(B) A board of township trustees may, by unanimous vote, | 30 |
adopt a resolution that declares to be a public purpose any public | 31 |
infrastructure improvements made that are necessary for the | 32 |
development of certain parcels of land located in the | 33 |
unincorporated area of the township. Except with the approval | 34 |
under division (D) of this section of the board of education of | 35 |
each city, local, or exempted village school district within which | 36 |
the improvements are located, the resolution may exempt from real | 37 |
property taxation not more than seventy-five per cent of further | 38 |
improvements to a parcel of land that directly benefits from the | 39 |
public infrastructure improvements, for a period of not more than | 40 |
ten years. The resolution shall specify the percentage of the | 41 |
further improvements to be exempted and the life of the exemption. | 42 |
(C)(1) A board of township trustees may adopt, by unanimous | 43 |
vote, a resolution creating an incentive district and declaring | 44 |
improvements to parcels within the district to be a public purpose | 45 |
and, except as provided in division (F) of this section, exempt | 46 |
from taxation as provided in this section, but no board of | 47 |
township trustees of a township that has a population that exceeds | 48 |
twenty-five thousand, as shown by the most recent federal | 49 |
decennial census, shall adopt a resolution that creates an | 50 |
incentive district if the sum of the taxable value of real | 51 |
property in the proposed district for the preceding tax year and | 52 |
the taxable value of all real property in the township that would | 53 |
have been taxable in the preceding year were it not for the fact | 54 |
that the property was in an existing incentive district and | 55 |
therefore exempt from taxation exceeds twenty-five per cent of the | 56 |
taxable value of real property in the township for the preceding | 57 |
tax year. The district shall be located within the unincorporated | 58 |
area of the township and shall not include any territory that is | 59 |
included within a district created under division (B) of section | 60 |
5709.78 of the Revised Code. The resolution shall delineate the | 61 |
boundary of the district and specifically identify each parcel | 62 |
within the district. A district may not include any parcel that is | 63 |
or has been exempted from taxation under division (B) of this | 64 |
section or that is or has been within another district created | 65 |
under this division. A resolution may create more than one | 66 |
district, and more than one resolution may be adopted under | 67 |
division (C)(1) of this section. | 68 |
(2) Not later than thirty days prior to adopting a resolution | 69 |
under division (C)(1) of this section, if the township intends to | 70 |
apply for exemptions from taxation under section 5709.911 of the | 71 |
Revised Code on behalf of owners of real property located within | 72 |
the proposed incentive district, the board shall conduct a public | 73 |
hearing on the proposed resolution. Not later than thirty days | 74 |
prior to the public hearing, the board shall give notice of the | 75 |
public hearing and the proposed resolution by first class mail to | 76 |
every real property owner whose property is located within the | 77 |
boundaries of the proposed incentive district that is the subject | 78 |
of the proposed resolution. | 79 |
(3)(a) A resolution adopted under division (C)(1) of this | 80 |
section shall specify the life of the incentive district and the | 81 |
percentage of the improvements to be exempted, shall designate the | 82 |
public infrastructure improvements made, to be made, or in the | 83 |
process of being made, that benefit or serve, or, once made, will | 84 |
benefit or serve parcels in the district. The resolution also | 85 |
shall identify one or more specific projects being, or to be, | 86 |
undertaken in the district that place additional demand on the | 87 |
public infrastructure improvements designated in the resolution. | 88 |
The project identified may, but need not be, the project under | 89 |
division (C)(3)(b) of this section that places real property in | 90 |
use for commercial or industrial purposes. | 91 |
(b) A resolution adopted under division (C)(1) of this | 98 |
section may authorize the use of service payments provided for in | 99 |
section 5709.74 of the Revised Code for the purpose of housing | 100 |
renovations within the incentive district, provided that the | 101 |
resolution also designates public infrastructure improvements that | 102 |
benefit or serve the district, and that a project within the | 103 |
district places real property in use for commercial or industrial | 104 |
purposes. Service payments may be used to finance or support | 105 |
loans, deferred loans, and grants to persons for the purpose of | 106 |
housing renovations within the district. The resolution shall | 107 |
designate the parcels within the district that are eligible for | 108 |
housing renovations. The resolution shall state separately the | 109 |
amount or the percentages of the expected aggregate service | 110 |
payments that are designated for each public infrastructure | 111 |
improvement and for the purpose of housing renovations. | 112 |
(4) Except with the approval of the board of education of | 113 |
each city, local, or exempted village school district within the | 114 |
territory of which the incentive district is or will be located, | 115 |
and subject to division (E) of this section, the life of an | 116 |
incentive district shall not exceed ten years, and the percentage | 117 |
of improvements to be exempted shall not exceed seventy-five per | 118 |
cent. With approval of the board of education, the life of a | 119 |
district may be not more than thirty years, and the percentage of | 120 |
improvements to be exempted may be not more than one hundred per | 121 |
cent. The approval of a board of education shall be obtained in | 122 |
the manner provided in division (D) of this section. | 123 |
(D) Improvements with respect to a parcel may be exempted | 124 |
from taxation under division (B) of this section, and improvements | 125 |
to parcels within an incentive district may be exempted from | 126 |
taxation under division (C) of this section, for up to ten years | 127 |
or, with the approval of the board of education of the city, | 128 |
local, or exempted village school district within which the parcel | 129 |
or district is located, for up to thirty years. The percentage of | 130 |
the improvements exempted from taxation may, with such approval, | 131 |
exceed seventy-five per cent, but shall not exceed one hundred per | 132 |
cent. Not later than forty-five business days prior to adopting a | 133 |
resolution under this section declaring improvements to be a | 134 |
public purpose that is subject to approval by a board of education | 135 |
under this division, the board of township trustees shall deliver | 136 |
to the board of education a notice stating its intent to adopt a | 137 |
resolution making that declaration. The notice regarding | 138 |
improvements with respect to a parcel under division (B) of this | 139 |
section shall identify the parcels for which improvements are to | 140 |
be exempted from taxation, provide an estimate of the true value | 141 |
in money of the improvements, specify the period for which the | 142 |
improvements would be exempted from taxation and the percentage of | 143 |
the improvements that would be exempted, and indicate the date on | 144 |
which the board of township trustees intends to adopt the | 145 |
resolution. The notice regarding improvements made under division | 146 |
(C) of this section to parcels within an incentive district shall | 147 |
delineate the boundaries of the district, specifically identify | 148 |
each parcel within the district, identify each anticipated | 149 |
improvement in the district, provide an estimate of the true value | 150 |
in money of each such improvement, specify the life of the | 151 |
district and the percentage of improvements that would be | 152 |
exempted, and indicate the date on which the board of township | 153 |
trustees intends to adopt the resolution. The board of education, | 154 |
by resolution adopted by a majority of the board, may approve the | 155 |
exemption for the period or for the exemption percentage specified | 156 |
in the notice; may disapprove the exemption for the number of | 157 |
years in excess of ten, may disapprove the exemption for the | 158 |
percentage of the improvements to be exempted in excess of | 159 |
seventy-five per cent, or both; or may approve the exemption on | 160 |
the condition that the board of township trustees and the board of | 161 |
education negotiate an agreement providing for compensation to the | 162 |
school district equal in value to a percentage of the amount of | 163 |
taxes exempted in the eleventh and subsequent years of the | 164 |
exemption period or, in the case of exemption percentages in | 165 |
excess of seventy-five per cent, compensation equal in value to a | 166 |
percentage of the taxes that would be payable on the portion of | 167 |
the improvements in excess of seventy-five per cent were that | 168 |
portion to be subject to taxation, or other mutually agreeable | 169 |
compensation. | 170 |
The board of education shall certify its resolution to the | 171 |
board of township trustees not later than fourteen days prior to | 172 |
the date the board of township trustees intends to adopt the | 173 |
resolution as indicated in the notice. If the board of education | 174 |
and the board of township trustees negotiate a mutually acceptable | 175 |
compensation agreement, the resolution may declare the | 176 |
improvements a public purpose for the number of years specified in | 177 |
the resolution or, in the case of exemption percentages in excess | 178 |
of seventy-five per cent, for the exemption percentage specified | 179 |
in the resolution. In either case, if the board of education and | 180 |
the board of township trustees fail to negotiate a mutually | 181 |
acceptable compensation agreement, the resolution may declare the | 182 |
improvements a public purpose for not more than ten years, and | 183 |
shall not exempt more than seventy-five per cent of the | 184 |
improvements from taxation. If the board of education fails to | 185 |
certify a resolution to the board of township trustees within the | 186 |
time prescribed by this section, the board of township trustees | 187 |
thereupon may adopt the resolution and may declare the | 188 |
improvements a public purpose for up to thirty years or, in the | 189 |
case of exemption percentages proposed in excess of seventy-five | 190 |
per cent, for the exemption percentage specified in the | 191 |
resolution. The board of township trustees may adopt the | 192 |
resolution at any time after the board of education certifies its | 193 |
resolution approving the exemption to the board of township | 194 |
trustees, or, if the board of education approves the exemption on | 195 |
the condition that a mutually acceptable compensation agreement be | 196 |
negotiated, at any time after the compensation agreement is agreed | 197 |
to by the board of education and the board of township trustees. | 198 |
If a mutually acceptable compensation agreement is negotiated | 199 |
between the board of township trustees and the board of education, | 200 |
including agreements for payments in lieu of taxes under section | 201 |
5709.74 of the Revised Code, the board of township trustees shall | 202 |
compensate the joint vocational school district within which the | 203 |
parcel or district is located at the same rate and under the same | 204 |
terms received by the city, local, or exempted village school | 205 |
district. | 206 |
If a board of education has adopted a resolution waiving its | 207 |
right to approve exemptions from taxation under this section and | 208 |
the resolution remains in effect, approval of such exemptions by | 209 |
the board of education is not required under division (D) of this | 210 |
section. If a board of education has adopted a resolution allowing | 211 |
a board of township trustees to deliver the notice required under | 212 |
division (D) of this section fewer than forty-five business days | 213 |
prior to adoption of the resolution by the board of township | 214 |
trustees, the board of township trustees shall deliver the notice | 215 |
to the board of education not later than the number of days prior | 216 |
to the adoption as prescribed by the board of education in its | 217 |
resolution. If a board of education adopts a resolution waiving | 218 |
its right to approve exemptions or shortening the notification | 219 |
period, the board of education shall certify a copy of the | 220 |
resolution to the board of township trustees. If the board of | 221 |
education rescinds the resolution, it shall certify notice of the | 222 |
rescission to the board of township trustees. | 223 |
(E)(1) If a proposed resolution under division (C)(1) of this | 233 |
section exempts improvements with respect to a parcel within an | 234 |
incentive district for more than ten years, or the percentage of | 235 |
the improvement exempted from taxation exceeds seventy-five per | 236 |
cent, not later than forty-five business days prior to adopting | 237 |
the resolution the board of township trustees shall deliver to the | 238 |
board of county commissioners of the county within which the | 239 |
incentive district is or will be located a notice that states its | 240 |
intent to adopt a resolution creating an incentive district. The | 241 |
notice shall include a copy of the proposed resolution, identify | 242 |
the parcels for which improvements are to be exempted from | 243 |
taxation, provide an estimate of the true value in money of the | 244 |
improvements, specify the period of time for which the | 245 |
improvements would be exempted from taxation, specify the | 246 |
percentage of the improvements that would be exempted from | 247 |
taxation, and indicate the date on which the board of township | 248 |
trustees intends to adopt the resolution. | 249 |
(2) The board of county commissioners, by resolution adopted | 250 |
by a majority of the board, may object to the exemption for the | 251 |
number of years in excess of ten, may object to the exemption for | 252 |
the percentage of the improvement to be exempted in excess of | 253 |
seventy-five per cent, or both. If the board of county | 254 |
commissioners objects, the board may negotiate a mutually | 255 |
acceptable compensation agreement with the board of township | 256 |
trustees. In no case shall the compensation provided to the board | 257 |
of county commissioners exceed the property taxes foregone due to | 258 |
the exemption. If the board of county commissioners objects, and | 259 |
the board of county commissioners and board of township trustees | 260 |
fail to negotiate a mutually acceptable compensation agreement, | 261 |
the resolution adopted under division (C)(1) of this section shall | 262 |
provide to the board of county commissioners compensation in the | 263 |
eleventh and subsequent years of the exemption period equal in | 264 |
value to not more than fifty per cent of the taxes that would be | 265 |
payable to the county or, if the board of county commissioner's | 266 |
objection includes an objection to an exemption percentage in | 267 |
excess of seventy-five per cent, compensation equal in value to | 268 |
not more than fifty per cent of the taxes that would be payable to | 269 |
the county, on the portion of the improvement in excess of | 270 |
seventy-five per cent, were that portion to be subject to | 271 |
taxation. The board of county commissioners shall certify its | 272 |
resolution to the board of township trustees not later than thirty | 273 |
days after receipt of the notice. | 274 |
(3) If the board of county commissioners does not object or | 275 |
fails to certify its resolution objecting to an exemption within | 276 |
thirty days after receipt of the notice, the board of township | 277 |
trustees may adopt its resolution, and no compensation shall be | 278 |
provided to the board of county commissioners. If the board of | 279 |
county commissioners timely certifies its resolution objecting to | 280 |
the trustees' resolution, the board of township trustees may adopt | 281 |
its resolution at any time after a mutually acceptable | 282 |
compensation agreement is agreed to by the board of county | 283 |
commissioners and the board of township trustees, or, if no | 284 |
compensation agreement is negotiated, at any time after the board | 285 |
of township trustees agrees in the proposed resolution to provide | 286 |
compensation to the board of county commissioners of fifty per | 287 |
cent of the taxes that would be payable to the county in the | 288 |
eleventh and subsequent years of the exemption period or on the | 289 |
portion of the improvement in excess of seventy-five per cent, | 290 |
were that portion to be subject to taxation. | 291 |
(F) Service payments in lieu of taxes that are attributable | 292 |
to any amount by which the effective tax rate of either a renewal | 293 |
levy with an increase or a replacement levy exceeds the effective | 294 |
tax rate of the levy renewed or replaced, or that are attributable | 295 |
to an additional levy, for a levy authorized by the voters for any | 296 |
of the following purposes on or after January 1, 2006, and which | 297 |
are provided pursuant to a resolution creating an incentive | 298 |
district under division (C)(1) of this section that is adopted on | 299 |
or after January 1, 2006, shall be distributed to the appropriate | 300 |
taxing authority as required under division (C) of section 5709.74 | 301 |
of the Revised Code in an amount equal to the amount of taxes from | 302 |
that additional levy or from the increase in the effective tax | 303 |
rate of such renewal or replacement levy that would have been | 304 |
payable to that taxing authority from the following levies were it | 305 |
not for the exemption authorized under division (C) of this | 306 |
section: | 307 |
(G) An exemption from taxation granted under this section | 344 |
commences with the tax year specified in the resolution so long as | 345 |
the year specified in the resolution commences after the effective | 346 |
date of the resolution. If the resolution specifies a year | 347 |
commencing before the effective date of the resolution or | 348 |
specifies no year whatsoever, the exemption commences with the tax | 349 |
year in which an exempted improvement first appears on the tax | 350 |
list and duplicate of real and public utility property and that | 351 |
commences after the effective date of the resolution. Except as | 352 |
otherwise provided in this division, the exemption ends on the | 353 |
date specified in the resolution as the date the improvement | 354 |
ceases to be a public purpose or the incentive district expires, | 355 |
or ends on the date on which the public infrastructure | 356 |
improvements and housing renovations are paid in full from the | 357 |
township public improvement tax increment equivalent fund | 358 |
established under section 5709.75 of the Revised Code, whichever | 359 |
occurs first. The exemption of an improvement with respect to a | 360 |
parcel or within an incentive district may end on a later date, as | 361 |
specified in the resolution, if the board of township trustees and | 362 |
the board of education of the city, local, or exempted village | 363 |
school district within which the parcel or district is located | 364 |
have entered into a compensation agreement under section 5709.82 | 365 |
of the Revised Code with respect to the improvement and the board | 366 |
of education has approved the term of the exemption under division | 367 |
(D) of this section, but in no case shall the improvement be | 368 |
exempted from taxation for more than thirty years. The board of | 369 |
township trustees may, by majority vote, adopt a resolution | 370 |
permitting the township to enter into such agreements as the board | 371 |
finds necessary or appropriate to provide for the construction or | 372 |
undertaking of public infrastructure improvements and housing | 373 |
renovations. Any exemption shall be claimed and allowed in the | 374 |
same or a similar manner as in the case of other real property | 375 |
exemptions. If an exemption status changes during a tax year, the | 376 |
procedure for the apportionment of the taxes for that year is the | 377 |
same as in the case of other changes in tax exemption status | 378 |
during the year. | 379 |
(H) The board of township trustees may issue the notes of the | 380 |
township to finance all costs pertaining to the construction or | 381 |
undertaking of public infrastructure improvements and housing | 382 |
renovations made pursuant to this section. The notes shall be | 383 |
signed by the board and attested by the signature of the township | 384 |
fiscal officer, shall bear interest not to exceed the rate | 385 |
provided in section 9.95 of the Revised Code, and are not subject | 386 |
to Chapter 133. of the Revised Code. The resolution authorizing | 387 |
the issuance of the notes shall pledge the funds of the township | 388 |
public improvement tax increment equivalent fund established | 389 |
pursuant to section 5709.75 of the Revised Code to pay the | 390 |
interest on and principal of the notes. The notes, which may | 391 |
contain a clause permitting prepayment at the option of the board, | 392 |
shall be offered for sale on the open market or given to the | 393 |
vendor or contractor if no sale is made. | 394 |
(I) The township, not later than fifteen days after the | 395 |
adoption of a resolution under this section, shall submit to the | 396 |
director of development a copy of the resolution. On or before the | 397 |
thirty-first day of March of each year, the township shall submit | 398 |
a status report to the director of development. The report shall | 399 |
indicate, in the manner prescribed by the director, the progress | 400 |
of the project during each year that the exemption remains in | 401 |
effect, including a summary of the receipts from service payments | 402 |
in lieu of taxes; expenditures of money from the fund created | 403 |
under section 5709.75 of the Revised Code; a description of the | 404 |
public infrastructure improvements and housing renovations | 405 |
financed with the expenditures; and a quantitative summary of | 406 |
changes in private investment resulting from each project. | 407 |
(K) A board of township trustees that adopted a resolution | 411 |
under this section prior to July 21, 1994, may amend that | 412 |
resolution to include any additional public infrastructure | 413 |
improvement. A board of township trustees that seeks by the | 414 |
amendment to utilize money from its township public improvement | 415 |
tax increment equivalent fund for land acquisition in aid of | 416 |
industry, commerce, distribution, or research, demolition on | 417 |
private property, or stormwater and flood remediation projects may | 418 |
do so provided that the board currently is a party to a | 419 |
hold-harmless agreement with the board of education of the city, | 420 |
local, or exempted village school district within the territory of | 421 |
which are located the parcels that are subject to an exemption. | 422 |
For the purposes of this division, a "hold-harmless agreement" | 423 |
means an agreement under which the board of township trustees | 424 |
agrees to compensate the school district for one hundred per cent | 425 |
of the tax revenue that the school district would have received | 426 |
from further improvements to parcels designated in the resolution | 427 |
were it not for the exemption granted by the resolution. | 428 |
(L) Before adopting a resolution to exempt improvements to | 429 |
real property under division (B) or (C) of this section, a board | 430 |
of township trustees may enter into an agreement with any person | 431 |
that owns or operates a place of business that is or will be | 432 |
located on the real property that would benefit from such | 433 |
improvements under which the person agrees to hire a specified | 434 |
number of new employees at that place of business as a condition | 435 |
for approval of the exemption. Such an agreement may include a | 436 |
provision that allows the board, after adoption of the resolution | 437 |
that specifies the percentage of the improvements to be exempted | 438 |
and the number of years of the exemption, to adopt one or more | 439 |
subsequent resolutions that reduce the percentage of such | 440 |
improvements to be exempted or the term of the exemption if the | 441 |
person fails to hire the number of new employees specified in the | 442 |
agreement. An agreement that includes such a provision may include | 443 |
additional provisions that detail the circumstances under which | 444 |
the board may act to reduce the percentage of improvements to be | 445 |
exempted or the term of an exemption. | 446 |