Label
Amend Rossford-Toledo JEDZ Contract
Law Department / Department of Economic Development
Dale Emch (x2384) / Brandon Sehlhorst (x1692)
Title
Authorizing the Mayor to enter into a First Amendment to the Contract for a Joint Economic Development Zone between the City of Toledo and City of Rossford; authorizing the Mayor, Director of Economic Development and Director of Law to execute any documents necessary to effectuate the amendment; establishing the Toledo Community Improvement Corporation Special Revenue Fund; authorizing the Finance Director to transfer fund balances and close certain accounts; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
In 1992, the City of Toledo and the City of Rossford entered into a contract to establish a Joint Economic Development Zone (JEDZ) in an area annexed by Rossford for the purpose of promoting investment and job creation. A JEDZ is a contractual partnership between municipalities - or between municipalities and townships - that designates a special-purpose zone where income tax is levied on businesses and employees to foster economic development. Under the 1992 contract, Toledo agreed to provide water service to the zone, and in return, both cities would share the income tax revenue generated within the zone.
The recent influx of investment and employment has created growing public safety demands within the JEDZ, especially for fire and emergency medical services (EMS). A critical challenge to both serving current businesses and attracting new ones is ensuring the availability of fire and EMS coverage.
To address this need, Toledo and Rossford propose amending the 1992 contract to provide additional funding to support public safety services within the JEDZ. Under the proposed amendment, Rossford would receive the first 15 percent of the income tax revenue from the JEDZ, specifically allocated for public safety purposes within the zone. The remaining income tax revenue would then be distributed according to the original formula: Rossford receiving 72 percent and Toledo receiving 28 percent.
This amended agreement will strengthen public safety infrastructure, enhance the zone’s attractiveness to prospective businesses, and generate additional income tax revenue for both cities. It will also reinforce the cooperative relationship between Toledo and Rossford and provide long-term clarity by extending the agreement’s term. The amended contract will align with the expiration of the Regional Water Agreement in 2060, ensuring consistency and allowing for potential renewal of the JEDZ contract at that time.
Additionally, the City of Toledo proposes investing its share of income tax revenue from the JEDZ with the Toledo Community Improvement Corporation (“TCIC”) to further economic and community development within the City of Toledo. Established in 2014 through Ordinance 483-14, the TCIC was created under Ohio Revised Code Chapter 1724 to support the City’s economic development objectives. As Toledo’s designated community improvement corporation, the TCIC is authorized to acquire and improve property, construct and equip facilities, issue revenue bonds, and carry out other economic development activities.
To date, the TCIC has primarily been used to satisfy a former state provision that required that a CIC induce municipal bond financing for strategic acquisitions, including Textileather, MedCorp, and Southwyck Mall sites. With dedicated funding from the JEDZ, the TCIC would be better positioned to implement a broader range of initiatives to attract jobs, investment and housing, ultimately growing Toledo’s income tax base and improving quality of life for residents.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That the Mayor is authorized to enter into a First Amendment to the Contract for Joint Economic Development Zone between the City of Toledo and the City of Rossford, attached as Exhibit A in substantial final form as to the material conditions.
SECTION 2. That the Mayor, Director of Economic Development, and the Law Director are authorized to execute any documents necessary to effectuate the amended agreement under such terms as are acceptable to the Law Director.
SECTION 3. That the Toledo Community Improvement Corporation Special Revenue Fund 2050 is established to account for the activities of the Toledo Community Improvement Corporation.
SECTION 4. That the Finance Director is authorized to transfer the account balance from Account Code 2090-16400-5T6500STDSTD to Toledo Community Improvement Corporation Special Revenue Fund Account Code 2050-16400-5881001STDSTD.
SECTION 5. That the Finance Director is authorized to disestablish and close Account Code 2090-16400-5T6500STDTD.
SECTION 6. That this ordinance, being an emergency measure, shall take effect and be in force from and after its passage. The reason for the emergency lies in the fact that this ordinance is necessary for the immediate preservation of public peace, health, safety, and property and for further reason that this ordinance must immediately be effective so that the City can expeditiously finalize the First Amendment to the Contract for Joint Economic Development Zone between the City of Toledo and the City of Rossford.
Vote on emergency clause: yeas _____, nays _____.
Passed: _________________, as an emergency measure: yeas _____, nays _____.
Attest: ________________________ __________________________________
Clerk of Council President of Council
Approved: _____________________ __________________________________
Mayor
I hereby certify that the above is a true and correct copy of an Ordinance passed by Council ________________________.
Attest: ________________________
Clerk of Council