Annexation Agreements and Cooperative Economic Development Agreements

Transcription

1 CHAPTER10 Annexation s Cooperative Economic Development s Introduction Annexation s cooperative economic development s (CEDA s) were established f purpose facilitating cooperation between among local governments promote economic development providing appropriate furr growth in a local community. Annexation s are authized described in ORC SB 5. CEDA s were enacted as ORC contained in HB nd General Assembly were effective in March The provisions regarding ir fmation subject matter which may be addressed two different s are almost identical. There are only very min variances between two sections. The emphasis is upon negotiation between municipal wnship governments f a service plan which is structured benefit a specified terriry defined in. ORC ORC These s are relevance commissioners in annexation matters in four ways: A. The may be asked become a party an. B. An is a required element f an Expedited Type 1 Annexation. C. Withdrawal terriry from a wnship may be affected an. D. Compensation wnships, also referred as reparations revenue sharing, required as a result a regular annexation may be affected an. Creation s The primary parties an are municipal wnship governments. The may be a party an. County participation, however, requires both a resolution board separate approval each wnship that are parties. The State Ohio any or entity may also become a party with separate approval each wnship that are parties. These s may be entered in f any length time may be amended extended at any time. Maj distinctions between creation an annexation a CEDA are: CCAO ANNEXATION MANUAL p. 79

2 Issue Annexation CEDA Parties Only involved in annexation one me wnship(s). One me cities / one me wnships. State Involvement Requires approval Direcr Development. Requires approval Govern. P ublic Approval None required. Public inspection. Available f 30 days pri a hearing jointly held wnship(s). Contents s Ohio law authizing both types s contains exhaustive lists, functions, activities that any one parties may take facilitate purpose an. The law also includes a final catch all provision which allows parties contract on any or matter generally concerning annexation development. The sections also indicate that terms an are be given a liberal construction in der allow governments maximum flexibility in accomplishing goals y intended entering in an. While s may not provide f sharing proceeds any tax levy between local governments, y may allow local government collecting property tax use proceeds make payments authized. The only restraint upon terms an is that it must not be in derogation municipal home rule powers, any or provision Ohio Constitution, provisions charter a that is a party. The following table summarizes permissible provisions both annexation s cooperative economic development s: Annexation Cooperative Economic Development T erriry be annexed. Periods time during which no annexations will occur any areas that will not be annexed. L use planning matters. No provision. Provision joint permanent improvements within incpated unincpated areas. Provision improvements in unincpated areas. p. 80 Chapter 10 - Annexation s Cooperative Economic Development s

3 CCAO ANNEXATION MANUAL p. 81 Annexation Development Economic Cooperative improvements Provision in. wnship improvements Provision in. wnship fees wnship. wnship. wnship fees service. wnship fees service. between millage inside Reallocation annexed. in areas wnship provision. No f wnship Issuance authized purposes retirement. f provisions,, Issuance purpose f wnship service. f provisions provision. No bonds revenue industrial Issuance projects finance outside also may Municipality provisions. service 165, ORC Chapters projects take revenue with industrial dealing , development, economic municipal bonds,. outside finance agricultural with wnship s be proposed l developers owners provision concerning annexed permanent facilities,, improvements. wnship s with lowner provision concerning developers permanent facilities,, improvements. statutes. abatement tax application he T. Same exclude boundaries wnship Changing 503 Chapter terriry annexed newly terriry. provision provision. No fund general from its Earmaking outside collects it charges utility ption a not does if annexation. relating matters include paid be taxes in lieu s in be which may wnship required payments or in lieu addition law. annexation pertaining matter or Any privately-owned ly development terriry.

4 County Commissioner Considerations The may be asked become a party an wnship. Under both types s, a may become a party an if it chooses do so. Commissioners must adopt a resolution authizing s participation, each wnship must also approve s participation. In case an annexation only, if State Ohio is a party, Direcr Development must also approve s participation. Under ORC f Expedited Type 1 Annexations, petition may not even be filed unless accompanied a certified copy an annexation CEDA adopted between annexing terriry all wnships which include terriry that is part proposed annexation. Under ORC f Expedited Type 2 Annexations ORC f Expedited Type 3 Annexations, terriry be annexed may not be excluded from wnship is remain a part wnship s tax base. However, if an annexation CEDA adopted pri annexation allows f property be excluded, terms take precedent over statute. In case regular annexations ORC , annexation law provides f reparation payments be made wnship if property is excluded from wnship ORC The schedule payments is explained in Chapter 11 this manual, provided f in ORC If, however, an annexation CEDA is executed that makes provisions that are different from default provisions specified in ORC , provisions included in prevail. p. 82 Chapter 10 - Annexation s Cooperative Economic Development s

5 CHAPTER11 Property Tax s Townships Municipalities Following Annexation & Removal Terriry Background While annexation is process extending a s boundaries outward, such process does not aumatically result in removal l from wnship in which it is situated. A second process, commonly referred as withdrawal l being excluded, must occur remove l from wnship s jurisdiction change wnship s boundaries. When l is annexed removed from wnship igin, new law will require receiving terriry provide compensation f lost property tax wnship igin. These payments are sometimes referred as reparations revenue sharing are supposed help compensate, on a limited basis, wnship f loss l its tax revenue. The new law provides f a 12-year declining payment schedule when l is excluded from wnship subsequent an annexation petition filed new law starting Ocber 26, Withdrawals which occur on after Ocber 26, 2001, but whose annexation was effective pri Ocber 26, 2001, are not subject mary payment schedule outlined in this chapter. However, a wnship may develop an alternative arrangement through annexation s, cooperative economic development s, alternative reparations s. These s apply in lieu payment scheduled outlined in this chapter. Stard Compensation f Residential & Retail Property The terms residential retail property mean property classified as such tax commissioner f purposes valuing property f taxation. No retail property is be included with property classified as commercial property. When terriry is annexed excluded from wnship, receiving terriry must make payments wnship. The following schedule is based on l that is classified as residential retail property using property valuation f ORC year that payment is due (rar than at time annexation occurred), (A) & (D) includes percentage wnship taxes due wnship if annexation had not occurred: CCAO ANNEXATION MANUAL p. 83

6 A. Years 1 through % B. Years 4 through % C. Years 6 through % D. Years 11 through % E. After year 12 0% Stard Compensation f Commercial & Industrial Property The terms commercial industrial property mean property classified as such tax commissioner f purposes valuing property f taxation. Commercial property does not include any property classified as retail. When terriry is annexed excluded from wnship, receiving terriry must make payments such wnship. The following schedule is based on l that is classified as commercial industrial property using property valuation f year that payment is due (rar than at time annexation occurred) includes percentage wnship taxes due wnship f commercial industrial real, personal, utility property taxes due wnship if no annexation had occurred: A. Years 1 through % B. Years 4 through % C. Years 6 through % D. Years 8 through % E. Years 10 through % F. After year 12 0% ORC (A) & (C) If tax abatements have been granted on all ptions terriry annexed excluded, is still responsible make payments outlined above, as if tax abatements had not been granted. No reduction is granted. Alternative Compensation s Alternative compensation s may be negotiated accepted both wnships. Two methods are through annexation s cooperative economic development s, which are discussed furr in Chapter 10. ORC (B) ORC A third method is through alternative reparations s authized ORC which was not changed new annexation law. This section provides that, in lieu making stard compensation payments f any proposed annexation that does not require payments, wnship can enter in an make annual payments wnship compensate f lost tax revenues. The must state amount payments number payments be p. 84 Chapter 11 - Property Tax s Townships Municipalities Following Annexation & Removal

7 made. It appears, however, that this current section law may no longer have practical applicability given changes that have been made in ORC If a fails make a payment pursuant a reparations, wnship must notify budget commission in writing amount owed. The budget commission shall reduce amount apptioned from undivided local government fund amount payment due wnship increase, an equal amount, amount apptioned wnship from undivided local government fund. International Airpt Provision A may annex an international airpt that owns. If it does, ORC must pay wnship 100% wnship taxes in annexed terriry that would have been due wnship if annexation had not occurred. The payments are last f next 25 years (E) & annually, (F) unless wnship enter in an alternative contract. Under an alternative contract, wnship agrees provide annexed terriry with police, fire, or it is authized provide in exchange f specific consideration as agreed upon wnship. In no instance can consideration received wnship be less than payments wnship would have received without an alternative contract - that is, 100% wnship taxes each year f 25 years. It should also be noted that no terriry annexed as an international airpt owned a shall be considered part f purposes subsequent annexation, except that board commissioners may authize subsequent annexation se circumstances if board determines that subsequent annexation is necessary continued operation international airpt. ORC (E) & (F) CCAO ANNEXATION MANUAL p. 85