In Ohio these authorities are for specific areas - often a single development project - and can issue bonds or assess charges on residents, customers or employees of businesses that locate there. They have been used to fund multi-million dollar schools, roads, and even an arts center in the Columbus area.
Community authorities are in Miami Twp. and Clayton in Montgomery County and Liberty Twp. in Butler County.
“It’s like a homeowners association on steroids,” said Caleb Bell, a lawyer involved in development of the Union Village authority. “It’s a very powerful tool now.”
New community authorities have many of the same powers as those provided to cities and villages. But they can be established when a development is still in the planning stages before an area has the number of residents required to incorporate as a municipality in Ohio.
“That’s really the issue. How do you get some of these powers right away?” Bell said.
The property owner of the Union Village development, the Otterbein retirement community provider, is expected to seek about $40 million in financing for a 250-acre first-phase. It would include retail and residential development and be built over the next decade across Ohio 741 from the existing retirement campus.
But officials say the authority there will be used to fund other aspects of the development.
“In the case of Union Village, there is no population yet,” Gary Horning, vice president of marketing and communications at Otterbein, said via email. “The target for the new community authority is in the near term - police and fire protection and other services like snow removal; and in the long-term street and common area maintenance, and new amenities - if the population chooses.”
Other Authorities
In the Northeast Columbus suburb of New Albany one community authority, working with other entities, financed schools, a road and a community arts center. There are about 15 other communities authorities in the Columbus area.
A group developing an outlet mall in Delaware County is working to establish a new community authority there as well. .
Community authorities have many of the powers given to local governments, including the ability to pass planning and zoning regulations. They are not subject to Ohio’s public meeting or public records laws, however.
“It’s not the kind of thing where we invite the public,” said Bo Gunlock of RG Properties, developer of Austin Landing and creator of its authority. Records and meetings are open to residents and businesses within the authority boundaries, he said.
Formed in 2009, The North Clayton Community Authority in Montgomery County assesses property owners for maintenance of the development off U.S. 40 by Northmont High School. The original developer failed, and the authority uses the assessments to pay for grass and tree trimming, and irrigation. About two dozen homes or condominiums have been built, along with a restaurant, candy store and salon, but the 100-acre site is still largely undeveloped. The annual charge is $600 for residential lots, $650 for commercial lots and $200 for each lot held by a developer, according to Kevin Schweitzer, director of finance for Clayton and a member of the authority board.
About a decade ago, an authority was formed in Warren County for a 3,300-acre proposed development dubbed SanMarGale. Property owners were to be assessed to finance roads and other infrastructure, but after the recession the development plans were abandoned and the authority disbanded.
The Butler County Port Authority last month sold $37 million in bonds to finance development by the Liberty Center Community Authority and others around the Ohio 129 interchange at Interstate 75. The funding is to pay for streets, parking, utilities and sewer and water systems.
Earlier this month, a community authority formed in 2012 at Austin Landing in Montgomery County's Miami Twp. helped pay for its Christmas tree lighting ceremony, its first event, according to Gunlock. Retail merchants there are assessed 0.5 percent on taxable sales to support its activities.
“It has to benefit the Austin Landing community,” Gunlock said. Austin Landing already features restaurants, shopping and office buildings. A residential building is planned next year on the 140-acre site, east of I-75 near the Montgomery-Warren county line.
RG provides three of seven members on the authority board and expenditures have mostly come from recommendations from the developer. Like homeowners or condominium associations, “at some point you expect them to be somewhat autonomous,” Gunlock said.
The other four members include Clara Osterhage of Great Clips and Scott Brenner of Jack’s Pets. Both have businesses in the development.
Union Village authority
On Monday, the Mason City Council approved the formation of the Union Village New Community Authority, although it will have nothing else to do with the new authority.
As the largest city in Warren County, state law required Mason’s council to sign off on the community authority proposed by Otterbein.
“It’s just a quirk of the statute,” said Jeff Forbes, law director for Mason. “Mason doesn’t have anything to do with it.”
Within 40 years, Union Village’s developers say it could grow to as many as 4,500 homes and 16,000 residents. The plan also calls for a community arts center, sports complex, church and health care facilities, as well as retail and office spaces, some sharing the same buildings.
Next Otterbein is expected to submit a petition to Warren County’s commissioners to establish the new community authority. The county Board of Commissioners decides whether to approve the petition after a public hearing, expected to be scheduled in January.
“It is important for the residents of Union Village to know upfront answers to these questions are in place for perpetuity, and to establish a decision-making body to drive the continual betterment of the future village,” Horning said via email. “We hope it will all be in place in the next couple of months.”
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