(A) The Ohio Enterprise Zone Act requires any business seeking an incentive under the program to make a substantial investment. While R.C. § 5709.61 provides definitions of “substantial investment” under specific circumstances, local jurisdictions have considerable flexibility to make eligibility determinations. Projects must be determined to be eligible prior to granting any tax exemption incentives through an Enterprise Zone Agreement. Residential activities and retail projects are not eligible for Enterprise Zone benefits.
(B) There are four possible eligibility determinations. For a project to be considered for Enterprise Zone benefits, it must meet one of the following four definitions:
ESTABLISH. To set up a new facility at a location where the business had not previously operated.
EXPAND. To make expenditures to add land, buildings, machinery, equipment, or other materials, except inventory, to a facility that equals at least 10% of market value of the facility prior to such expenditures, as determined for the purposes of local property taxation.
(R.C. § 5709.61(E))
OCCUPY. To make expenditures to alter or repair a vacant facility equal to at least 20% of the market value of the facility prior to such expenditures, as determined for the purposes of local property taxation.
(R.C. § 5709.61(G))
RENOVATE. To make expenditures to alter or repair a facility that equals at least 50% of the market value of the facility prior to such expenditures, as determined for the purposes of local property taxation.
(R.C. § 5709.61(F))
(C) Proposed Enterprise Zone projects that include the relocation of employment positions or assets from one Ohio site to another are regulated under Ohio law. The community considering the Proposed Agreement must provide a minimum of thirty (30) days prior notice of the formal review meeting to the community from which the employees or assets are to be relocated. In addition, non-distressed based Enterprise Zones with authority under R.C. § 5709.632 or Enterprise Zones certified prior to July 1, 1994 can consider a relocation project if that project received a waiver from the ODOD Director under R.C. § 5709.633(B).
(Res. 2000-41, passed 9-19-00)