Large TIFs may be eligible for one-time extension opportunity

Jan 29, 2020 | News, Newsletter

Jeffry Harris
Bricker & Eckler LLP

 

 

During fall 2019, the General Assembly changed Ohio law governing tax increment financing (“TIF”) exemptions in a big way.  For certain TIF projects, local communities can extend the exemptions – and therefore continue to redirect property tax millage to necessary public infrastructure improvements – up to 30 additional years.

Long used as a go-to project financing tool by Ohio’s local economic development practitioners, TIF allows communities to offset the costs of needed public infrastructure improvements with service payments in-lieu of taxes.  This most recent change is noteworthy.

The TIF law change – found in new Section 5709.51 of the Ohio Revised Code – allows municipalities, townships, and counties a one-time opportunity to amend their TIF ordinances by extending exemptions for up to another 30 years.

The law change only allows such extensions for large development projects.  Urban redevelopment TIFs and parcel TIFs created by municipalities, townships, and counties, for which service payments in-lieu of taxes were paid in excess of $1.5 million during 2019, may be extended under this change.

If an extension is adopted by the local community, the schools must be “made whole” by compensation payments during the extended term.

The Public Finance team of attorneys at Bricker & Eckler LLP are available to help local economic developers understand whether their TIF projects qualify, and how to employ these extensions of up to 30 years.  We welcome local development practitioners to reach out to our team at Bricker with questions or to obtain more information.

 

#######

HB168/BFPD Informational Webinar

Join a discussion, hosted by the Greater Ohio Policy Center (GOPC), to learn about the recently passed HB168, which establishes the bona fide purchaser defense (BFPD) into Ohio law. The establishment of the BFPD into Ohio law better aligns Ohio law with federal standards, and aims to encourage the redevelopment of lightly contaminated brownfield sites.

read more

An Open Letter to OEDA’s Members and Ohio’s Economic Development Community

OEDA has been listening and learning as the issues around systemic racism have been brought to the forefront and captured the nation’s attention.  It is devastating that the deaths of Ahmaud Arbery, Breonna Taylor, and George Floyd—and, sadly, the indisputable video evidence of their killings—became the catalysts for our country to collectively pay attention and admit that systemic racism exists. What is also indisputable is that the time for change is now.

read more