145.04 GUIDELINES FOR TAX ABATEMENT AGREEMENTS.
   The County Council hereby adopts the guidelines and policies for the County’s Urban Jobs and Enterprise Zones identified in this chapter and incorporated herein for the purpose of having a consistent, centralized economic development policy for the County of Summit. County of Summit Enterprise Zone Guidelines
   (a)    Introduction. The County of Summit established an enterprise zone program in 1988 pursuant to State law through the adoption of this Chapter 145. Since that initial adoption, the County has enacted several enterprise zones within the County. All of which are identified in this Chapter 145. This section was adopted in 1997 to provide guidelines and principles for enterprise zone tax abatements negotiated by the local community and the County. Periodically, this Section should be updated to provide guidance based on standard practice in economic development across the State of Ohio and current market conditions in the County of Summit.
   (b)    Purpose. The County of Summit wishes to encourage maximum investment and job creation within Summit County while assuring that tax incentives are utilized in a prudent and equitable manner. The County will permit the use of tax incentives to encourage fair and equitable economic growth within the County as well as to provide tools to be used for job retention. The County particularly wishes to encourage projects where the goods and services produced are sold outside the local economic area.
   (c)    Eligible Businesses.
      (1)   Eligible businesses that will be considered for the enterprise zone tax abatement program should include:
         A.   Businesses that would not locate or expand in Summit County but for the availability of tax abatements.
         B.   Businesses that are currently located within Summit County and need to expand or relocate for operational efficiency improvements.
         C.   Businesses that are currently located within Summit County and need to expand or relocate due to aging or obsolescent real estate that is no longer conducive to supporting continued growth and job creation.
      (2)   Eligible business that will be considered for the enterprise zone tax abatement program must:
         A.   Be within a traded-sector industry or a non-retail sector.
         B.   Pay all of its employees a wage of at least fifteen dollars ($15.00) an hour.
         C.   Offer employer sponsored healthcare plan benefits to their full-time employees.
         D.   Be current on all municipal and JEDD income taxes with all political subdivisions in Summit County, and current on all real property taxes owed the County.
   (d)    Assistance Available.
      (1)   Real Property Estate Tax Abatement. Renovation and expansion projects shall be eligible for real property tax abatement if the project cost is equal to at least twenty percent (20%) of the market value of the facility prior to the renovation or expansion. Land value shall not be considered for abatement.
   (e)    The following information applies to all zones within Summit County and is provided in order to facilitate negotiations and compliance among all parties.
      (1)   Incentive guidelines. For municipalities, up to seventy-five percent (75%) abatement on real property taxes for up to fifteen (15) years OR an average of sixty percent (60%) over the life of the agreement. For townships, up to sixty percent (60%) abatement on real property taxes for up to fifteen (15) years.
      (2)   Schedule of Availability and Evaluation Form and Scale.
         A.   ________ $ value of eligible new hard and soft construction costs in real property
 
under $1 million
1 point
$1 million minimum
2
$3 million minimum
3
$5 million minimum
4
$7 million minimum
5
         B.                 % of new hard and soft construction costs compared to existing value of real property
 
20% of existing value minimum
2 point
30% of existing value minimum
3
40% of existing value minimum
4
50% of existing value minimum
5
         C.   __________ full-time employees
         Existing Operations - % increase New Company/Branch--# of employees
 
10% minimum -- 1 point
<5--1 point
20% minimum -- 2
10 minimum -- 2
30% minimum -- 3
20 minimum -- 3
40% minimum -- 4
30 minimum -- 4
50% minimum -- 5
40 minimum -- 5
         D.    __________ $ value of average salary for new employees (based on payroll for jobs created, calculated per FTE)
 
$31,200/year minimum
1 point
$36,400/year minimum
3
$41,600/year minimum
5
$46,800/year minimum
7
$52,000/year minimum
10
         E.   __________ site of operations
   
            New to community (relocation or new company) -- 5 points
   
            Currently in community (expansion) – 10
         F.   __________ % of sales exported (most recent fiscal year)
 
5% minimum
1 point
10% minimum
2 points
15% minimum
3 points
20% minimum
4 points
25% minimum
5 points
         G.   __________ local discretionary points, 5 points maximum (e.g., paid health benefits, diversity and inclusion programs, tuition stipend, paid training programs, on-site daycare, paid student internships).
            Describe any programs or paid benefits available for employees:
                        ________________________________________________________
         ____________________________________________________________
         ____________________________________________________________
             TOTAL POINTS __________________________
            SCHEDULE OF AVAILABILITY
 
10 points minimum: up to 10
4 years
15 points minimum: up to 12
6 years
20 points minimum: up to 13
8 years
25 points minimum: up to 15
10 years.
   (f)    Job Placements. In order to provide job opportunities for clients of the County’s OhioMeansJobs Center, the following language shall appear in the Enterprise Zone agreement:
“The employer will use the County of Summit OhioMeansJobs Center as a source of recruitment, referral and placement of employees. In order for the OhioMeansJobs Center to provide the employer with potential employees, the employer will notify the OhioMeansJobs Center of job openings along with job descriptions. Notification shall also include the number of employees needed by job title, rates of pay, hours of work, anticipated duration of employment, and work to be performed. The employer shall also notify the OhioMeansJobs Center of the date by which the OhioMeansJobs Center must refer qualified applicants to the employer. The employer shall not be bound to hire from these referrals.”
   (g)    Notice to Department of Community and Economic Development. The local community shall notify the Director of the Summit County Department of Community and Economic Development at the earliest time feasible of a project for which an abatement is to be requested.
   (h)    Notice to School Board. In addition to the requirements of Ohio R.C. 5709.83, each municipality and/or township is required to notify in writing the school superintendent and school treasurer of each school district that is affected by the pending tax abatement. The school superintendent and treasurer shall be encouraged to comment in writing and forward their comments to the municipality and/or township about the proposed abatement, a copy of which must be submitted with the approved legislation to Summit County Council, and the same shall be kept on file by the Clerk of Courts.
   (i)   Hearing Before County Council. When a tax abatement agreement and legislation is before County Council's Planning Committee, officials representing the company shall be in attendance. If a request for an abatement exceeds the above-stated guidelines, representatives from the company and representatives from the local community shall attend the hearing.
If a local community wishes to submit a project to the County which exceeds these guidelines, the local community shall be prepared to present to Council reasons for exceeding the guidelines.
      (Ord. 2022-131. Adopted 5-9-22.)