Bi-Partisan Legislation authorizes municipalities to create downtown redevelopment districts
COLUMBUS—State Representative Tim Brown applauded recent bi-partisan passage of House bill 233; legislation that establishes a procedure whereby a municipal corporation may create a downtown redevelopment district (DRD). The legislation, co-sponsored by Representative Brown, allows for the creation of DRD’s; their purpose is for promoting the rehabilitation of historic buildings. The bill also allows for the creation of jobs by encouraging economic development in commercial and mixed-use areas. Additionally, municipalities can provide grants and loans to technology-oriented and other businesses.
The rules and procedures associated with the DRD’s are similar to those that apply, under continuing law, to tax increment financing (TIF) districts. Public hearings and certain process requirements are stipulated under this bill. Following public hearings, a municipal corporation will be authorized to exempt a percentage of the increased value of parcels, located within the DRD, from property taxation. Parcel owners will then be required to make service payments in lieu of taxes. The revenue derived from the service payments will be used for the economic development purposes prescribed by the bill.
“Our downtown areas are a great source of community history and pride. This legislation will allow us to maintain them for future generations, and ensure their vibrancy for business and job growth.” said Representative Brown.
H.B. 233 is now pending in the Ohio Senate for consideration.