H.B. 110 – Ohio’s recently enacted budget bill – has changed the definition of “Public Infrastructure Improvement” in R.C, 5709.40(A) to add language which will now permit off-street parking facilities to be financed with PILOTs, including those off-street parking facilities in which all or a portion of the parking spaces are reserved, i.e. non-public, when such reserved use is determined to be necessary for economic development purposes.

H.B. 110 also enacts new R.C. 5713.083 which require owners of exempt property to notify their respective county auditor (on a to be developed Ohio Dept. of Taxation form) as to the property’s ceasing to be exempt from real property taxes, with charges imposed for an owner’s failure to so notify.

H.B. 110 lastly provides the below specificity regarding when an urban redevelopment TIF (R.C. 5709.41) commences:

  • A 5709.41 TIF exemption commences on the effective date of the TIF ordinance and with the tax year specified in the TIF ordinance so long as the year specified in the TIF ordinance commences after the  effective date of the ordinance.
  • If the 5709.41 TIF ordinance specifies a year commencing before the effective date of the ordinance or specifies no year,  the 5709.41 TIF 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 TIF ordinance.
  • In lieu of stating a specific year, the  5709.41 TIF 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 5709.41 TIF ordinance.
  • In lieu of stating a specific year, the 5709.41 TIF ordinance may allow for the exemption to  commence in different tax years on a parcel-by-parcel basis, with a separate  exemption term specified for each parcel. The exemption ends on the date specified in the ordinance as the date the improvement ceases to be a public purpose.

In addition to the Brownfield Remediation Grant Program, H.B. 110 also creates within Ohio Department of Development (ODOD) a new grant program (new R.C. 122.6512) that covers up to 75% of a project’s total cost to demolish commercial and residential buildings and revitalization of surrounding non-brownfield properties. The new grant program is called the Building Demolition and Site Revitalization Program. H.B. 110 provides that the Ohio Department of Development will determine eligibility for the new program via administrative rule. The program must be operational and accepting application within 90 days of budget bill’s effective date (September 29, 2021). H.B. 110 appropriates $150 million for the new program for state  fiscal year 2022. H.B. 110 further provides that $500,000 will be reserved for each Ohio county for the first year of the program with all remaining funds after such reservation awarded by ODOD on a first-come first served basis. There is authority to re-appropriate any unencumbered balance of funds in the program to SFY 2023.

Recently enacted H.B. 110, the State of Ohio’s Budget Bill, has created a new grant program (O.R.C. 122.6511) to cover up to 75% of a project’s total cost to help remediate brownfields. The program, called the Brownfield Remediation Program, resides within newly renamed Ohio Department of Development (ODOD). H.B. 110 provides that the Director of Ohio Department of Development will determine project eligibility, project sponsor eligibility and administration for the new program pursuant to administrative rule. The program must be operational and accepting application within 90 days of budget bill’s effective date (September 29, 2021). H.B. 110 appropriates $350 million for the new program for state fiscal year 2022. Of that amount, H.B 110 further provides that $1 million will be reserved for each Ohio county for the first year of the program with all remaining funds after such reservation awarded by the ODOD on a first-come, first served basis. There is authority to re-appropriate any unencumbered balance of funds in the program to state fiscal year 2023.

H.B. 110 has made certain changes to Ohio’s Joint Economic Development District (JEDD) law pursuant to newly enacted R.C. 715.72(A)(10), (11); and (J)(2). The new provisions relate both to the creation of a new JEDD or amending an existing JEDD Agreement. It requires new notices, new JEDD Agreement terms, and exclusions of land from JEDDs if any part of the JEDD is located either within one-half of one mile of a municipal corporation that is not a party to the JEDD Agreement or is within an area covered by or subject to a water or sewer service plan or agreement. Unless an owner of any such land signs the JEDD Petition, such land must be excluded from the JEDD District.

Newly enacted R.C. 122.17(A)(11) and (D)(2)(c) creates a new “megaproject” designation in the state’s Job Creation Tax Credit program. The new provisions allow a tax credit of up to 30 years for very large projects, defined as at least $1B in capital investment or $75million/year in new payroll and average wages at least 300% of the federal minimum wage. The new provisions also allow JCTC recipients to include work-from-home employees in their job creation calculations (new R.C. 122.17(T). In addition, “megaprojects” were added into the Community Reinvestment Area (CRA) program (new R.C. 3735.65(E)) authorizing local jurisdictions to award additional 15 years of tax exemptions to megaprojects.

  • H.B. 110 enacts new R.C. 122.17(C)(2) to establish a new rank-ordering of Job Retention Tax Credit application priorities (new R.C. 122.171(C)(2)).
  • H.B. 110 makes a change to the State of Ohio’s Opportunity Zone tax credits (R.C. 122.84) to  increase to $2 million limits on credits awarded to individual taxpayers each fiscal biennium;
  • H.B. 110 helps further define production contractors from those which may claim the state’s film and theater tax credit (R.C. 122.85);
  • H.B. 110 authorizes an income tax deduction for capital gains received by investors in certain Ohio-based venture capital operating companies (new R.C. 122.851);
  • H.B. 110 lastly authorizes an extension of the state’s Transformational Mixed Use Tax Credit (R.C. 122.09) from 2023 to 2025 and sets at $100 million the maximum annual credit allotment during those two extra years.

The Zanesville-Muskingum County Port Authority’s new National Road Business Park recently received the prestigious “Best Site Development or Building Project award” from Ohio Southeast Economic Development. The Port Authority hopes that the park, which has up to ten sites outfitted with water, sewer and electric services, will attract businesses to the area. The Port Authority noted that companies have been eyeing the site, which is ready to house commercial occupants.

Read more at the Zanesville Times Recorder.

The U.S. Department of Housing and Urban Development announced that it is awarding a $35 million grant to the Cleveland Metropolitan Housing Authority (CMHA) and the City of Cleveland to rebuild an aging public housing complex in the Cleveland’s Buckeye-Woodhill neighborhood. The complex currently consists of 487 units, which will be replaced by 800 mixed-income rental homes.

This Choice Neighborhoods Implementation Grant is part of a larger push by community actors to revitalize the area. CMHA was approved for a federal Choice Neighborhoods Planning Grant in 2018, and has partnered with various local organizations including The Community Builders, Inc., Care Alliance, the Cleveland Metropolitan School District, Cleveland Neighborhood Progress and the Council for Economic Opportunities. Nationally, the $35 million grant is part of $160 million that the Department of Housing and Urban Development is distributing to revitalize public housing in underserved communities.

The completed project, which draws funding from a variety of sources, will include newly-built subsidized housing, additional rentals, an early childhood education center, a health clinic, and new space for retailers to move in. The project will also assist community members access resources including jobs, educational opportunities and healthcare. The first phase of construction is slated to begin this fall – a mixed-income apartment building located at 9527 Buckeye Road.

Rather than using the State of Ohio’s Chapter 166 Loan Program, the Lawrence Economic Development Corporation (LEDC) recently found that the newly refunded State of Ohio Rural Industrial Park Loan (RIPL) Program was a better fit to finance the construction of a 30,000 sf speculative building in Lawrence County’s South Point Industrial Park and a 19,135 sq. ft. facility in Ironton that will attract new businesses and accommodate existing business expansion in Lawrence County.

By way of background, the State’s newly refunded Rural Industrial Park Loan Program (RIPL) promotes economic development by providing low-interest direct loans to assist counties, municipalities, townships, non-profit organizations, port authorities, community improvement corporations, and private developers in financing the development and improvement of industrial parks and related off-site public infrastructure improvements.

Continue Reading Ohio Rural Development Loan Program Successfully Finances Two New Spec Industrial Buildings in Lawrence County