New Community Authority

A New Community Authority (NCA) is an economic development tool permitted by State law that supports development in a specific area by collecting voluntary charges from property owners or lessees within the NCA area that are spent on improvements and services within the NCA area.

Property owners/lessees within the NCA must opt-in to charges. Charges can include parking fees, food and beverage fees, hotel/motel fees, charges based on property valuation, and other charges permitted by State law. A NCA is a geographically defined area managed by a board. The board is appointed by City Council and the Developer that controls the NCA property. A NCA is a quasi-governmental entity.

A NCA is created by a petition submitted to City Council by the Developer. Ohio law lists the steps necessary to establish a NCA. A NCA is a quasi-governmental entity with powers specified by State law. Once a petition is filed with City Council and City Council determines the petition is sufficient, a public hearing must be held before the NCA can be created.

The petition to establish a NCA must include:

• Name and address of the NCA
• Map and full description of the property boundaries of the NCA
• Statement of the current and proposed zoning
• Current plan of development including how funds can be spent within the NCA
• Proposed number of board members
• Preliminary economic development analysis
• Statement that development will comply with environmental laws

A NCA allows property owners and lessees of an area to buy-in to the redevelopment of that area by opting-in to NCA charges. The NCA board uses the funds generated from NCA charges to pay for infrastructure or programmatic improvements that benefit everyone within the NCA – such as public park amenities, a shared parking garage, or joint marketing or programming for an area. An NCA can issue debt that is repaid by NCA charges.

The NCA petition establishes the types and maximum amounts of NCA charges. The NCA board comes to an agreement with an individual property owner or lessee on the specific NCA charges tied to the property.

The Board of the New Community Authority determines how to spend proceeds raised through New Community Authority charges. Proceeds must be spent consistent with the NCA petition and state law. NCA charges can be spent on public infrastructure (such as acquisition and utility work to support development activity, parks, streetscape, multi-use paths, parking facilities, landscaping, and other improvements), public art, programs and other shared services for the NCA, and expenses for public space management and NCA management.

NCAs are common throughout the State of Ohio – over 55 already exist throughout the State. A NCA provides flexibility for property owners and lessees in an area to agree to charges that can be used to invest in a specific location without relying on the City’s general fund or other City sources.

A NCA is a specific economic development tool that can be used in addition to Tax Increment Financing (TIF), Special Improvement Districts (SID), or Designated Outdoor Refreshment Areas (DORA). Using NCAs in addition to other economic development tools increases the number of sources of funds available to achieve economic development goals.

Establishing a New Community Authority does not automatically create NCA charges. NCA charges must be negotiated between a property owner/lessee and the NCA. Once charges are determined, the costs are often passed to consumers visiting the NCA area. In places with NCA charges, those charges must be disclosed to consumers. Throughout the State, NCAs have not discouraged visitors to NCA areas.

NCA charges can be used to fund public amenities desired by residents. A NCA charge is only assessed within the boundaries of the NCA, not across the City. NCAs are currently contemplated primarily in entertainment and cultural districts with a high number of visitors.