JEDDs and JEDZs: New Uses, New Trends, New Benefits Presented by: John B. Albers Presented to the Ohio Township Association Winter Conference, February 2014 2014 Albers & Albers - All Rights Reserved 1
The information contained in this presentation should not be considered legal advice. Please consult your legal counsel to ensure compliance with the law. 2014 Albers & Albers - All Rights Reserved 2
Comparative Analysis: Joint Economic Development Districts (JEDD) Joint Economic Development Zone (JEDZ) Cooperative Economic Development Agreement (CEDA) Annexation Agreements (AA) *(See also Contracts to Exercise Power, Perform Function or Render Service Under 9.482) 2014 Albers & Albers - All Rights Reserved
Purpose JEDD ORC 715.72-715.83 To facilitate economic growth, create or preserve jobs and employment opportunities in the District and State. JEDZ ORC 715.691 To facilitate economic growth for commercial or economic development. 2014 Albers & Albers - All Rights Reserved 4
Parties Who May Enter Into Agreement JEDD ORC 715.72-715.83 Municipal Corporation(s) Township(s) JEDZ ORC 715.691 Municipal Corporation(s) Township(s) 2014 Albers & Albers - All Rights Reserved 5
Contiguity of the Parties JEDD ORC 715.72-715.83 JEDZ ORC 715.691 Not necessarily contiguous to one another, but contiguous to territory of a township, municipality or county that is contiguous to another contracting party. No contiguity requirement. 2014 Albers & Albers - All Rights Reserved 6
Territory Within District(s), Zone(s), Area(s); Limits; Contiguity JEDD ORC 715.72-715.83 District may be located within one or more of the contracting parties. No electors may reside in District. No property of any township or municipal corporation included without its consent. If more than one District, no requirement that they be contiguous. Requires consent of 51% of landowners & business owners in JEDD. JEDZ ORC 715.691 Zone may be located within one or more of the contracting parties. Electors may reside in Zone, but then additional vote required. If more than one Zone, no requirement that they be contiguous. Consent of landowners not required. Consent of landowners not required. 2014 Albers & Albers - All Rights Reserved 7
Terms of Agreement JEDD ORC 715.72-715.83 Applies to commercial/industrial property only. JEDD Board may levy income tax on income earned and net profits of businesses in JEDD, and it may be shared. Annexation of territory within JEDD prohibited for three years after contact signed, and beyond three years if contract specifies. Board of Directors appointed. JEDZ ORC 715.691 Usually applies to commercial/industrial property only. JEDZ Board may levy an income tax on income earned and net profits of businesses in Zone. Board of Directors appointed. 2014 Albers & Albers - All Rights Reserved 8
Sharing of Tax Revenue JEDD ORC 715.72-715.83 Permits sharing of property and income tax revenue. JEDZ ORC 715.691 Levy of income tax may be subject to election. Tax proceeds to be used solely for the purposes of the municipal corporation and the Zone and the Township. 2014 Albers & Albers - All Rights Reserved 9
Public Approval/Vote on Establishment of JEDD, JEDZ, CEDA, AA JEDD ORC 715.72-715.83 Vote of township electorate can be avoided. Submitted to electors for vote in some cases. Board s approval of contract subject to referendum. JEDZ ORC 715.691 Vote of township electorate required. 2014 Albers & Albers - All Rights Reserved 10
Changes/Amendme nts JEDD ORC 715.72-715.83 May be amended. Also, may expand area later in same manner as initially authorized, but approval of township electors not required. JEDZ ORC 715.691 Any change permitted with consent of all parties. 2014 Albers & Albers - All Rights Reserved 11
Can Tax Exemptions Be Granted Within the District, Zone, or Area? JEDD ORC 715.72-715.83 With consent of the parties. JEDZ ORC 715.691 No prohibition. 2014 Albers & Albers - All Rights Reserved 12
Joint Economic Development Districts (JEDDs) Joint Economic Development Zones (JEDZs) What Are They in General Terms? Why Use Them? 2014 Albers & Albers - All Rights Reserved 13
When Can You Use JEDDs and JEDZs? 5 Most Important Factors 1. Where is the Property Located? Easily Annexable? See Figures 1 & 2 2014 Albers & Albers - All Rights Reserved 14
Municipality Figure 1 Township Easily Annexable 2014 Albers & Albers - All Rights Reserved 15
U.S. Rt. 66 JEDD District (Interchange Area) Municipality Route 1 1 mile Township Figure 2 Not Easily Annexable JEDD District (Industrial Park) 2014 Albers & Albers - All Rights Reserved 16
When Can You Use JEDDs and JEDZs? 5 Most Important Factors 2. Are Businesses Located in the District or Zone? Future Development Only? 2014 Albers & Albers - All Rights Reserved 17
When Can You Use JEDDs and JEDZs? 5 Most Important Factors 3. Does Business/Property Owner Consent to be Included in the JEDD? Consent Not Needed for JEDZ Leverage: Water, Sewer, Tax Abatement, TIFs, Subdivision Approval, Other Amenities 2014 Albers & Albers - All Rights Reserved 18
When Can You Use JEDDs and JEDZs? 5 Most Important Factors 4. What Items are Needed from Municipality and Township to make District or Zone Development Ready? Fire, EMS, Police, Water, Sewer, Tax Abatement? 2014 Albers & Albers - All Rights Reserved 19
When Can You Use JEDDs and JEDZs? 5 Most Important Factors 5. Will Income Tax Make Property Less Competitive? 2014 Albers & Albers - All Rights Reserved 20
New Uses, New Trends, New Benefits Annexation Assist Schools Intergovernmental Cooperation Use of Governmental Councils (COGs) 2014 Albers & Albers - All Rights Reserved 21
Questions? John B. Albers Eric J. Luckage Anita T. Doran ALBERS & ALBERS 88 N. Fifth Street Columbus, OH 43215 (614) 464-4414 john.albers@alberslaw.com eric.luckage@alberslaw.com anita.doran@alberslaw.com www.alberslaw.com 2014 Albers & Albers - All Rights Reserved 22