(a) Within the Community Reinvestment Area the percentage of the tax exemption on the increase in the assessed valuation resulting from improvements to commercial and industrial real property 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 Ohio R.C. 3735.671. The results of the negotiation as approved by this Council will be set in writing in a Community Reinvestment Area Agreement as outlined in Ohio R.C. 3735.671. The following terms and percentages will apply to tax exemptions granted on commercial and industrial real property:
(1) Up to twelve (12) years for existing commercial and industrial facilities shall be negotiated on a case-by-case basis and approved by Council in advance of construction or remodeling occurring. The construction or remodeling must involve a minimum new investment of $5,000. The percentage of exemption is up to 100% as negotiated on a case-by-case basis and approved by Council.
(2) Up to fifteen (15) years for new commercial and industrial facilities shall be negotiated on a case-by-case basis and approved by Council in advance of construction occurring. The percentage of exemption is up to 100% as negotiated on a case-by-case basis and approved by Council.
(b) If commercial or industrial remodeling qualifies for an exemption, during the period of exemption, the dollar amount of the increase in market value of the structure shall be exempt from real property taxation. If new construction qualifies for an exemption, during the period of the exemption the structure shall not be considered to be an improvement on the land on which it is located for the purpose of real property taxation.
(c) If the proposed exemption granted on commercial or industrial real property exceeds fifty percent (50%), local school district consent is required unless the Council determines, for each year of the proposed exemption, that at least fifty percent (50%) of the amount of the taxes estimated that would have been charged on the improvements if the exemption had not taken place will be made up by other taxes or payments available to the school district. Upon notice of a project that does not meet this standard, the board of education may approve the project even though the new revenues do not equal at least fifty percent (50%) of the projected taxes prior to the exemption.
(d) The following terms and percentages will apply to tax exemptions granted on residential real property:
(1) Ten (10) years for residential remodeling (2 units or less). The remodeling must involve a minimum new investment of $2,500. The percentage of exemption is 100%.
(2) Twelve (12) years for residential remodeling (more than 2 units). The remodeling must involve a minimum new investment of $5,000. The percentage of exemption is 100%.
(3) Fifteen (15) years for residential new construction. The percentage of exemption is 100%.
(Ord. 2012-29. Passed 9-10-12.)