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S. B. No. 165As Introduced
As Introduced
125th General Assembly | Regular Session | 2003-2004 |
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SENATORS Schuring, Schuler, Fedor, Dann
A BILLTo amend sections 165.02, 166.06, 166.07, 166.21, 3735.68, and 5709.831 and to enact sections 9.661 and 5709.634 of the Revised Code to create statutory liens to secure the performance of obligations by recipients of development loans and local property tax incentives. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 165.02, 166.06, 166.07, 166.21, 3735.68, and 5709.831 be amended and sections 9.661 and 5709.634 of the Revised Code be enacted to read as follows:
Sec. 9.661. (A) As used in this section:
(1) "Borrower" means any person obligated to repay a development loan pursuant to a development loan agreement or obligated to repay a loan guaranteed pursuant to a loan guarantee agreement.
(2) "Development inducement agreement" means an agreement making a grant or inducement under the authority of Section 13 of Article VIII, Ohio Constitution, including an inducement made under section 166.02 of the Revised Code or a grant made under section 184.02 of the Revised Code.
(3) "Development loan" means any loan made under the authority of Section 13 of Article VIII, Ohio Constitution, including loans made under the authority of Chapter 122., 165., 166., 184., or 1724. of the Revised Code.
(4) "Development loan agreement" means an agreement making a development loan.
(5) "Grantee" means any grantee or other recipient of anything of value under a development inducement agreement.
(6) "Guaranteed loan" means a loan guaranteed by this state, a state agency, or a political subdivision under the authority of Section 13 of Article VIII, Ohio Constitution, including any loan guarantee authorized under Chapter 166. of the Revised Code.
(7) "Loan guarantee agreement" means an agreement providing for the guarantee of a guaranteed loan.
(8) "Secured party" means the state, a state agency, or a political subdivision that enters into a development loan agreement, loan guarantee agreement, or development inducement agreement.
(B)(1) The obligations of a borrower under each development loan agreement or loan guarantee agreement is secured by a lien of the secured party on the borrower's real property and personal property the acquisition of which was funded in whole or in part by the proceeds of the loan and on any of the borrower's other real or personal property in this state. The lien is for the amount financed under the development loan agreement or for the amount guaranteed under the loan guarantee agreement. The lien attaches when any portion of the loan proceeds is transferred to the borrower, and the lien is perfected when so attached. The lien has priority over all other liens regardless of when acquired, including the interests of transferees of the property that are acquired after the lien attaches, but excluding claims of the United States government having higher priority under federal law. The lien is in addition to any other security required by the development loan agreement or loan guarantee agreement.
(2) The obligations of a grantee under each development inducement agreement is secured by a lien of the secured party on the grantee's real property and personal property the acquisition of which was funded in whole or in part by the grant or other thing of value and on any other of the grantee's real or personal property in this state. The lien is for the amount of the grant or other thing of value granted to the grantee under the agreement. The lien attaches when any portion of the grant or other thing of value is transferred to the grantee, and the lien is perfected when so attached. The lien has priority over all other liens regardless of when acquired, including the interests of transferees of the property that are acquired after the lien attaches, but excluding claims of the United States government having higher priority under federal law. The lien is in addition to any other security required by the development inducement agreement.
(3) A secured party shall enforce such liens against real property by civil action in the court of common pleas of the county where the real property is located in the same manner as mortgage liens are enforced. A secured party shall enforce such liens against personal property in the manner provided for the enforcement of security interests under Chapter 1309. of the Revised Code, except to the extent the provisions of that chapter regarding priority, attachment, and perfection are inconsistent with this section.
(C) Each development loan agreement and loan guarantee agreement shall prohibit the borrower from selling or otherwise transferring to another person real property or personal property, the acquisition of which by the borrower was funded in whole or in part by the development loan, before the borrower has fulfilled the borrower's obligations under the agreement. Each development inducement agreement shall prohibit the grantee from selling or otherwise transferring to another person real property or personal property, the acquisition of which by the borrower was funded in whole or in part by the grant or other thing of value granted under the development inducement agreement, before the grantee has fulfilled the grantee's obligations under the agreement.
Sec. 165.02. Section 13 of Article VIII, Ohio
Constitution, is in part implemented by this chapter in
furtherance of the public purposes of the state to create or
preserve jobs and employment opportunities and to improve the
economic welfare of the people of the state. An issuer acting
through its issuing authority may in accordance with Section 13
of Article VIII, Ohio Constitution: (A) Acquire by gift or purchase and hold and mortgage real
estate and interests therein and personal property to be used as
a project or a part thereof; (B) Purchase, construct, reconstruct, enlarge, improve,
furnish, and equip and lease, sell, exchange, and otherwise
dispose of projects or parts thereof for those of the purposes
set forth in Section 13 of Article VIII, Ohio Constitution, that
are specified in the first sentence of this section, including,
without limitation thereto, the sale of projects by conditional
or installment sale, under which title may pass prior to or after
completion of construction of a project or payment or provision
for payment of all principal of, premium, if any, and interest on
the bonds, or at any other time provided in the agreement
pertaining to such sale, and including sale under an option to
purchase upon agreed terms which may include a price which may be
a nominal amount or less than true value at the time of purchase; (C) Issue its bonds to provide funds, by loans or
otherwise, for acquiring, constructing, reconstructing,
enlarging, improving, furnishing, or equipping one or more
projects or parts thereof; (D) Make loans for the acquisition, construction,
reconstruction, enlargement, improvement, furnishing, or
equipping of projects or parts thereof upon such terms as the
issuing authority may determine or authorize, including but secured
or unsecured loans by the lien imposed under section 9.661 of the Revised Code, and, in connection therewith, enter into loan
agreements and other agreements, accept notes or other forms of
obligation to evidence such indebtedness and security interests
to secure such indebtedness, and take such action as may be
considered by it appropriate to protect such security and
safeguard against losses, including, without limitation thereto,
foreclosure and the bidding upon and purchase of property upon
foreclosure or other sale; (E) Enter into contracts and execute all instruments
necessary or appropriate to carry out the purposes of Chapter
165. of the Revised Code; (F) Fix, alter, and collect rentals and other charges for
the use and occupancy of a project and lease the project to
others, including a contract with, or the granting of an option
to the lessee to purchase the project for such price as the
issuing authority in its sole discretion determines to be
appropriate, after retirement or redemption, or provision
therefor, of all the bonds of the issuer issued to provide funds
for the project; (G) Retain, contract with, or employ and fix the
compensation of financial consultants, appraisers, accounting
experts, architects, engineers, attorneys at law, and other
employees, agents, and independent contractors as are necessary
in the judgment of the issuing authority to carry out the
provisions of Chapter 165. of the Revised Code; (H) Pledge, assign, hypothecate, or otherwise encumber as
security for the bonds, the rentals, revenues, and other income,
charges, and moneys realized from the use, lease, sale, or other
disposition of one or more projects or parts thereof as may be
designated in the bond proceedings and enter into trust
agreements or indentures of mortgage for the benefit of
bondholders; (I) Enter into appropriate arrangements with any federal
or state department or agency, county, township, municipal
corporation, or other political subdivision, taxing district, or
public body or agency for the planning and installation of
streets, roads, alleys, water supply and distribution facilities,
storm and sanitary sewage collection and disposal facilities, and
other necessary appurtenances to a project; (J) Purchase fire and extended coverage and liability
insurance for a project, insurance protecting the issuer and its
officers and employees against liability for damage to property
or injury to or death of persons arising from the project, and
any other insurance the issuer may agree to provide under the
bond proceedings; (K) Sell, lease, release, or otherwise dispose of real and
personal property or interests therein, or a combination thereof,
acquired by the issuer under authority of Chapter 165. of the
Revised Code and no longer needed for the purposes of such
chapter or of the issuer, and grant such easements and other
rights in, over, under, or across a project as will not interfere
with its use of such property. Such sale, lease, release,
disposition, or grant may be made without competitive bidding and
in such manner and for such consideration as the issuing
authority in its judgment deems appropriate. (L) Do all other acts necessary or appropriate to carry
out those of the purposes of Section 13 of Article VIII, Ohio
Constitution, that are specified in the first sentence of this
section, and the purposes of this chapter. Any instrument by which real property is acquired pursuant to this section
shall identify the agency of the state that has the use and benefit of the
real property as specified in section 5301.012 of the Revised Code.
Sec. 166.06. (A) Subject to any limitations as to
aggregate
amounts thereof that may from time to time be
prescribed by the
general assembly and to other applicable
provisions of this
chapter, the director of development may, on
behalf of the state,
enter into contracts to guarantee the
repayment or payment of not
more than ninety per cent of the
unpaid principal amount of loans
made, including bonds, notes, or
other certificates issued or
given to provide funds, to pay
allowable costs of eligible
projects. Such guarantees shall be
secured solely by and payable
solely from the loan guarantee fund
created by this section and
unencumbered and available moneys
in the facilities
establishment fund in the manner and
to the extent provided in
such guarantee contracts consistent
with this section. Such
guarantees shall not constitute general
obligations of the state
or of any political subdivision, and
moneys raised by taxation
shall not be obligated or pledged for
the payment of such
guarantees. (B) Before guaranteeing any such repayments or payments
the
director shall determine that: (1) The project is an eligible project and is economically
sound; (2) The principal amount to be guaranteed does not exceed
ninety per cent of the allowable costs of the eligible project as
determined by
the director. To assist the director in making
this determination, the director may, in the director's
discretion, engage an independent engineer, architect, appraiser,
or other professional pursuant to a contract to be paid solely
from the facilities
establishment fund,
subject to
controlling board approval. (3) The principal amount to be guaranteed has a
satisfactory
maturity date or dates, which in no case shall be
later than
twenty years from the effective date of the
guarantee; (4) The rate of interest on the loan to be guaranteed and
on
any other loan made by the same parties or related persons for
the
eligible project is not excessive; (5) The principal obligor, or primary guarantor, is
responsible and is reasonably expected to be able to meet the
payments under the loan, bonds, notes, or other certificates; (6) The loan or documents pertaining to the bonds, notes,
or
other certificates to be guaranteed contains
provisions
for payment by the
principal
obligor, and is in such form and contains such terms and
provisions for the protection of the lenders as are generally
consistent with commercial practice, including, where applicable,
provisions with respect to property insurance, repairs,
alterations, payment of taxes and assessments, delinquency
charges, default remedies, acceleration of maturity, prior,
additional and secondary liens, and other matters as the director
may approve. (C) The contract of guarantee may make provision for the
conditions of, time for and manner of fulfillment of the
guarantee
commitment, subrogation of the state to the rights of
the parties
guaranteed and exercise of such parties' rights by
the state,
giving the state the options of making payment of the
principal
amount guaranteed in one or more installments and, if
deferred, to
pay interest thereon from the loan guarantee fund
and the facilities establishment fund, any other
terms or conditions
customary to such guarantees and as the
director may approve, and
may shall contain provisions for securing the
guarantee in the manner
consistent with this section, including the lien imposed by section 9.661 of the Revised Code, and may contain covenants on
behalf of the state
for the maintenance of the loan guarantee fund
created by this
section and of receipts to it permitted by this
chapter,
including covenants on behalf of the state to issue
obligations
under section 166.08 of the Revised Code to provide
moneys to the
loan guarantee fund to fulfill such guarantees and
covenants
authorized by division (R)(1) of section 166.08 of the
Revised
Code, and covenants restricting the aggregate amount of
guarantees that may be contracted under this section and
obligations that may be issued under section 166.08 of the
Revised
Code, and terms pertinent to either, to better secure the
parties
guaranteed. (D) The "loan guarantee fund" of the economic development
program is hereby created as a special revenue fund and a trust
fund which shall be in the custody of the treasurer of state but
shall be separate and apart from and not a part of the state
treasury to consist of all grants, gifts, and contributions of
moneys or rights to moneys lawfully designated for or deposited
in
such fund, all moneys and rights to moneys lawfully
appropriated
and transferred to such fund, including moneys
received from the
issuance of obligations under section 166.08 of
the Revised Code,
and moneys deposited to such fund pursuant to
division (F) of this
section; provided that the loan guarantee
fund shall not be
comprised, in any part, of moneys raised by
taxation. (E) The director may fix service charges for making a
guarantee. Such charges shall be payable at such times and place
and in such amounts and manner as may be prescribed by the
director. (F) The treasurer of state shall serve as agent for the
director in the making of deposits and withdrawals and
maintenance
of records pertaining to the loan guarantee fund.
Prior to the
director's entry into a contract providing for the making of a
guarantee payable from the loan guarantee fund, the treasurer of
state shall cause to be transferred from the facilities
establishment fund to the loan guarantee fund an amount sufficient
to make the aggregate balance therein, taking into account the
proposed loan guarantee, equal to the loan guarantee reserve
requirement. Thereafter, the treasurer of state shall cause the
balance in the loan guarantee fund to be at least equal to the
loan guarantee reserve requirement. Funds from the loan guarantee
fund shall be disbursed under a
guarantee made pursuant to this
section to satisfy a guaranteed
repayment or payment which is in
default. The treasurer of state
shall first withdraw and transfer
moneys then on deposit in the
loan guarantee fund. Whenever these
moneys are inadequate to
meet the requirements of a guarantee, the
treasurer of state
shall, without need of appropriation or further
action by the
director, provide for a withdrawal and transfer to
the loan
guarantee fund and then to the guaranteed party of moneys
in such
amount as is necessary to meet the guarantee
from unencumbered and available moneys in the facilities
establishment fund. Such disbursements shall be made in the
manner and at the
times provided in such guarantees.
Within ninety
days following a disbursement of moneys from the loan guarantee
fund, the treasurer of state, without need of appropriation or
further action by the director, shall provide for a withdrawal and
transfer to the loan guarantee fund from unencumbered and
available moneys in the facilities establishment fund, including
moneys from the repayment of loans made from that fund, of an
amount sufficient to cause the balance in the loan guarantee fund
to be at least equal to the loan guarantee reserve requirement. (G) Any guaranteed parties under this section, except to
the
extent that their rights are restricted by the guarantee
documents, may by any suitable form of legal proceedings, protect
and enforce any rights under the laws of this state or granted by
such guarantee or guarantee documents. Such rights include the
right to compel the performance of all duties of the director and
the treasurer of state required by this section or the guarantee
or guarantee documents; and in the event of default with respect
to the payment of any guarantees, to apply to a court having
jurisdiction of the cause to appoint a receiver to receive and
administer the moneys pledged to such guarantee with full power
to
pay, and to provide for payment of, such guarantee, and with
such
powers, subject to the direction of the court, as are
accorded
receivers in general equity cases, excluding any power
to pledge
or apply additional revenues or receipts or other
income or moneys
of the state or governmental agencies of the
state to the payment
of such guarantee. Each duty of the
director and the treasurer of
state and their officers and
employees, and of each governmental
agency and its officers,
members, or employees, required or
undertaken pursuant to this
section or a guarantee made under
authority of this section, is
hereby established as a duty of the
director and the treasurer of
state, and of each such officer,
member, or employee having
authority to perform such duty,
specifically enjoined by the law
resulting from
an office,
trust, or station within the
meaning
of section 2731.01 of the
Revised Code. The persons who are at
the time the director and
treasurer of state, or their officers
or employees, are not liable
in their personal capacities on any
guarantees or contracts to
make guarantees by the director. (H) The determinations of the director under divisions (B)
and (C) of this section shall be conclusive for purposes of the
validity of a guarantee evidenced by a contract signed by the
director, and such guarantee shall be incontestable as to moneys
advanced under loans to which such guarantees are by their terms
applicable.
Sec. 166.07. (A) The director of development, with the
approval of the controlling board and subject to the other
applicable provisions of this chapter, may lend moneys in the
facilities establishment fund to persons for the purpose of
paying
allowable costs of an eligible project if the director
determines
that: (1) The project is an eligible project and is economically
sound; (2) The borrower is unable to finance the necessary
allowable costs through ordinary financial channels upon
comparable terms; (3) The amount to be lent from the facilities
establishment
fund will not exceed seventy-five per cent of the
total allowable
costs of the eligible project, except that if
any part of the
amount to
be lent from the facilities establishment fund is
derived
from the
issuance and sale of project financing
obligations the amount to
be
lent will not exceed ninety per cent
of the total allowable
costs of the
eligible project; (4) The eligible project could not be achieved in the
local
area in which it is to be located if the portion of the
project to
be financed by the loan instead were to be financed
by a loan
guaranteed under section 166.06 of the Revised Code; (5)
The
repayment of the loan from the facilities
establishment fund
will be adequately secured by a
mortgage, the lien, imposed by section 9.661 of the Revised Code and may be further secured by any assignment, or pledge, at such level of priority
as the director may require; (6) The borrower will hold at least a ten per cent equity
interest in the
eligible project at the time the loan is made. (B) The determinations of the director under division (A)
of
this section shall be conclusive for purposes of the validity
of a
loan commitment evidenced by a loan agreement signed by the
director. (C) Fees, charges, rates of interest, times of payment of
interest and principal, and other terms, conditions, and
provisions of and security for loans made from the facilities
establishment fund pursuant to this section shall be such as the
director determines to be appropriate and in furtherance of the
purpose for which the loans are made. The moneys used in making
such loans shall be disbursed from the facilities establishment
fund upon order of the director. The director shall give special
consideration in setting the required job creation ratios and
interest rates
for loans that are for voluntary actions. (D) The director may take actions necessary or appropriate
to collect or
otherwise deal with any
loan made under this
section, and shall take any action required by section 9.661 of the Revised Code. (E) The director may fix service charges for the making of
a
loan. Such charges shall be payable at such times and place
and
in such amounts and manner as may be prescribed by the
director.
Sec. 166.21. (A) The director of development, with the approval of the controlling board and subject to other applicable provisions of this chapter, may lend moneys in the research and development loan fund to persons for the purpose of paying allowable costs of eligible research and development projects, if the director determines that all of the following conditions are met:
(1) The project is an eligible research and development project and is economically sound;
(2) The amount to be lent from the research and development loan fund will not exceed seventy-five per cent of the total costs of the eligible research and development project;
(3) The repayment of the loan from the research and development loan fund will be secured by a mortgage, the lien, imposed by section 9.661 of the Revised Code and may be further secured by any assignment, pledge, or other interest in property or other assets of the borrower at such level of priority and value as the director considers necessary, provided that, in making such a determination, the director shall take into account the value of any rights granted by the borrower to the director to control the use of any assets of the borrower under the circumstances described in the loan documents.
(B) The determinations of the director under division (A) of this section shall be conclusive for purposes of the validity of a loan commitment evidenced by a loan agreement signed by the director.
(C) Fees, charges, rates of interest, times of payment of interest and principal, and other terms and conditions of, and security for, loans made from the research and development loan fund shall be such as the director determines to be appropriate and in furtherance of the purpose for which the loans are made. The moneys used in making loans shall be disbursed from the fund upon order of the director. Unless otherwise specified in any indenture or other instrument securing obligations under division (D) of section 166.08 of the Revised Code, any payments of principal and interest from loans made from the fund shall be paid to the fund and used for the purpose of making loans under this section.
(D)(1) As used in this division, "qualified research and development loan payments" means payments of principal and interest on a loan made from the research and development loan fund.
(2) Each year, the director may, upon request, issue a certificate to a borrower of moneys from the research and development loan fund indicating the amount of the qualified research and development loan payments made by or on behalf of the borrower during the calendar year immediately preceding the tax year, as defined in section 5733.04 of the Revised Code, or taxable year, as defined in section 5747.01 of the Revised Code, for which the certificate is issued. In addition to indicating the amount of qualified research and development loan payments, the certificate shall include a determination of the director that as of the thirty-first day of December of the calendar year for which the certificate is issued, the borrower is not in default under the loan agreement, lease, or other instrument governing repayment of the loan, including compliance with the job creation and retention commitments that are part of the qualified research and development project. The director shall not issue a certificate in an amount that exceeds one hundred fifty thousand dollars.
(E) The director may take actions necessary or appropriate to collect or otherwise deal with any loan made under this section, and shall take any action required by section 9.661 of the Revised Code.
(F) The director may fix service charges for the making of a loan. The charges shall be payable at such times and place and in such amounts and manner as may be prescribed by the director.
(G)(1) There shall be credited to the research and development loan fund moneys received by this state from the repayment of loans, including interest thereon, made from the fund, and moneys received from the sale, lease, or other disposition of property acquired or constructed with moneys in the fund derived from the proceeds of the sale of obligations under section 166.08 of the Revised Code. Moneys in the fund shall be applied as provided in this chapter pursuant to appropriations made by the general assembly.
(2) In addition to the requirements in division (G)(1) of this section, moneys referred to in that division may be deposited to the credit of separate accounts established by the director of development within the research and development loan fund or in the bond service fund and pledged to the security of obligations, applied to the payment of bond service charges without need for appropriation, released from any such pledge and transferred to the research and development loan fund, all as and to the extent provided in the bond proceedings pursuant to written directions of the director of development. Accounts may be established by the director in the research and development loan fund for particular projects or otherwise. The director may withdraw from the fund or, subject to provisions of the applicable bond proceedings, from any special funds established pursuant to the bond proceedings, or from any accounts in such funds, any amounts of investment income required to be rebated and paid to the federal government in order to maintain the exemption from federal income taxation of interest on obligations issued under this chapter, which withdrawal and payment may be made without the necessity for appropriation.
Sec. 3735.68. (A) The performance of any obligation of the owner of commercial or industrial property under an agreement entered into under section 3735.671 of the Revised Code is secured by a lien on the property so exempted. The lien is for the amount of taxes that would have been charged against the property if the property had not been so exempted, less any taxes paid on such property. The lien has the same priority as the lien for taxes on property. The county or municipal corporation that enters into the agreement shall enforce the lien in the same manner as mortgage liens are enforced.
(B) Any agreement entered into under section 3735.671 of the Revised Code shall prohibit the owner of commercial or industrial property exempted under the agreement from selling or otherwise transferring the property to any person before the owner fulfills the owner's obligations under the agreement.
(C) The housing officer shall make annual
inspections of the properties within the community reinvestment
area upon which are located structures or remodeling for which an
exemption has been granted under section 3735.67 of the Revised
Code. If the housing officer finds that the property has not
been properly maintained or repaired due to the neglect of the
owner, the housing officer may revoke the exemption at any time after the
first year of exemption. If the owner of commercial or industrial property
exempted from taxation under section 3735.67 of the Revised Code has
materially failed to fulfill its obligations under the written agreement
entered into under section 3735.671 of the Revised Code, or if the owner is
determined to have violated division (E) of that section, the legislative
authority, subject to the terms of the agreement, may revoke the exemption at
any time after the
first year of exemption. The housing officer or legislative authority shall
notify the
county auditor and the owner of the property that the tax
exemption no longer applies. If the housing officer or legislative authority
revokes a
tax exemption, the housing officer shall send a report of the revocation to
the
community reinvestment area housing council and to the tax incentive review
council established pursuant
to section 3735.69 or 5709.85 of the Revised Code, containing a statement of
the findings as to the maintenance and repair of the property, failure to
fulfill obligations under the written agreement, or violation of division (E)
of section 3735.671 of the Revised Code, and the reason for revoking the
exemption. (D) If the agreement entered into under section 3735.671 of the Revised Code so
provides, the legislative authority of a municipal corporation or county may
require the owner of property whose exemption has been revoked to reimburse
the taxing authorities within whose taxing jurisdiction the exempted property
is located for the amount of real property taxes that would have been payable
to those authorities had the property not been exempted from taxation.
Sec. 5709.634. (A) The performance of any obligation of an enterprise under an agreement entered into under section 5709.61, 5709.62, or 5709.632 of the Revised Code is secured by a lien on the property exempted under the agreement. The lien is for the amount of taxes that would have been charged and payable against the property if the property had not been so exempted, less any taxes paid on such property. The lien has the same priority as the lien for taxes on property. The county, township, or municipal corporation that entered into the agreement shall enforce the lien on exempted real property in the same manner as mortgage liens are enforced and shall enforce the lien on tangible personal property in the manner provided by law for liens for taxes on tangible personal property.
(B) Any agreement entered into under section 5709.61, 5709.62, or 5709.632 of the Revised Code shall prohibit the enterprise from selling or otherwise transferring property exempted under the agreement to any person before the enterprise fulfills the enterprise's obligations under the agreement.
Sec. 5709.831. (A) As used in this section:
(1) "Exempted property" means real property exempted from taxation under section 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code.
(2) "Exemption agreement" means any agreement or set of agreements between an owner of exempted property and a political subdivision under which the owner of exempted property is required to undertake an obligation, including remittance of payments in lieu of taxes, as a condition for the political subdivision to grant an exemption from taxation under section 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code.
(3) "Political subdivision" means the county, township, or municipal corporation granting an exemption from taxation under section 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code.
(B) The performance of any obligation of the owner of exempted property under any exemption agreement is secured by a lien on the exempted property. The lien is for the amount of taxes that would be charged and payable against the exempted property if the property had not been so exempted, less any taxes paid on such property and any reimbursement paid under division (C) of this section. The lien has the same priority as the lien for taxes on real property. The political subdivision shall enforce the lien in the same manner as mortgage liens are enforced.
(C) Any exemption agreement shall prohibit the owner of exempted property subject to the agreement from selling or otherwise transferring the property to any person before the owner fulfills the owner's obligations under the agreement.
(D) The legislative authority of a municipal
corporation, township, or county political subdivision that grants an exemption from
taxation for an improvement under section 5709.40, 5709.41,
5709.73, or 5709.78 of the Revised Code may require the owner of
the improvement to reimburse the local taxing authorities within
whose taxing jurisdiction the exempted improvement is located for
the amount of real property taxes that would have been payable to
the taxing authorities had the improvement not been exempted from
taxation. If the legislative authority requires the owner of the
exempted improvements to make payments in lieu of taxes, the
legislative authority may require such reimbursement only to the
extent that the owner failed to make those payments as required.
Section 2. That existing sections 165.02, 166.06, 166.07, 166.21, 3735.68, and 5709.831 of the Revised Code are hereby repealed.
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