against .......... (insert name of | 653 |
owner). For the purposes of
this certification, delinquent taxes | 654 |
are taxes that remain unpaid
on the latest day prescribed for | 655 |
payment without penalty under
the chapter of the Revised Code | 656 |
governing payment of those
taxes." | 657 |
The statement described in division (C)(6) of this section | 702 |
may include the following statement, appended at the end of the | 703 |
statement: ", and may require the repayment of the amount of
taxes | 704 |
that would have been payable had the property not been
exempted | 705 |
from taxation under this agreement." If the agreement includes a | 706 |
statement requiring repayment of exempted taxes, it also may | 707 |
authorize the legislative authority to secure repayment of such | 708 |
taxes by a lien on the exempted property in the amount required to | 709 |
be repaid. Such a lien shall attach, and may be perfected, | 710 |
collected, and enforced, in the same manner as a mortgage lien on | 711 |
real property, and shall otherwise have the same force and effect | 712 |
as a mortgage lien on real property. | 713 |
(D) Except as otherwise provided in this division, an | 714 |
agreement entered into under this section shall require that the | 715 |
owner pay an annual fee equal to the greater of one per cent of | 716 |
the amount of taxes exempted under the agreement or five hundred | 717 |
dollars; provided, however, that if the value of the incentives | 718 |
exceeds two hundred fifty thousand dollars, the fee shall not | 719 |
exceed two thousand five hundred dollars. The fee shall be
payable | 720 |
to the legislative authority once per year for each year
the | 721 |
agreement is effective on the days and in the form specified
in | 722 |
the agreement. Fees paid shall be deposited in a special fund | 723 |
created for such purpose by the legislative authority and shall
be | 724 |
used by the legislative authority exclusively for the purpose
of | 725 |
complying with section 3735.672 of the Revised Code and by the
tax | 726 |
incentive review council created under section 5709.85 of the | 727 |
Revised Code exclusively for the purposes of performing the
duties | 728 |
prescribed under that section. The legislative authority
may waive | 729 |
or reduce the amount of the fee, but such waiver or
reduction does | 730 |
not affect the obligations of the legislative
authority or the tax | 731 |
incentive review council to comply with
section 3735.672 or | 732 |
5709.85 of the Revised Code. | 733 |
(E) If any person that is party to an agreement granting
an | 734 |
exemption from taxation discontinues operations at the
structure | 735 |
to which that exemption applies prior to the expiration
of the | 736 |
term of the agreement, that person, any successor to that
person, | 737 |
and any related member shall not enter into an agreement
under | 738 |
this section or section 5709.62, 5709.63, or 5709.632 of
the | 739 |
Revised Code, and no legislative authority shall enter into
such | 740 |
an agreement with such a person, successor, or related
member, | 741 |
prior to the expiration of five years after the
discontinuation of | 742 |
operations. As used in this division,
"successor" means a person | 743 |
to which the assets or equity of
another person has been | 744 |
transferred, which transfer resulted in
the full or partial | 745 |
nonrecognition of gain or loss, or resulted
in a carryover basis, | 746 |
both as determined by rule adopted by the
tax commissioner. | 747 |
"Related member" has the same meaning as
defined in section | 748 |
5733.042 of the Revised Code without regard to
division (B) of | 749 |
that section. | 750 |
(2) A description of the investments to be made by the | 771 |
applicant enterprise or by another party at the facility whether | 772 |
or not the investments are exempted from taxation, including | 773 |
existing or new building size and cost thereof; the value of | 774 |
machinery, equipment, furniture, and fixtures, including an | 775 |
itemization of the value of machinery, equipment, furniture, and | 776 |
fixtures used at another location in this state prior to the | 777 |
agreement and relocated or to be relocated from that location to | 778 |
the facility and the value of machinery, equipment, furniture,
and | 779 |
fixtures at the facility prior to the execution of the
agreement | 780 |
that will not be exempted from taxation; the value of
inventory at | 781 |
the facility, including an itemization of the value
of inventory | 782 |
held at another location in this state prior to the
agreement and | 783 |
relocated or to be relocated from that location to
the facility, | 784 |
and the value of inventory held at the facility
prior to the | 785 |
execution of the agreement that will not be exempted
from | 786 |
taxation; | 787 |
(1) A description of real property to be exempted from | 805 |
taxation under the agreement, the percentage of the assessed | 806 |
valuation of the real property exempted from taxation, and the | 807 |
period for which the exemption is granted, accompanied by the | 808 |
statement: "The exemption commences the first year for which the | 809 |
real property would first be taxable were that property not | 810 |
exempted from taxation. No exemption shall commence after | 811 |
.......... (insert date) nor extend beyond .......... (insert | 812 |
date)." The tax commissioner shall adopt rules prescribing the | 813 |
form the description of such property shall assume to
ensure that | 814 |
the property to be exempted from taxation under the
agreement is | 815 |
distinguishable from property that is not to be
exempted under | 816 |
that agreement. | 817 |
(2) A description of tangible personal property to be | 818 |
exempted from taxation under the agreement, the percentage of the | 819 |
assessed value of the tangible personal property exempted from | 820 |
taxation, and the period for which the exemption is granted, | 821 |
accompanied by the statement: "The minimum investment for tangible | 822 |
personal property to qualify for the exemption is $.......... | 823 |
(insert dollar amount) to purchase machinery and equipment first | 824 |
used in business at the facility as a result of the project, | 825 |
$.......... (insert dollar amount) for furniture and fixtures and | 826 |
other noninventory personal property first used in business at the | 827 |
facility as a result of the project, and $.......... (insert | 828 |
dollar amount) for new inventory. The maximum investment for | 829 |
tangible personal property to qualify for the exemption is | 830 |
$.......... (insert dollar amount) to purchase machinery and | 831 |
equipment first used in business at the facility as a result of | 832 |
the project, $.......... (insert dollar amount) for furniture and | 833 |
fixtures and other noninventory personal property first used in | 834 |
business at the facility as a result of the project, and | 835 |
$.......... (insert dollar amount) for new inventory. The | 836 |
exemption commences the first
year for which the tangible personal | 837 |
property would first be
taxable were that property not exempted | 838 |
from taxation. No
exemption shall commence after tax return year | 839 |
.......... (insert year) nor
extend beyond tax return year | 840 |
.......... (insert year). In no instance shall any tangible | 841 |
personal property be exempted from taxation for more than ten | 842 |
return years unless the project that is part of the agreement | 843 |
involves the enrichment and commercialization of uranium or | 844 |
uranium products or the research and development activities | 845 |
related to that enrichment or commercialization, in which case the | 846 |
tangible personal property may be exempted from taxation for up to | 847 |
fifteen return years." No exemption shall be allowed for any type | 848 |
of tangible personal property if the total investment is less than | 849 |
the minimum dollar amount specified for that type of property. If, | 850 |
for a type of tangible personal property, there are no minimum or | 851 |
maximum investment dollar amounts specified in the statement or | 852 |
the dollar amounts are designated in the statement as not | 853 |
applicable, the exemption shall apply to the total cost of that | 854 |
type of tangible personal property first used in business at the | 855 |
facility as a result of the project. The tax commissioner
shall | 856 |
adopt rules prescribing the form the description of such
property | 857 |
shall assume to ensure that the property to be
exempted from | 858 |
taxation under the agreement is distinguishable
from property that | 859 |
is not to be exempted under that agreement. | 860 |
(4) ".......... (insert name of enterprise) hereby
certifies | 870 |
that at the time this agreement is executed, ..........
(insert | 871 |
name of enterprise) does not owe any delinquent real or
tangible | 872 |
personal property taxes to any taxing authority of the
State of | 873 |
Ohio, and does not owe delinquent taxes for which
.......... | 874 |
(insert name of enterprise) is liable under Chapter 5727.,
5733., | 875 |
5735., 5739., 5741., 5743., 5747., or 5753. of the Revised
Code, | 876 |
or, if such delinquent taxes are owed, .......... (insert
name of | 877 |
enterprise) currently is paying the delinquent taxes
pursuant to a | 878 |
delinquent tax contract enforceable
by the State of Ohio or an | 879 |
agent or instrumentality thereof, has filed a petition in | 880 |
bankruptcy under 11 U.S.C.A. 101, et seq., or such a petition has | 881 |
been filed against .......... (insert name of enterprise). For
the | 882 |
purposes of the certification, delinquent taxes are taxes
that | 883 |
remain unpaid on the latest day prescribed for payment
without | 884 |
penalty under the chapter of the Revised Code governing
payment of | 885 |
those taxes." | 886 |
(6) "If for any reason the enterprise zone designation | 894 |
expires, the Director of the Ohio Department of Development | 895 |
revokes certification of the zone, or .......... (insert name of | 896 |
municipal corporation or county) revokes the designation of the | 897 |
zone, entitlements granted under this agreement shall continue
for | 898 |
the number of years specified under this agreement, unless | 899 |
.......... (insert name of enterprise) materially fails to
fulfill | 900 |
its obligations under this agreement and ..........
(insert name | 901 |
of municipal corporation or county) terminates or
modifies the | 902 |
exemptions from taxation granted under this
agreement." | 903 |
(11) "Exemptions from taxation granted under this
agreement | 926 |
shall be revoked if it is determined that
............... (insert | 927 |
name of enterprise), any successor
enterprise, or any related | 928 |
member (as those terms are defined in
section 5709.61 of the Ohio | 929 |
Revised Code) has violated the
prohibition against entering into | 930 |
this agreement under division
(E) of section 3735.671 or section | 931 |
5709.62, 5709.63, or 5709.632
of the Ohio Revised Code prior to | 932 |
the time prescribed by that
division or either of those sections." | 933 |
The statement described in division (B)(7) of this section | 934 |
may include the following statement, appended at the end of the | 935 |
statement: "and may require the repayment of the amount of taxes | 936 |
that would have been payable had the property not been exempted | 937 |
from taxation under this agreement." If the agreement includes a | 938 |
statement requiring repayment of exempted taxes, it also may | 939 |
authorize the legislative authority to secure repayment of such | 940 |
taxes by a lien on the exempted property in the amount required to | 941 |
be repaid. Such a lien on exempted real property shall attach, and | 942 |
may be perfected, collected, and enforced, in the same manner as a | 943 |
mortgage lien on real property, and shall otherwise have the same | 944 |
force and effect as a mortgage lien on real property. | 945 |
Notwithstanding section 5719.01 of the Revised Code, such a lien | 946 |
on exempted tangible personal property shall attach, and may be | 947 |
perfected, collected, and enforced, in the same manner as a | 948 |
security interest in goods under Chapter 1309. of the Revised | 949 |
Code, and shall otherwise have the same force and effect as such a | 950 |
security interest. | 951 |
"Continuation of this agreement is subject to the validity
of | 956 |
the circumstance upon which .......... (insert name of
enterprise) | 957 |
applied for, and the Director of the Ohio Department
of | 958 |
Development issued, the waiver pursuant to section 5709.633 of
the | 959 |
Ohio Revised Code. If, after formal approval of this
agreement by | 960 |
.......... (insert name of municipal corporation or
county), the | 961 |
Director or ............. (insert name of municipal
corporation or | 962 |
county) discovers that such a circumstance did not
exist, | 963 |
........... (insert name of enterprise) shall be deemed to
have | 964 |
materially failed to comply with this agreement." | 965 |
(B) The legislative authority of a municipal
corporation, | 979 |
township, or countypolitical subdivision that grants an exemption | 980 |
from
taxation for an improvement under section 5709.40, 5709.41, | 981 |
5709.73, or 5709.78 of the Revised Code may require the owner of | 982 |
the improvement to reimburse the local taxing authorities within | 983 |
whose taxing jurisdiction the exempted improvement is located for | 984 |
the amount of real property taxes that would have been payable to | 985 |
the taxing authorities had the improvement not been exempted from | 986 |
taxation. If the legislative authority requires the owner of the | 987 |
exempted improvements to make payments in lieu of taxes, the | 988 |
legislative authority may require such reimbursement only to the | 989 |
extent that the owner failed to make those payments as required. | 990 |
The legislative authority may secure any reimbursement authorized | 991 |
by this section by a lien on the exempted property, which shall | 992 |
attach, and may be perfected, collected, and enforced, in the same | 993 |
manner as a mortgage lien on real property, and which shall | 994 |
otherwise have the same force and effect as a mortgage lien on | 995 |
real property. | 996 |