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Ohio Transportation Improvement Districts (TIDs)

CDFS-4114
Community Development
Date: 
04/28/2023
Gwynn Stewart, M.S.; Community Development Educator IV; College of Food, Agriculture and Environmental Sciences; Ohio State University Extension, Noble County

According to the Ohio Department of Transportation (ODOT), a “Transportation Improvement District (TID) is a form of local government that strives to promote intergovernmental and public-private cooperation of transportation resources and investments.” Knowing why TIDs are created, how to create one, and how to manage one is an important first step for any community interested in forming a TID.

Graphic of the state of Ohio displaying the counties, depicting 53 colored green to indicate that they are registered transportation improvement districts.TIDs are often developed for economic development projects and are an efficient funding strategy to help communities experiencing growth. “In 2020, ODOT awarded $4.5 million to TID projects from state highway user fees” (Citizens Guide to Transportation Funding in Ohio, 2023). It’s important to understand Ohio’s TID law and how they are used by Ohio counties before considering the creation of a TID.

In Ohio, TIDs were first authorized in 1993 under Chapter 5540 of the Ohio Revised Code. This portion of the law provides details on transportation improvement districts and associated rules.

There are 35 counties with no TIDs and 53 counties with TIDs registered with ODOT (Informational Map: Ohio Department of Transportation, 2023). Many other states also have similar programs.

Why Do Communities Utilize TIDs?

As a community and economic development tool, counties can utilize TIDs to develop transportation projects. Funding for roadwork is available through ODOT’s TID-specific funding round (as allocated in the state biennium budget process). These funds are for public roadway improvement work, including engineering and design costs, but may not be used for administrative costs.

TIDs can cross jurisdictional boundaries and are driven by adopted land use or development plans for the purpose of improving transportation systems. According to the Federal Highway Administration, TIDs can “help streamline delivery of what otherwise would have been a challenging project to implement by only one local entity within a district” (Transportation Improvement Districts (TID) / Transportation Development Districts (TDD), n.d.).

Managed by ODOT’s Office of Jobs and Commerce, the Ohio TID program provides “funding for transportation projects that promote economic development with job creation, job retention, and private-sector capital investment” (TID (Transportation Improvement District), n.d.).

In Ohio, funding is available to TIDs for planning efforts and construction implementation. According to ODOT TID program guidance, “TID program funding can be used for preliminary engineering, detailed design, and right-of-way or construction of transportation improvements on all public roadways” (TID (Transportation Improvement District), n.d.). ODOT TID program guidance also considers private investment, job creation, and/or retention, as well as an area’s poverty and unemployment rates.

TID funding in Ohio can be used on all publicly owned roadways. Districts can apply for multiple projects each funding round, but program funding is limited to program budget parameters. TID dollars may be applied to a variety of related costs, including preliminary engineering, design work, or construction, and are provided on a reimbursement basis.

TID Governance

TIDS typically “function as a separate governmental entity with authority to levy taxes or assessments, issue revenue bonds, and enter into contracts for transportation improvements” (Williams, K. M., 2006).

In Ohio, a county board of commissioners will work to create a TID and will then be governed by an appointed board of trustees. County commissioners, by resolution, determine the structure of the board of trustees for the TID it creates by also adopting the structure as set by Ohio Revised Code Section 5540.02.

“ORC Section 5540.02 (C)(1) - If the board of county commissioners so elects, a transportation improvement district shall be governed by a board of trustees consisting of the following members:

a) Two members appointed by the board of county commissioners;

b) Three members appointed by the legislative authority of the most populous municipal corporation in the district;

c) Two members appointed by the legislative authority of the second most populous municipal corporation in the district;

d) Two members appointed by the board of township trustees of the township in the county that is most populous in its unincorporated area;

e) The county engineer;

f) One member appointed by the legislative authority of any township or municipal corporation that cannot otherwise appoint a member to the board pursuant to this section, and that is wholly or partially within the area of the transportation improvement district as the district was originally designated by the board of county commissioners;

g) If the area of a transportation improvement district is expanded by the board of county commissioners, the legislative authority of any township or municipal corporation that is wholly or partially within the area of expansion and that cannot otherwise appoint a member to the board pursuant to this section, with the consent of the board of trustees of the district, may appoint one member to the board;

h) One member appointed by the regional planning commission for the county, who shall be a nonvoting member of the board;

i) One member appointed at the discretion of the speaker of the house of representatives, who, if appointed, shall be a nonvoting member of the board and who may be a member of the house of representatives;

j) One member appointed at the discretion of the president of the senate, who, if appointed, shall be a nonvoting member of the board and who may be a member of the senate”
(Chapter 5540 | Transportation Improvement Districts, n.d.).

Annually, the members appoint a chair of the board who presides over meetings and serves as the legislative officer (Williams, K., 2006). TIDs are governed by Ohio “sunshine laws,” including both open meetings and public records for the board meetings and public documents. The state’s attorney general’s office has a variety of resources and training available on the laws that govern access to records and meetings.

Transportation Resources

Communities endeavoring to create a TID can garner assistance from the ODOT Jobs and Commerce Department as well as Ohio’s system of planning organizations that includes both metropolitan (MPOs) and rural agencies (RTPOs). For a list of organizations around Ohio, visit regionalcouncils.org/member-info. These organizations are excellent technical assistance resources for key data and maps needed for TID grant applications, including traffic counts, corridor and safety studies, asset management, and other analysis tools (Regional Rural Transportation Planning: State Models for Local Consultation, Regional Coordination, and Regional Transportation Planning Organizations, 2016).

Ohio TID Examples (Urban and Rural)
Graphic displaying the words Franklin County Transportation Improvement District next to a graphic depiction of a road.

Urban: Franklin County—“The Franklin County TID facilitates collaboration between local jurisdictional partners and other county, state and federal agencies to identify, develop and secure funding for transportation projects that support local and regional economic development strategies in Franklin County” (Franklin County Transportation Improvement District Newsletter, 2020). As an example, in 2020, the Franklin County TID was “awarded a $250,000 grant for construction of the University Boulevard Project in the City of Dublin. This successful grant application is the result of collaboration between the FCTID, the Franklin County Engineer’s Office, the City of Dublin, and The Ohio State University” (Franklin County Transportation Improvement District Newsletter, 2020).

Graphic displaying the words Noble County: Community, Heritage, Progress, next to a graphic of the state of Ohio with a shooting star on it.

Rural: Noble County—
The Noble County TID was formed in 2022 to assist with construction of a new JobsOhio-funded, economic development business park along State Route 78 in Olive Township just outside the county seat of Caldwell. The TID applied for ODOT funding for the access roads and was awarded an initial grant of $500,000.

Conclusion

TIDS are an innovative community and economic development tool for facilitating planning and funding of roadway projects. They help access and manage funding that improves highway infrastructure to spur economic growth in a specific geographical region.

As allocations are available, ODOT offers an annual TID grant funding program. Program grant scoring criteria considers economic development, job retention and expansion, private-sector capital investment, and details of the overall project plan and financing.

For More Information

Check out the following Ohio Department of Transportation links to learn more about Ohio transportation improvement districts:

For a list of Ohio’s system of planning organizations that includes both metropolitan (MPOs) and rural agencies (RTPOs), log in to the Association of Regional Councils at regionalcouncils.org/member-info.

For more information on Ohio’s sunshine laws that govern public entities, go to the Ohio attorney general website at ohioattorneygeneral.gov/Legal/Sunshine-Laws.

Access an online version of the “Citizens Guide to Transportation Funding In Ohio” for an overview of revenues and distribution supporting Ohio’s transportation system.

References

Chapter 5540 | Transportation Improvement Districts. (n.d.). Ohio Laws & Administrative Rules, Legislative Service Commission. Retrieved April 24, 2023 from
codes.ohio.gov/ohio-revised-code/chapter-5540

Franklin County Transportation Improvement District Newsletter. (2020). Mid-Ohio Regional Planning Commission.
morpc.org/2023/wp-content/uploads/2023/03/FCTID-Newsletter-December-2020.pdf

Informational Map: Ohio Department of Transportation. (2023, January 25). Transportation Districts, TIDs Registered with ODOT.
transportation.ohio.gov/wps/wcm/connect/gov/7880f508-15e6-4893-89a5-4b9531caea87/January+2023+Map.pdf?MOD=AJPERES&CONVERT_TO=url&CACHEID=ROOTWORKSPACE.Z18_K9I401S01H7F40QBNJU3SO1F56-7880f508-15e6-4893-89a5-4b9531caea87-oo3slnd

Regional Rural Transportation Planning: State Models for Local Consultation, Regional Coordination, and Regional Transportation Planning Organizations. (2016). National Association of Development Organizations (NADO) Research Foundation.
nado.org/wp-content/uploads/2016/11/Reg_transportation_planning_report_FINAL2.pdf

TID (Transportation Improvement District). (n.d.). Ohio Department of Transportation. Retrieved April 24, 2023 from
transportation.ohio.gov/programs/jobs-commerce/03-transportation-improvement-districts

Transportation Improvement Districts (TID) / Transportation Development Districts (TDD). (n.d.). U.S. Department of Transportation, Federal Highway Administration. Retrieved April 24, 2023, from
fhwa.dot.gov/ipd/value_capture/defined/tid_tdd.aspx

Williams, K. M., AICP. (2006). Alternative Funding Strategies for Improving Transportation Facilities: A Review of Public Private Partnerships and Regulatory Methods. The Center for Urban Transportation Research (CUTR).
cutr.usf.edu/oldpubs/Fairshare Report.pdf

Program Area(s): 
Originally posted Apr 28, 2023.
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