RESOLUTION #09-2004

A RESOLUTION OF THE RICHFIELD TOWNSHIP BOARD
OF TRUSTEES TO AUTHORIZE THE EXECUTION OF A MEMORANDUM OF UNDERSTANDING WITH THE VILLAGE OF RICHFIELD REGARDING CERTAIN TERMS FOR A PROPOSED JEDD AGREEMENT

WHEREAS, Richfield Township and The Village of Richfield intend to enter into an Agreement to create a Joint Economic Development District (“JEDD Agreement”) under Section 715.72 to 715.81 of the Ohio Revised Code;

WHEREAS, Richfield Township and The Village of Richfield have identified and agreed upon certain key terms to be included in the JEDD Agreement; and

WHEREAS, Richfield Township finds that it is in the best interest of Richfield Township to approve and execute a Memorandum of Understanding to document the agreement of the parties to such key terms so as to facilitate the preparation and execution of the final JEDD Agreement.

NOW, THEREFORE, be it resolved, by the Board of Trustees of Richfield Township, Summit County, Ohio, that the Township, by and through the Board of Trustees, is hereby authorized to execute a Memorandum of Understanding between the Village of Richfield and Richfield Township setting forth the parties understanding concerning their respective duties and responsibilities relating to the preparation and execution of the JEDD Agreement.

FURTHER, RESOLVED, that the Board of Trustees, by and through any member of the Board of Trustees, is authorized to take any necessary action to prepare, negotiate, and finalize for execution the JEDD Agreement, Economic Develop Plan, and any other agreements contemplated by or referenced in the Memorandum of Understanding or the JEDD Agreement.

Trustee

Trustee

Trustee
Attest:

_________________________
Township Clerk

MEMORANDUM OF UNDERSTANDING
between the
TOWNSHIP OF RICHFIELD, OHIO
and the
VILLAGE OF RICHFIELD, OHIO

THIS MEMORANDUM OF UNDERSTANDING is made as of this 2nd day of September, 2004, by and between the Township of Richfield, Ohio (“Township”), a township existing and operating under the laws of the state of Ohio and the Village of Richfield (“Village”), a municipal corporation existing and operating under the laws of the state of Ohio.

R E C I T A L S

A. The Township and Village intend to enter into an Agreement (“JEDD Agreement”) to create a joint economic development district (the “District” or “JEDD”), under Section 715.72 to 715.81 of the Ohio Revised Code.

B. The Township and Village have, as a mutual goal, the responsible development of the District so as to protect the interest of the residents of the Township and Village and provide maximum benefit to the Township and Village and their respective residents.

NOW, THEREFORE, in consideration of the foregoing, the Township and Village enter into this Memorandum of Understanding for the purpose of establishing the duties and obligations of each of the parties related to preparation and subsequent execution of the JEDD Agreement and the ultimate creation of the District.

I. Responsibilities of the Parties

The Township and Village agree:

A. To cooperate in good faith in order to prepare, finalize and execute a JEDD Agreement to create the District. The Township and Village further agree that the JEDD Agreement will contain the following general financial terms with respect to the sharing of tax revenues:

1. Income Tax. The 2% income tax rate to be levied within the District will be allocated such that 10% of the gross revenues, after allocation as described in O.R.C. 715.74(C)(3), will be paid equally to the Township and Village as a service fee for the District and the costs associated with collecting the income tax. Of the balance of net income tax revenues, 40% will be paid to the Township, 40% will be paid to the Village, and 20% will be paid to the City of Cleveland in consideration for supplying water service to the District.
2. Real Property Tax. The real property tax revenues generated by the Township’s portion of the unvoted (inside) millage as applied to the District will be shared equally between the Township and the Village. The voted (outside) millage will continue to be paid only to the Township.

3. Personal Property Tax. The personal property tax revenues generated by the Township’s portion of the unvoted (inside) millage as applied to the District will be shared equally between the Township and the Village. The voted (outside) millage will continue to be paid only to the Township.

B. The Village and the Township agree to use their best efforts to obtain water service for the District through the system currently provided by the City of Cleveland and serving the Village and its residents.

C. The Village agrees, subject to the negotiation of a mutually agreeable JEDD Agreement, to provide access to sanitary sewer service for the District from the Village’s existing sanitary sewer system. The Village agrees to acquire the sanitary sewer facilities necessary to service the District through dedication, with such sewer improvements actually constructed by the private developer for the District. The Village also agrees, with any necessary assistance from the Township, to arrange for the Summit County Department of Environmental Services to execute the JEDD Agreement to reflect the Department of Environmental Services’ consent to the foregoing provision of sanitary sewer service.

II. Terms of this Memorandum

It is intended by the parties that this Memorandum of Understanding express the intentions and understanding of the parties that will govern their best faith efforts to cooperate in the fulfillment of each of the parties obligations to prepare, execute and consummate a JEDD Agreement in the creation of the District.

III. Contingency

The parties mutually agree that any final JEDD Agreement is subject to and contingent upon the Village, Township and the City of Cleveland reaching a mutually acceptable agreement concerning the provision of water service to the District. It is currently contemplated by the parties that the agreement for the provision of such water service will be set forth in the Economic Development Plan to be attached as an Exhibit to the JEDD Agreement.

IV. General Provisions

A. Successors. The terms and conditions of this Memorandum shall be binding upon the parties notwithstanding the election or appointment of new Trustees for the Township or the election or appointment of new representatives of the Village.

B. Modification. No modification of any of the terms and conditions of this Memorandum shall be effective unless the modification is expressed in writing and executed by all of the parties.

C. Approval. Each party hereby represents and warrants that all necessary approvals for this Memorandum have been obtained and each person whose signature appears below represents that he/she has the authority necessary to execute this Memorandum on behalf of the party indicated.

IN WITNESS WHEREOF, the parties have caused this Memorandum to be executed as of the date and year first above written.

VILLAGE OF RICHFIELD

By:
Name: , Mayor

By:
Name: , Finance Director
(Witnesses as to the Village of Richfield)

TOWNSHIP OF RICHFIELD

By:
Name: , Trustee

By:
Name: , Trustee

By:
Name: , Trustee
(Witnesses as to Richfield Township)

Approved as to legal form and
correctness:

By:
Charles T. Riehl, Director of Law
Village of Richfield

By:
John P. Slagter, Special Counsel,
Township of Richfield


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