INTRODUCTION

The Township, through delegation of powers from the State and Portage County, is authorized to negotiate real and personal property tax abatement agreements with non-commercial businesses proposing to undertake private investments and to create, expand or retain employment opportunities within the designated Enterprise Zone. The Township can negotiate tax abatement agreements providing up to 50% abatement of taxes which would be assessed against the value added by the particular business investment project.

PURPOSE

The purpose of the Enterprise Zone is to encourage as much investment within the boundaries of the Zone. Each contract negotiated with a local business shall be designed to spur capital investment while creating or retaining jobs. In return, the Township will agree to provide the minimum amount of tax incentives possible under the circumstances of each transaction.

ELIGIBLE BUSINESSES

Only those businesses that are qualified by financial responsibility and business experience to create and preserve employee opportunities in the Zone and to improve the economic climate of the township. . .@ (Section 5709.63 (A) O.R.C.) may apply for the tax incentives available. Additionally, only businesses engaged in manufacturing, warehouse, distribution, and research and development will be eligible to apply for the tax incentives available. These uses are permitted by O-R and I land use classifications. No housing, commercial (retail), or institutional uses may benefit from the Enterprise Zone program. The business must meet and comply with Section 5709.61 O.R.C. definitions, particularly those portions defining facility, vacant facility, expand, and occupy.

MINIMUM ASSISTANCE

In order to minimize the loss of new tax revenues, only the minimum abatement possible to bring about the investment will be offered. These guidelines permit up to 50% abatement of new real and personal property taxes for a period up to 5 years, 40% in 6th year, 30% in 7th year. 8th year and thereafter full taxes must be paid. The maximum allowable abatement in amount and in duration will only be offered when absolutely necessary to bring about the investment.

NO RETROACTIVITY

Tax incentives will not be available after an investment in land, building and/or equipment has already occurred. In order to qualify to receive the tax incentives, the investment must take place subsequent to approval by the Township. Businesses requesting tax incentives must show that the incentives requested are essential to cause the investment and, if not for the available tax incentives, the investment would not be made.

DEGREE OF INVESTMENT REQUIRED

Only businesses that agree to make a substantial investment in either real property and/or personal property shall be eligible to receive the benefits available under the program. The amount of investment needed to qualify as a substantial investment shall depend on the facts and circumstances of each applying business. As a general guideline, a substantial investment in real property shall exist whenever the following conditions apply: 1. When new construction is involved, a building or addition of at least 5,000 sq. ft. in size or $50,000.00 in construction costs is proposed; or 2. When renovation or remodeling of an existing structure is involved, the amount of the proposed real property investment must equal or exceed 50% of the market value of the existing improvements located on the parcel. The market value, not including land value, will be determined by the Portage County tax records; or 3. When an investment in personal property is contemplated, an investment of at least 10% of the existing personal property market value (for tax purposes) must be proposed to qualify as a substantial investment; or 4. When an investment in real and personal property is contemplated, an investment of at least 10% of the real property market value, not including land value, must be proposed to qualify as a substantial investment; or 5. The project, when completed, must yield at least $3,000 in new taxes, per year, of any type payable to the Township and/or Public Schools by the enterprise.

OTHER REQUIREMENTS

In addition to the guidelines set forth herein, any business applying must comply with all other applicable local, county, and state regulations pertaining to the Enterprise Zone program. Applicants must submit all information required by Rootstown Township, Portage County or the State of Ohio.

PRINCIPALS ONLY

Only individuals who are principally involved as an owner or manager of a business interested in the Enterprise Zone tax incentives may negotiate with Township officials regarding the specific incentives available under the terms of any investment agreement. Landlords of property, rather than brokers, may negotiate for tax incentives relative to real property improvements.

APPLICATION PROCEDURES

Must be on State of Ohio prescribed form. Applications available for pick up at Office of Township Clerk, local financial institutions, and Portage County Regional Planning Commission. All applications must be completed and returned together with the administrative fee to the Clerk=s office. A non-refundable administrative fee of $150.00 will be assessed at the time of the submission of an enterprise application.

PROMOTION

General information about Rootstown Township Enterprise Zone shall be widely distributed and the incentives available shall be aggressively promoted along with other attributes of the community.

TOWNSHIP TRUSTEES TO NEGOTIATE AGREEMENTS

The Portage County Commissioners have approved the designation of the Rootstown Township Enterprise Zone. They have delegated to the Township Trustees the authority to negotiate and administer tax incentive agreements with businesses located therein. Therefore, all interested parties must contact and negotiate directly with the Township Trustees. A negotiated Enterprise agreement will require, prior to implementation, unanimous vote of the Township Trustees and ratification by a majority vote of the Rootstown Schools Board of Education.

TAX INCENTIVE REVIEW COUNCIL

Pursuant to 5709.63 O.R.C., a Tax Incentive Review Council will be created to monitor compliance with the terms of any agreement approved by the Township Trustees. This Tax Incentive Review Council shall review all agreements to determine whether the businesses have complied with their terms and shall make recommendations regarding them to the Township Trustees. The Township Trustees shall take any action available to a party to a contract to obtain compliance.

CONTINUING OBLIGATION

During the term of any approved agreement, the business involved must continue to cooperate with township officials by providing any information requested to ensure compliance with the terms of the tax incentive agreement.