(A) Area designated as the Bowling Green Community Reinvestment Area East and Bowling Green Community Reinvestment Area West constitutes an area in which housing facilities or structures of historical significance are located, and in which new construction or remodeling of existing structures has been discouraged.
(B) Pursuant to R.C. § 3735.66, the Bowling Green Community Reinvestment Area East is hereby established and shall consist of all existing and future parcels of land located within and bounded by the Bowling Green municipal corporation limits east of the existing designated pre-1994 Community Reinvestment Area 2 and west of the existing designated pre-1994 Community Reinvestment Area 3 and excluding existing designated pre-1994 Community Reinvestment Areas, as depicted in the outlined area on the map attached hereto as "Exhibit A" and incorporated herein by this reference, and wherein only those dwellings, and commercial or industrial properties, consistent with applicable zoning regulations, and otherwise satisfying the requirements of R.C. § 3735.67 and this section are eligible for incentives hereunder.
(C) Pursuant to R.C. § 3735.66, the Bowling Green Community Reinvestment Area West is hereby established and shall consist of all existing and future parcels of land located within and bounded by the Bowling Green municipal corporation limits west of the existing designated pre-1994 Community Reinvestment Area 2 and south of the existing designated pre-1994 Community Reinvestment Area 1 and excluding existing designated pre-1994 Community Reinvestment Areas, as depicted in the outlined area on the map attached to Ordinance No. 9179 as "Exhibit A" and incorporated herein by this reference, and wherein only those dwellings, and commercial or industrial properties, consistent with applicable zoning regulations, and otherwise satisfying the requirements of R.C. § 3735.67 and this section are eligible for incentives hereunder.
(D) The classification of the structures or remodeling- eligible for the CRA East and CRA West incentive shall at all times be consistent with zoning restrictions applicable to the area.
(E) The percentage of the tax exemption on the increase in the assessed valuation resulting from improvements to residential, commercial or industrial real properties in the CRA East and CRA West and the term of those exemptions shall be negotiated on a case-by-case basis in advance of construction or remodeling occurring according to the rules outlined in R.C. § 3765.67. The results of the negotiation, as approved by City Council shall be set in writing in a CRA agreement as outlined in R.C. § 3735.671.
(1) For the purposes of the above-described CRA East and CRA West, dwellings containing not more than three residential units, in which one unit must be owner-occupied, shall be classified as residential structures. Dwellings containing four or more dwelling units shall be classified as commercial structures.
(2) For residential structures, a tax exemption on the increase in the assessed valuation resulting from the demolition and new construction of a structure, as described in R.C. § 3735.67, shall be granted upon application by the property owner and certification thereof by the designated housing officer. A one, two or three unit residential structure, whether newly constructed or renovated, is only eligible for a tax exemption if at least one of the units is owner-occupied. The period of the tax exemption and the percentage of the tax exemption for the demolition and subsequent new construction of every dwelling, the tax exemption for the remodeling of existing residential, commercial or industrial structures, or combination thereof, and for the construction of new residential, commercial or industrial, or combination thereof properties are as follows:
(a) For the new construction or demolition, subsequent new construction, or remodeling of every eligible residential dwelling containing not more than three units, upon which the cost of the new construction is at least $25,000 per unit, as described in R.C. § 3735.67, the tax exemption shall be granted on a case-by-case basis in advance of the commencement of construction, with a maximum term of such exemption being ten years and the maximum exemption being equal to 50% of the increase in the assessed valuation resulting from such improvements.
(b) For the remodeling of existing commercial, which includes four or more residential units, or industrial structures, or some combination thereof, and upon which the cost of remodeling is at least $50,000, as described in R.C. § 3735.67, the term and percentage of the tax exemption shall be negotiated on a case-by-case basis in advance of the commencement of the remodeling, with the maximum term of such exemption being a period of up to 15 years and the maximum exemption being equal to up to 100% of the increase in the assessed valuation resulting from such improvements. Payments in lieu of taxes will be required annually to the local school districts at a term equal to the years of exemption and a value of 50% of the abatement. School donation agreements must be signed in advance of abatement approval by the Housing Officer.
(c) For the construction of new commercial, which includes four or more residential units, or industrial structures, or some combination thereof, and upon which the cost of construction and remodeling is at least $250,000 as described in R.C. § 3735.67, the term and percentage of the tax exemption shall be negotiated on a case-by-case basis in advance of the commencement of the construction, with the maximum term of such exemption being a period of up to 15 years and the maximum exemption being equal to up to 100% of the increase in the assessed valuation resulting from such new construction. Payments in lieu of taxes will be required annually to the local school districts at a term equal to the years of exemption and a value of 50% of the abatement. School donation agreements must be signed in advance of abatement approval by the Housing Officer.
(3) If remodeling qualifies for an exemption during the period of the exemption, the exempted percentage multiplied by the dollar amount of the increase in the assessed valuation of the structure resulting from such improvements shall be exempt from real property taxation.
(F) To administer and implement the provisions of this section, the Municipal Administrator, or his or her designee, is designated as the “Housing Officer” as described in R.C. §§ 3735.65 to 3735.70.
(G) (1) A CRA Housing Council (hereinafter “CRA Housing Council”) shall be created, and the city may designate the current Housing Council to serve in a dual role as the CRA Housing Council. Terms and appointments of the members of the CRA Housing Council shall be the same as the current City Housing Council. An unexpired term resulting from a vacancy in the CRA Housing Council shall be filled in the same manner as the initial appointment was made as described in R.C. § 3735.69.
(2) A Wood County Tax Incentive Review Council is currently in place and is an active and efficient Tax Incentive Review Council. The City of Bowling Green shall utilize the existing Wood County Tax Incentive Review Council to review annually the compliance of all CRA agreements involving the granting of exemptions for commercial or industrial real property improvements under R.C. § 3735.671 and make written recommendations to City Council as to continuing, modifying, or terminating said CRA agreements based upon the performance of the terms and conditions of said agreements.
(H) The City Council reserves the right to re-evaluate the designation of the Bowling Green Community Reinvestment Area East and Community Reinvestment Area West on an annual basis beginning December 31, 2022, at which time the City Council may direct the housing officer not to accept any new applications for exemptions as described in R.C. § 3735.67.
(I) The CRA Housing Council shall make an annual inspection of the properties within the Community Reinvestment Area for which an exemption has been granted under R.C. § 3735.67. The CRA Housing Council shall also hear appeals under R.C. § 3735.70.
(J) Pursuant to R.C. § 3735.68, the housing officer may suspend or terminate the tax exemption at any time after the first year of the exemption if he/she finds that the subject property is not being properly maintained or repaired due to neglect of the property owner. Once suspended, the tax exemption shall not be reinstated except for good cause shown.
(K) If the owner of residential, commercial or industrial property exempted from taxation under R.C. § 3735.67 has materially failed to fulfill its obligations under the written agreement entered into under R.C. § 3735.671, or if the owner is determined to have violated division (E) of that section, City Council, subject to the terms of the agreement, may revoke the exemption at any time after the first year of exemption. Additionally, if the agreement entered into under R.C. § 3735.671 so provides, City Council may require the owner of property whose exemption has been revoked to reimburse the taxing authorities within whose taxing jurisdiction the exempted property is located for the amount of real property taxes that would have been payable to those authorities had the property not been exempted from taxation.
(L) The Mayor, Director of Finance, Director of Law, and other City officials, as appropriate, be and are hereby authorized to execute, certify and/or furnish other such documents and do all other actions as are necessary to create and establish the Bowling Green CRA East and CRA West and which are incidental to carrying out the purpose of this section.
(M) If any term, provision, or condition of this section is held by a court of competent jurisdiction to be illegal, void, or unenforceable, the rest of this section shall remain in full force and effect and shall in no way be affected, impaired, or invalidated, unless such ruling shall materially alter the economic effect of this section.
(N) CRA abatements terms:
CRA 1,2,3 | Years of Abatement | % of Abatement | PILOT Requirements |
CRA 1,2,3 | Years of Abatement | % of Abatement | PILOT Requirements |
Residential (1, 2, or 3 units with one being owner occupied) | 10 | 50% | |
Commercial | 15 | 100% | 50% of abated taxes |
Industrial | 15 | 100% | 50% of abated taxes |
CRA East | |||
Residential (1, 2, or 3 units with one being owner occupied) | 10 | 50% | |
Commercial | 15 | 100% | 50% of abated taxes |
Industrial | 15 | 100% | 50% of abated taxes |
CRA West | |||
Residential (1, 2, or 3 units with one being owner occupied) | 10 | 50% | |
Commercial | 15 | 100% | 50% of abated taxes |
Industrial | 15 | 100% | 50% of abated taxes |
(Ord. 9179, passed 4-15-2024)