Ohio § 5709.45

§ 5709.45.

(A) As used in sections 5709.45 to 5709.47 of the Revised Code : (1) “ Downtown redevelopment district ” or “ district ” means an area not more than ten acres enclosed by a continuous boundary in which

at least one historic building is being, or will be, rehabilitated. (2) “Historic building” and “rehabilitation” have the same meanings as in section 149.311 of the Revised Code . (3) “Public infrastructure improvement” has the same meaning as in section 5709.40 of the Revised Code . (4) “ Improvement ” means the increase in the assessed value of real property that would first appear

on the tax list after the effective date of an ordinance adopted under this section

were it not for the exemption granted by the ordinance. (5) “ Innovation district ” means an area located entirely within a downtown redevelopment district, enclosed

by a continuous boundary, and equipped with a high-speed broadband network capable

of download speeds of at least one hundred gigabits per second. (6) “ Qualified business ” means a business primarily engaged, or primarily organized to engage, in a trade

or business that involves research and development, technology transfer, bio-technology,

information technology, or the application of new technology developed through research

and development or acquired through technology transfer. (7) “ Information technology ” means the branch of technology devoted to the study and application of data and

the processing thereof;  the automatic acquisition, storage, manipulation or transformation,

management, movement, control, display, switching, interchange, transmission or reception

of data, and the development or use of hardware, software, firmware, and procedures

associated with this processing.  “ Information technology ” includes matters concerned with the furtherance of computer science and technology,

design, development, installation, and implementation of information systems and applications

that in turn will be licensed or sold to a specific target market.  “Information technology” does not include the creation of a distribution method

for existing products and services. (8) “ Research and development ” means designing, creating, or formulating new or enhanced products, equipment, or

processes, and conducting scientific or technological inquiry and experimentation

in the physical sciences with the goal of increasing scientific knowledge that may

reveal the bases for new or enhanced products, equipment, or processes. (9) “ Technology transfer ” means the transfer of technology from one sector of the economy to another, including

the transfer of military technology to civilian applications, civilian technology

to military applications, or technology from public or private research laboratories

to military or civilian applications. (B) For the purposes of promoting rehabilitation of historic buildings, creating jobs,

and encouraging economic development in commercial and mixed-use commercial and residential

areas, and for the purpose of funding transportation improvements that will benefit

such areas, the legislative authority of a municipal corporation may adopt an ordinance

creating a downtown redevelopment district and declaring improvements to parcels within

the district to be a public purpose and exempt from taxation.  Downtown redevelopment districts shall not be created in areas used exclusively

for residential purposes and shall not be utilized for development or redevelopment

of residential areas. The ordinance shall specify all of the following: (1) The boundary of the district; (2) The county treasurer's permanent parcel number associated with each parcel included

in the district; (3) The parcel or parcels within the district that include a historic building that is

being or will be rehabilitated; (4) The proposed life of the district; (5) An economic development plan for the district that includes all of the following: (a) A statement describing the principal purposes and goals to be served by creating

the district; (b) An explanation of how the municipal corporation will collaborate with businesses

and property owners within the district to develop strategies for achieving such purposes

and goals; (c) A plan for using the service payments provided for in section 5709.46 of the Revised Code to promote economic development and job creation within the district. Not more than seventy per cent of improvements to parcels within a downtown redevelopment

district may be exempted from taxation under this section.  A district may not include a parcel that is exempted from taxation under this section

or section 5709.40 or 5709.41 of the Revised Code on the effective date of the ordinance.  Except as provided in division (F) of this section, the life of a downtown redevelopment

district shall not exceed ten years. A municipal corporation may adopt more than one ordinance under division (B) of this

section.  A single such ordinance may create more than one downtown redevelopment district. (C) For the purposes of attracting and facilitating growth of qualified businesses and

supporting the economic development efforts of business incubators and accelerators,

the legislative authority of a municipal corporation may designate an innovation district

within a proposed or existing downtown redevelopment district.  The life of the innovation district shall be identical to the downtown redevelopment

district in which the innovation district is located.  In addition to the requirements in division (B) of this section, an ordinance creating

a downtown redevelopment district that includes an innovation district shall specify

all of the following: (1) The boundary of the innovation district; (2) The permanent parcel number associated with each parcel included in the innovation

district; (3) An economic development plan for the innovation district that meets the criteria

prescribed by division (B)(5) of this section. (D) At least thirty days before adopting an ordinance under division (B) of this section,

the legislative authority of the municipal corporation shall conduct a public hearing

on the proposed ordinance and the accompanying economic development plan.  At least thirty days before the public hearing, the legislative authority shall

give notice of the public hearing and the proposed ordinance by first class mail to

every real property owner whose property is located within the boundaries of the proposed

district that is the subject of the proposed ordinance. (E) Revenue derived from downtown redevelopment district service payments may be used

by the municipal corporation for any of the following purposes: (1) To finance or support loans, deferred loans, or grants to owners of historic buildings

within the downtown redevelopment district.  Such loans or grants shall be awarded upon the condition that the loan or grant

amount may be used by the owner only to rehabilitate the historic building.  A municipal corporation that awards a loan or grant under this division shall develop

a plan for tracking the loan or grant recipient's use of the loan or grant and monitoring

the progress of the recipient's rehabilitation project. (2) To make contributions to a special improvement district for use under section 1710.14 of the Revised Code , to a community improvement corporation for use under section 1724.12 of the Revised Code , or to a nonprofit corporation, as defined in section 1702.01 of the Revised Code , the primary purpose of which is redeveloping historic buildings and historic districts

for use by the corporation to rehabilitate a historic building within the downtown

redevelopment district or to otherwise promote or enhance the district.  Amounts contributed under division (E)(2) of this section shall not exceed the property

tax revenue that would have been generated by twenty per cent of the assessed value

of the exempted improvements within the downtown redevelopment district. (3) To finance or support loans to owners of one or more buildings located within the

district that do not qualify as historic buildings.  Such loans shall be awarded upon the condition that the loan amount may be used

by the owner only to make repairs and improvements to the building or buildings.  A municipal corporation that awards a loan under this division shall develop a plan

for tracking the loan recipient's use of the loan and monitoring the progress of the

recipient's repairs or improvements. (4) To finance public infrastructure improvements within the downtown redevelopment district.  If revenue generated by the downtown redevelopment district will be used to finance

public infrastructure improvements, the economic development plan described by division

(B)(5) of this section shall identify specific projects that are being or will be

undertaken within the district and describe how such infrastructure improvements will

accommodate additional demands on the existing infrastructure within the district.  A municipal corporation shall not use service payments derived from a downtown redevelopment

district to repair or replace police or fire equipment. (5) To finance or support loans, deferred loans, or grants to qualified businesses or

to incubators and accelerators that provide services and capital to qualified businesses

within an innovation district.  Such loans or grants shall be awarded upon the condition that the loan or grant

shall be used by the recipient to start or develop one or more qualified businesses

within the innovation district.  A municipal corporation that awards a loan or grant under this division shall develop

a plan for tracking the loan or grant recipient's use of the loan or grant and monitoring

the establishment and growth of the qualified business. (F) Notwithstanding division (B) of this section, improvements to parcels located within

a downtown redevelopment district may be exempted from taxation under this section

for up to thirty years if either of the following apply: (1) The ordinance creating the redevelopment district specifies that payments in lieu

of taxes shall be paid to the city, local, or exempted village, and joint vocational

school district or districts in which the redevelopment district is located in the

amount of the taxes that would have been payable to the school district or districts

if the improvements had not been exempted from taxation. (2) The municipal corporation creating the district obtains the approval under division

(G) of this section of the board of education of each city, local, and exempted village

school district within which the district will be located. (G)(1) The legislative authority of a municipal corporation seeking the approval of a school

district for the purpose of division (G)(2) of this section shall send notice of the

proposed ordinance to the school district not later than forty-five business days

before it intends to adopt the ordinance.  The notice shall include a copy of the proposed ordinance and shall indicate the

date on which the legislative authority intends to adopt the ordinance.  The board of education of the school district, by resolution adopted by a majority

of the board, may do any of the following: (a) Approve the exemption for the number of years specified in the proposed ordinance; (b) Disapprove the exemption for the number of years in excess of ten; (c) Approve the exemption on the condition that the legislative authority and the board

negotiate an agreement providing for compensation to the school district equal in

value to a percentage of the amount of taxes exempted in the eleventh and subsequent

years of the exemption period or other mutually agreeable compensation.  If an agreement is negotiated under this division, the legislative authority shall

compensate all joint vocational school districts within which the downtown redevelopment

district is located at the same rate and under the same terms received by the city,

local, or exempted village school district. (2) The board of education shall certify a resolution adopted under division (G)(1) of

this section to the legislative authority of the municipal corporation not later than

fourteen days before the date the legislative authority intends to adopt the ordinance

as indicated in the notice.  If the board of education approves the ordinance or negotiates a mutually acceptable

compensation agreement with the legislative authority, the legislative authority may

enact the ordinance in its current form.  If the board disapproves of the ordinance and fails to negotiate a mutually acceptable

compensation agreement with the legislative authority, the legislative authority may

exempt improvements to parcels within the downtown redevelopment district for not

more than ten years.  If the board fails to certify a resolution to the legislative authority within the

time prescribed by this division, the legislative authority may adopt the ordinance

and may exempt improvements to parcels within the downtown redevelopment district

for the period of time specified in the notice delivered to the board of education.  The legislative authority may adopt the ordinance at any time after the board of

education certifies its resolution approving the exemption to the legislative authority

or, if the board approves the exemption on the condition that a mutually acceptable

compensation agreement be negotiated, at any time after the compensation agreement

is agreed to by the board and the legislative authority. (3) If a board of education has adopted a resolution waiving its right to approve exemptions

from taxation under this section and the resolution remains in effect, approval of

exemptions by the board is not required under division (G) of this section.  If a board of education has adopted a resolution allowing a legislative authority

to deliver the notice required under division (G)(1) of this section fewer than forty-five

business days before the legislative authority's adoption of the ordinance, the legislative

authority shall deliver the notice to the board not later than the number of days

before such adoption as prescribed by the board in its resolution.  If a board of education adopts a resolution waiving its right to approve agreements

or shortening the notification period, the board shall certify a copy of the resolution

to the legislative authority.  If the board of education rescinds such a resolution, it shall certify notice of

the rescission to the legislative authority. (4) If the legislative authority is not required by division (G) of this section to notify

the board of education of the legislative authority's intent to create a downtown

redevelopment district, the legislative authority shall comply with the notice requirements

imposed under section 5709.83 of the Revised Code , unless the board has adopted a resolution under that section waiving its right to

receive such a notice. (H) Service payments in lieu of taxes that are attributable to any amount by which the

effective tax rate of either a renewal levy with an increase or a replacement levy

exceeds the effective tax rate of the levy renewed or replaced, or that are attributable

to an additional levy, for a levy authorized by the voters for any of the following

purposes on or after January 1, 2006, and which are provided pursuant to an ordinance

creating a downtown redevelopment district under division (B) of this section shall

be distributed to the appropriate taxing authority as required under division (C) of section 5709.46 of the Revised Code in an amount equal to the amount of taxes from that additional levy or from the increase

in the effective tax rate of such renewal or replacement levy that would have been

payable to that taxing authority from the following levies were it not for the exemption

authorized under division (B) of this section: (1) A tax levied under division (L) of section 5705.19 or section 5705.191 of the Revised Code for community developmental disabilities programs and services pursuant to Chapter

5126. of the Revised Code; (2) A tax levied under division (Y) of section 5705.19 of the Revised Code for providing or maintaining senior citizens services or facilities; (3) A tax levied under section 5705.22 of the Revised Code for county hospitals; (4) A tax levied by a joint-county district or by a county under section 5705.19 , 5705.191 , or 5705.221 of the Revised Code for alcohol, drug addiction, and mental health services or facilities; (5) A tax levied under section 5705.23 of the Revised Code for library purposes; (6) A tax levied under section 5705.24 of the Revised Code for the support of children services and the placement and care of children; (7) A tax levied under division (Z) of section 5705.19 of the Revised Code for the provision and maintenance of zoological park services and facilities under section 307.76 of the Revised Code ; (8) A tax levied under section 511.27 or division (H) of section 5705.19 of the Revised Code for the support of township park districts; (9) A tax levied under division (A) , (F) , or (H) of section 5705.19 of the Revised Code for parks and recreational purposes of a joint recreation district organized pursuant

to division (B) of section 755.14 of the Revised Code ; (10) A tax levied under section 1545.20 or 1545.21 of the Revised Code for park district purposes; (11) A tax levied under section 5705.191 of the Revised Code for the purpose of making appropriations for public assistance;  human or social

services;  public relief;  public welfare;  public health and hospitalization;  and

support of general hospitals; (12) A tax levied under section 3709.29 of the Revised Code for a general health district program. (I) An exemption from taxation granted under this section commences with the tax year

specified in the ordinance so long as the year specified in the ordinance commences

after the effective date of the ordinance.  If the ordinance specifies a year commencing before the effective date of the ordinance

or specifies no year whatsoever, the exemption commences with the tax year in which

an exempted improvement first appears on the tax list and that commences after the

effective date of the ordinance.  In lieu of stating a specific year, the ordinance may provide that the exemption

commences in the tax year in which the value of an improvement exceeds a specified

amount or in which the construction of one or more improvements is completed, provided

that such tax year commences after the effective date of the ordinance. Except as otherwise provided in this division, the exemption ends on the date specified

in the ordinance as the date the improvement ceases to be a public purpose or the

downtown redevelopment district expires, whichever occurs first.  The exemption of an improvement within a downtown redevelopment district may end

on a later date, as specified in the ordinance, if the legislative authority and the

board of education of the city, local, or exempted village school district within

which the parcel or district is located have entered into a compensation agreement

under section 5709.82 of the Revised Code with respect to the improvement, and the board of education has approved the term

of the exemption under division (G) of this section, but in no case shall the improvement

be exempted from taxation for more than thirty years.  Exemptions shall be claimed and allowed in the same manner as in the case of other

real property exemptions.  If an exemption status changes during a year, the procedure for the apportionment

of the taxes for that year is the same as in the case of other changes in tax exemption

status during the year. (J) Additional municipal financing of the projects and services described in division

(E) of this section may be provided by any methods that the municipal corporation

may otherwise use for financing such projects and services.  If the municipal corporation issues bonds or notes to finance such projects and

services and pledges money from the municipal downtown redevelopment district fund

to pay the interest on and principal of the bonds or notes, the bonds or notes are

not subject to Chapter 133. of the Revised Code. (K) The municipal corporation, not later than fifteen days after the adoption of an ordinance

under this section, shall submit to the director of development services a copy of

the ordinance.  On or before the thirty-first day of March of each year, the municipal corporation

shall submit a status report to the director of development services.  The report shall indicate, in the manner prescribed by the director, the progress

of the projects and services during each year that an exemption remains in effect,

including a summary of the receipts from service payments in lieu of taxes;  expenditures

of money from the funds created under section 5709.47 of the Revised Code ;  a description of the projects and services financed with such expenditures;  and

a quantitative summary of changes in employment and private investment resulting from

each project and service. (L) Nothing in this section shall be construed to prohibit a legislative authority from

declaring to be a public purpose improvements with respect to more than one parcel. (M)(1) The owner of real property located in a downtown redevelopment district may enter

into an agreement with the municipal corporation that created the district to impose

a redevelopment charge on the property to cover all or part of the cost of services,

facilities, and improvements provided within the district under division (E) of this

section.  The agreement shall include the following: (a) The amount of the redevelopment charge.  The redevelopment charge may be a fixed dollar amount or an amount determined on

the basis of the assessed valuation of the property or all or part of the profits,

gross receipts, or other revenues of a business operating on the property, including

rentals received from leases of the property.  If the property is leased to one or more tenants, the redevelopment charge may be

itemized as part of the lease rate. (b) The termination date of the redevelopment charge.  The redevelopment charge shall not be charged after the expiration or termination

of the downtown redevelopment district. (c) The terms by which the municipal corporation shall collect the redevelopment charge. (d) The purposes for which the redevelopment charge may be used by the municipal corporation.  The redevelopment charge shall be used only for those purposes described by division

(E) of this section.  The agreement may specify any or all of such purposes. (2) Redevelopment charges collected by a municipal corporation under division (M) of

this section shall be deposited to the municipal downtown redevelopment district fund

created under section 5709.47 of the Revised Code . (3) An agreement by a property owner under division (M) of this section is hereby deemed

to be a covenant running with the land.  The covenant is fully binding on behalf of and enforceable by the municipal corporation

against any person acquiring an interest in the land and all of that person's successors

and assigns. (4) No purchase agreement for real estate or any interest in real estate upon which a

redevelopment charge is levied shall be enforceable by the seller or binding upon

the purchaser unless the purchase agreement specifically refers to the redevelopment

charge.  If a conveyance of such real estate or interest in such real estate is made pursuant

to a purchase agreement that does not make such reference, the redevelopment charge

shall continue to be a covenant running with the land fully binding on behalf of and

enforceable by the municipal corporation against the person accepting the conveyance

pursuant to the purchase agreement. (5) If a redevelopment charge is not paid when due, the overdue amount shall be collected

according to the terms of the agreement.  If the agreement does not specify a procedure for collecting overdue redevelopment

charges, the municipal corporation may certify the charge to the county auditor.  The county auditor shall enter the unpaid charge on the tax list and duplicate of

real property opposite the parcel against which it is charged and certify the charge

to the county treasurer.  The unpaid redevelopment charge is a lien on property against which it is charged

from the date the charge is entered on the tax list, and shall be collected in the

manner provided for the collection of real property taxes.  Once the charge is collected, it shall be paid immediately to the municipal corporation.