(a) Within the North Olmsted 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. 3735.67. The results of the negotiation as approved by this Council will be set in writing in a North Olmsted Community Reinvestment Area Agreement as outlined in Ohio R.C. 3735.671. A tax exemption on the increase in the assessed valuation resulting from the improvements as described in Ohio R.C. 3735.67 shall be granted upon application by the property owner and certification thereof by the designated Housing Officer for the following periods.
(1) Up to, and including, twelve (12) years, and up to, and including, one hundred percent (100%) for the remodeling of existing commercial and industrial facilities and upon which the cost of remodeling is at least five thousand dollars ($5,000), as described in Ohio R.C. 3735.67, the term and percentage of which shall be negotiated on a case-by-case basis in advance of remodeling occurring.
(2) Up to, and including, fifteen (15) years, and up to, and including, one hundred percent (100%) for the construction of new commercial or industrial facilities, the term and percentage of which shall be negotiated on a case-by-case basis in advance of construction occurring.
(b) If remodeling qualifies for an exemption, during the period of the exemption, the exempted percentage of 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 exempted percentage of 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) Any residential tax exemption granted upon application and in effect prior to the date this chapter is approved shall remain in full force and effect until the expiration of the term for which it was granted under Chapter 171 of the Codified Ordinances as it existed prior to the date this chapter was approved.
(d) All commercial and industrial projects are required to comply with the state application fee requirements of Ohio R.C. 3735.672 (C) and the local annual monitoring fee of one percent (1%) of the amount of taxes exempted under the agreement - a minimum of five hundred dollars ($500.00) up to a maximum of two thousand five hundred dollars ($2500) annually unless waived.
(e) The City of North Olmsted shall comply with Ohio R.C. 5709.83, "Notice of Proposed Tax Exemptions to Boards of Education" prior to formally approving an agreement under Ohio R.C. 3735.671 or prior to forwarding an application for a tax exemption for residential property under Ohio R.C. 3735.67 to the County Auditor / Fiscal Officer.
(Ord. 2023-2. Passed 2-7-23.)