Franklin County Redevelopment Commission (FCRC) asked Franklin County Commissioners to revise the 2012 ordinance establishing the FCRC at commissioners' July 12 meeting.

FCRC president Bill Schirmer explained to commissioners the FCRC was established by an ordinance based on state code with the addition of four items, the FCRC wants to remove those four additions. The first addition grants the FCRC authority of eminent domain, FCRC asks that clause be removed. Franklin County legal counsel Grant Reeves explained the state legislature has altered the state code adopted after 2012, taking that authority away on the state level, rendering the local code moot.

The second addition the FCRC asks to be removed is a clause giving it the authority to purchase private property. Schirmer explained at that time government agencies were purchasing large tracts to split into industrial lots. The only time the FCRC could see the need to purchase property now would be if it needed to purchase property to serve as a utility easement to a development. If that were to happen, the process would go through the county commissioners, not through the FCRC.

The third change requested by the FCRC is the requirement to ask each impacted property owner to opt in or out of any proposed redevelopment district. Schirmer explained being within a redevelopment district has no negative or positive impact for a property owner of a residential or agricultural use. As it stands, the requirement only delays the FCRC's ability to implement district changes, potentially making the county less competitive in drawing in business developments. Resident Mildred Simmermeyer replied taxes for agricultural uses would increase if they are within a redevelopment district.

The fourth change requested is to remove the clause granting the FCRC the authority to issue bonds. Schirmer explained, again, if the FCRC were working on a project that required the issue of bonds, county commissioners would be involved as well.

Schirmer told commissioners most municipal redevelopment groups are adopting a basic state code based structure. It is his understanding the four clauses above were inserted into the code in an effort to more effectively handle tax funds generated by the riverboat gambling organizations along the Ohio River.

Franklin County Area Plan Commission member Darryl Kramer voiced concern about effective use of tax dollars and asked commissioners to consider a PILOT (payment in lieu of taxes) to the schools to offset redevelopment funds that would go into FCRC funds instead of schools and roads. Commissioner Tom Linkel backed up the value of FCRC funds, which can be essential to bringing new businesses to Franklin County.

Franklin County Community School District appointee to the FCRC Sara Duffy spoke on behalf of the schools, asking commissioners to delay changing the FCRC ordinance. The school board is concerned about negative impacts to its tax revenue and would like more time to investigate the proposal and redevelopment districts in general. If commissioners decide to change the ordinance, the school board requests they add a requirement to offer a PILOT to the school district on any redevelopment proposal.

Linkel asked Reeves if he has any input on a PILOT to the school. Reeves, a school board member, noted his conflict of interest and offered some general information on how a PILOT could work. He offered to provide reference to a lawyer with more experience in PILOTs. 

Linkel noted the proposed change does not impact tax revenues to the school district. Schirmer agreed the changes would not impact existing tax structures and suggested the school district is under the impression the FCRC is trying to establish a new TIF (tax increment financing) district somewhere in the county, which it does not have plans to do. 

Duffy gave the example of a six acre agricultural field within the TIF district on S.R. 101 that had paid approximately $90 a year in taxes. That lot is now the home to a new Reid Health facility with an estimated $50,000 annual tax bill. Due to the TIF district, the school district, county and township will continue to receive a share of the old $90 tax bill while the remainder will go to the FCRC to fund future economic development projects. 

Franklin County Economic Development Commission president and FCRC member John Palmer explained the goal of TIF programs is to brings jobs to Franklin County, serving local residents and attracting new workers. Every family that brings a student to Franklin County generates school district revenue from the state.

Schirmer addressed the school district's concern, noting the FCRC has the opportunity to set the amount of TIF district tax revenue it captures. The FCRC can choose to capture 100 percent of available tax revenue, or a reduced amount. Schirmer offered the county or school district the opportunity to negotiate that rate with the FCRC. Simmermeyer suggested adding a requirement in the ordinance the FCRC must negotiate with the school district to set a capture rate.

Linkel told his peers he is leaning toward amending the ordinance as requested by the FCRC, but to require the FCRC meet with commissioners before establishing any TIF district to negotiate a PILOT for the schools. Commissioner Gerald Wendel agreed. Reeves offered some advice. Linkel made a motion to amend the ordinance as requested by Schirmer, with the addition of directing the FCRC to put in place a 15 percent PILOT to the school district. Commissioners voted to approve.