Build On This!

H.B. 190 (eff. Nov. 14, 2007) – Requires private contractors who work with a school district for a “regular period of time” to run background checks on all employees assigned to a district building or project. Public owners are beginning to rely upon this newly enacted statute to require private contractors to obtain fingerprints and request both an Ohio Bureau of Criminal Identification and Investigation (“BCII”) and an FBI records check prior to assigning employees to work on district projects. Further, the background check must be repeated every five years for each employee, and private contractors hired by school districts must pay the cost of these checks.

Continue reading "Legislative Update: Criminal background checks to be required on employees and contractors who work in school districts." »

Summary: When federal funds are involved on a local project, the local municipality needs to be very cautious when attempting to institute local hiring preferences. Courts will most likely side with the decision made by the federal agency provided that decision is not arbitrary or capricious.

Continue reading "Case Summary: Local hiring preferences can result in withdrawal of federal funds on a city project City of Cleveland v. State of Ohio, et al., 2007 WL 4123743 (C.A. 6 (Ohio)) " »

The Ohio General Assembly approved a bill placing limits on the government's authority to take property for economic development purposes and governor Strickland is expected to sign the bill into law, reports the Columbus Dispatch. The bill includes a requirement that at least 70 percent of properties in a targeted area be deemed "blighted" before the government can take the land. A companion constitutional amendment failed to garner the votes needed to appear on the November ballot.

Real estate attorney David Lindner reports that the Ohio General Assembly is now considering H.B. 220, which would establish Ohio's first planned community law. The proposed law would clarify and expand the powers of homeowners' associations. Check back for further updates as the bill proceeds through the legislative process.

The Cleveland Plain Dealer reports that developer Scott Wolstein, the Cleveland-Cuyahoga County Port Authority, and all but one property owner have reached a settlement in the eminent domain case pending in the Cuyahoga County Probate Court. Owner James Kasouf refused to settle, arguing that his property is worth substantially more than he was offered in settlement. The trial will resume on August 1 to resolve his claim.

The Ohio Senate passed a pair of measures yesterday that could severely limit the power of a city to take property for economic development. The first measure provides a definition for the term "blight," which is a prerequisite for a taking. The second measure would allow voters to pass a constitutional amendment to override the home rule provision of the Ohio Constitution to permit uniform state regulation of eminent domain instead of the piecemeal approach that has been used. The House will vote next week on its own eminent domain proposal. Click here for additional information from the Plain Dealer.

The Cleveland-Cuyahoga County Port Authority is suing to take nine properties by eminent domain for a planned redevelopment project by developer Scott Wolstein. The case will be heard in Cuyahoga County Probate Court and several weeks of testimony are expected, reports the Cleveland Plain Dealer. If the court finds that the taking is justified, the value of the properties will be determined by a jury. Opponents contend that the use of eminent domain in this case is not for the benefit of the public, but for the benefit of a private developer. Proponents argue that the redevelopment of the run-down east bank of the Flats will benefit the entire city.

The Supreme Court of Ohio will determine whether the city of Cincinnati can bypass low bidders on a construction project in favor of small and minority owned businesses, reports the Cincinnati Enquirer. Cleveland Construction sued the city after its low bid was rejected in favor of a higher bid from a contractor that used small business and minority subcontractors.

The Cleveland Plain Dealer reports that Cuyahoga County Probate Judge John Donnelly ruled in favor of the city of South Euclid, which sought to obtain a portion of the Cedar Center shopping center for redevelopment. Four tenants contested the city's right to take the property. The city will now proceed with selecting a developer to rehabilitate the South Euclid portion of the shopping center.

By James Simon and Donald Leach

In late 2006, the Ohio General Assembly passed H.B. 694, a sweeping reform of Ohio’s campaign finance laws that affects all public contractors and design professionals. This new law severely constrains public contractors’ and design professionals’ ability to make political contributions to officeholders that award bid or unbid public contracts valued over $500. Its impact is not limited to construction related contracts as affected public contracts include all those let by the state, state agencies and political subdivisions, including local governments and appointed boards, agencies and commissions. H.B. 694 imposes harsh sanctions, including criminal prosecution and contract rescission, for contractors that violate its limits.

The provisions of H.B. 694 affect all contributions made after January 1, 2007. Under the new law an officeholder (and all boards, agencies or commissions the officeholder appoints) cannot award a public contract if the officeholder received campaign contributions exceeding $1,000 during the preceding two years from an individual owner, member, partner, 20% shareholder or professional corporation shareholder of a public contractor. The limit includes contributions by owners’ spouses and minor children.

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