As Introduced

127th General Assembly Regular Session 2007-2008

H. B. No. 606

Representative Peterson 

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A BILL

To amend sections 349.01, 349.03, 349.04, 349.05, and

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349.06, to enact new section 349.16 and section

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349.17, and to repeal section 349.16 of the

3

Revised Code to modify the governance and

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authority of new community authorities.

5

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

Section 1. That sections 349.01, 349.03, 349.04, 349.05, and	6
349.06 be amended and new section 349.16 and section 349.17 of the	7
Revised Code be enacted to read as follows:	8

Sec. 349.01.  As used in this chapter:

9

(A) "New community" means a community or an addition to an	10
existing community planned pursuant to this chapter so that it	11
includes facilities for the conduct of industrial, commercial,	12
residential, cultural, educational, and recreational activities,	13
and designed in accordance with planning concepts for the	14
placement of utility, open space, and other supportive facilities.	15

(B) "New community development program" means a program for	16
the development of a new community characterized by well-balanced	17
and diversified land use patterns and which includes land	18
acquisition and land development, the acquisition, construction,	19
operation, and maintenance of community facilities, and the	20
provision of services authorized in this chapter.	21

(C) "New community district" means the area of land described	22
by the developer in the petition as set forth in division (A) of	23
section 349.03 of the Revised Code for development as a new	24
community and any lands added to the district by amendment of the	25
resolution establishing the community authority.	26

(D) "New community authority" means a body corporate and	27
politic in this state, established pursuant to section 349.03 of	28
the Revised Code and governed by a board of trustees as provided	29
in section 349.04 of the Revised Code.	30

(E) "Developer" means any person, organized for carrying out	31
a new community development program who owns or controls, through	32
leases of at least seventy-five years' duration, options, or	33
contracts to purchase, the land within a new community district,	34
or any municipal corporation, county, or port authority that owns	35
the land within a new community district, or has the ability to	36
acquire such land, either by voluntary acquisition or condemnation	37
in order to eliminate slum, blighted, and deteriorated or	38
deteriorating areas and to prevent the recurrence thereof.	39

(F) "Organizational board of commissioners" means, if the new	40
community district is located in only one county, the board of	41
county commissioners of such county; if located in more than one	42
county, a board consisting of the members of the board of county	43
commissioners of each of the counties in which the district is	44
located, provided that action of such board shall require a	45
majority vote of the members of each separate board of county	46
commissioners; or, if more than half of the new community district	47
is located within the boundaries of the most populous municipal	48
corporation of a county, the legislative authority of the	49
municipal corporation.	50

(G) "Land acquisition" means the acquisition of real property	51
and interests in real property as part of a new community	52
development program.	53

(H) "Land development" means the process of clearing and	54
grading land, making, installing, or constructing water	55
distribution systems, sewers, sewage collection systems, steam,	56
gas, and electric lines, roads, streets, curbs, gutters,	57
sidewalks, storm drainage facilities, and other installations or	58
work, whether within or without the new community district, and	59
the construction of community facilities.	60

(I) "Community facilities" means all real property,	61
buildings, structures, or other facilities, including related	62
fixtures, equipment, and furnishings, to be owned, operated,	63
financed, constructed, and maintained under this chapter,	64
including public, community, village, neighborhood, or town	65
buildings, centers and plazas, auditoriums, day-care centers,	66
recreation halls, educational facilities, hospital facilities as	67
defined in section 140.01 of the Revised Code, recreational	68
facilities, natural resource facilities, including parks and other	69
open space land, lakes and streams, cultural facilities, community	70
streets, pathway and bikeway systems, pedestrian underpasses and	71
overpasses, lighting facilities, design amenities, or other	72
community facilities, and buildings needed in connection with	73
water supply or sewage disposal installations or steam, gas, or	74
electric lines or installation. "Community facilities" does not	75
include any project for which the geographic area primarily	76
benefited extends beyond the new community district.	77

(J) "Cost" as applied to a new community development program	78
means all costs related to land acquisition and land development,	79
the acquisition, construction, maintenance, and operation of	80
community facilities and offices of the community authority, and	81
of providing furnishings and equipment therefor, financing charges	82
including interest prior to and during construction and for the	83
duration of the new community development program, planning	84
expenses, engineering expenses, administrative expenses including	85
working capital, and all other expenses necessary and incident to	86
the carrying forward of the new community development program.	87

(K) "Income source" means any and all sources of income to	88
the community authority, including community development charges	89
of which the new community authority is the beneficiary as	90
provided in section 349.07 of the Revised Code, rentals, user fees	91
and other charges received by the new community authority, any	92
gift or grant received, any moneys received from any funds	93
invested by or on behalf of the new community authority, and	94
proceeds from the sale or lease of land and community facilities.	95

(L) "Community development charge" means a dollar amount	96
which shall be determined on the basis of the assessed valuation	97
of real property or interests in real property in a new community	98
district sold, leased, or otherwise conveyed by the developer or	99
the new community authority, the income of the residents of such	100
property subject to such charge under section 349.07 of the	101
Revised Code, if such property is devoted to residential uses or	102
to the profits of any business, a uniform fee on each parcel of	103
such real property originally sold, leased, or otherwise conveyed	104
by the developer or new community authority, or any combination of	105
the foregoing bases.	106

(M) "Proximate city" means any city that, as of the date of	107
filing of the petition under section 349.03 of the Revised Code,	108
is the most populous city of the county in which the proposed new	109
community district is located, is the most populous city of an	110
adjoining county if any portion of such city is within five miles	111
of any part of the boundaries of such district, or exercises	112
extraterritorial subdivision authority under section 711.09 of the	113
Revised Code with respect to any part of such district.	114

(N) "Initial board of trustees" means the board of trustees	115
of a new community authority composed of members appointed under	116
division (A) of section 349.04 of the Revised Code for the sole	117
purpose of arranging for the election of citizen members under	118
division (B) of that section.	119

Sec. 349.03.  (A) Proceedings for the organization of a new	120
community authority shall be initiated by a petition filed by the	121
developer in the office of the clerk of the board of county	122
commissioners of one of the counties in which all or part of the	123
proposed new community district is located. Such petition shall be	124
signed by the developer and may be signed by each township or	125
municipal corporation having territory located in, or within five	126
thousand feet of, the district, including such a township or	127
municipal corporation in an adjoining county, and each proximate	128
city. The legislative authoritiesauthority of each such proximate	129
citysubdivision, or a duly authorized officer thereof, shall act	130
in behalf of such citythe subdivision. Such	131

The petition shall contain all of the following:

132

(1) The name of the proposed new community authority;

133

(2) The address where the principal office of the authority	134
will be located or the manner in which the location will be	135
selected;	136

(3) A map and a full and accurate description of the	137
boundaries of the new community district together with a	138
description of the properties within such boundaries, if any,	139
which will not be included in the new community district. Unless	140
the district is wholly contained within municipalities, the total	141
acreage included in such district shall not be less than one	142
thousand acres, all of which acreage shall be owned by, or under	143
the control through leases of at least seventy-five years	144
duration, options, or contracts to purchase, of the developer, if	145
the developer is a private entity. Such acreage shall be a	146
blighted area as defined in section 1.08 of the Revised Code,	147
shall be contiguous or within five thousand feet of the largest	148
contiguous area of the district, and shall be developable as one	149
functionally interrelated community.	150

(4) A statement setting forth the zoning regulations proposed	151
for zoning the area within the boundaries of the new community	152
district for comprehensive development as a new community, and, if	153
the area has been zoned for such development, a certified copy of	154
the applicable zoning regulations therefor;	155

(5) A current plan indicating the projected total population	156
of the new community district, the proposed development program	157
for the new community district, the land acquisition and land	158
development activities, community facilities, and services which	159
it is proposed the new community authority will undertake under	160
such program, and the proposed method of financing such	161
activities and services and the projected total population of the	162
new community;, including the total principal amount of bonds	163
projected to be issued under this chapter for community	164
facilities. The plan's indication of community facilities shall	165
be itemized according to each kind of facility planned, as	166
enumerated under division (I) of section 349.01 of the Revised	167
Code, the projected cost of each such facility, and the portion	168
of the projected cost of each facility to be financed with bonds	169
issued under this chapter.	170

(6) A statement that all proposed community facilities	171
primarily benefit the new community district only;	172

(7) A suggested number of members, consistent with section	173
349.04 of the Revised Code, for the board of trustees;	174

(7)(8) A preliminary economic feasibility analysis, including	175
the area development pattern and demand, location and proposed new	176
community district size, present and future socio-economic	177
conditions, public services provision, financial plan, and the	178
developer's management capability;	179

(8)(9) A statement that the development will comply with all	180
applicable environmental laws and regulations.	181

Upon the filing of such petition, the organizational board of	182
commissioners shall determine whether such petition complies with	183
the requirements of this section as to form and substance. The	184
board in subsequent proceedings may at any time permit the	185
petition to be amended in form and substance to conform to the	186
facts by correcting any errors in the description of the proposed	187
new community district or in any other particular, subject to	188
division (C) of this section.	189

Upon the determination of the organizational board of	190
commissioners that a sufficient petition has been filed in	191
accordance with this section, the board shall fix the time and	192
place of a hearing on the petition for the establishment of the	193
proposed new community authority. Such hearing shall be held not	194
less than ninety-five nor more than one hundred fifteen days after	195
the petition filing date, except that if the petition has been	196
signed by all proximate citieslocal governments referred to in	197
division (A) of this section, such hearing shall be held not less	198
than thirty nor more than forty-five days after the petition	199
filing date. The clerk of the board of county commissioners with	200
which the petition was filed shall give notice thereof by	201
publication once each week for three consecutive weeks in a	202
newspaper of general circulation in any county of which a portion	203
is within the proposed new community district. Such clerk shall	204
also give written notice of the date, time, and place of the	205
hearing and furnish a certified copy of the petition to the clerk	206
of the legislative authority of each proximate city which has not	207
signed such petition. In the event that the legislative authority	208
of a proximate city which did not sign the petition does not	209
approve by ordinance, resolution, or motion the establishment of	210
the proposed new community authority and does not deliver such	211
ordinance, resolution, or motion to the clerk of the board of	212
county commissioners with which the petition was filed within	213
ninety days following the date of the first publication of the	214
notice of the public hearing, the organizational board of	215
commissioners shall cancel such public hearing and terminate the	216
proceedings for the establishment of the new community authority.	217

Upon the hearing, if the organizational board of	218
commissioners determines by resolution that the proposed new	219
community district will be conducive to the public health, safety,	220
convenience, and welfare, and is intended to result in the	221
development of a new community, the board shall by its resolution,	222
entered of record in its journal and the journal of the board of	223
county commissioners with which the petition was filed, declare	224
the new community authority to be organized and a body politic and	225
corporate with the corporate name designated in the resolution,	226
and define the boundary of the new community district. In	227
addition, the resolution shall provide the method of selecting the	228
board of trustees of the new community authority and fix the	229
surety for their bonds in accordance with section 349.04 of the	230
Revised Code.	231

If the organizational board of commissioners finds that the	232
establishment of the district will not be conducive to the public	233
health, safety, convenience, or welfare, or is not intended to	234
result in the development of a new community, it shall reject the	235
petition thereby terminating the proceedings for the establishment	236
of the new community authority.	237

(B) At any time after the creation of a new community	238
authority, the developer may file an application with the clerk of	239
the board of county commissioners of the county in which the	240
original petition was filed, setting forth a general description	241
of territory it desires to add to or to delete from such district,	242
that such change will be conducive to the public health, safety,	243
convenience, and welfare, and will be consistent with the	244
development of a new community and will not jeopardize the plan of	245
the new community. If the developer is not a municipal corporation	246
or county, all of such an addition to such a district shall be	247
owned by, or under the control through leases of at least	248
seventy-five years duration, options, or contracts to purchase, of	249
the developer. Upon the filing of the application, the	250
organizational board of commissioners shall follow the same	251
procedure as required by this section in relation to the petition	252
for the establishment of the proposed new community.	253

(C) If all or any part of the new community district is	254
annexed to one or more existing municipal corporations, their	255
legislative authorities may appoint persons to replace any	256
appointed citizen member of the board of trustees. The number of	257
such trustees to be replaced by the municipal corporation shall be	258
the number, rounded to the lowest integer, bearing the	259
proportionate relationship to the number of existing appointed	260
citizen members as the acreage of the new community district	261
within such municipal corporation bears to the total acreage of	262
the new community district. If any such municipal corporation	263
chooses to replace an appointed citizen member, it shall do so by	264
ordinance, the term of the trustee being replaced shall terminate	265
thirty days from the date of passage of such ordinance, and the	266
trustee to be replaced shall be determined by lot. Each newly	267
appointed member shall assume the term of his predecessor.After	268
the organizational board of commissioners declares the new	269
community authority to be organized under this section, the kinds	270
of community facilities that may be acquired or constructed by or	271
for the new community authority shall not differ from the kinds	272
itemized in the plan, and the cost of the community facilities and	273
the portion of that cost financed with bonds issued under this	274
chapter shall not exceed the cost or portion indicated in the	275
plan, unless the change or increase is approved by a majority of	276
the board of trustees of the authority as constituted after the	277
election of citizen members under division (B) of section 349.04	278
of the Revised Code. If the authority increases the cost of a	279
community facility or the portion thereof to be financed with	280
bonds issued under this chapter, the principal amount of bonds	281
that may be issued under this chapter for community facilities is	282
increased by not more than that amount. If the authority decreases	283
the cost of a community facility or the portion thereof to be	284
financed with bonds issued under this chapter, the principal	285
amount of bonds that may be issued under this chapter for	286
community facilities is decreased by not less than that amount.	287

Sec. 349.04. (A) The following method ofprovided in this	288
section for selecting a board of trustees is deemed to be a	289
compelling state interest. Within ten days after the new community	290
authority has been established, as provided in section 349.03 of	291
the Revised Code, an initial board of trustees shall be appointed	292
as follows;: the organizational board of commissioners shall	293
appoint by resolution at least three, but not more than six,	294
citizen members of the board of trustees to represent the	295
interests of present and future residents of the new community	296
district and one member to serve as a representative of local	297
government, and the developer shall appoint a number of members	298
equal to the number of citizen members to serve as representatives	299
of the developer. Members shall serve two-year overlapping terms,	300
with two of each of the initial citizen and developer members	301
appointed to serve initial one year terms. The organizational	302
board of commissioners shall by further resolution adopted within	303
one year of such resolution establishing such initial board of	304
trustees adopt a method for selection of successor members thereof	305
which determines the projected total population of the projected	306
new community and meets the following criteria:	307

(A) The appointed citizen members shall be replaced by	308
elected citizen members according to a schedule established by the	309
organizational board of commissioners calculated to achieve one	310
such replacement each time the new community district gains a	311
proportion, having a numerator of one and a denominator of twice	312
the number of citizen members, of its projected total population	313
until such time as all of the appointed citizen members are	314
replaced.	315

(B) Representatives of the developer shall be replaced by	316
elected citizen members according to a schedule established by the	317
organizational board of commissioners calculated to achieve one	318
such replacement each time the new community district gains a	319
proportion, having a numerator of one and a denominator equal to	320
the number of developer members, of its projected total population	321
until such time as all of the developer's representatives are	322
replaced.	323

(C) The representative of local government shall be replaced	324
by an elected citizen member at the time the new community	325
district gains three-quarters of its projected total population.	326

Elected citizen members of the board of trustees shall be	327
elected by a majority of the residents of the new community	328
district voting at elections held on the first Tuesday after the	329
first Monday in December of each year. Eachone resident of each	330
county in which the district is to be located to represent that	331
county; the legislative authority of each proximate city shall	332
appoint one resident of the city to represent the city; if any	333
part of the district is to be located within the limits of a	334
municipal corporation that is not a proximate city, the	335
legislative authority of the municipal corporation shall appoint	336
one resident of the municipal corporation to represent the	337
municipal corporation; if any part of the district is to be	338
located inside or within five thousand feet of the unincorporated	339
territory of a township, or inside or within five thousand feet of	340
the boundaries of a township whose boundaries have not been	341
conformed with the limits of the municipal corporation under	342
section 503.07 of the Revised Code, the board of township trustees	343
of each such township shall appoint one resident of the township	344
to represent the township; and the developer shall appoint one	345
member to represent the developer. All persons appointed under	346
this division are subject to the qualifications and conditions	347
prescribed in division (D) of this section.	348

(B) Within thirty days after the new community authority has	349
been established, the initial board of trustees shall convene a	350
meeting for the sole purpose of arranging for the initial election	351
of citizen members of the board of trustees to serve as	352
representatives of the present and future residents of the	353
district. The arrangements shall include the calling for	354
nominations of persons whose names are to appear on the ballot,	355
the printing of ballots, the time and place of the election, and	356
the publication or distribution of information regarding such	357
matters to all persons who are qualified to be a candidate or to	358
vote at the election, and other matters as may be necessary to	359
conduct the election. The requirement to publish or distribute	360
such information may be satisfied by the publication of such	361
information at least once per week for three consecutive weeks in	362
a newspaper of general circulation, as defined in section 5721.01	363
of the Revised Code, in the county in which the majority of the	364
territory of the new community district is located . If a	365
newspaper of general circulation is not published in that county,	366
publication shall be in a newspaper of general circulation in an	367
adjoining county. The developer shall pay all expenses of	368
conducting the election. The initial board of trustees may elect	369
from among the appointed members a chairperson and such other	370
officers, take such actions, and hold successive meetings, as are	371
necessary to arrange for the election of citizen members, but no	372
other business of the new community authority shall be conducted.	373
The terms of officers so appointed shall continue only until the	374
elected citizen members enter upon their official duties on the	375
board.	376

The number of citizen members of the board of trustees to be	377
elected shall at all times be equal to at least one more than the	378
total number of members appointed to the board under division (A)	379
of this section so that the number of citizen members constitutes	380
the majority of the entire number of board members. The number of	381
members on the board of trustees may be reduced as citizen members	382
are elected to replace appointed members under division (C) of	383
this section, as may be provided in the resolution creating the	384
authority.	385

The initial election of citizen members shall be held at a	386
location open to the public and within the boundaries of the	387
district or, if no such location exists, at a location open to the	388
public within a township or municipal corporation within which the	389
district is located. The election shall be conducted within ninety	390
days after the first meeting of the initial board of trustees. To	391
be qualified to be a citizen member elected at the initial	392
election under this division, a candidate must satisfy the	393
qualifications of citizen members prescribed by division (D) of	394
this section. To be qualified to vote at the election, a person	395
must satisfy the qualifications of citizen members prescribed by	396
that division. To cast a vote, a person must be present at the	397
location of the election. The seats on the board shall be filled	398
by the number of candidates, equal to the number of such seats,	399
receiving the greatest number of votes cast at the election.	400

Any business conducted by the initial board of trustees other	401
than the appointment of officers or the arrangement for the	402
election of citizen members, as provided by this division, is void	403
and without effect.	404

Appointed members shall serve a term of two years, and a	405
member may be reappointed, except that the terms of appointed	406
members terminate as provided in division (C) of this section.	407
The terms of initially elected citizen members shall be two years.	408
The terms of the appointed members and of the initially elected	409
citizen members shall be measured from the first day of January	410
that follows the date of the election of the initially elected	411
citizen members.	412

The organizational board of commissioners may remove an	413
appointed member of the board of trustees for misfeasance,	414
nonfeasance, or malfeasance in office. The developer may remove	415
the developer's appointed member representative on the board	416
without a showing of cause.	417

(C) The appointed members representing the developer and the	418
local governments shall be replaced by elected citizen members at	419
the time the population of the new community district equals	420
sixty per cent of the district's projected population. The seats	421
of the members being replaced shall be filled by the number of	422
citizen member candidates, equal to the number of such seats,	423
receiving the greatest number of votes. The election shall be held	424
on the first Tuesday after the first Monday in December of each	425
year beginning with the year in which the population of the	426
district equals sixty per cent of the district's projected	427
population.	428

(D) Each appointed member shall be a qualified elector as	429
defined in section 3501.01 of the Revised Code. Each citizen	430
member except an appointed citizen member shall be a qualified	431
elector who resides and owns the fee of land situated in or	432
within five thousand feet of the new community district. Citizen	433
members shall not be employees of or have financial interest in	434
the developer. IfAn appointed member or elected citizen member of	435
the board, except the member appointed by the developer under this	436
section, may not be an employee of the developer, may not have a	437
financial interest in the developer, and may not have sold,	438
transferred, or leased to the developer real property located	439
within the district. If, while serving as a member of the board, a	440
person, other than the member appointed by the developer, sells,	441
transfers, or leases to the developer real property located in the	442
district or added to the district, the person's term as such a	443
member shall terminate immediately upon the sale or transfer or	444
commencement of the lease, and the vacancy so created shall be	445
filled as provided in division (E) of this section. Before	446
assuming duties on the board, each member of the board, except the	447
developer's representative, shall execute an affidavit declaring	448
those facts. A new affidavit shall be executed each time a member	449
is appointed or elected. The affidavits shall be kept on file at	450
the board's offices and shall be made available during normal	451
business hours for inspection by any resident of the district.	452

(E) The terms of members of the board of trustees elected	453
under division (C) of this section shall be two years.	454

If a vacancy occurs in the office of a member other than a	455
member appointed by the developer, the organizational board of	456
commissionerstrustees may appoint a successor member for the	457
remainder of the unexpired term. Any appointed member of the board	458
of trustees may at any time be removed by the organizational board	459
of commissioners for misfeasance, nonfeasance, or malfeasance in	460
office. Members appointed by the developer may also at any time be	461
removed by the developer without a showing of cause.	462

(F) Each member of the board of trustees, including a member	463
of the initial board of trustees, before entering upon his	464
official duties, shall take and subscribe to an oath before an	465
officer authorized to administer oaths in Ohio that hethe member	466
will honestly and faithfully perform the duties of histhe	467
member's office. Such oath shall be filed in the office of the	468
clerk of the board of county commissioners in which the petition	469
was filed. Upon taking the oathOnce the initially elected citizen	470
members have been elected under division (C) of this section, and	471
after each election thereafter, the board of trustees shall elect	472
one of its number as chairmanchairperson and another as	473
vice-chairmanvice-chairperson, and shall appoint suitable	474
persons as secretary and treasurer who need not be members of the	475
board. The treasurer shall be the fiscal officer of the authority.	476
The board shall adopt by-laws governing the administration of the	477
affairs of the new community authority. Each member of the board	478
shall post a bond for the faithful performance of hisofficial	479
duties and give surety therefor in such amount, but not less than	480
ten thousand dollars, as the resolution creating such board shall	481
prescribe.	482

(G) All of the powers of the new community authority shall be	483
exercised by its board of trustees, but without relief of such	484
responsibility, such powers may be delegated to committees of the	485
board or its officers and employees in accordance with its	486
by-laws. A majority of the board, including at least one more	487
elected citizen member than noncitizen members, shall constitute a	488
quorum, and a concurrence of a majority of a quorum in any matter	489
within the board's duties is sufficient for its determination,	490
provided a quorum is present when such concurrence is had and a	491
majority of those members constituting such quorum are trustees	492
not appointed by the developer. All trustees shall be empowered to	493
vote on all matters within the authority of the board of trustees,	494
and no vote by a member appointed by the developer shall be	495
construed to give rise to civil or criminal liability for	496
conflict of interest on the part of public officials.	497

Sec. 349.05.  A new community authority established pursuant	498
to this chapter is a body corporate and politic, and shall have	499
the powers specifically granted by this chapter. This chapter does	500
not limit or restrict the power and authority of cities, counties,	501
and townships. The new community authority shall have no power or	502
authority over zoning or subdivision regulation, provision of fire	503
or police protection, or, unless such services cannot be obtained	504
from other existing political subdivisions, water supply or sewage	505
treatment and disposal.	506

The exercise of police power granted to the authority by this	507
chapter does not invalidate the exercise of police power by any	508
municipal corporation and the exercise of police power by a	509
municipal corporation shall prevail in the case of a conflict with	510
powers exercised by the authority. The grant of power to the	511
authority under divisions (N) and (O) of section 349.06 of the	512
Revised Code shall not remove municipal, regional, or county	513
planning commissions and agencies from jurisdiction within the	514
district, nor shall such powers invalidate municipal ordinances	515
and resolutions or other regulations of such planning commission	516
and agencies.	517

A new community authority is a public body for the purposes	518
of section 121.22 of the Revised Code.	519

Sec. 349.06.  In furtherance of the purposes of this chapter,	520
a new community authority may do any of the following, subject to	521
limitation by other sections of this chapter:	522

(A) Acquire by purchase, lease, gift, or otherwise, on such	523
terms and in such manner as it considers proper, real and personal	524
property or any estate, interest, or right therein, within or	525
without the new community district;	526

(B) Improve, maintain, sell, lease or otherwise dispose of	527
real and personal property and community facilities, on such terms	528
and in such manner as it considers proper;	529

(C) Landscape and otherwise aesthetically improve areas	530
within the new community district, including but not limited to	531
maintenance, landscaping and other community improvement services;	532

(D) Provide, engage in, or otherwise sponsor recreational,	533
educational, health, social, vocational, cultural, beautification,	534
and amusement activities and related services primarily for	535
residents of the district;	536

(E) Fix, alter, impose, collect and receive service and user	537
fees, rentals, and other charges to cover all costs in carrying	538
out the new community development program;	539

(F) Adopt, modify, and enforce reasonable rules and	540
regulations governing the use of community facilities;	541

(G) EmploySubject to section 349.17 of the Revised Code,	542
employ such managers, administrative officers, agents, engineers,	543
architects, attorneys, contractors, sub-contractors, and employees	544
as may be appropriate in the exercise of the rights, powers and	545
duties conferred upon it, prescribe the duties and compensation	546
for such persons, require bonds to be given by any such persons	547
and by officers of the authority for the faithful performance of	548
their duties, and fix the amount and surety therefor;, and pay the	549
same;	550

(H) Sue and be sued in its corporate name;

551

(I) MakeSubject to sections 349.16 and 349.17 of the Revised	552
Code, make and enter into all contracts and agreements and execute	553
all instruments relating to a new community development program,	554
including contracts with the developer and other persons or	555
entities related thereto for land acquisition and land	556
development; acquisition, construction, and maintenance of	557
community facilities; the provision of community services and	558
management and coordinating services; with federal, state,	559
interstate, regional, and local agencies and political	560
subdivisions or combinations thereof in connection with the	561
financing of such program, and with any municipal corporation or	562
other public body, or combination thereof, providing for the	563
acquisition, construction, improvement, extension, maintenance or	564
operation of joint lands or facilities or for the provision of any	565
services or activities relating to and in furtherance of a new	566
community development program, including the creation of or	567
participation in a regional transit authority created pursuant to	568
the Revised Code;	569

(J) Apply for and accept grants, loans or commitments of	570
guarantee or insurance including any guarantees of community	571
authority bonds and notes, from the United States, the state, or	572
other public body or other sources, and provide any consideration	573
which may be required in order to obtain such grants, loans or	574
contracts of guarantee or insurance. Such loans or contracts of	575
guarantee or insurance may be evidenced by the issuance of bonds	576
as provided in section 349.08 of the Revised Code;	577

(K) Procure insurance against loss to it by reason of damage	578
to its properties resulting from fire, theft, accident, or other	579
casualties, or by reason of its liability for any damages to	580
persons or property occurring in the construction or operation of	581
facilities or areas under its jurisdiction or the conduct of its	582
activities;	583

(L) Maintain such funds or reserves as it considers necessary	584
for the efficient performance of its duties;	585

(M) Enter agreements with the boards of education of any	586
school districts in which all or part of the new community	587
district lies, whereby the community authority may acquire	588
property for, may construct and equip, and may sell, lease,	589
dedicate, with or without consideration, or otherwise transfer	590
lands, schools, classrooms, or other facilities, whether or not	591
within the new community district, from the authority to the	592
school district for school and related purposes;	593

(N) Prepare plans for acquisition and development of lands	594
and facilities, and enter into agreements with city, county, or	595
regional planning commissions to perform or obtain all or any part	596
of planning services for the new community district;	597

(O) Engage in planning for the new community district, which	598
may be predominantly residential and open space, and prepare or	599
approve a development plan or plans therefor, and engage in land	600
acquisitions and land development in accordance with such plan or	601
plans;	602

(P) Issue new community authority bonds and notes and	603
community authority refunding bonds, payable solely from the	604
income source provided in section 349.08 of the Revised Code,	605
unless the bonds are refunded by refunding bonds, for the purpose	606
of paying any part of the cost as applied to the new community	607
development program or parts thereof;	608

(Q) Enforce any covenants running with the land of which the	609
new community authority is the beneficiary, including but not	610
limited to the collection by any and all appropriate means of any	611
community improvement charge deemed to be a covenant running with	612
the land and enforceable by the new community authority pursuant	613
to section 349.07 of the Revised Code; and to waive, reduce, or	614
terminate any community development charge of which it is the	615
beneficiary to the extent not needed for any of the purposes	616
provided in section 349.07 of the Revised Code, the procedure for	617
which shall be provided in such covenants, and if new community	618
authority bonds have been issued pledging any such community	619
improvement charge, to the extent not prohibited in the resolution	620
authorizing the issuance of such new community authority bonds or	621
the trust agreement or indenture of mortgage securing the bonds;	622

(R) Appropriate for its use, under sections 163.01 to 163.22	623
of the Revised Code, any land, easement, rights, rights-of-way,	624
franchises, or other property in the new community district	625
required by the authority for community facilities. The authority	626
may not so appropriate any land, easement, rights, rights-of-way,	627
franchises, or other property that is not included in the new	628
community district.	629

Sec. 349.16.  (A) Anything to be purchased, leased, leased	630
with an option or agreement to purchase, or constructed, including	631
any product, structure, construction, reconstruction, improvement,	632
maintenance, repair, or service by or on behalf of a new community	633
authority at a cost of more than ten thousand dollars shall be	634
obtained through competitive bidding, except as follows:	635

(1) The board of trustees of the authority, by vote of	636
two-thirds of its membership, determines that a real and present	637
emergency exists because of actual physical damage to community	638
facilities and that the estimated cost of repair or reconstruction	639
is less than twenty thousand dollars.	640

(2) The service to be purchased is the service of an	641
accountant, architect, appraiser, attorney at law, consultant,	642
professional engineer, or surveyor.	643

(3) The purchase is of supplies or a replacement or	644
supplemental part for tangible personal property of the authority	645
and the only source of supply for the supplies or part is a single	646
supplier.	647

(4) The purchase is of services related to information	648
technology, such as programming services, that are proprietary or	649
limited to a single source.	650

(B) The board of trustees of a new community authority shall	651
let bids required to be bid competitively in conformance with the	652
procedures prescribed by sections 307.87 to 307.91 of the Revised	653
Code, except as follows:	654

(1) References in those sections to the board of county	655
commissioners or the contracting authority shall be construed to	656
mean the board of trustees of the new community authority.	657

(2) "Ten thousand dollars" shall be substituted for any	658
reference in those sections to twenty-five thousand dollars.	659

(3) References in those sections to a contracting authority's	660
internet site or address do not apply unless the new community	661
authority elects for those references to apply.	662

Sec. 349.17.  (A) A new community authority shall not	663
contract with the developer organized for the purpose of carrying	664
out the authority's new community development program, or a member	665
of an affiliated group including that developer, for the	666
performance of any land development or for the construction or	667
improvement of community facilities unless the developer or	668
affiliated group member is the successful bidder for the contract	669
let competitively under section 349.16 of the Revised Code.	670

(B) Any payments by a new community authority to a developer,	671
or to a member of an affiliated group including the developer, for	672
administrative or professional services rendered to or for the	673
authority by the developer or affiliated group member shall be	674
paid only on the basis of an hourly rate approved by the	675
authority as being reasonable within industry standards for the	676
services performed. The developer or affiliated group member shall	677
submit to the authority for its approval a budget, for each	678
calendar year, of the administrative or professional services to	679
be provided and shall provide to the authority, at least once per	680
year at the time specified by the authority, the hourly records	681
upon which such compensation is to be determined.	682

The total of all payments during any calendar year from a new	683
community authority to a developer and to members of any	684
affiliated group including the developer for administrative or	685
professional services shall not exceed three per cent of the	686
first five million dollars in cost of the new community	687
development program, two per cent of the next five million in	688
cost of the program, and one per cent of such cost in excess of	689
ten million dollars in cost. The limit on such payments does not	690
prohibit the developer or affiliated group member from incurring	691
costs or investing money in excess of the limit to provide	692
administrative or professional services to the new community	693
authority, but the authority shall not pay any amount in excess of	694
the limit.	695

(C) As used in this section, "affiliated group" means two or	696
more persons related in such a way that one person owns or	697
controls the business operations of another member of the group.	698
In the case of corporations with stock, one corporation owns or	699
controls another if it owns more than fifty per cent of the other	700
corporation's common stock with voting rights. The attribution	701
rules of section 318 of the Internal Revenue Code, 26 U.S.C. 318,	702
apply for purposes of determining whether the ownership	703
requirements are met.	704

Section 2.  That existing sections 349.01, 349.03, 349.04,	705
349.05, and 349.06 and section 349.16 of the Revised Code are	706
hereby repealed.	707