CD Colleagues: Greetings!

We have a variety of interesting features in this month’s newsletter.  Economic Development, Sea Grant, renewable energy - there’s a lot of activity out there right now in which our colleagues are engaged.  These are great examples as to why OSU Extension is such a great organization! 

Thomas Blaine, Editor

Message from Interim AD, Community Development - John Conglose

Greetings,
The Community Development Educators met on May 19^th and were very enthusiastic about approaching their work from a regional perspective.  This Group of Extension Educators will be meeting on a monthly basis to further define job descriptions, areas of specializations and how to approach Community Development educational programming by utilizing a highly effective team approach.

Several questions have been brought to my attention over the past few months as to how this new approach for Community Development Programming is going to work.  I thought I would spend a few moments in this newsletter providing an explanation. What follows is a condensed version of the regional approach to providing OSU Extension, Community Development educational  programming: 

There will be at least one and possibly two Community Development Educators assigned to each of the EERA’s in the new restructuring model.  These assignments have been made and the group of community development educators are meeting and functioning as a team.  As community development information is shared, and as questions related to community development programming come in to counties or EERA’s, these educators will be the lead contact person to disseminate information.  As issues or problems are more clearly defined and the lead community development educator determines that there may be an educational program that can be utilized to answer questions, address issues, etc., this person will assemble a team of educators to deliver a program.  This team could be comprised of other community development educators from throughout the state. The team could also be comprised of community development educators along with other educators across program areas that have specific areas of expertise.  The team will then utilize revenue generation and cost recovery methods to cover costs for delivering programming.

I want to also emphasize that community development educators will continue to be expected to work across programmatic areas, participate on various teams, address local based issues when called upon, as well as participate in signature programs when applicable.  

So, if a particular community development issue surfaces in a community throughout the state, the following Community Development Educators assigned to specific EERA’s can be called upon:

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* Glenn Welling will be returning from military duty in October 2009.  Until then all Community Development issues in the Miami Valley Area can be referred to John Conglose conglose.1@osu.edu or Shirley Cook cook.22@osu.edu and they will arrange for a CD Educator to respond to the issue.

A New Focus for BR&E: Local Foods

Brian Raison, Extension Educator, Community Development, Top of Ohio EERA, is planning to begin working on a new project that will lay out a more formalized process for using the OSUE Signature Program, Business Retention & Expansion, in targeted business and economic sectors. Specifically, he plans to design a unique “local foods” BR&E targeted program that will include production, distribution and consumption. This new modified BR&E approach could be used anywhere in Ohio or across the nation.

One unique component may include using youth groups (4H Club members) in the implementation of the actual BR&E program. Students could gain valuable experience by conducting interviews and making presentations at community/civic organizations. They would also gain tremendous insight into the local business opportunities (that exist in their home town) and possible career paths. The potential for making mentor connections weighs in heavily. Finally, there may be WIA funds through Jobs & Family Services to pay student participants.

This idea was born on June 3rd in an impromptu brainstorming session at the very end of a BR&E training led by Greg Davis’s team. If you are interested in joining and continuing the discussion, please contact Brian at raison.1@osu.edu

Why Working Together Works: Van Wert Economic Advisory Group

On June 16, 2009, the Van Wert County OSU Extension Economic Development Advisory Group held its ninth annual Economic Development Dinner with an ongoing theme of “working together.”  Working together focuses on local and regional collaboration between community and business leaders who share a mission of promoting the Van Wert area as an excellent place to live, work and do business. 

For a decade, the Advisory Group has been the vehicle for collaboration on the economic development process and resulting outcomes.  This diverse group is made up of stakeholders representing the County, Cities of Van Wert and Delphos, business and industry, education, utilities, villages and regional partners, and has grown from 7 members in 1999 to 52 today.  The group meets monthly to provide for a community discussion on current economic development priorities and future plans.

The keynote speaker for this year’s dinner was Edward ‘Ned’ Hill, Vice President for Economic Development at ClevelandStateUniversity and Professor of Economic Development in the Maxine Goodman Levin College of Urban Affairs.  He cited Michigan as an example of a state that may have to wait 20 years for economic recovery because of fractured public/private partnerships and lack of a shared strategy.  According to Ned, lack of cooperation sends a message to potential investors that the area is not a safe haven.  His presentation, “Fundamentals of Economic Development” is posted on the web site: http://www.vanwertcounty-edg.com/

If you would like more information, contact Nancy Bowen, Extension Educator, Community Development, Maumi Valley EERA at nbowen@cfaes.osu.edu

KUDOS:

Frank Lichtkoppler, Extension Specialist, Sea Grant, was interviewed at the recent annual meeting of the International Association of Great Lakes Research (IAGLR) this year in Toledo.  Take a few moments to check out the video here: http://www.youtube.com/watch?v=EwTC_7BCLs0  Frank has worked very effectively over the years to educate scholars and the general public about all kinds of issues associated with the Great Lakes.  Way to go Frank!

Renewable Energy Projects Affect on Current Agricultural Use Valuation

Current Agricultural Use Value (CAUV) is a differential real estate tax assessment program which allows owners of farmland the opportunity to have their parcels taxed according to the land value in agriculture, rather than full market value. To qualify for CAUV assessment, a landowner must devote the parcel exclusively to agricultural use. The parcel must be 10 acres or more and have been in agricultural use for the last three years. A smaller tract may be included in this program if the tract produced an average income of $2,500 or more from sales of agricultural products during the previous years or if there is an expected gross income of that amount.  If a parcel of land does not meet one of these criteria, it loses its eligibility for CAUV tax treatment. 

If land is converted from agricultural production to a use inconsistent with the CAUV criteria, the Ohio Constitution permits the recoupment by levying a charge on the affected land in an amount equal to the tax savings during the three tax years immediately prior the year in which the conversion occurs.

As advanced energy projects have become a vital component of economic development strategies in rural communities, projects such as wind energy turbines and solar energy fields are actively seeking rural locations in Ohio.  The implementation of these projects should cause farmland to lose the CAUV tax status.  However, the effect is not the same.  Although some of the taxation rules concerning renewable energy are still being drafted, the logic that is being applied will be discussed in this article.

In the case of wind turbines, the land that will be occupied during the construction phase will lose CAUV valuation for that year only.  Since it will be quickly returning to agriculture production, there is no recoupment assessed on that portion of the property.  The land that actually supports the wind turbines will lose the CAUV permanently, and the three year tax recoupment will be assessed along with the land being taxed as commercial property going forward. 

Solar fields will have a different tax treatment.  Even though this land can be returned to agriculture production, the transition back to farmland will not be for 35-50 years.  The conversion from farmland to commercial property is considered semi-permanent and not only triggers the loss of CAUV; it also triggers the recoupment of taxes for the previous three years. The land will then be taxed as commercial property until it returns to agricultural property.

When structuring land acquisition deals, renewable energy projects can be proposed in the form of a long term lease agreement or an outright purchase agreement.  Regardless of the land acquisition type, it is advantageous to specify in the agreement terms which party is responsible for any agricultural tax recoupment payments that may be triggered by the change in land use.    

Although participating in these opportunities can provide substantial personal returns and community benefits, landowners need to do due diligence in calculating the cost-benefit analysis for their land.  Landowners are encouraged to discuss these issues with their county auditors to determine the exact tax liabilities that would result from the construction of renewable energy projects. 

If you have questions about this topic, please contact Chris Bruynis, Extension Educator AGNR, Erie Basin EERA at bruynis.1@osu.edu or Eric Romich, Extension Educator, Community Development , Erie Basin EERA  at romich.2@ag.ohio-state.edu

Dates to Remember:

CD Educators Meeting, July 23, 2009, 10 - 3 pm, Room 105 Agr Admin Bldg, Columbus

Community Development Society (CDS) 41st Annual International Conference-Celebrating Community: Creating Hope in Uncertain Times - July 26 - 27, 2009 - Memphis, TN

Jennifer McSweeney Land Use Conference 2009 - September 16, 2009 - Nationwide and Ohio Farm Bureau 4-H Center, Columbus

Farmland Preservation Summit - November 5, 2009 - Nationwide and Ohio Farm Bureau 4-H Center, Columbus

OSU Extension Annual Conference - December 16 - 17, 2009 - Ramada Plaza Hotel and Conference Center, 4900 Sinclair Road, Columbus

NACDEP Annual Conference - April 12 - 14, 2010 - Bloomington, MN