48-07 JEDZ Agreement - Laserfiche WebLink

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the Amended Water Service Agreement, executed by Cleveland and City; to reduce water rates to reflect the cost of capital investment required by Cleveland in its water distribution system on behalf of Direct ServiCe communities who have signed similar _iEDZ agreements and performance of all other covenants of Cleveland stated in this Agreement. (b) City's Contribution. City's contribution to the Zone is its agreement to encourage commercial and industrial development necessary or appropriate to promote economic development within the Zone; provide appropriate municipal services and public improvements to promote economic development; and perform all other covenants of City stated in this Agreement. Section 6. Limitation on the use of Tax Abatements; Allowable Incentives; Uniform training incentives. (a) Real Estate Tax Abatements. The JEDZ Parties agree that for any business relocating between Cleveland and City, there shall be a limit on any new industrial or commercial real estate tax abatement to a term not to exceed 10 years. The abatement shall not exceed 75 percent. (b) Income Tax Abatements. The JEDZ Parties agree that they shall not provide any income tax abatement to any businesses relocating between Cleveland and City. (c) Allowable Incentives. Notwithstanding the provisions of subsections (a) and (b) of this Section 6, the JEDZ Parties may continue to offer incentives including, but not limited to, the discounted sale of property, Iow-interest loans, and tax increment financing as provided for in Sections 5709.40 and 5709.41 of the Revised Code. The limitations provided in subsections (a) and (b) of this Section 6 shall not apply to business relocation from outside of the territorial boundaries of the Zone as defined in Section 3 above. Section 7. Income Tax Sharing for Moves Within the Zone. (a) The JEDZ Parties agree that if any business with an annUal gross payroll of more than $500,000 relocates from one JEDZ Party (the "Losing JEDZ Party") to another JEDZ Party (the "Gaining JEDZ Party"), the Losing JEDZ Party shall be entitled to receive from the Gain?g JEDZ Party, for a period of 5 years, 50 percent of future income tax revenue on jobs in existence immediately prior to the relocation. The Gaining JEDZ Party's 50 percent share shall be calculated based upon the Gaining JEDZ Party's employment-based tax rate as may be amended from time to time, minus the percentage that may be earmarked for a city's school district pursuant to city ordinance. The Gaining JEDZ Party's 5 year income tax sharing obligations for any business that relocates during the term of this Agreement is a continuing obligation that shall survive the termination of this Agreement. (b) The 5 year tax sharing obligation may be earlier terminated or reduced if the Losing JEDZ Party "back-fills" space at the same payroll value with a similar business, as follows: (i) the business that moved jobs adds equivalent new payroll anywhere in the Losing JEDZ Party's jurisdiction, this new payroll shall