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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 29
2025-2026
Senators Blessing, Ingram
Cosponsors: Senators Craig, Wilson
A
BILL
To
amend section 715.72 of the Revised Code
to allow two or more municipalities to create a joint economic
development district without involving a township.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
section 715.72 of the Revised Code be amended to read as follows:
Sec.
715.72.
(A)
As used in this section:
(1)
"Contracting
parties
party
"
means
one
or more
a
municipal
corporations,
one
corporation
or
more
townships, and, under division (D) of this section, one or more
counties
township
that
have
has
entered
or is in the process of entering
into a contract under this section to create a joint economic
development district
or a county that has entered such a contract under division (D) of
this section
.
(2)
"District" means a joint economic development district
created under this section.
(3)
"Contract for utility services" means a contract under
which a municipal corporation agrees to provide to a township or
another municipal corporation water, sewer, electric, or other
utility services necessary to the public health, safety, and welfare.
(4)
"Business" means a sole proprietorship, a corporation for
profit, a pass-through entity as defined in section 5733.04 of the
Revised Code, the federal government, the state, the state's
political subdivisions, a nonprofit organization, or a school
district.
(5)
"Owner" means a partner of a partnership, a member of a
limited liability company, a majority shareholder of an S
corporation, a person with a majority ownership interest in a
pass-through entity, or any officer, employee, or agent with
authority to make decisions legally binding upon a business.
(6)
"Record owner" means the person or persons in whose name a
parcel is listed on the tax list or exempt list compiled by the
county auditor under section 319.28 or 5713.08 of the Revised Code.
(7)
A business "operates within" a district if the net profits
of the business or the income of employees of the business would be
subject to an income tax levied within the district.
(8)
An employee is "employed within" a district if any portion
of the employee's income would be subject to an income tax levied
within the district.
(9)
"Mixed-use development" means a real estate project that
tends to mitigate traffic and sprawl by integrating some combination
of retail, office, residential, hotel, recreation, and other
functions in a pedestrian-oriented environment that maximizes the use
of available space by allowing members of the community to live,
work, and play in one architecturally expressive area with multiple
amenities.
(10)
"Water or sewer service plan or agreement" means either of
the following:
(a)
A state water quality management plan adopted by the Ohio
environmental protection agency or another authorized planning agency
pursuant to 33 U.S.C. 1288 and 1313 that contemplates that a
non-contracting municipal corporation will provide sanitary sewer
disposal services to an area within a proposed joint economic
development district;
(b)
A binding agreement between a municipal corporation and a third-party
water or sanitary sewer services provider, including another
municipal corporation or other public or private provider, that
provides that a non-contracting municipal corporation or another
provider that is not a contracting party will provide water or
sanitary sewer services to an area within a proposed joint economic
development district.
(11)
"Non-contracting municipal corporation" means a municipal
corporation that is not a contracting party.
(B)
This section provides alternative procedures and requirements to
those set forth in sections 715.70 and 715.71 of the Revised Code for
creating and operating a joint economic development district.
This
Subject
to division (C)(1)(b) of this section, this
section
applies to municipal corporations and townships that are located in
the same county or in adjacent counties.
(C)
One
or more municipal corporations, one or more townships, and, under
division
Subject
to divisions (C) and
(D)
of this section,
one
two
or
more
counties
contracting
parties
may
enter into a contract pursuant to which
they
the
contracting parties
designate
one or more areas as a joint economic development district for the
purpose of facilitating economic development and redevelopment, to
create or preserve jobs and employment opportunities, and to improve
the economic welfare of the people in this state and in the area of
the contracting parties.
(1)
Except as otherwise provided in division (C)(2) of this section
,
the
:
(a)
If at least one of the contracting parties is a township or county,
the
territory
of each of the contracting parties shall be contiguous to the
territory of at least one other contracting party, or contiguous to
the territory of a township, municipal corporation, or county that is
contiguous to another contracting party, even if the intervening
township or municipal corporation is not a contracting party
.
(b)
If all of the contracting parties are municipal corporations, the
territory of each contracting party shall be partially or wholly
located in the same county and contiguous to the territory of at
least one other contracting party or contiguous to a township that is
contiguous to another contracting party
.
(2)
Contracting parties that have entered into a contract under section
715.70 or 715.71 of the Revised Code creating a joint economic
development district prior to November 15, 1995, may enter into a
contract under this section even if the territory of each of the
contracting parties is not contiguous to the territory of at least
one other contracting party, or contiguous to the territory of a
township or municipal corporation that is contiguous to another
contracting party as otherwise required under division (C)(1) of this
section. The contract and district shall meet the requirements of
this section.
(3)
At least one of the contracting parties shall be a municipal
corporation, and at least one of the contracting parties shall be
either of the following:
(a)
A township;
(b)
A municipal corporation in which part or all of the area or areas to
be included in the joint economic development district is or are
located, provided that each such area in that municipal corporation
has at least two of the characteristics described in divisions
(A)(1)(a) to (h) of section 5709.61 of the Revised Code, pursuant to
the rules adopted by the director of development under division
(A)(1) of that section.
(D)
If, on or after December 30, 2008, but on or before June 30, 2009,
one or more municipal corporations and one or more townships enter
into a contract or amend an existing contract under this section, one
or more counties in which all of those municipal corporations or
townships are located also may enter into the contract as a
contracting party or parties.
(E)(1)
The area or areas to be included in a joint economic development
district shall meet all of the following criteria:
(a)
The area or areas shall be located within the territory of one or
more of the contracting parties and may consist of all of the
territory of any or all of the contracting parties.
(b)
No electors, except those residing in a mixed-use development, shall
reside within the area or areas on the effective date of the contract
creating the district.
(c)
The area or areas shall not include any parcel of land owned in fee
by or leased to a municipal corporation or township, unless the
municipal corporation or township is a contracting party or has given
its consent to have the parcel of land included in the district by
the adoption of an ordinance or resolution.
(d)
The area or areas shall not include any parcel of land excluded
pursuant to division (J)(2) of this section.
(2)
The contracting parties may designate excluded parcels within the
boundaries of the joint economic development district. Excluded
parcels are not part of the district and persons employed or residing
on such parcels shall not be subject to any income tax imposed within
the district under division (F)(5) of this section.
(F)(1)
The contract creating a joint economic development district shall
provide for the amount or nature of the contribution of each
contracting party to the development and operation of the district
and may provide for the sharing of the costs of the operation of and
improvements for the district. The contributions may be in any form
to which the contracting parties agree and may include, but are not
limited to, the provision of services, money, real or personal
property, facilities, or equipment.
(2)
The contract may provide for the contracting parties to share revenue
from taxes levied by one or more of the contracting parties if those
revenues may lawfully be applied to that purpose under the
legislation by which those taxes are levied.
(3)
The contract shall include an economic development plan for the
district that consists of a schedule for the provision of new,
expanded, or additional services, facilities, or improvements. The
contract may provide for expanded or additional capacity for or other
enhancement of existing services, facilities, or improvements.
(4)
The contract shall enumerate the specific powers, duties, and
functions of the board of directors of the district described under
division (P) of this section and shall designate procedures
consistent with that division for appointing members to the board.
The contract shall enumerate rules to govern the board in carrying
out its business under this section.
(5)(a)
The contract may grant to the board the power to adopt a resolution
to levy an income tax within the entire district or within portions
of the district designated by the contract. The income tax shall be
used to carry out the economic development plan for the district or
the portion of the district in which the tax is levied and for any
other lawful purpose of the contracting parties pursuant to the
contract, including the provision of utility services by one or more
of the contracting parties.
(b)
An income tax levied under this section shall be based on both the
income earned by persons employed or residing within the district and
the net profit of businesses operating within the district.
Except
as provided in this section, the income tax levied within the
district is subject to Chapter 718. of the Revised Code, except that
no vote shall be required. The rate of the income tax shall be no
higher than the highest rate being levied by a municipal corporation
that is a contracting party.
(c)
If the board adopts a resolution to levy an income tax, it shall
enter into an agreement with a municipal corporation that is a
contracting party to administer, collect, and enforce the income tax
on behalf of the district.
(d)
A resolution levying an income tax under this section shall require
the contracting parties to annually set aside a percentage, to be
stated in the resolution, of the amount of the income tax collected
for the long-term maintenance of the district.
(e)
An income tax levied under this section shall apply in the district
or the portion of the district in which the contract authorizes an
income tax throughout the term of the contract creating the district.
The tax shall not apply to any persons employed or residing on a
parcel excluded from the district under division (E)(2) of this
section.
(6)
If there is unincorporated territory in the district, the contract
shall specify that restrictions on annexation proceedings under
division (R) of this section apply to such unincorporated territory.
The contract may prohibit proceedings under Chapter 709. of the
Revised Code proposing the annexation to, merger of, or consolidation
with a municipal corporation that is a contracting party of any
unincorporated territory within a township that is a contracting
party during the term of the contract regardless of whether that
territory is located within the district.
(7)
The contract may designate property as a community entertainment
district, or may be amended to designate property as a community
entertainment district, as prescribed in division (D) of section
4301.80 of the Revised Code. A contract or amendment designating a
community entertainment district shall include all information and
documentation described in divisions (B)(1) to (6) of section 4301.80
of the Revised Code. The public notice required under division (I) of
this section shall specify that the contract designates a community
entertainment district and describe the location of that district.
Except as provided in division (F) of section 4301.80 of the Revised
Code, an area designated as a community entertainment district under
a joint economic development district contract shall not lose its
designation even if the contract is canceled or terminated.
(8)
If any part of the district is located either within one-half of one
mile of a non-contracting municipal corporation or within an area
covered by or subject to a water or sewer service plan or agreement,
the contract shall include all of the following:
(a)
A preliminary estimate of the costs of providing public utility
services, facilities, and improvements to the district, prepared by a
professional engineer;
(b)
An analysis of the anticipated sources for funding the costs of the
public utilities infrastructure needed to serve the district and a
projection of when such funds will be available and when such costs
are likely to be incurred;
(c)
Evidence or estimates indicating that the construction of the public
utility infrastructure needed to serve at least some portion of the
district will be completed within five years after the creation of
the district.
(G)
The contract creating a joint economic development district shall
continue in existence throughout its term and shall be binding on the
contracting parties and on any parties succeeding to the contracting
parties, whether by annexation, merger, or consolidation. Except as
provided in division (H) of this section, the contract may be
amended, renewed, or terminated with the approval of the contracting
parties or any parties succeeding to the contracting parties. If the
contract is amended to add or remove an area to or from an existing
district, the amendment shall be adopted in the manner prescribed
under division (L) of this section.
(H)
If two or more contracting parties previously have entered into a
separate contract for utility services, then amendment, renewal, or
termination of the separate contract for utility services shall not
constitute any part of the consideration for the contract creating a
joint economic development district. A contract creating a joint
economic development district shall be rebuttably presumed to violate
this division if it is entered into within two years prior or five
years subsequent to the amendment, renewal, or termination of a
separate contract for utility services that two or more contracting
parties previously have entered into. The presumption stated in this
division may be rebutted by clear and convincing evidence of both of
the following:
(1)
That other substantial consideration existed to support the contract
creating a joint economic development district;
(2)
That the contracting parties entered into the contract creating a
joint economic development district freely and without duress or
coercion related to the amendment, renewal, or termination of the
separate contract for utility services.
A
contract creating a joint economic development district that violates
this division is void and unenforceable.
(I)(1)
Before the legislative authority of any of the contracting parties
adopts an ordinance or resolution approving a contract to create a
district, the legislative authority of each of the contracting
parties shall hold a public hearing concerning the contract and
district. Each legislative authority shall provide at least thirty
days' public notice of the time and place of the public hearing in a
newspaper of general circulation in the municipal corporation,
township, or county, as applicable. During the thirty-day period
prior to the public hearing and until the date that an ordinance or
resolution is adopted under division (K) of this section to approve
the joint economic development district contract, all of the
following documents shall be available for public inspection in the
office of the clerk of the legislative authority of a municipal
corporation and county that is a contracting party and in the office
of the fiscal officer of a township that is a contracting party:
(a)
A copy of the contract creating the district, including the economic
development plan for the district and the schedule for the provision
of new, expanded, or additional services, facilities, or improvements
described in division (F)(3) of this section;
(b)
A description of the area or areas to be included in the district,
including a map in sufficient detail to denote the specific
boundaries of the area or areas and to indicate any zoning
restrictions applicable to the area or areas, and the parcel number,
provided for under section 319.28 of the Revised Code, of any parcel
located within the boundaries of the joint economic development
district and excluded from the district under division (E)(2) of this
section;
(c)
If the contract authorizes the board of directors of the district to
adopt a resolution to levy an income tax within the district or
within portions of the district, a schedule for the collection of the
tax.
(2)
At least thirty days before the first public hearing is to be held by
one or more legislative authorities on a proposed district, notice
shall be sent in writing to each non-contracting municipal
corporation that is located within one-half of one mile of the
proposed district or that is identified in a water or sewer service
plan or agreement as a future provider of water or sewer services to
all or part of the proposed district.
(3)
A public hearing held under this division shall allow for public
comment and recommendations on the contract and district. The
contracting parties may include in the contract any of those
recommendations prior to approval of the contract.
(J)(1)
Before any of the contracting parties approves a contract under
division (K) of this section, the contracting parties shall circulate
one or more petitions to record owners of real property located
within the proposed joint economic development district and owners of
businesses operating within the proposed district. The petitions
shall state that all of the documents described in divisions
(I)(1)(a) to (c) of this section are available for public inspection
in the office of the clerk of the legislative authority of each
municipal corporation and county that is a contracting party or the
office of the fiscal officer of each township that is a contracting
party. The petitions shall clearly indicate that, by signing the
petition, the record owner or owner consents to the proposed joint
economic development district.
A
contracting party may send written notice of the petitions by
certified mail with return receipt requested to the last known
mailing addresses of any or all of the record owners of real property
located within the proposed district or the owners of businesses
operating within the proposed district. The contracting parties shall
equally share the costs of complying with this division.
(2)
If any portion of property located within the proposed joint economic
development district is also either located within one-half of one
mile of a non-contracting municipal corporation or covered by or
subject to a water or sewer service plan or agreement under which a
non-contracting municipal corporation is identified as a future
provider of water or sewer services to all or part of the proposed
district, then that property and any property contiguous to that
property if owned by the same person shall be excluded from the joint
economic development district unless the owner of the property signs
the petition.
(K)(1)
After the public hearings required under division (I) of this section
have been held and the petitions described in division (J) of this
section have been signed by the majority of the record owners of real
property located within the proposed joint economic development
district and by a majority of the owners of businesses, if any,
operating within the proposed district, each contracting party may
adopt an ordinance or resolution approving the contract to create a
joint economic development district. Not later than ten days after
all of the contracting parties have adopted ordinances or resolutions
approving the district contract, each contracting party shall give
notice of the proposed district to all of the following:
(a)
Each record owner of real property to be included in the district and
in the territory of that contracting party who did not sign the
petitions described in division (J) of this section;
(b)
An owner of each business operating within the district and in the
territory of that contracting party no owner of which signed the
petitions described in division (J) of this section.
(2)
Such notices shall be given by certified mail and shall specify that
the property or business is located within an area to be included in
the district and that all of the documents described in divisions
(I)(1)(a) to (c) of this section are available for public inspection
in the office of the clerk of the legislative authority of each
municipal corporation and county that is a contracting party or the
office of the fiscal officer of each township that is a contracting
party. The contracting parties shall equally share the costs of
complying with division (K) of this section.
(L)(1)
The contracting parties may amend the joint economic development
district contract to add any area that was not originally included in
the district if the area satisfies the criteria prescribed under
division (E) of this section. The contracting parties may also amend
the district contract to remove any area originally included in the
district or exclude one or more parcels located within the district
pursuant to division (E)(2) of this section.
(2)
An amendment adding an area to a district, removing an area from the
district, or excluding one or more parcels from the district may be
approved only by a resolution or ordinance adopted by each of the
contracting parties. The contracting parties shall conduct public
hearings on the amendment and provide notice in the manner required
under division (I) of this section for original contracts. The
contracting parties shall make available for public inspection a copy
of the amendment, a description of the area to be added, removed, or
excluded to or from the district, and a map of that area in
sufficient detail to denote the specific boundaries of the area and
to indicate any zoning restrictions applicable to the area.
(3)
Before adopting a resolution or ordinance approving the addition of
an area to the district, the contracting parties shall circulate
petitions to the record owners of real property located within the
proposed addition to the district and owners of businesses operating
within the proposed addition to the district in the same manner
required under division (J) of this section for original contracts.
The contracting parties may notify such record owners of real
property and owners of businesses that the petitions are available
for signing in the same manner provided by that division. The
contracting parties shall equally share the costs of complying with
this division.
(4)
The contracting parties to a joint economic development district may
vote to approve an amendment to the district contract under this
division after the public hearings required under division (L)(2) of
this section are completed and, if the amendment adds an area or
areas to the district, the petitions required under division (L)(3)
of this section have been signed by the majority of record owners of
real property located within the area or areas added to the district
and by a majority of the owners of businesses, if any, operating
within the proposed addition to the district.
(5)
Not later than ten days after all of the contracting parties have
adopted ordinances or resolutions approving an amendment adding one
or more areas to the district, each contracting party shall give
notice of the addition to all of the following:
(a)
Each record owner of real property to be included in the addition to
the district and in the territory of that contracting party who did
not sign the petitions described in division (L)(3) of this section;
(b)
An owner of each business operating within the addition to the
district and in the territory of that contracting party no owner of
which signed the petitions described in division (L)(3) of this
section.
The
contracting parties shall equally share the costs of complying with
division (L)(5) of this section.
(M)(1)
Except
as provided in division (M)(2) of this section, the designation of a
joint economic development district is subject to elector approval in
each contracting party that is a township or, if none of the
contracting parties are townships, a municipal corporation within
which all or part of the territory of the district is located and
that does not levy an income tax in accordance with Chapter 718. of
the Revised Code at a rate exceeding one per cent.
(2)
A
board of
township
trustees
that
is a party to a contract creating a joint economic development
district
of
a township or the legislative authority of a municipal corporation
described in division (M)(1) of this section
may
choose not to submit its
ordinance
or
resolution
approving the
joint
economic development district
contract
to the electors of the township
or
municipal corporation, respectively,
if
all of the following conditions are satisfied:
(a)
The
ordinance
or
resolution
has been approved by a unanimous vote of the members of the board
of
township trustees
or
legislative authority,
or,
if a county is one of the contracting parties under division (D) of
this section, the resolution has been approved by a majority vote of
the members of the board
of
township trustees
or
legislative authority
;
(b)
The contracting parties have circulated petitions as required under
division (J) of this section and obtained the signatures required
under division
(L)
(K)
of
this section;
(c)
The territory to be included in the proposed district is zoned in a
manner appropriate to the function of the district.
(2)
(3)
If
the
a
board
of
township
trustees
has
of
a township or the legislative authority of a municipal corporation
described in division (M)(1) of this section chooses
not
invoked
to
invoke
its
authority under division
(M)(1)
(M)(2)
of
this section,
or
if the conditions described by that division are not satisfied,
the
board
or legislative authority
,
at least ninety days before the date of the election, shall file its
ordinance
or
resolution
approving the district contract with the board of elections for
submission to the electors of the township
or
municipal corporation, respectively,
for
approval at the next succeeding general, primary, or special
election.
(3)
(4)
Any
contract creating a district in which a
board
of
township
trustees
or
municipal corporation described in division (M)(1) of this section
is
a party shall provide that the contract is not effective before the
thirty-first day after its approval, including approval by the
electors of the township
or
municipal corporation,
if
required by this section.
(4)
(5)
If
the
a
board
of
township
trustees
of a township or the legislative authority of a municipal corporation
described in division (M)(1) of this section
invokes its authority under division
(M)(1)
(M)(2)
of
this section and does not submit the district contract to the
electors for approval, the
ordinance
or
resolution
of
the board of township trustees
approving
the contract is subject to a referendum of the electors of the
township
or
municipal corporation
when
requested through a petition. When signed by ten per cent of the
number of electors in the township
or
municipal corporation
who
voted for the office of governor at the most recent general election,
a referendum petition asking that the
ordinance
or
resolution
be submitted to the electors
of
the township
may
be presented to the board of township trustees
or the legislative authority of the municipal corporation
.
Such a petition shall be presented within thirty days after the board
of
township trustees
or
legislative authority
adopts
the
ordinance
or
resolution
approving the district contract. The board
of
township trustees
or
legislative authority
shall,
not later than four p.m. of the tenth day after receipt of the
petition, certify the text of the
ordinance
or
resolution
to the board of elections. The board of elections shall submit the
resolution to the electors of the township
or
municipal corporation
for
their approval or rejection at the next general, primary, or special
election occurring at least ninety days after certification of the
ordinance
or
resolution.
(N)
The ballot respecting
a
an
ordinance or
resolution
to create a district or a referendum of such a resolution shall be in
the following form:
"Shall
the
resolution
_________
(ordinance or resolution)
of
_______________(here
insert name of
the
board
of
township
trustees
or
municipal corporation)
approving
the contract with
...............
_______________
(here
insert name of every other contracting party) for the creation of a
joint economic development district
(JEDD)
be approved?
FOR
THE
RESOLUTION
AND
JEDD
CONTRACT
AGAINST
THE
RESOLUTION
AND
JEDD
CONTRACT"
If
a majority of the electors of the township
or
municipal corporation
voting
on the issue vote for the
resolution
and
joint
economic development district
contract,
the
ordinance
or
resolution
shall become effective immediately and the contract shall go into
effect on the thirty-first day after the election or thereafter in
accordance with terms of the contract.
(O)
Upon the creation of a district under this section, one of the
contracting parties shall file a copy of each of the following
documents with the director of development:
(1)
All of the documents described in divisions (I)(1)(a) to (c) of this
section;
(2)
Certified copies of the ordinances and resolutions of the contracting
parties relating to the contract and district;
(3)
Documentation from each contracting party that the public hearings
required by division (I) of this section have been held, the date of
the hearings, and evidence that notice of the hearings was published
as required by that division;
(4)
A copy of the signed petitions required under divisions (J) and (K)
of this section.
(P)
A board of directors shall govern each district created under this
section.
(1)
If there are businesses operating and persons employed within the
district, the board shall be composed of the following members:
(a)
One member representing the municipal corporations that are
contracting parties;
(b)
One member representing the townships that are contracting parties
,
or, if no contracting party is a township, a second member
representing the municipal corporations that are contracting parties
;
(c)
One member representing the owners of businesses operating within the
district;
(d)
One member representing the persons employed within the district;
(e)
One member representing the counties that are contracting parties,
or, if no contracting party is a county, one member selected by the
members described in divisions (P)(1)(a) to (d) of this section.
The
members of the board shall be appointed as provided in the district
contract. Of the members initially appointed to the board, the member
described in division (P)(1)(a) of this section shall serve a term of
one year; the member described in division (P)(1)(b) of this section
shall serve a term of two years; the member described in division
(P)(1)(c) of this section shall serve a term of three years; and the
members described in divisions (P)(1)(d) and (e) of this section
shall serve terms of four years. Thereafter, terms for each member
shall be for four years, each term ending on the same day of the same
month of the year as did the term that it succeeds. A member may be
reappointed to the board, but no member shall serve more than two
consecutive terms on the board.
The
member described in division (P)(1)(e) of this section shall serve as
chairperson of the board described under division (P)(1) of this
section.
(2)
If there are no businesses operating or persons employed within the
district, the board shall be composed of the following members:
(a)
One member representing the municipal corporations that are
contracting parties;
(b)
One member representing the townships that are contracting parties
,
or, if no contracting party is a township, a second member
representing the municipal corporations that are contracting parties
;
(c)
One member representing the counties that are contracting parties, or
if no contracting party is a county, one member selected by the
members described in divisions (P)(2)(a) and (b) of this section.
The
members of the board shall be appointed as provided in the district
contract. Of the members initially appointed to the board, the member
described in division (P)(2)(a) of this section shall serve a term of
one year; the member described in division (P)(2)(b) of this section
shall serve a term of two years; and the member described in division
(P)(2)(c) of this section shall serve a term of three years.
Thereafter, terms for each member shall be for four years, each term
ending on the same day of the same month of the year as did the term
that it succeeds. A member may be reappointed to the board, but no
member shall serve more than two consecutive terms on the board.
The
member described in division (P)(2)(c) of this section shall serve as
chairperson of a board described under division (P)(2) of this
section.
(3)
A board described under division (P)(1) or (2) of this section has no
powers except as described in this section and in the contract
creating the district.
(4)
Membership on the board of directors of a joint economic development
district created under this section is not the holding of a public
office or employment within the meaning of any section of the Revised
Code prohibiting the holding of other public office or employment.
Membership on such a board is not a direct or indirect interest in a
contract or expenditure of money by a municipal corporation,
township, county, or other political subdivision with which a member
may be affiliated. Notwithstanding any provision of law to the
contrary, no member of a board of directors of a joint economic
development district shall forfeit or be disqualified from holding
any public office or employment by reason of membership on the board.
(5)
The board of directors of a joint economic development district is a
public body for the purposes of section 121.22 of the Revised Code.
Chapter 2744. of the Revised Code applies to such a board and the
district.
(Q)(1)
On or before the date occurring six months after the effective date
of the district contract, an owner of a business operating within the
district may, on behalf of the business and its employees, file a
complaint with the court of common pleas of the county in which the
majority of the territory of the district is located requesting
exemption from any income tax imposed by the board of directors of
the district under division (F)(5) of this section if all of the
following apply:
(a)
The business operated within an unincorporated area of the district
before the effective date of the district contract;
(b)
No owner of the business signed a petition described in division (J)
of this section;
(c)
Neither the business nor its employees has derived or will derive any
material benefit from the new, expanded, or additional services,
facilities, or improvements described in the economic development
plan for the district, or the material benefit that has, or will be,
derived is negligible in comparison to the income tax revenue
generated from the net profits of the business and the income of
employees of the business.
The
legislative authority of each contracting party shall be made a party
to the proceedings and the business owner filing the complaint shall
serve notice of the complaint by certified mail to each such
contracting party. The court shall not accept any complaint filed
more than six months after the effective date of the district
contract.
(2)
Any or all of the contracting parties may submit a written answer to
the complaint submitted under division (Q)(1) of this section to the
court within thirty days after notice of the complaint was served
upon them. Such a contracting party shall submit to the court, along
with the answer, documentation sufficient to prove that the
contracting party sent copies of the answer to the owner of the
business who filed the complaint.
(3)
The court shall review each complaint submitted by a business owner
under division (Q)(1) of this section and each answer submitted by a
contracting party under division (Q)(2) of this section. The court
may make a determination on the record and the evidence thus
submitted, or it may conduct a hearing and request the presence of
the business owner and the contracting parties to present evidence
relevant to the complaint. The court shall make a determination on
the complaint not sooner than thirty days but not later than sixty
days after the complaint is filed by the business owner. The court
may make a determination more than sixty days after the complaint is
filed if the business owner and all contracting parties to the
district consent.
(4)
The court shall grant the exemption requested in the complaint if all
of the criteria described in divisions (Q)(1)(a) to (c) of this
section are met.
(5)
If all the criteria described in divisions (Q)(1)(a) to (c) of this
section are not met, the court shall deny the complaint and the
exemption.
(6)
The court shall send notice of the determination with respect to the
complaint to the owner of the business and each contracting party. If
the court grants the exemption, the net profits of the business from
operations within the district and the income of its employees from
employment within the district are exempt from any income tax imposed
by the board of directors of the district. If the court denies the
exemption, the net profits of the business and the income of its
employees shall be taxed according to the terms of the district
contract and any taxes, penalties, and interest accrued before the
date of the court's determination shall be paid in full. In addition,
no owner of the business may submit another complaint under division
(Q)(1) of this section for the same district contract. The court's
determination on a complaint filed under division (Q) of this section
is final.
(7)
Chapter 2506. of the Revised Code does not apply to the proceedings
described in division (Q) of this section.
(R)(1)
No proceeding pursuant to Chapter 709. of the Revised Code that
proposes the annexation to, merger of, or consolidation with a
municipal corporation of any unincorporated territory within a joint
economic development district may be commenced at any time between
the effective date of the contract creating the district and the date
the contract expires, terminates, or is otherwise rendered
unenforceable. This division does not apply if each board of township
trustees whose territory is included within the district and whose
territory is proposed to be annexed, merged, or consolidated adopts a
resolution consenting to the commencement of the proceeding. Each
such board of township trustees shall file a copy of the resolution
with the clerk of the legislative authority of each county within
which a contracting party is located.
(2)
The contract creating a joint economic development district may
prohibit any annexation proceeding by a contracting municipal
corporation of any unincorporated territory within the district or
zone beyond the period described in division (R)(1) of this section.
(3)
No contracting party is divested or relieved of its rights or
obligations under the contract creating a joint economic development
district because of annexation, merger, or consolidation.
(S)
Contracting parties may enter into agreements pursuant to the
contract creating a joint economic development district with respect
to the substance and administration of zoning and other land use
regulations, building codes, permanent public improvements, and other
regulatory and proprietary matters determined to be for a public
purpose. No contract, however, shall exempt the territory within the
district from the procedures of land use regulation applicable
pursuant to municipal corporation, township, and county regulations,
including, but not limited to, zoning procedures.
(T)
The powers granted under this section are in addition to and not in
the derogation of all other powers possessed by or granted to
municipal corporations, townships, and counties pursuant to law.
(1)
When exercising a power or performing a function or duty under a
contract entered into under this section, a municipal corporation may
exercise all the powers of a municipal corporation, and may perform
all the functions and duties of a municipal corporation, within the
district, pursuant to and to the extent consistent with the contract.
(2)
When exercising a power or performing a function or duty under a
contract entered into under division (D) of this section, a county
may exercise all of the powers of a county, and may perform all the
functions and duties of a county, within the district pursuant to and
to the extent consistent with the contract.
(3)
When exercising a power or performing a function or duty under a
contract entered into under this section, a township may exercise all
the powers of a township, and may perform all the functions and
duties of a township, within the district, pursuant to and to the
extent consistent with the contract.
(U)
No political subdivision shall grant any tax exemption under Chapter
1728. or section 3735.67, 5709.62, 5709.63, or 5709.632 of the
Revised Code on any property located within the district without the
consent of all the contracting parties. The prohibition against
granting a tax exemption under this section does not apply to any
exemption filed, pending, or approved before the effective date of
the contract entered into under this section.
Section
2.
That
existing section 715.72 of the Revised Code is hereby repealed.