Why is the Piqua City Commission holding three meetings this week?

The City is looking to work with the Dayton-Montgomery County Port Authority

This week, the Piqua City Commission will be holding three meetings, one on Monday, one on Tuesday and one on Wednesday. The agenda for the first meeting has been published, and it has two ordinances and one resolution, all dealing with the economic development project on Scott Drive, near the U. S. Route 36 and Interstate 75 interchange. Since ordinances must be read on three separate days, having meetings on three consecutive days, allows the city to meet the spirit and intention of the city charter, while adopting these items in the most expedited way possible.

One of the ordinances deals with a Cooperative Agreement between the City of Piqua and the Dayton-Montgomery County Port Authority. At it’s core, the agreement is a fascinating example of how local governments can work together to promote economic development. Today, this publication will try to break this agreement down in a way that's easy to understand.

The agreement starts by laying out who's involved. On one side, we have the City of Piqua, which is described as a "contracting subdivision." On the other side, we have the Dayton-Montgomery County Port Authority. Both are described as "bodies corporate and politic," which is a fancy way of saying they're government entities with certain rights and obligations that are provided by state law.

Now, what's this agreement all about? Essentially, Piqua wants to buy some land for their economic development project on Scott Drive, which has already seen the demolition of a dilapidated hotel and will be the future home of a new hotel, an Olive Garden and a Chipotle. But instead of just borrowing money directly, they're asking the Port Authority to help out. The Port Authority is going to issue up to $2.3 million in bonds - which are basically IOUs - and then loan that money to Piqua.

You might be wondering why Piqua doesn't just borrow the money themselves. Well, that's where things get interesting. For one, the city may not have that kind of capital accessible at this time. Furthermore, Port Authorities in Ohio have some special powers that make them really useful for this kind of deal.

Under Ohio law, Port Authorities are more than just organizations that manage harbors and shipping — which is actually a minuscule part of what any Port Authority does. In reality, Port Authorities are powerful economic development tools, that often go unnoticed. They can finance, build, and operate all sorts of facilities. They can issue bonds for development projects and work with other government agencies. This flexibility makes them valuable partners for cities like Piqua.

The agreement spells out that the Port Authority has determined this project fits within its legal mandate. It's considered "port authority facilities" under Ohio law, even though it doesn't have anything to do with ships or ports in the traditional sense. This shows how broadly the term "port authority" is interpreted in Ohio.

One of the key parts of this agreement is that Piqua is giving the Port Authority permission to act on its behalf for this specific project. This is crucial because it allows the Port Authority to use its special powers to benefit Piqua. However, it's important to note that this authorization is limited to just this project. Piqua isn't giving the Port Authority carte blanche to do anything it wants in the city.

The agreement cites specific Ohio laws that allow for this kind of cooperation. For example, it mentions Section 4582.43 of the Ohio Revised Code, which says port authorities can work with other government agencies on projects. It also cites Section 4582.431(B), which allows a port authority to perform functions on behalf of a "contracting subdivision" like Piqua.

There's also some interesting language about why this project is important. The agreement states that it's "necessary and for the best interests of the citizens, residents, and inhabitants" of both Piqua and the area served by the Port Authority. It talks about promoting public health, safety, and general welfare. This kind of language is common in government agreements, but it's interesting to see how economic development is tied to these broader public interests.

The agreement goes on to spell out exactly what the Port Authority is authorized to do. This includes exercising all of its powers under Ohio law within Piqua, but only for the purpose of this specific project. It can construct and improve the project, issue and sell the bonds, and loan the money to Piqua.

One might be wondering that if Piqua is going to receive the loan proceeds, how is the loan going to be paid back? Is this going to be a cost borne by taxpayers? Well, no, not exactly. The City Commission has already created a Tax Increment Financing (TIFs) district to pay back the loan and pay off the bonds.

TIFs work by “freezing” the taxes in place on a parcel for a certain period of time. However, as the valuation grows, the difference between the “frozen” value and the new value gets collected and those revenues — the tax increment — is used to pay off the bonds.

So what does all this mean in the bigger picture? This agreement is a great example of how local governments can get creative in financing development projects. By partnering with the Port Authority, Piqua can potentially access better financing terms and tap into the Port Authority's expertise in managing complex projects.

It's also part of a broader trend. Across Ohio and many other states, Port Authorities are increasingly being used as economic development tools, far beyond their traditional maritime roles. They've become a way for local governments to pool resources, access specialized expertise, and structure deals in ways that might not be possible otherwise.

In essence, this agreement is about Piqua finding a smart way to fund an economic development project. By teaming up with the Port Authority, they're able to tap into additional resources and capabilities. It's a good example of how the sometimes dry world of government finance can have real impacts on local economic development.

While the agreements might be complex and having three consecutive City Commission meetings may leave many scratching their heads, the core idea is simple: two government entities are working together to make something happen that might be difficult for either to do alone. It's cooperation in action, aimed at bringing new economic opportunities to Piqua.

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