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Harrison council approves TIF ordinance; attorney explains referendum, school compensation
Summary
Council approved a tax-increment financing (TIF) ordinance Oct. 21 that establishes a TIF area, creates a tax increment equivalent fund, includes a school compensation agreement with Southwest Local School District and declares an emergency to shorten referendum timing, city counsel said.
The Harrison City Council voted Oct. 21 to approve an ordinance establishing a tax-increment financing (TIF) area and related tax increment equivalent fund under Ohio Revised Code section 5709.40(b), city special counsel Andrew Spore said during the meeting.
Spore told the council the ordinance "is just establishing the tax increment area" and "it's not actually committing any funds to any purpose at this point," explaining the TIF is primarily an accounting mechanism. He said the ordinance exempts improvements over a specified property area from real property taxation for the TIF and creates an increment-equivalent fund into which future revenues would be deposited if they are generated. Spore also explained an emergency declaration was included to shorten the referendum period and allow the TIF to be final before related development deadlines; he added that the Southwest Local School District board approved a related school compensation agreement on Sept. 18.
Spore said the city still retains discretion over whether and how to spend any revenues that might flow into the increment-equivalent fund, and that detailed spending or commitments would come in subsequent legislative steps. "The TIF ordinance itself would not go into effect until, November 20 approximately," he said, noting the emergency declaration advances the effective date.
After discussion, the council approved the ordinance on roll call. The vote recorded council members in favor; the ordinance establishes the TIF framework and authorizes the mayor to execute the attached school compensation agreement once the TIF is passed. The ordinance text referenced Ohio Revised Code section 5709.40(b).
