Kohl's Illinois, Inc. v. Marion Cty. Bd. of Revision (Slip Opinion)
20 N.E.3d 711
Ohio2014Background
- TIF agreement in Marion County allocated tax increments to a redevelopment fund for public improvements for 30 years.
- No-contest covenant in Section 3.1 barred owners from contesting assessed valuations; Section 3.2 allowed contests on other taxes.
- Declaration of Covenants and recorded run with the land, purportedly binding successors and assigns, including Kohl’s after purchase.
- BOR dismissed Kohl’s valuation complaint as void due to the TIF covenant; BTA affirmed.
- This Court held the covenant is not a jurisdictional bar; beneficiaries must prove enforceability, and remand is required.
- Burden to invoke the covenant lies with the covenant’s proponents (county and BOE), not Kohl’s.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the no-contest covenant a jurisdictional bar to filing a valuation complaint? | Kohl’s: covenant voids complaint as jurisdictional. | County/BOE: covenant can bar claims. | No; covenant is not jurisdictional. |
| Who bears the burden to prove the covenant’s enforceability against Kohl’s? | Kohl’s: burden on Kohl’s to prove lack of bar. | Beneficiaries must prove enforceability. | Burden on the covenant’s beneficiaries; remand to present argument. |
| Does the covenant run with the land and bind Kohl’s as a successor? | Kohl’s asserts ambiguity or policy issues. | Covenant runs with the land, enforceable by County/BOE. | Covenant appears to run with the land; unresolved on enforceability; remand. |
| Are Kohl’s constitutional challenges ripe or premature? | Constitutional claims would arise if covenant enforceable. | Not ripe until covenant’s enforceability is resolved. | Premature; decision on constitutionality deferred. |
Key Cases Cited
- Kalmbach Wagner Swine Research Farm v. Wyandot Cty. Bd. of Revision, 81 Ohio St.3d 319 (1998) (debate on BOR dismissals and jurisdictional limits; statutory authority controls)
- Gammarino v. Hamilton Cty. Bd. of Revision, 71 Ohio St.3d 388 (1994) (dismissals must be for statutory violations; not broad jurisdictional bars)
- LCL Income Properties v. Rhodes, 71 Ohio St.3d 652 (1995) (limits on dismissal grounds; non-statutory reasons generally not jurisdictional)
- Groveport Madison Local Schools Bd. of Edn. v. Franklin Cty. Bd. of Revision, 137 Ohio St.3d 266 (2013) (statutory deadlines and BOR powers; context for non-jurisdictional dismissals)