Ohio NCA pilot program scheduled to expire


A statutory pilot program that gives new community authorities (NCAs) useful flexibility and power is set to expire — just as Ohio’s rebounding economy sparks renewed interest in creating NCAs to facilitate major development projects.

The Ohio General Assembly initiated the NCA pilot program in 2010 and renewed it in 2012. Without further action by the Ohio General Assembly, however, the pilot program will not be available for NCAs created on or after March 22, 2015. The chart below outlines some of the most important features of the pilot program, as well as the impact of its expiration:

Pilot Program (Current Law) Effect of Expiration
NCAs may derive charge revenue from resident income, business profits, gross receipts or other revenues of businesses, percentage of rent on leases, or property value. Limits the basis of an NCAs charge revenue to resident income, business profits, a uniform fee or property value.
A developer petitioning to create an NCA must demonstrate control of the NCA territory for at least 40 years. Replaces 40-year requirement with 75-year requirement.
Infrastructure eligible for NCA financing, ownership and control includes “any community facilities that are owned, operated, financed, constructed, or maintained for, relating to, or in furtherance of community activities, including, but not limited to, town buildings or other facilities, health care facilities including, but not limited to, hospital facilities, and off-street parking facilities.” Narrows the broad authority to finance any community facility that is owned, operated, financed, constructed or maintained for, relating to or in furtherance of community activities, including town buildings, health care facilities (but retains authority for hospital facilities) and off-street parking facilities.
The NCA territory must include at least 1,000 acres, unless (1) the NCA territory is located wholly within a municipality, or (2) more than half of the proposed NCA territory is within a joint economic development district (JEDD). Requires all new NCAs to include at least 1,000 acres unless the NCA territory is located wholly within a municipality.
County commissioners or a city council, depending on the location of the NCA, reviewing a proposed NCA may consider existing development to determine whether the proposed NCA will satisfy the requirement of including varied land uses. Eliminates express authority for county commissioners or a city council to consider existing development in determining compliance with this requirement.
The board of trustees of the NCA includes citizen members that represent the interests of present and future employers within the new community district and any present or future residents of the district. Limits citizen members to represent interests of present or future residents of the district.

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