'It isn't needed anymore.' Stark County CIC will dissolve and redistribute its assets

Stark County is dissolving a little-used economic development tool.

The Community Improvement Corporation will cease operations and distribute its assets to the Stark County Port Authority.

The nonprofit corporation was active when it was formed in 1975, but hasn't been used much in several decades.

"The core reason the CIC was formed is no longer in existence and has not been for some time," county Administrator Brant Luther said Wednesday during what will be the final meeting of CIC officers.

Luther said the Lank Bank and the Port Authority have taken over any of the CIC's remaining responsibilities.

"We're not leaving a gap in the market," he said.

The CIC has $76,352.10. It does not own any property or other assets and does not have any employees or debts.

That money, aside from any court costs or fees that will arise from dissolving the CIC, will be distributed to the Port Authority where it can be used for economic development purposes.

Why isn't the CIC utilized?

The CIC was formed to issue bonds to businesses.

Industrial development bonds issued through the CIC were tax free because the county commissioners served as the issuer. Businesses, the borrower, got a lower interest rate and banks, the lender, got tax-free income.

"When I started in January of 1982 in the civil division at the prosecutor's office, we were issuing industrial development bonds left and right," said David Bridenstine, attorney for the county commissioners. "I had stacks of paper on the floor of my office of bond issues that were pending."

During that time, many bonds, sometimes in the millions of dollars, were issued to big businesses.

CICs are no longer authorized to issue industrial development bonds. The federal government restricted that ability in 1986.

"It got abused, I don't know that it got abused in Stark County, but Congress reconsidered that and eliminated the industrial development bond portion," Bridenstine said.

The corporation does retain some ability to issue smaller bonds, but it has received few applications for them in many years.

Jerry Bixler, former director of the Stark County Regional Planning Commission and longtime member of the CIC, said it is time to dissolve the corporation.

"I've been on the CIC since 1984 when I was appointed, it was active at the time," he said. "As government programs are created, they always last forever, they're funded forever, so I commend the board for actually abolishing this mechanism because it isn't needed anymore."

What happens next?

The CIC's board of directors met Wednesday and agreed unanimously to dissolve the corporation. Six of the seven total members were present.

Next, the county commissioners will need to pass a resolution.

Following that, a complaint must be filed in Common Pleas Court, according to Ohio law .

The court must approve the dissolution to ensure the nonprofit is following the law in distributing its assets.

"This will all be presented to the Court of Common Pleas for which it will be a unique animal," Bridenstine said. "They very seldom ever see these. I expect to be called and hear the question, 'What in the world is this?'"

The attorney general and the county commissioners will be named in the case.

The process could take several months.

Upon the court's approval, a certification will be filed with the secretary of state.

Once that is received, the corporation will cease to exist within 90 days.

The CIC will also file an affidavit with the secretary of state certifying all taxes have been paid, and there are no outstanding claims or financial obligations.

Reach Grace at 330-580-8364 or gspringer@gannett.com. Follow her on X @GraceSpringer16.

This article originally appeared on The Repository: 'It isn't needed anymore.' Stark County CIC will dissolve and redistribute its assets