As Reported by the House Finance and Appropriations Committee

125th General Assembly Regular Session 2003-2004

Sub. S. B. No. 165

Senators Schuring, Schuler, Fedor, Dann, Harris 

Representatives D. Evans, Miller, S. Patton 

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A BILL

To amend sections 166.06, 166.07, 166.21, 725.04,

1

1728.11, 1728.111, 3735.671, 5709.631, and

2

5709.831 and to enact section 9.661 of the Revised

3

Code to authorize liens that may be used to secure

4

the performance of obligations by recipients of

5

development loans and local property tax

6

incentives.

7

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 166.06, 166.07, 166.21, 725.04,	8
1728.11, 1728.111, 3735.671, 5709.631, and 5709.831 be amended and	9
section 9.661 of the Revised Code be enacted to read as follows:	10

Sec. 9.661.  (A) As used in this section:

11

(1) "Borrower" means any person obligated to repay a	12
development loan pursuant to a development loan agreement or	13
obligated to repay a loan guaranteed pursuant to a loan guarantee	14
agreement.	15

(2) "Development inducement agreement" means an agreement	16
making a grant or inducement under the authority of Section 13 of	17
Article VIII, Ohio Constitution, including an inducement made	18
under section 166.02 of the Revised Code or a grant made under	19
section 184.02 of the Revised Code.	20

(3) "Development loan" means any loan made under the	21
authority of Section 13 of Article VIII, Ohio Constitution,	22
including any loan made under the authority of Chapter 122., 165.,	23
166., 184., or 1724. of the Revised Code.	24

(4) "Development loan agreement" means an agreement making a	25
development loan.	26

(5) "Grantee" means any grantee or other recipient of	27
anything of value under a development inducement agreement.	28

(6) "Guaranteed loan" means a loan guaranteed by this state,	29
a state agency, or a political subdivision under the authority of	30
Section 13 of Article VIII, Ohio Constitution, including any loan	31
guarantee authorized under Chapter 166. of the Revised Code.	32

(7) "Loan guarantee agreement" means an agreement providing	33
for the guarantee of a guaranteed loan.	34

(8) "Secured party" means the state, a state agency, or a	35
political subdivision that enters into a development loan	36
agreement, loan guarantee agreement, or development inducement	37
agreement.	38

(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

(D) A secured party may enforce such liens against real	80
property by civil action in the court of common pleas of the	81
county where the real property is located in the same manner as	82
mortgage liens are enforced. A secured party may enforce such	83
liens against personal property in the manner provided for the	84
enforcement of security interests under Chapter 1309. of the	85
Revised Code.	86

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

(B) Before guaranteeing any such repayments or payments the	103
director shall determine that:	104

(1) The project is an eligible project and is economically	105
sound;	106

(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

(3) The principal amount to be guaranteed has a satisfactory	115
maturity date or dates, which in no case shall be later than	116
twenty years from the effective date of the guarantee;	117

(4) The rate of interest on the loan to be guaranteed and on	118
any other loan made by the same parties or related persons for the	119
eligible project is not excessive;	120

(5) The principal obligor, or primary guarantor, is	121
responsible and is reasonably expected to be able to meet the	122
payments under the loan, bonds, notes, or other certificates;	123

(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

(E) The director may fix service charges for making a	169
guarantee. Such charges shall be payable at such times and place	170
and in such amounts and manner as may be prescribed by the	171
director.	172

(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

(H) The determinations of the director under divisions (B)	234
and (C) of this section shall be conclusive for purposes of the	235
validity of a guarantee evidenced by a contract signed by the	236
director, and such guarantee shall be incontestable as to moneys	237
advanced under loans to which such guarantees are by their terms	238
applicable.	239

Sec. 166.07.  (A) The director of development, with the	240
approval of the controlling board and subject to the other	241
applicable provisions of this chapter, may lend moneys in the	242
facilities establishment fund to persons for the purpose of paying	243
allowable costs of an eligible project if the director determines	244
that:	245

(1) The project is an eligible project and is economically	246
sound;	247

(2) The borrower is unable to finance the necessary allowable	248
costs through ordinary financial channels upon comparable terms;	249

(3) The amount to be lent from the facilities establishment	250
fund will not exceed seventy-five per cent of the total allowable	251
costs of the eligible project, except that if any part of the	252
amount to be lent from the facilities establishment fund is	253
derived from the issuance and sale of project financing	254
obligations the amount to be lent will not exceed ninety per cent	255
of the total allowable costs of the eligible project;	256

(4) The eligible project could not be achieved in the local	257
area in which it is to be located if the portion of the project to	258
be financed by the loan instead were to be financed by a loan	259
guaranteed under section 166.06 of the Revised Code;	260

(5) The repayment of the loan from the facilities	261
establishment fund will be adequately secured by a mortgage, lien,	262
assignment, or pledge, or lien provided for under section 9.661 of	263
the Revised Code, at such level of priority as the director may	264
require;	265

(6) The borrower will hold at least a ten per cent equity	266
interest in the eligible project at the time the loan is made.	267

(B) The determinations of the director under division (A) of	268
this section shall be conclusive for purposes of the validity of a	269
loan commitment evidenced by a loan agreement signed by the	270
director.	271

(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

(D) The director may take actions necessary or appropriate to	282
collect or otherwise deal with any loan made under this section,	283
including any action authorized by section 9.661 of the Revised	284
Code.	285

(E) The director may fix service charges for the making of a	286
loan. Such charges shall be payable at such times and place and in	287
such amounts and manner as may be prescribed by the director.	288

Sec. 166.21. (A) The director of development, with the	289
approval of the controlling board and subject to other applicable	290
provisions of this chapter, may lend moneys in the research and	291
development loan fund to persons for the purpose of paying	292
allowable costs of eligible research and development projects, if	293
the director determines that all of the following conditions are	294
met:	295

(1) The project is an eligible research and development	296
project and is economically sound;	297

(2) The amount to be lent from the research and development	298
loan fund will not exceed seventy-five per cent of the total costs	299
of the eligible research and development project;	300

(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

(B) The determinations of the director under division (A) of	311
this section shall be conclusive for purposes of the validity of a	312
loan commitment evidenced by a loan agreement signed by the	313
director.	314

(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

(D)(1) As used in this division, "qualified research and	327
development loan payments" means payments of principal and	328
interest on a loan made from the research and development loan	329
fund.	330

(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

(E) The director may take actions necessary or appropriate to	348
collect or otherwise deal with any loan made under this section.	349

(F) The director may fix service charges for the making of a	350
loan. The charges shall be payable at such times and place and in	351
such amounts and manner as may be prescribed by the director.	352

(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

If the municipal corporation owns the improvements, it may	395
require the lessee of the improvements to make the semiannual	396
urban renewal service payments required under this section.	397

The legislative authority of the municipal corporation may	398
secure the urban renewal service payments by a lien on the	399
improvements. Such a lien shall attach, and may be perfected,	400
collected, and enforced, in the same manner as a mortgage lien on	401
real property, and shall otherwise have the same force and effect	402
as a mortgage lien on real property.	403

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

At the same date all restrictions and limitations upon the	460
corporation shall terminate and be at an end upon the	461
corporation's rendering its final account with the municipal	462
corporation.	463

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

At the same date all restrictions and limitation upon the	507
corporation shall terminate upon the corporation's rendering its	508
final account with the municipal corporation.	509

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

(a) The amount of taxes charged and payable on any portion of	553
the assessed valuation of the new structure or remodeling that	554
will not be exempted from taxation under the agreement;	555

(b) The amount of taxes charged and payable on tangible	556
personal property located on the premises of the new structure or	557
of the structure to be remodeled under the agreement, whether	558
payable by the owner of the structure or by a related member, as	559
defined in section 5733.042 of the Revised Code without regard to	560
division (B) of that section.	561

(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 beby the owner and the board	564
of 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

The estimates of quantities used for purposes of division	569
(A)(2) of this section shall be estimated by the legislative	570
authority. The legislative authority shall certify to the board of	571
education that the estimates have been made in good faith.	572
Departures of the actual quantities from the estimates subsequent	573
to approval of the agreement by the board of education do not	574
invalidate the agreement.	575

(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

(B) Each agreement shall include the following information:

591

(1) The names of all parties to the agreement;

592

(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) The scheduled starting and completion dates of remodeling	607
or construction of real property or of investments made in	608
machinery, equipment, furniture, fixtures, and inventory;	609

(4) Estimates of the number of employee positions to be	610
created each year of the agreement and of the number of employee	611
positions retained by the owner due to the remodeling or	612
construction, itemized as to the number of full-time, part-time,	613
permanent, and temporary positions;	614

(5) Estimates of the dollar amount of payroll attributable to	615
the positions set forth in division (B)(4) of this section,	616
similarly itemized;	617

(6) The number of employee positions, if any, at the property	618
and at any other location in this state at the time the agreement	619
is executed, itemized as to the number of full-time, part-time,	620
permanent, and temporary positions.	621

(C) Each agreement shall set forth the following information	622
and incorporate the following statements:	623

(1) A description of real property to be exempted from	624
taxation under the agreement, the percentage of the assessed	625
valuation of the real property exempted from taxation, and the	626
period for which the exemption is granted, accompanied by the	627
statement: "The exemption commences the first year for which the	628
real property would first be taxable were that property not	629
exempted from taxation. No exemption shall commence after	630
.......... (insert date) nor extend beyond .......... (insert	631
date)."	632

(2) ".......... (insert name of owner) shall pay such real	633
property taxes as are not exempted under this agreement and are	634
charged against such property and shall file all tax reports and	635
returns as required by law. If .......... (insert name of owner)	636
fails to pay such taxes or file such returns and reports,	637
exemptions from taxation granted under this agreement are	638
rescinded beginning with the year for which such taxes are charged	639
or such reports or returns are required to be filed and	640
thereafter."	641

(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

(4) ".......... (insert name of municipal corporation or	658
county) shall perform such acts as are reasonably necessary or	659
appropriate to effect, claim, reserve, and maintain exemptions	660
from taxation granted under this agreement including, without	661
limitation, joining in the execution of all documentation and	662
providing any necessary certificates required in connection with	663
such exemptions."	664

(5) "If for any reason .......... (insert name of municipal	665
corporation or county) revokes the designation of the area,	666
entitlements granted under this agreement shall continue for the	667
number of years specified under this agreement, unless ..........	668
(insert name of owner) materially fails to fulfill its obligations	669
under this agreement and ................... (insert name of	670
municipal corporation or county) terminates or modifies the	671
exemptions from taxation pursuant to this agreement."	672

(6) "If .......... (insert name of owner) materially fails to	673
fulfill its obligations under this agreement, or if ..........	674
(insert name of municipal corporation or county) determines that	675
the certification as to delinquent taxes required by this	676
agreement is fraudulent, .......... (insert name of municipal	677
corporation or county) may terminate or modify the exemptions from	678
taxation granted under this agreement."	679

(7) ".......... (insert name of owner) shall provide to the	680
proper tax incentive review council any information reasonably	681
required by the council to evaluate the applicant's compliance	682
with the agreement, including returns filed pursuant to section	683
5711.02 of the Ohio Revised Code if requested by the council."	684

(8) "This agreement is not transferable or assignable without	685
the express, written approval of .......... (insert name of	686
municipal corporation or county)."	687

(9) "Exemptions from taxation granted under this agreement	688
shall be revoked if it is determined that ........... (insert name	689
of owner), any successor to that person, or any related member (as	690
those terms are defined in division (E) of section 3735.671 of the	691
Ohio Revised Code) has violated the prohibition against entering	692
into this agreement under division (E) of section 3735.671 or	693
section 5709.62 or 5709.63 of the Ohio Revised Code prior to the	694
time prescribed by that division or either of those sections."	695

(10) ".......... (insert name of owner) and ...........	696
(insert name of municipal corporation or county) acknowledge that	697
this agreement must be approved by formal action of the	698
legislative authority of .......... (insert name of municipal	699
corporation or county) as a condition for the agreement to take	700
effect. This agreement takes effect upon such approval."	701

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

The director of development shall review all agreements	751
submitted to the director under division (F) of this section for	752
the purpose of enforcing this division. If the director determines	753
there has been a violation of this division, the director shall	754
notify the legislative authority of such violation, and the	755
legislative authority immediately shall revoke the exemption	756
granted under the agreement.	757

(F) When an agreement is entered into under this section, the	758
legislative authority authorizing the agreement shall forward a	759
copy of the agreement to the director of development within	760
fifteen days after the agreement is entered into.	761

Sec. 5709.631.  Each agreement entered into under sections	762
5709.62, 5709.63, and 5709.632 of the Revised Code on or after	763
April 1, 1994, shall be in writing and shall include all of the	764
information and statements prescribed by this section. Agreements	765
may include terms not prescribed by this section, but such terms	766
shall in no way derogate from the information and statements	767
prescribed by this section.	768

(A) Each agreement shall include the following information:

769

(1) The names of all parties to the agreement;

770

(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

(3) The scheduled starting and completion dates of	788
investments made in building, machinery, equipment, furniture,	789
fixtures, and inventory;	790

(4) Estimates of the number of employee positions to be	791
created each year of the agreement and of the number of employee	792
positions retained by the applicant enterprise due to the project,	793
itemized as to the number of full-time, part-time, permanent, and	794
temporary positions;	795

(5) Estimates of the dollar amount of payroll attributable to	796
the positions set forth in division (A)(4) of this section,	797
similarly itemized;	798

(6) The number of employee positions, if any, at the project	799
site and at any other location in the state at the time the	800
agreement is executed, itemized as to the number of full-time,	801
part-time, permanent, and temporary positions.	802

(B) Each agreement shall set forth the following information	803
and incorporate the following statements:	804

(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, under division (D)(2) of section 5709.62 or	843
under division (C)(1)(b) of section 5709.63 of the Revised Code,	844
the board of education approves exemption for a number of years in	845
excess of ten, in which case the tangible personal property may be	846
exempted from taxation for that number of years, not to exceed	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

(3) ".......... (insert name of enterprise) shall pay such	861
real and tangible personal property taxes as are not exempted	862
under this agreement and are charged against such property and	863
shall file all tax reports and returns as required by law. If	864
.......... (insert name of enterprise) fails to pay such taxes or	865
file such returns and reports, all incentives granted under this	866
agreement are rescinded beginning with the year for which such	867
taxes are charged or such reports or returns are required to be	868
filed and thereafter."	869

(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

(5) ".......... (insert name of municipal corporation or	887
county) shall perform such acts as are reasonably necessary or	888
appropriate to effect, claim, reserve, and maintain exemptions	889
from taxation granted under this agreement including, without	890
limitation, joining in the execution of all documentation and	891
providing any necessary certificates required in connection with	892
such exemptions."	893

(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

(7) "If .......... (insert name of enterprise) materially	904
fails to fulfill its obligations under this agreement, other than	905
with respect to the number of employee positions estimated to be	906
created or retained under this agreement, or if .......... (insert	907
name of municipal corporation or county) determines that the	908
certification as to delinquent taxes required by this agreement is	909
fraudulent, .......... (insert name of municipal corporation or	910
county) may terminate or modify the exemptions from taxation	911
granted under this agreement."	912

(8) ".......... (insert name of enterprise) shall provide to	913
the proper tax incentive review council any information reasonably	914
required by the council to evaluate the enterprise's compliance	915
with the agreement, including returns or annual reports filed	916
pursuant to section 5711.02 or 5727.08 of the Ohio Revised Code if	917
requested by the council."	918

(9) ".......... (insert name of enterprise) and ..........	919
(insert name of municipal corporation or county) acknowledge that	920
this agreement must be approved by formal action of the	921
legislative authority of .......... (insert name of municipal	922
corporation or county) as a condition for the agreement to take	923
effect. This agreement takes effect upon such approval."	924

(10) "This agreement is not transferable or assignable	925
without the express, written approval of .......... (insert name	926
of municipal corporation or county)."	927

(11) "Exemptions from taxation granted under this agreement	928
shall be revoked if it is determined that ............... (insert	929
name of enterprise), any successor enterprise, or any related	930
member (as those terms are defined in section 5709.61 of the Ohio	931
Revised Code) has violated the prohibition against entering into	932
this agreement under division (E) of section 3735.671 or section	933
5709.62, 5709.63, or 5709.632 of the Ohio Revised Code prior to	934
the time prescribed by that division or either of those sections."	935

(12) "In any three-year period during which this agreement is	936
in effect, if the actual number of employee positions created or	937
retained by . . . . . . . . (insert name of enterprise) is not	938
equal to or greater than seventy-five per cent of the number of	939
employee positions estimated to be created or retained under this	940
agreement during that three-year period, . . . . . . . . (insert	941
name of enterprise) shall repay the amount of taxes on property	942
that would have been payable had the property not been exempted	943
from taxation under this agreement during that three-year period.	944
In addition, the . . . . . (insert name of municipal corporation	945
or county) may terminate or modify the exemptions from taxation	946
granted under this agreement."	947

The statement described in division (B)(7) of this section	948
may include the following statement, appended at the end of the	949
statement: "and may require the repayment of the amount of taxes	950
that would have been payable had the property not been exempted	951
from taxation under this agreement." If the agreement includes a	952
statement requiring repayment of exempted taxes, it also may	953
authorize the legislative authority to secure repayment of such	954
taxes by a lien on the exempted property in the amount required to	955
be repaid. Such a lien on exempted real property shall attach, and	956
may be perfected, collected, and enforced, in the same manner as a	957
mortgage lien on real property, and shall otherwise have the same	958
force and effect as a mortgage lien on real property.	959
Notwithstanding section 5719.01 of the Revised Code, such a lien	960
on exempted tangible personal property shall attach, and may be	961
perfected, collected, and enforced, in the same manner as a	962
security interest in goods under Chapter 1309. of the Revised	963
Code, and shall otherwise have the same force and effect as such a	964
security interest.	965

(C) If the director of development had to issue a waiver	966
under section 5709.633 of the Revised Code as a condition for the	967
agreement to be executed, the agreement shall include the	968
following statement:	969

"Continuation of this agreement is subject to the validity of	970
the circumstance upon which .......... (insert name of enterprise)	971
applied for, and the Director of the Ohio Department of	972
Development issued, the waiver pursuant to section 5709.633 of the	973
Ohio Revised Code. If, after formal approval of this agreement by	974
.......... (insert name of municipal corporation or county), the	975
Director or ............. (insert name of municipal corporation or	976
county) discovers that such a circumstance did not exist,	977
........... (insert name of enterprise) shall be deemed to have	978
materially failed to comply with this agreement."	979

If the director issued a waiver on the basis of the	980
circumstance described in division (B)(3) of section 5709.633 of	981
the Ohio Revised Code, the conditions enumerated in divisions	982
(B)(3)(a)(i) and (ii) or divisions (B)(3)(b)(i) and (ii) of that	983
section shall be incorporated in the information described in	984
divisions (A)(2), (3), and (4) of this section.	985

Sec. 5709.831. (A) As used in this section:

986

(1) "Exempted improvements" means improvements exempted from	987
taxation under section 5709.40, 5709.41, 5709.73, or 5709.78 of	988
the Revised Code.	989

(2) "Political subdivision" means the county, township, or	990
municipal corporation granting an exemption from taxation under	991
section 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code.	992

(B) The legislative authority of a municipal corporation,	993
township, or countypolitical subdivision that grants an exemption	994
from taxation for an improvement under section 5709.40, 5709.41,	995
5709.73, or 5709.78 of the Revised Code may require the owner of	996
the improvement to reimburse the local taxing authorities within	997
whose taxing jurisdiction the exempted improvement is located for	998
the amount of real property taxes that would have been payable to	999
the taxing authorities had the improvement not been exempted from	1000
taxation. If the legislative authority requires the owner of the	1001
exempted improvements to make payments in lieu of taxes, the	1002
legislative authority may require such reimbursement only to the	1003
extent that the owner failed to make those payments as required.	1004
The legislative authority may secure any reimbursement authorized	1005
by this section by a lien on the exempted property, which shall	1006
attach, and may be perfected, collected, and enforced, in the same	1007
manner as a mortgage lien on real property, and which shall	1008
otherwise have the same force and effect as a mortgage lien on	1009
real property.	1010

Section 2. That existing sections 166.06, 166.07, 166.21,	1011
725.04, 1728.11, 1728.111, 3735.671, 5709.631, and 5709.831 of the	1012
Revised Code are hereby repealed.	1013