"Investing in Brownfields: The Economic Benefits of the Clean Ohio Revitalization Fund," a study released recently by the Greater Ohio Policy Center, found that 21 Clean Ohio Revitalization Fund projects that received $49.3 million in grants "produced $1.16 billion in one-time contributions to Ohio's gross domestic product and $1.4 billion in annual contributions," Columbus Business First reports. Clean Ohio has given $315 million in grants to "support the cleanup of 160 brownfield sites since 2002," but "time and resource constraints" forced the Greater Ohio Policy Center to utilize a representative sample of only 21 projects instead of analyzing all of them, the article said. For more, read the full story and the full report.

Out of the 282 entities that applied for more than $21.9 billion from the federal New Markets Tax Credits program, five Ohio groups received $145 million, The Plain Dealer and Business Courier report. The program, which "helps attract investment in underserved regions that would otherwise suffer from a lack of financing," awarded the following to Ohio organizations: the Cincinnati Development Fund received $35 million to invest in "brownfield redevelopment, nutritional access programs and educational improvement efforts"; the Kroger Community Development Entity received $20 million to help "attract investment in underserved regions"; the Cleveland Development Advisors – an arm of the Greater Cleveland Partnership – received $30 million to "shore up real estate projects in low-income pockets" of Cleveland and Cuyahoga County; the Ohio Community Development Finance Fund received $40 million to "help finance local community development projects, cultivate economic growth, and create jobs"; and the Dayton Regional New Market Fund was awarded $20 million to invest in "comprehensive neighborhood redevelopment projects." For more, read the full Plain Dealer story, the full Business Courier story, and press releases from U.S. Sen. Sherrod Brown (D-Ohio) announcing the awards for the following areas: Northeast Ohio, Dayton, Cincinnati and throughout Ohio.

Through the Property Assessed Clean Energy (PACE) financing program, commercial borrowers are "set to receive record loans this year" for solar energy installations, Bloomberg reports (See our Feb 14, 2013, blog post for more information). The decision by two of the nation's largest commercial real estate owners – "Prologis, an international owner of industrial properties, and Simon Property Group, the country's largest U.S. Real Estate Investment Trust" – to use the program to fund projects ranging from rooftop solar panels to energy-saving systems has "radically changed market acceptance," Bond Buyer reports. Simon Property alone recently used $5 million in PACE financing for three energy efficiency projects in Ohio and California.

Although they vary from state to state, most PACE programs feature a municipal government that offers PACE bonds to investors who provide loans to businesses and consumers for renewable energy and energy efficiency projects. The government provides financing by creating an assessment district that is added to the tax roll, which the property owner then pays on a tax bill for a period of up to 30 years.

At a time when banks are becoming "less eager to provide long-term capital for renewable energy," it is estimated that more PACE loans will be made in 2013 "than in the past four years combined," and that as much as $150 million in PACE loans will be provided for projects like these, Bloomberg reports. The commercial property side of the program is drawing so much interest, Bond Buyer reports that "market watchers think in a few years enough volume could exist in California to start bundling the currently privately-placed bonds to sell in the public market." For more, read the full Bloomberg story and the full Bond Buyer story.

Bricker & Eckler LLP is Ohio's leader in PACE law. Bricker attorneys assisted in drafting Ohio's PACE law and served as bond counsel for Ohio’s first three issues of PACE bonds, including the energy efficiency bonds for the Simon Properties' project in Lake County, Ohio.

A new, in-depth Dayton Daily News investigation found that defaults on the Small Business Administration's largest federally guaranteed loan program, known as the 7(a) program, "cost taxpayers $1.3 billion since 2000." The investigation determined that years of "lax federal oversight," including the use of inflated real estate values and a failure to adhere to SBA standards, allowed lenders to make bad loans to franchises with "extensive default histories." From 1990 to February 2013, the 7(a) program – which is designed to "provide capital for small businesses, including those owned by minorities and women, that have had trouble getting conventional loans" – had a one-in-five failure rate for the nine-county Dayton region. For more, read the full story.

The Ohio Development Services Agency is coordinating with the Appalachian Partnership for Economic Growth (APEG) of Nelsonville to offer Manufacturing Extension Partnership (MEP) services to 28 counties in southeastern Ohio, Perry County Tribune reports. The Innovation Center at Ohio University, as well the Muskingum County Business Incubator in Zanesville and the Manufacturing and Technology Small Business Development Center at The Ohio State University South Center in Piketon, will serve as satellite partners providing “products, services, and assistance vital to the health of manufacturing businesses with fewer than 50 employees” in designated counties. APEG will provide MEG services directly to “manufacturers with 50 or more employees throughout the entire 28 county region,” the article said. For more, read the full story.

Last week, the Clean Ohio Council announced that it has “streamlined its brownfield incentive programs” in an effort to provide funding “quicker to encourage redevelopment of sites with environmental issues,” Columbus Business First reports. The new streamlined program, co-managed by JobsOhio, the Ohio Development Services Agency and the Clean Ohio Council, will “operate on rolling cycles” rather than competitive funding rounds used since the inception of the Clean Ohio Revitalization Fund and Clean Ohio Assistance Fund programs. Projects seeking funding through JobsOhio and its regional network partners can qualify for grants up to $200,000 for testing, down from $750,000, “while grants for actual cleanup remains capped at $3 million,” the article said. For more, read the full story.

Last month, Sens. Frank Lautenberg (D-NJ) and Jay Rockefeller (D-WV) introduced S. 387, which would create a $10 billion infrastructure bank known as the American Infrastructure Investment Fund, Bond Buyer reports. Essentially acting as a bigger version of the Transportation Infrastructure Finance Innovation Act (TIFIA) program, the bill would establish an annual $5 billion pool for fiscal years 2014 and 2015, providing loan and loan guarantees for “rail lines, marine ports, pipelines, airports, highways, bridges, public transportation systems, and other transportation-related projects.” President Obama has repeatedly called for “infrastructure banks in his annual budget requests”; however, such measures have failed in the past due to concerns that it would overlap the TIFIA program and because “the mechanics of who would control it and how it would work would be controversial,” the article said. For more, read the full story (subscription required) and the full text of S. 387.

The Ohio Development Services Agency (DSA) recently announced that the application period for Round 10 of the Ohio Historic Preservation Tax Credit program is now underway and a total of “$30 million in tax credit allocation is currently available for Round 10 applicants,” according to a press release from the agency. The program — which is administered by the DSA’s Office of Redevelopment and the Ohio Historic Preservation Office — provides a tax credit of 25 percent for historic rehabilitation projects. Applications must be submitted to the Office of Redevelopment by 5 p.m. on Tuesday, April 2, 2013. Prior to submission, all applicants must “schedule pre-application meetings” with both the Ohio Historic Preservation Office and the Ohio Development Services Agency. For more, read the full press release.

Site Selection magazine recently announced that Texas eclipsed Ohio for a first-place finish in the new and expanded 2012 facilities race to claim the Governor’s Cup. Annually, Site Selection magazine compiles data to measure how states and cities rank against each other based on economic-development metrics. Ohio was ranked second in the nation in 2012 after a first-place finish in 2011. Texas posted 761 projects while Ohio came in second with 491 projects, just seven fewer projects than last year’s total of 498. Rounding out the top 5 and providing a strong Midwestern showing in job creation and retention in 2012, Pennsylvania was ranked third with 430 projects, Michigan was ranked fourth with 337 projects and Illinois was ranked fifth with 322 projects.

The Columbus Dispatch reported that Site Selection magazine also announced seven Ohio cities making it into its rankings in the following categories:

• Metropolitan areas with a population of at least 1 million: Cincinnati came in eighth and Columbus finished 10th.
• Metropolitan areas with a population of 200,000 to 1 million: Dayton came in first for the third time in the past five years; Akron finished eighth.
• Micropolitan areas (the smallest population category): Findlay, Wooster and Ashtabula all finished in the top 10.

Fourteen other Ohio cities were ranked as top micropolitan areas by number of projects, putting a total of 17 Ohio cities — more than any other state — on the magazine’s list: East Liverpool-Salem (T13), Greenville (T13), New Philadelphia-Dover (T13), Sidney (T13), Defiance (T23), Bellefontaine (T30), Tiffin-Fostoria (T30), Wapakoneta (T30), Cambridge (T45), Fremont (T45), Ashland (T86), Bucyrus (T86), Celina (T86) and Zanesville (T86).

For more, read the 2013 edition of Site Selection magazine and The Columbus Dispatch story.

According to JobsOhio’s 2012 Annual Report, the economic development entity created and retained fewer jobs in 2012 than in 2011, which a spokeswoman attributed to “political uncertainty at the federal level,” Columbus Business First reports (See out March 05, 2013, blog post for more information). Despite the job retention drop (from 61,686 in 2011 to 54,633 in 2012) and job creation drop (from 21,099 in 2011 to 20,979 in 2012), the “sum of economic development projects and capital investments tied to them rose.” Payroll commitments, however, dropped 27 percent ($1.3 billion) between 2011 and 2012, the article said. For more, read the full story.

Released last Friday, JobsOhio’s first annual report highlights several “solid results” achieved during 2012, including working with “277 companies that committed to create 20,979 jobs, retain 54,633 jobs, and make $5.8 billion in new capital investment,” JobsOhio Chairman and President John Minor said in a letter introducing the report. Internally, JobsOhio implemented its strategic plan for proactive economic development; finalized its contract with the Ohio Development Services Agency to make it the “lead economic development organization for the State of Ohio”; launched the advertising campaign Thrive In Ohio to celebrate “the success and growth of people and businesses in Ohio”; and completed its regional partnership and overarching organizational structure to formally unify local economic development entities.

JobsOhio’s 2013 Strategic Plan indicates a commitment to pursuing retention and expansion efforts for more than 2,000 companies in Ohio because “80 percent of new jobs created come from companies that are already doing business in the [s]tate.” With a focus on California, JobsOhio will expand its Thrive In Ohio marketing campaign to target companies that are ready both for “new capital investment” and to “expand or relocate to a more business friendly location.” The nonprofit is working with targeted industries to generate a “demand forecast” for workforce skills that will then be communicated to Ohio’s education and training providers. In addition to “exploring the assets and opportunities” of the Ohio River, JobsOhio is also working with the Development Services Agency and the Ohio Environmental Protection Agency to offer up to $43 million for the “revitalization of brownfield and other underutilized sites in Ohio.”

For more, read the full document, which includes both the 2012 Annual Report and the 2013 Strategic Plan.

A recent change of strategy for the Kasich administration’s economic development efforts will reduce the number of large-scale incentive packages offered to retain, expand or attract businesses in favor of a greater emphasis on “broader issues” that involve investing in the state’s competitive assets, including “infrastructure, talent and technology,” Crain’s Cleveland Business reports (see our January 29, 2013, blog post for more information). This new return-on-investment approach is not without its critics, as some have noted that altering the Clean Ohio revitalization fund program to require end-users before communities receive funds will cause cities to have difficulty competing to attract businesses because companies “don’t want to commit to a move if they must wait a year or more for an environmental cleanup before they can begin construction or renovation,” the article said (see our February 22, 2013, blog post for more information). For more, read the full story.

The U.S. Small Business Administration (SBA) recently released a press release reminding qualifying businesses and organizations that March 1, 2013, is the filing deadline for federal economic injury disaster loans, which are available in three Ohio counties due to the extreme weather patterns that occurred from January 1 through May 11, 2012. Qualifying outfits include small businesses, small agricultural cooperatives, most private nonprofit organizations of all sizes and small businesses engaged in aquaculture that are located in Fulton, Lucas and Williams counties. For more, including application information, read the full press release.

The Johnson Controls Institute for Building Efficiency, PACENow and the Urban Land Institute released a report this month on Property Assessed Clean Energy (PACE) financing, which is a “municipal approach to support energy efficiency and renewable energy upgrades in commercial buildings in the United States” that originated in 2008 in Berkeley and Palm Desert, California. The report profiles four of the 16 PACE programs that are currently accepting applications, including the Toledo-Lucas County Port Authority program based in Toledo, Ohio. 

Each program operates slightly differently due to the PACE industry being in the early stage of development. However, PACE financing structures commonly include features such as: zero up-front cash investment; low interest rates; immediate positive cash flow; long-term financing (up to 30 years in Ohio); PACE assessments can run with the land upon sale; the ability to pass payments through to tenants; higher rents and greater long-term property value because of energy efficiency; and preservation of borrowing capacity through off-balance-sheet financing.

The specifics vary from program to program, but generally, after a state passes PACE-enabling legislation, a local government then creates or joins an assessment district. Building owners evaluate projects that reduce energy costs and decide whether to move forward. The local government then provides financing by adding the assessment to the tax roll. The property owner then pays the assessment on a tax bill for a period of up to 30 years. For more information, including eligible technologies and projects, preferred initial and eligible project sizes, minimum energy savings requirements and a full list of the active PACE programs across the nation, read the full report. 

Bricker & Eckler LLP attorneys assisted in drafting Ohio’s PACE law and served as bond counsel for Ohio’s first three issues of PACE bonds.

The Washington D.C.-based non-partisan research center Good Jobs First released a report recently that slams the practice of states engaging in “regressive business promotion policies it says siphons jobs from one region to another with little net gain to taxpayers,” according to The Hannah Report. The report, titled “The Job-Creation Shell Game: Ending the Wasteful Practice of Subsidizing Companies that Move Jobs from One State to Another,” determined that the practice is a waste of taxpayer funds, which are used to provide tax incentives to businesses so that they relocate to an area, effectively reshuffling existing jobs geographically (dubbed “interstate job piracy”) at the expense of other communities instead of encouraging new business activity, a press release from the organization said.

Good Jobs Ohio said that some companies that were given such incentives failed to uphold their end of the deal, such as creating new jobs, which has driven Gov. Kasich and others to reconsider pursuing such bidding wars — a move praised by the organization (see our January 29, 2013, blog post for more information).

For more, read this Toledo Blade story, Good Jobs Ohio’s press release and the full report.

After taking time to review Cuyahoga County Executive Ed FitzGerald’s “Business Attraction and Anti-Poaching Protocol,” Middleburg Heights has signed the agreement — the 59th and final community to do so, The Plain Dealer and a press release from the Cuyahoga County Office of the Executive report. The protocol “asks communities to step up their economic development efforts, agree not to lure companies that have not expressed a desire to move, and give notice to a home community if an intra-county move is contemplated,” the release said (see our January 14, 2013, blog post for more information). Middleburg Heights Mayor Gary Starr said that his city already had an anti-poaching policy, which was “one of several FitzGerald’s office used to draft its protocol,” the article said. For more, read the full story and press release.

According to Gongwer, “[t]he transfer of the state’s wholesale liquor enterprise to JobsOhio was finalized Friday [February 1, 2013], along with the sale of $1.57 billion in bonds” even though the Ohio Supreme Court has agreed to hear the JobsOhio case (see our January 31, 2013, blog post for more information). The “enterprise transfer includes the previously executed Franchise and Transfer Agreement, and the Operation Services Agreement between JobsOhio, the Ohio Office of Budget and Management, and Ohio Department of Commerce,” according to a press release from JobsOhio. According to the offering circular, “[o]nly about $125 million in bond revenue will go to JobsOhio as ‘working capital’ for job-creation efforts,” through its agreement to lease the liquor franchise for 25 years, Gongwer reports. For more, read the JobsOhio press release.

Having faced some criticism for his use of tax incentives to retain businesses in Ohio that did not create any new jobs, Gov. John Kasich said during a year-end press conference with reporters late last month that he is not interested in offering copious incentive packages to companies that “come to him with threats of moving out of state,” Stow Sentry reports (see our December 10, 2012, blog post for more information). Gov. Kasich said that instead of engaging in bidding wars with other states, he now touts Ohio’s great higher education and workforce training, great location and stable politics to attract and retain businesses, the article said. For more, read the Stow Sentry story and this Dayton Daily News story.

The Ohio Tax Credit Authority approved state assistance Monday for 11 projects expected to create 410 new jobs and retain 874 existing jobs in Ohio, generate $20 million in new payroll, and prompt $51 million in other investments over the next several years, according to Gongwer and The Hannah Report. For more information on the companies and an overview of their projects, see the press release from Governor Kasich’s office. 

In other development news Monday, the Ohio Controlling Board approved the Development Services Agency’s expenditure of $9.2 million in Ohio Third Frontier funding for five different organizations through JobsOhio, according to The Columbus Dispatch. The organizations approved to receive funding are the Appalachian Partnership for Economic Growth, receiving $800,000; Regional Growth Partnership Inc., of Toledo, receiving $1.1 million; Development Projects Inc., of Dayton, receiving $1.2 million;  Columbus 2020, receiving $1.8 million; and Team NEO in Cleveland, receiving $2.8 million. The money represents the second round — the first $14 million having been awarded in August 2011 — the article said.

Gongwer and The Hannah Report also reported that the Ohio Controlling Board approved several additional requests, most notably:

• Funding for multiple economic development projects in the sum of $873,000.
• A $1 million request by the Ohio Department of Transportation to assess private-public partnerships.

State Sen. Bill Beagle (R-Tipp City), who serves as a member of both the Governor’s Executive Workforce Board as well as Ohio’s Third Frontier Advisory Board, will serve as chairman of the newly created Senate Standing Committee on Workforce & Economic Development, Dayton Business Journal reports. This new committee will be “responsible for designing new, creative initiatives to expand Ohio’s economy by preparing Ohioans for the jobs of tomorrow,” the article said. For more, read the full story.

Last week, State Sen. Bill Beagle (R-Tipp City) announced that the State Controlling Board approved “nearly $11 million in funding for the Choose Ohio First Co-op/Internship Program,” Dayton Business Journal reports. Twenty-two higher education institutions throughout Ohio will receive funding for the administration and development of internship and co-op programs. “The goal of the program is to better align the skills, knowledge and experience of Ohio’s workforce with the jobs that need to be filled in the workplace,” the article said. For more, read the full story.

Congress extended the tax credit for wind energy projects for one year as part of the fiscal cliff deal, leaving in place the 2.2-cent tax credit granted to wind turbines for “each kilowatt-hour they generate in their first 10 years” with an option for companies to instead accept “a lump-sum payment equal to 30 percent of the construction cost,” Dayton Daily News reports. The news was welcomed by wind energy developers such as Everpower Renewables, which is developing the Buckeye Wind Farm in Champaign County, as well as the 5,000 to 6,000 Ohio employees that make Ohio rank fourth among all states in jobs linked to wind energy, according to a 2012 survey by the American Wind Energy Association, the article said. For more, read the full story.

The Small Business Administration (SBA) announced a rule recently that will amend its regulations to allow contractors with outside investors to “tap research funds set aside for small businesses,” Dayton Business Journal reports. Small businesses that are “majority-owned by multiple venture capital operating companies, private equity firms or hedge funds” can now participate in the Small Business Technology Transfer Act (STTR) and the Small Business Innovation Research (SBIR) programs, according to a summary of the rule. For more, read the full story and the final rule.

After hoping that at least 40 Cuyahoga County communities would sign on to the county’s anti-poaching pledge, the Cuyahoga County Business Attraction and Anti-Poaching Protocol, Cuyahoga County Executive Ed FitzGerald said that as of two weeks ago, 58 of 59 communities had signed on to the economic cooperation agreement, Cleveland.com reports. Middleburg Heights is the only holdout on the agreement to date. The pledge is an intergovernmental agreement that the communities will not lure companies away from one another if the companies haven’t “expressed a desire to leave” already, the article said. For more, read the full story or the April 16, 2012 DevelopOhio blog post.

The Ohio Incumbent Workforce Training Voucher Program, which “reimburses businesses for eligible employee training expenses” in an effort to enhance the skill set of Ohio workers and help Ohio companies become more competitive, has already received voucher requests totaling $21.4 million despite having only $20 million available, Cincinnati Business Courier reports. Although applications are accepted on a first-come, first-served basis, interested individuals are still encouraged to apply as some applicants may not be qualified to receive program funding, the article said. For more, read the full story and visit the program’s webpage.

On Tuesday, Standard & Poor’s applied an “AA” rating and Moody’s Investors Service Inc. applied an “A2” rating for bonds that JobsOhio intends to issue this year to finance the lease of “the state’s liquor business for 25 years in return for an up-front payment of $1.2 billion to the state,” Columbus Business First and a press release from JobsOhio report. Although this moves the entity one step closer toward acquiring its funding stream, it may still face delays as the group ProgressOhio continues to challenge the legal standing of JobsOhio, asking the Ohio Supreme Court to hear its arguments, Columbus Business First reports. For more, read the full story and the press release.

Sen. Sherrod Brown (D-OH) authored an amendment included in the National Defense Authorization Act, which President Obama signed into law last month, that would enable the Heath-Newark-Licking County Port Authority to regain its status as a Small Business Administration (SBA) HUBZone through 2015, according to a press release from the senator’s office. Such a designation gives “small businesses in the area — or those that employ residents of the area — preferential access to federal procurement opportunities in order to encourage economic development and job creation in the region,” the release said. The port authority was previously granted HUBZone status in 2004 in an effort to help the community adjust to the closure of the Newark Air Force Base, the release said. For more, read the full press release and this Newark Advocate story.

The Warren-based Tech Belt Energy Innovation Center (TBEIC), a federally-funded center intended to help the development and commercialization of early stage clean technologies, has officially joined the Cleveland-based JumpStart Entrepreneurial Network, a connected group of entrepreneurial support organizations, to help startups “best assess their opportunities” and to “groom them for investors,” The Business Journal reports. Under a five-year commitment that will run through 2016, TBEIC will “coach, mentor and help energy entrepreneurs in preparing investor presentations and identifying markets, connections to key partners and access to alternative sources of funding” free of charge, the article said. For more, read the full story.

Case Western Reserve University, University Hospitals and the Ohio Third Frontier program are pooling $6 million to create the Case Technology and University Hospitals Ventures Fund, which aims to launch “a dozen companies over the next three years,” Crain’s Cleveland Business reports. Case Western contributed $2 million, Third Frontier contributed $3 million and UH Case Medical Center contributed $1 million for the fund, with the goal helping “advance the rate at which discoveries are commercialized in areas such as medical technology related to imaging, surgical equipment, implant devices, regenerative medicine, health care and business software and others,” the article said. For more, read the full story.

Last week, the Ohio Development Services Agency announced the details for round nine of the Ohio Historic Preservation Tax Credit Awards: $35.9 million was awarded to 23 owners and applicants for the rehabilitation of 45 historic buildings across the state, according to a press release from the agency. The projects are located in nine communities across Ohio and are expected to "leverage more than $252 million in private investments." For more, including a list of all round nine Ohio Historic Preservation Tax Credit recipients, read the full press release.

Bricker & Eckler served as bond counsel for Ohio’s third issuance of Property Assessed Clean Energy (PACE) bonds. On December 20, 2012, the Lake County Port Authority issued $3.375 million in bonds to assist the Great Lakes Mall in Mentor, Ohio, in financing energy efficiency improvements, including HVAC improvements and the installation of an energy efficient roof. For more, read the full story.

The 2012 Economic Development Accountability Report from Ohio Attorney General Mike DeWine’s office, titled Award Recipient Compliance with State Awards for Economic Development, reports that of the 255 economic-development contracts with a performance period ending in calendar year 2011, 162 award recipients “substantially complied (met at least 90 percent of the commitments) with the terms and conditions of their state awards,” while 93 awards did not comply — representing an overall compliance rate of 63.5 percent. This is an increase from last year’s 59.1 percent compliance rate (see our March 5 blog post for more information).

According to The Columbus Dispatch, the award recipients received a total of $114 million worth of benefits in the form of loans, tax credits or grants in exchange for “employee training or hiring or maintaining certain wage levels.” Award contracts were divided into the following categories:

• Employee-training aid worth $7 million: 80 of 89 companies complied.
• Hiring tied to grants worth $35 million: 36 of 74 companies complied.
• Hiring or wage levels tied to tax credits worth $7 million: 25 of 42 companies complied.
• Hiring tied to loans worth $65 million: 21 of 50 companies complied.

For more, read The Columbus Dispatch story and the Ohio Attorney General’s 2012 Economic Development Accountability Report.

Last week, the Ohio Third Frontier recommended that the Controlling Board approve more than $9.1 million in funding for the JobsOhio Network Program, which works with six regionally-based economic development groups to aggressively pursue job and wealth creation through the “retention, expansion and recruitment of businesses”; more than $610,000 for the Technology and Validation Start-Up Fund (TVSF), which helps to “commercialize technologies developed by Ohio institutions of higher education and other Ohio not-for-profit research institutions”; and $24 million for the Pre-Seed Fund Capitalization Program (PFCP), which provides early-stage risk capital investment to promising start-up technology companies, a press release from Ohio Third Frontier announced. For more, including details about each award recipient, read the full press release.

Last week, the Ohio Senate passed Senate Bill 327 — a bill designed to “boost private investment in low-income communities across Ohio”  — by a 31-2 vote, Dayton Business Journal reports. The bill will allow for the “rapid deployment of over $437 million of investment in Ohio’s poorest communities” by increasing the annual limit on the total amount of credits available through the Ohio New Markets Tax Credit Program, which is designed to provide investors with state tax credits in exchange for delivering below-market-rate investment options to Ohio businesses, from $10 million to $50 million, the article said. For more, read the full story and S.B. 327, and visit the Ohio New Markets Tax Credit Program website.

AEP Ohio has awarded a three-year, performance-based contract to North Carolina-based Lime Energy Co. to be “the exclusive provider of energy-efficiency upgrades” for its Small Business Direct Install Program, according to Columbus Business First and a press release from Lime Energy. Through the program, AEP Ohio aims to “incentivize their small business customers to reduce wasted energy and lower their monthly electric bills” by paying up to 80 percent of the cost to complete an energy retrofit, the release said. For more, read the full story and the press release.

The Ohio Development Services Agency’s Office of Energy partnered with the Ohio University Voinovich School of Leadership and Public Affairs to develop a “new solar energy supply chain database project” that will allow solar industry supply chain companies to match their needs with Ohio manufacturers, a press release from the school announced. The navigable supply chain database uses a geocoded, interactive online map of Ohio companies engaged in the solar industry and is intended to “increase communication between stakeholders, act as a resource for businesses and the public, and identify potential growth areas which could lead to long-term growth,” the release said. For more, read the full story or access the resource.

The Ohio Tax Credit Authority (TCA) approved Monday state assistance for 17 projects expected to create nearly 2,000 jobs in Ohio and generate $141 million in new payroll as well as prompting $169 million in other investments during the next several years, according to Gongwer and The Hannah Report. The authority approved new incentives for VXI Global Solutions, Inc.; Avon Bearing Corporation; Kanan Enterprises, Inc.; SFS intec, Inc.; Eagle Railcar Services-Cairo, Ohio, LLC; NRI Industrial Sales LLC; Taiho Corporation of America; AcuSport Corporation; ECR Internet Services; International Business Machines (IBM) Corporation; USA Vinyl, LLC; Progressive Medical, Inc.; Minova USA, Inc.; Huhtamaki, Inc.; Polaris Sales Inc.; Rhinestahl Corporation; and Sunstar Engineering Americas Inc.

The TCA also voted to take remedial action against 16 other companies it said didn't fulfill promises made to receive credits. The actions against the companies include reductions in rate or term, adjustment of commitments or terminations without claw-backs. The companies TCA is taking remedial action against are ABC Manufacturing; Amano Cincinnati; Aptima; E Retailing; FirstGroup America; Hexion Specialty Chemicals; Hydrodec Group; Kendle International; North American Business Industries; PCC Airfoils; Restoration Hardware; SBC Advertising Ltd.; Whirlpool Corp & Kenco Logistics Services; Willard & Kelsey Solar Group, Inc.; and Zyvek Performance Materials.

As part of the Obama administration’s strategy to encourage companies to increase investment in the United States, the administration has announced the Make it in America Challenge — a $40 million national competition funded by the U.S. Department of Commerce’s Economic Development Administration, the National Institute of Standards and Technology Manufacturing Extension Partnership, and the U.S. Department of Labor’s Employment and Training Administration designed to strengthen the U.S. economy and create jobs by “partnering with state, regional, and local economies,” according to a press release from the Department of Commerce. Depending on the number of eligible applicants, approximately 15 awards will be given out as part of the challenge to help provide “the critical infrastructure, strategic planning, capacity building, technical assistance, and workforce skills training necessary for American communities to be the desired home for more businesses,” the release said. A Federal Funding Opportunity, which will include guidelines and deadlines for submitting an application, will be published by early 2013, the release said. For more, read the press release.

The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) recently announced that it received 282 applications from 44 states, the District of Columbia and Puerto Rico requesting an aggregate total of $21,901,474,907 for the 2012 round of the federal New Markets Tax Credit Program (NMTC Program), according to a press release from the CDFI Fund. The successful and innovative NMTC Program aims to encourage economic and community development in distressed and low-income areas by “making tax credits available to Community Development Entities (CDEs) for targeted investments in eligible areas,” the release said. The credit, which was established in 2000 and is in its tenth round of funding, amounts to “39 percent of the cost of the investment and is claimed over a seven-year period.” Subject to congressional reauthorization, the CDFI Fund plans to announce the organizations that will receive New Markets Tax Credit allocations early next year. For more, read the press release.

Bricker & Eckler served as bond counsel for the Toledo-Lucas County Port Authority as it completed Ohio’s second Property Assessed Clean Energy (PACE) bond issue. Following the success of an initial bond issue through the Northwest Ohio Bond Fund in May 2012 in the amount of $5.325 million, the second bond issue closed in October 2012 in the amount of $6.435 million. These transactions continue a cooperative effort between the port authority’s BetterBuildings Northwest Ohio (BBNWO) program and the Toledo Ohio Advanced Energy Improvement Corporation. For more, read the full story.

At its annual meeting, CincyTech reported that since 2007, the nonprofit has created 370 jobs by investing $162 million in 41 startup companies, Business Courier reports. Adding in the revenue generated by those companies, “CincyTech has had a $255 million impact,” the article said. According to Columbus Business First, CincyTech was awarded $5.5 million by the Third Frontier Commission in August 2012 through its Entrepreneurial Signature Program. For more, read the Business Courier story and the Columbus Business First story.

On November 1, the state Development Services Agency stopped accepting applications for the Technology Investment Tax Credit, which “reduced state taxes by 25 percent on the amount investors put into qualified Ohio technology companies,” because the program ran out of money before the state legislature could pass a bill reauthorizing it, Columbus Business First reports. Created in 1996, the program was projected to reach its $45 million cap in 2013, but the date was moved up due to a “strong increase in applications recently,” the article said. H.B. 511, which would add $6 million to the program and would also revive the Ohio Capital Fund, “passed the state House in May” and is currently in a Senate committee; however, the Ohio General Assembly has been recessed since summer, the article said. For more, read the full story.

Last week, the state Development Services Agency (DSA) began accepting applications for round four of the Local Government Innovation Fund (LGIF), which is designed to “provide financial assistance to local governments for planning and implementing projects that improve the efficiency of delivering community services,” according to a press release from the agency. Early indications from the previous rounds found that of the $45 million total allotted to LGIF, the $9 million for planning and feasibility study grants was significantly more popular than the $36 million for loans. However, so far in round four — which, like round two, offers only the loan and not the grant — there has been an encouraging level of increased interest in the loan portion of the fund, Gongwer reports.

LGIF applications are due to the DSA’s Office of Redevelopment by 5 p.m. on December 3, 2012. For more information about the program, read the press release.

The Ohio Development Services Agency recently launched the Ohio Vacant Facilities Fund, which will offer a $500 grant to for-profit employers for every new full-time position created in eligible vacant and underutilized buildings, according to a press release from the agency. The “law authorizing the program was signed into law” on May 4, 2012, by Gov. John Kasich and allocated $2 million through August 2015 in an effort to “find new uses for unoccupied buildings,” Business Courier reports. Employees must be employed for a year before the employer can receive the grant as a reimbursement for costs related to “acquisition, construction, enlargement, improvement, or equipment” for the facility, the article said. For more, read the full story and the press release.

As venture capitalists fund fewer and fewer deals, the Small Business Administration-licensed Small Business Investment Companies (SBIC) provided about $3 billion in funding to 1,094 small businesses during fiscal year 2012 — a 14 percent increase over the previous year, according to The Business Journals. The number of SBIC licenses issued by the SBA also increased from 22 last year to 30 in 2012. SBA provided “$1.92 billion in loan guarantees” to 301 SBICs in 2012 that raised $1 billion in private capital to invest in small businesses, the article said. For more, read the full story.

In a 7-0 decision, the Ohio Supreme Court ruled last month that the city of Centerville could “set up a TIF (tax increment financing) district within 268 acres of land it annexed from Sugarcreek Township for development,” despite the fact that doing so deprived Sugarcreek Township of “collecting property taxes on the improved land,” according to The Hannah Report. In the opinion, the Court said that R.C. 709.023(H) “does not grant townships the unfettered ability to collect any and all taxes that may arise from the real property or improvements to the real property.” For more, read the decision.

At the Ohio Third Frontier Commission meeting on October 23, 2012, the commission authorized the approval of a $236 million budget for the program’s 2013 fiscal year. The budget will allocate program resources as follows:

• Capital & Talent – $43 million
• Innovation – $50.1 million
• Commercialization – $77 million
• Research – $8 million
• Marketing – $1 million
• Reserve – $56.9 million

Agreeing to switch to a calendar year budget cycle, the commission will carry-over $61 million from the FY 2012 budget into the FY 2013 budget, Columbus Business First reports. The Growth Fund and Micro Loan Fund programs will be eliminated, while two new programs, Technology Commercialization Centers and Technology Asset Grants, were created.

For more, read the Columbus Business First story and view the Third Frontier Commission meeting presentation.

According to the Columbus Dispatch, Franklin County’s 14 municipalities were asked to sign an anti-poaching pact to help curb the practice of cities attempting to “lure companies in neighboring cities whose tax breaks are about to expire.” So far, only Bexley, Columbus, Gahanna, Groveport, Grandview Heights, Hilliard and Worthington have agreed, while Canal Winchester, Dublin, Westerville, Grove City, New Albany, Reynoldsburg, Upper Arlington and Whitehall have not, the article said. Upper Arlington was already concerned that such an agreement could stifle economic growth, but is now worried that vague language in the agreement could leave the city “vulnerable to lawsuits.” Columbus city officials say the agreement was “never intended to be a contract” and that while participating cities will be expected to honor the agreement, they will not be legally bound to it, the article said. For more, read the full story.

The Manufacturing Institute has formed a partnership with Boeing, General Electric, Alcoa, Lockheed Martin and others called the Get Skills to Work coalition that will help U.S. veterans and employers “translate military skills to in-demand advanced manufacturing positions,” Dayton Business Journal reported. In addition to developing a “badge” system that will help translate applicable codes from the U.S. military’s system for identifying jobs to civilian positions in advanced manufacturing, the coalition will also work with technical and community colleges to establish the Right Skills Now for Manufacturing program, which will provide “fast-track attainment of industry-recognized certifications” as well as training in core technical skill areas, the article said. For more, read the full story.

The Local Government Innovation Fund Council is working to resolve the fact that local governments are applying for more grants than loans from a $45 million fund that allocates “$36 million toward loans for project implementation, with a small portion available for planning and feasibility study grants,” Gongwer reports. As of June, the council had approved “41 grants totaling $3.46 million and 10 loans worth $2.96 million,” the article said. Although it is clear that local governments prefer the grants because they do not involve repayment, members also reasoned that many of the projects are still in the developmental stage and are therefore ineligible to apply for loans for project implementation, the article said. Members discussed whether the unused funds should be reapportioned to allow for more grants, but concluded that this would require the legislature to revise the statute that divides the funding.

The Kasich administration is putting the final touches on its Incumbent Workforce Training Voucher Program — a $50 million initiative that will reimburse an employer at 50 percent of the cost of any training program that the employer wants for his or her current workforce so long as it is qualified through the Development Services Agency, Gongwer reports. The training program, which was developed in last year’s biennium budget and utilizes a portion of the state’s casino licensing fee revenue, caps training reimbursement at $500,000 per employer and $4,000 per employee.

Eligible companies will likely fall into one of the state’s nine targeted industries: advanced manufacturing; aerospace and aviation; automotive; biohealth; corporate headquarters; energy; financial services; food processing; information technology; and polymers and chemicals, the article said. At this time, it is unclear when the Kasich administration will launch the program statewide. However, because program funding will be levied on a first-come, first-served basis, eligible companies will want to be prepared to submit their application as soon as the administration provides a formal announcement on the program’s launch.

The U.S. House of Representatives approved a plan last month that would increase the federal government’s subsidy for loans backed by the U.S. Small Business Administration (SBA), Dayton Business Journal reports. The House voted to increase the subsidy, which the SBA receives to guarantee loans to small companies, to $333 million for next year — up from this year’s $210 million, the article said. For more, read the full story.

The Ohio Board of Regents recently announced that it is seeking proposals from business and education partnerships that create co-ops and internships within JobsOhio’s key industries — biohealth, energy, automotive, advanced manufacturing, polymers, aerospace and aviation, food processing, financial services, information technology and consumer products — so that it can award grants to help these programs align the skills and knowledge of Ohio’s workforce with the needs of the state’s businesses, Dayton Business Journal reports. The board will award $11 million total and each awarded grant must be matched 100 percent for undergraduate programs and 150 percent for graduate programs. Proposals are due October 12, 2012. For more, read the full story and the request for proposals release.

Last week, the Ohio Third Frontier Commission recommended that $14 million from its Entrepreneurial Signature Program (ESP) be used to fund two organizations dedicated to “providing entrepreneurial support services to their regions,” according to a press release from the Ohio Department of Development. JumpStart Inc. of Cleveland was awarded $12 million for 2013 and 2014 — “an increase of 20 percent from past funding levels” — and Rocket Ventures of Toledo was awarded $2 million for the same period. During the August commission meeting, Cincytech and the Dayton region ESP were approved for funding, the press release said. TechColumbus and TechGrowth, the final two of the six ESP partners, will go before the commission in October. For more, read the press release.

Recently, the Clean Ohio Council proposed a major program overhaul to the Clean Ohio Fund. The proposal would combine Clean Ohio’s Revitalization Fund and Assistance Fund into a single incentive program with the intention of streamlining the “process for funding brownfield projects,” according to a press release from the Ohio Department of Development (ODOD). Clean Ohio, which provides funding to help brownfield projects acquire property, demolish structures, conduct environmental cleanup and improve infrastructure, will manage the single brownfield incentive program in collaboration with JobsOhio and the Ohio Department of Development’s Office of Redevelopment, the release said.

If the proposal is passed, JobsOhio and its regional network partners would initially accept all funding requests and would evaluate a project’s economic benefit for funding. If the project meets the evaluation criteria, JobsOhio would refer a Clean Ohio grant recommendation to the director of development or to the Clean Ohio Council for review and potential approval, the release said. “Up to $1 million would be available per project for cleanup activities and $200,000 per project would be available for environmental assessment activities,” the release said. Additional funding would also be available through ODOD’s Brownfield Loan Program. The council is also proposing doing away with specific grant funding rounds and instead allowing these funds to be available on a rolling basis. For more on the proposed Clean Ohio Fund program changes, read the press release.

Acting with authority granted through the passage of Senate Bill 232 in June 2010, the Oregon City Council established an Energy Special Improvement District (ESID) for the purpose of financing alternative energy and energy efficiency projects. The city of Oregon and its businesses will finance improvements through the Toledo-Lucas County Port Authority as part of a coordinated regional financing effort that will utilize a $15 million U.S. Department of Energy Better Building Program grant, which was awarded to the port authority in 2010. The city of Toledo established an ESID that was initially called the Toledo Ohio Advanced Energy Improvement Corporation, but will change its name to the Northwest Ohio Advanced Energy Improvement Corporation with the addition of the city of Oregon.

Unlike a regular special improvement district, an ESID does not have to be comprised of contiguous properties and can provide spot financing anywhere within a broad territory. Property owners anywhere in the district can implement energy efficiency improvements using technologies such as solar water heat, solar thermal electric, solar thermal process heat, photovoltaic, wind, biomass, geothermal heat pumps, anaerobic digestion and geothermal direct-use energy. The city of Oregon has already undertaken a pilot project at its local fire station installing a geothermal heat pump that will produce an estimated annual savings of $6,685 and will have a payback period of only 5.2 years.

Following a two-day consensus-building retreat last month, leaders of the Ohio Third Frontier Commission determined that increases in the commission’s flexibility and nimbleness, as well as a greater focus on  “entrepreneurship programs that produce jobs,” are key to its mission of “driving Ohio into the new economy,” the Cleveland Plain Dealer reports. The need to reevaluate the Third Frontier’s processes became evident when in the 2012 fiscal year, the commission spent only 20 percent of the $190 million it had available “to invest in promising ventures.” Third Frontier is just now funding entrepreneurship programs that were “budgeted nearly a year ago,” the article said. For more, read the full story.

The Ohio Department of Development (ODOD) recently announced that the application period for Round 9 of the Ohio Historic Preservation Tax Credit program is now underway and a total of “$30 million in tax credit allocation is currently available” for applicants, according to a press release from the department. The program — which is administered by ODOD’s Office of Redevelopment with assistance from the Ohio Department of Taxation, the Ohio Historical Society and the Ohio Historic Preservation Office — provides a tax credit of 25 percent for historic rehabilitation projects. Applications must be submitted to the Ohio Historic Preservation Office by 5:00 p.m. on Monday, October 1, 2012. Prior to submission, all applicants must “schedule pre-application meetings” with both ODOD and the Ohio Historic Preservation Office. For more, read the press release.

JobsOhio filed a lawsuit in the Ohio Supreme Court last month to “compel the Ohio Department of Commerce to sign a state contract to transfer its wholesale liquor operation to JobsOhio for 25 years” after the commerce department’s director, David Goodman, declined to sign the agreement due to lingering constitutional concerns, Hannah reports (see our August 17 blog post for more information). On August 24, ProgressOhio, Sen. Mike Skindell (D-Lakewood) and Rep. Dennis Murray (D-Sandusky) filed motions asking the Court to “dismiss the JobsOhio lawsuit for lack of jurisdiction” and allow Ohio courts to “decide the constitutionality of JobsOhio,” the article said. These opponents regard the lawsuit as “sham litigation” because both sides already agree that JobsOhio is constitutional and “any judgment arising from such collusion would be tainted” because there are no “parties in true opposition” present, the article said. Visit our DevelopOhio Resource Center for more information about JobsOhio.

On August 23, the Ohio Third Frontier Commission awarded a combined $9.5 million to two Entrepreneurial Signature Programs (ESPs) following an advisory board retreat at Deer Creek Lodge and Conference Center in Mt. Sterling, Ohio, the Cleveland Plain Dealer reports. CincyTech was awarded $5.5 million and the Dayton Development Coalition was awarded $4 million, the article said. These awards were provided after the commission ended its fiscal year “having spent only 20 percent of the $190 million it had available to invest,” $40 million of which was budgeted for its Entrepreneurial Signature Program, the article said. For more, read the full story. 

U.S. Transportation Secretary Ray LaHood recently announced that as part of the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, his department will make $17 billion in loans available to states and cities for “critical infrastructure projects across the country,” according to a press release from the department. The TIFIA program — which was provided “$1.7 billion in capital over two years” from the recently enacted surface transportation bill, MAP-21 — provides “direct loans, loan guarantees, and standby lines of credit to major infrastructure projects with the potential to create jobs and spur economic growth,” the release said.

Additionally, the department announced the establishment of the Project Finance Center (PFC) to help government project sponsors “analyze financial options for highways, transit, rail, intermodal and other surface transportation projects facing funding challenges.” For more, read the press release.

The Ohio Third Frontier Commission announced recently that it has approved more than $21 million in grants through its Ohio Third Frontier Open Innovation Incentive and its Ohio Third Frontier Innovation Platform Program, according to a press release from the Ohio Department of Development. Two organizations received a combined $3.76 million as part of the incentive program, which aims to help Ohio middle market companies in-source “external innovations” that can help both the companies and the state thrive, the release said. Six organizations received anywhere from $2.4 to $3 million as part of the Ohio Third Frontier Innovation Platform Program, which aims to “support commercial relationships” between Ohio colleges, universities and other nonprofits whose research and innovations can be used to benefit Ohio for-profit companies, the article said. For more, including details on the award recipients, read the press release.

In the five years since the state provided $9 million to the Dayton Development Coalition’s Entrepreneurial Signature Program, a combination of services and cash support from the coalition has helped more than 70 “portfolio companies” create more than 400 jobs, Dayton Business Journal reports. As the Ohio Third Frontier works to determine the future of the program, the coalition is hosting two funding meetings in an effort to attract investors toward promising tech startups, the article said. For more, including event information, read the full story.

The Columbus-based Economic and Community Development Institute (ECDI) is opening a new branch in Cleveland, where it plans to “help small businesses obtain micro loans,” Columbus Business First reports. Operating out of its new offices at 6701 Carnegie Ave., the Cleveland ECDI branch will “work with the U.S. Small Business Administration and local banks…to make loans under the $100,000 threshold,” the article said. For more, read the full story.

Ohio Attorney General Mike DeWine recently announced that by August 1, 2012, 27 counties will have funds available to them from the Moving Ohio Forward Demolition Program, which exists to help “stabilize and improve communities by removing blighted and abandoned homes with funds from the national mortgage settlement reached earlier this year,” according to a press release from the attorney general. Funds will be available for all of Ohio’s 88 counties, with the total amount of funding available to each county based on “the percentage of foreclosure filings in each county between 2008 and 2011 (which is the time period of the settlement agreement) divided by the total amount of funding ($75 million).” For more, read the press release.

The Governor’s Office of Appalachia recently announced that three projects will receive a total of $732,400 in grants from the State Appalachian Development Program, which exist to “provide funding for projects that improve the standard of living for residents of Ohio’s 32 Appalachian counties,” according to a press release from the Ohio Department of Development. The department provided a brief description of the three projects:

• Ohio Valley Regional Development Commission (Pike County) received a $250,000 grant that will be used to secure new office space that will be constructed on 2 acres of land in Seal Township. Ohio Valley Regional Development Commission coordinates federal, state, and local resources to encourage development in Adams, Brown, Clermont, Fayette, Gallia, Highland, Jackson, Lawrence, Pike, Ross, Scioto, and Vinton counties.
• Village of McConnelsville (Morgan County) received a $240,000 grant that will be used to upgrade and improve the McConnelsville Wastewater Treatment Plant. The upgrade will benefit 1,200 households.
• Vinton County Commissioners (Vinton County) received a $242,400 grant to install 10,000 linear feet of waterline in Clinton and Elk townships. The project will provide affordable and safe drinking water for residents.

For more, read the press release.

A recent op-ed in the Plain Dealer points out that “the pace of Third Frontier grant-making has slowed to a walk” since Governor John Kasich took office. Since its inception in 2002, the program has successfully leveraged billions in private investment funding to support high-tech industries. However, barely a quarter of the program’s $191 million budget had been allocated when the state’s fiscal year ended on June 30, 2012. Although the op-ed acknowledges that the slowed pace of grant-making can be partially attributed to the review and restructuring of the program initiated by the new administration, it also opines that the delays in allocating funding “are unacceptable and in themselves threaten the integrity of the process.” For more, read the full op-ed.  

By July 1, Columbus Mayor Michael Coleman hoped to have a regional job-poaching pact finalized in an effort to maximize the job creation and retention resources of 15 central Ohio communities. However, as previously noted in our June 11 blog post, the agreement has been losing momentum in recent months. As of July 1, only two of 15 municipalities (Gahanna and Groveport) have signed on, The Columbus Dispatch reports. While the city councils of Columbus, Bexley, Grandview Heights and Hilliard have authorized their mayors or city managers to sign the agreement, none has done so, the article said. Canal Winchester, Dublin, Westerville and Whitehall do not plan to participate in the pact. Discussions are still under way to encourage more communities to adopt the arrangement. Dan Williamson, spokesman for Mayor Coleman, said "at the end of the day, if there's just one community that agrees with us," the mayor will approve the pact, the article said. For more, read the full story.

Dissatisfied with data from the six regional organizations applying for Entrepreneurial Signature Program (ESP) funding, the Third Frontier Commission voted in its last meeting to maintain the commission’s existing funding levels through the end of the year in order to gather more data for final funding decisions, The Columbus Dispatch reports. According to Christiane Schmenk, director of the Ohio Department of Development and chairwoman of the Third Frontier Commission, the commission is aiming “to be thorough before using public funds for programs that are good, but we need to be able to show results,” the article said. Invantage Group, an analyst hired to review the ESP, concluded that four of the six regional organizations should be approved for funding. Based on a variety of concerns, requests from the Dayton and Toledo regions were not recommended for funding, the article said. For more, read the full story.

The Ohio Department of Development (ODOD) Director Christiane Schmenk recently announced that the agency has awarded $10 million in Ohio New Markets Tax Credits “to six Ohio entities to spur economic investments of at least $25.6 million,” according to a press release from the department.

The Ohio New Markets Tax Credits program helps to “finance business investments in low-income communities by providing investors with state tax credits in exchange for delivering below-market-rate investment options to Ohio businesses,” the release said. The program was designed to leverage the Federal New Markets Tax Credit Program to attract investment into the state. For more information, including a list of the award recipients, read the press release.

On June 29, Congress passed the long-awaited, 27-month surface transportation bill, H.R. 4348 –also known as MAP-21 – that allows more than $100 billion to be spent on highway, mass transit and other transportation programs. The previous bill, known as SAFETEA-LU, expired in 2009. Since that time, Congress has maintained transportation initiatives through temporary extensions.

The passage of this bill allows the federal government to continue to collect gas taxes and manage the Highway Trust Fund and its Mass Transit account that disburses revenues to road, transit, railroad, water, bicycling, and pedestrian transportation infrastructure projects across the country. More importantly, according to CNN.com, “The transportation bill funds construction for highways, bridges and other transportation projects for two years in every state and congressional district in the nation.”  The bill will sustain and create thousands of jobs across the country.

President Obama signed a one-week extension to the existing law on June 30 and is expected to sign the new bill into law today at a White House ceremony. Read the Reuters story here.

The IRS released a notice providing additional guidance on the Qualified Energy Conservation Bond (QECB) program that began nationwide in 2008. As part of the program, Congress has authorized $3.2 billion in QECBs for both renewable energy and energy efficiency projects at the state and local levels. QECBs provide investors with low-interest financing for projects that meet the bond program’s guidelines. The most popular form of QECBs provides the issuer of securities a federal subsidy payment up to 70 percent of the interest paid on bonds issued to finance qualifying QECB projects. In order to clarify which projects actually qualify, the IRS explained two of the main criteria under which QECB projects are financed. First, QECBs can be issued for “green community programs,” which the IRS defines as programs that promote energy efficiency and provide a general public benefit. Second, QECBs can be issued for projects that reduce energy consumption in publicly owned buildings by at least 20 percent. To provide clarity, the IRS notice explains how buildings qualify as publicly owned as well as how an issuer can measure whether the 20 percent test is satisfied. For more information on the QECB program and its relevant guidelines, read the IRS notice.

On June 22, the Ohio Third Frontier Commission announced the renewal of the Ohio Third Frontier Internship Program as well as the 2012 fiscal year internship program awardees. The internship program was launched in 2002 to offer technology-based internship opportunities to students at Ohio colleges and technical schools. According to the Ohio Department of Development press release, "the goal of the program is to help Ohio expand its technologically proficient workforce and retain knowledgeable and talented students in the state by creating potential employment opportunities following graduation." The internship program allows companies access to a robust database of college internship candidates and will match the cost of employing these "potential employees" by providing as much as 50 percent of their internship salaries (up to $3,000) over the course of a year. For more information and a list of training grant recipients, read the press release. For information about the Ohio Third Frontier Internship Program, visit the program’s website.

The Ohio Department of Development recently announced that it has “awarded $35.8 million in Ohio Historic Preservation Tax Credits to 18 owners planning to rehabilitate 44 historic buildings in 10 communities across the state,” according to a press release from the department. The awards, “made possible through renewal of the program in the state's Fiscal Year 2012-2013 budget,” should result in projects that create both construction and permanent jobs, the release said.  
 
The Ohio Historic Preservation Tax Credit program provides a 25 percent tax credit to owners of historically significant buildings for qualified rehabilitation expenses. Funding is awarded through competitive application rounds and is based on economic benefit and regional distributive balance. For more, including a list of the awarded projects, read the press release.  

Last week, the U.S. Department of Labor announced nearly $147 million in Workforce Innovation Fund (WIF) grant awards, according to a press release from the department. Secretary of Labor Hilda L. Solis stated that the fund “was created to cultivate and test innovative approaches to workforce training and encourage the replication of evidence-based practices in the workforce development field.” The fund is intended to develop strategies that help Americans return to work through more efficient service delivery and partnerships with industry sectors and employers to cultivate programs that reflect current and future skill needs, the release said.

Twenty-six grants were awarded to a combination of state workforce agencies and local workforce investment boards, ranging from $1 million to $12 million each. Ohio submitted six WIF grant proposals, two of which were awarded grants totaling $18 million. The two recipients are:

• Ohio Department of Job and Family Services (ODJFS) — ODJFS was awarded $12 million to provide core and intensive online services, which will provide Ohioans access to workforce services wherever Internet is available. 
• Workforce Initiative Association — The Workforce Initiative Association was awarded $6 million to create a business resource network, which is a strategic alliance of resource providers collaborating to streamline access to programs and services to address business challenges.

For more information on the WIF grant fund and the award winners, read the press release.

Summit County is expanding its anti-poaching pact — which now requires communities to share tax revenue if a company relocates within the county — to include Joint Economic Development Districts (JEDDs) and Joint Economic Development Zones (JEDZs), the Akron Beacon Journal reports. The cities, villages and townships within the county have until June 30 to voluntarily sign the agreement as the new version of the plan goes into effect on July 1. 

Signing on to the pact provides communities with "bonus points on some applications for state and federal funding" as incentive for participating, the article said. Summit County’s anti-poaching pact was first approved in 2008. For more, read the full story.

A recent editorial in The Columbus Dispatch discussed how twelve communities in and around Columbus have lost the momentum gained at the end of 2011 to create an anti-poaching agreement. The agreement is designed to reign in the practice of job-poaching and prevent Columbus and surrounding cities from "using tax breaks and other incentives to lure businesses and jobs away from neighboring communities" (see our March 30, 2012, blog post for additional background information).

The pact requires the city councils of each city to agree, but the city of Dublin refused to do so. Without Dublin, officials in Westerville, Whitehall and Canal Winchester have said they won’t participate. With these unresolved dynamics, other communities such as Upper Arlington, Reynoldsburg, Bexley and Hilliard are now reconsidering. For more, read the editorial.

Bricker & Eckler served as bond counsel for the Toledo-Lucas County Port Authority as it issued the first PACE bonds in Ohio. On May 24, the port authority completed the $5.325 million bond transaction by issuing bonds through its Northwest Ohio Bond Fund. The transaction, a cooperative effort of the port authority, the port authority’s BetterBuildings Northwest Ohio program and the city of Toledo, was aimed at improving the energy efficiency and environmental performance of Toledo’s municipal buildings. The city of Toledo anticipates reducing its energy costs with the financed improvements, which include replacing windows, upgrading light fixtures and boilers, installing vacancy sensors, and replacing or insulating hot water tanks. 

Property Assessed Clean Energy (PACE) bonds are a financial tool used by property owners to fund energy efficiency improvements on their properties. Property owners who take advantage of PACE funding opportunities may use the money for a variety of projects, including updating existing office buildings or warehouses, or acquiring an alternative energy source, like solar panels or wind turbines. 

Bricker & Eckler is Ohio’s leader in PACE financing. Bricker attorneys work with private property owners and governmental entities to create the special improvement district necessary to implement PACE financing, levy assessments and structure the financing arrangements necessary to fund the improvements. For more information, read the full story. 

The Ohio attorney general's office has contracted with Greater Ohio Policy Center and Thriving Communities Institute to "provide technical assistance to communities seeking to apply for a grant from the attorney general's $75 million 'Moving Ohio Forward' grant program" in the southern and northern halves of the state, respectively, Gongwer reports. The two organizations will provide free assistance to communities developing strategic plans for the grant program, which undertakes the "demolition of abandoned and vacant residential properties" and is funded with money Ohio received as part of the $25 billion national settlement against the five largest mortgage servicers, the article said. 
 
It is in your best interest to take advantage of these resources in order to present the most competitive grant application possible for your community or economic development organization. For more information, read the program guidelines and access the application.

Through its competitive Local Government Innovation Fund program, the Local Government Innovation Council approved more than $3.4 million in grants and $2.9 million in loans to help Ohio communities "consolidate services, improve inefficiencies, and ultimately cut costs," according to a press release from the Ohio Department of Development. The department received applications for 105 grants and 12 loans. For more, including a full list of round one award recipients, read the press release.

Meeting for the first time since October 2011, Ohio Third Frontier Commission leaders, at a joint advisory board and commission meeting on May 23, 2012, assured stakeholders and board members that they will do more work directly in the public eye, The Plain Dealer reports. The commission also stated that it will start rendering decisions on a large number of applications for funding currently sitting before the group, the article said. 

The Ohio Third Frontier Commission was created to direct public investments into organizations that would advance the state's high-tech industries. However, some supporters have become concerned about the commission’s future, noting that it “has been slow to disburse money amid reports that Gov. John Kasich would like to change its direction” to emphasize loans and job development over grant assistance, the article said. 

According to executive director Lisa Delp, commission staff has “been busy designing new programs that favor loans over grants and that reach out to a broader range of potential job creators.” Installation of those new programs has presented administrative challenges, Delp said.

With $190 million to invest in high-tech prospects this year, only a small portion, approximately $24 million, has been awarded by the commission. With its fiscal year ending June 30, the “board plans to award another series of grants and loans at its June meeting,” the article said. Funds not awarded this fiscal year will be rolled into next year. For more information, read the full story.

On May 24, the Ohio Department of Development (ODOD) announced that more than 50 Ohio companies have utilized the International Market Access Grant for Exporters (IMAGE) program, according to a press release from the department. The program, which is part of the National Export Initiative, is administered through the ODOD's Office of Business Assistance and is designed to double U.S. exports by 2015 and create jobs by helping small businesses promote their products and services in new international markets, the press release said.

Since the program's inception in January, the ODOD "has awarded 15 trade mission stipends, supported 37 international trade shows, 10 U.S. Commercial Service projects, 20 translations of websites or printed materials, and three export education activities," the press release said. More than half of the program funding is still available. To learn about the IMAGE program, visit www.IMAGE.development.ohio.gov.

Last month, in a 78-20 vote, the United States Senate approved a House-passed bill that extends the Export-Import Bank's charter through September 2014 and raises its loan exposure cap by 40 percent to $140 billion, Politico reports. In exchange, the bill demands "greater transparency for any transaction of $100 million or more," newly required quarterly financial reports that show default rates remaining below two percent, and Treasury Secretary Timothy Geithner will have to initiate talks with U.S. trading partners toward "substantially reducing and ultimately ending the practice of export financing subsidies," the article said. For more, read the full story.

S.B. 320, which will extend the time during which businesses and local governments can sign enterprise zone tax abatement agreements, has been unanimously passed by the Ohio Senate. The program is currently set to expire on October 15, 2012. The bill, currently under consideration in the House Local Government Committee, would extend the program one year through October 15, 2013.

Our May 17 blog post discussed the potential appropriation by the Senate Finance Committee that would allow for the issuance of up to $42 million in bonds to further fund the Clean Ohio program’s participation in farmland preservation and green space projects around the state. 

The committee ultimately accepted 15 amendments to the sub bill, which included an additional appropriation of $36 million for FY 13 and FY 14 for the Clean Ohio Conservation Fund, resulting in a total appropriation of $42 million ($36 million for the Clean Ohio Green Space Conservation Program and $6 million for the Farmland Preservation Program).

H.B. 487 was submitted for a full Senate floor vote Friday afternoon and was approved.  Joint conference committee talks will occur this week between the Senate and the House, with the adoption of the conference committee report expected within the week, according to the Ohio Chamber of Commerce.

Before advancing Gov. John Kasich's main mid-biennium review budget bill yesterday morning, the Senate Finance Committee boosted the appropriation authority of the bond-funded Clean Ohio program, according to Gongwer. The Clean Ohio program was created under a 2008 ballot measure that utilizes state dollars to leverage local funds to revitalize blighted areas, set aside open space for the public, preserve family farms, and create trails for Ohioans.

There is currently $100 million in remaining voter-approved bond appropriations available; however, the legislature has to approve further program appropriations. The state capital bill, earlier this year, included only $6 million in funding for trails. Yesterday's appropriation by the committee would allow for the issuance of up to $42 million in bonds to further fund the program. The additional spending authority for farmland preservation and green space projects was among a handful of amendments added to the bill (H.B. 487) by the Senate Finance Committee.

The bill was slated for a full Senate floor vote yesterday afternoon. If passed by the Senate, subsequent conference committee talks would have to occur with the House.

A recent report by the National Venture Capital Association and PricewaterhouseCoopers indicates that venture capital investments in Ohio have grown during the last two years and that the total amount of money invested during the first quarter of this year "was the highest quarterly total in a decade" with Ohio receiving 14 venture capital deals worth $122.7 million, the Springfield News-Sun reports. Based on data from Thomson Reuters, the report indicates that Ohio is displaying a more positive trend than what is occurring on the national level, which industry experts credit to programs implemented by the state that "provide effective resources and funding to entrepreneurs" to help them develop their business plans and become attractive to venture capitalists, the article said. For more, read the full story.

The Ohio Department of Development announced today that seven Ohio communities are expected to receive $10 million in Job Ready Site grants pending approval by the Controlling Board, according to a press release from the department.  The grants, ranging from $500,000 to $2.8 million, are intended to fund projects to “prepare sites for future economic development opportunities,” the release said. The seven communities slated to receive the grants are the cities of Cleveland, Dayton, Trenton, and Twinsburg; the Northwestern Water and Sewer District in Henry Township; the Toledo-Lucas County Port Authority; and the Youngstown-Warren Regional Chamber. For more, read the full press release.

In the wake of a revised study revealing that about 59% of the companies in Ohio that received tax breaks to create jobs actually created the number they said they would (see the March 5, 2012, blog post), as well as the fact that the state foregoes approximately $7 billion of tax revenues a year, Rep. Denise Driehaus (D-Cincinnati) has introduced HB 446, which would "set up a panel to regularly review each tax break and recommend which ones should continue," according to The Cincinnati Enquirer. As cities across Ohio struggle to reduce deficits and manage significant budget cuts, more attention is being paid to whether specific tax programs still serve their originally intended purposes, the article said. For more, read the text of the bill here and the full story here.

Cuyahoga County has expanded the reach of its anti-poaching agreement, spearheaded by County Executive Ed FitzGerald, to include 8 more municipalities within the county (see our September 16, 2011, blog post). The pact, designed to discourage neighboring communities from luring businesses from one another, now has a total of 28 jurisdictions within Cuyahoga County that have agreed to sign on and share taxes whenever companies move from one suburb to another, Columbus Business First reports. Varying anti-poaching agreements of this nature are slowly making their way across Ohio with a version in existence in the greater Dayton area and another just recently finalized and signed by 12 communities in central Ohio (see our March 30, 2012, blog post). For more, read the full story here.

Two Ohio colleges — Ohio State University and Ohio University — are contributing $20 million and $15 million respectively toward the creation of a venture capital fund for early-stage technology companies, Columbus Business First reports. This move reflects Ohio State University's recent push toward executing its technology commercialization efforts, the article said. For more, read the full story here.

From April through September, the Ohio Department of Development's Office of Business Assistance, the Small Business Development Centers of Ohio, and the U.S. Small Business Administration will offer a series of six seminars in Cincinnati, Columbus, Dayton, and Mansfield on tools and resources available to assist aspiring entrepreneurs, according to a press release from the Ohio Department of Development. In addition to providing in-depth overviews of the assistance available to business owners in the forms of programs and services, the seminars will also "provide information on establishing a business, operating a business, loan programs, marketing and procurement opportunities," the release said. For more, including the seminar schedule and a list of the various topics to be discussed at each meeting, read here. 

On March 28, rating agency Standard & Poor's (S&P) upgraded the Ohio Enterprise Bond Fund (OEBF) two levels to AA+ from AA-, citing a very strong risk profile and sound financial policies as key factors, the state treasurer's office announced. The state treasurer's office stated that this was the first OEBF ratings increase by S&P since 2003, when they raised the fund from an A- rating to AA-.

OEBF was created in 1988 to promote economic development, create and retain quality jobs, and assist governmental operations. The program enables nonprofit and for-profit borrowers to access national capital markets through bonds issued through OEBF. The program is administered by the Ohio Department of Development and financing is provided by the state treasurer of Ohio. These positive ratings benefit state taxpayers through lower borrowing costs, which in the case of OEBF, translates into lower rate capital being provided to companies looking to create a presence and jobs in Ohio. For more, read the press release and the S&P summary here. For more on the OEBF program guidelines, read here. 

The U.S. House voted to pass H.R. 3060, known as the Jumpstart Our Business Startups (JOBS) Act, clearing the legislation to head to President Obama for signature into law. The bill was ultimately passed with strong bipartisan support in both the U.S. House and Senate. As previously discussed in a DevelopOhio post (see our March 30, 2012, blog post), the JOBS bill addresses capital access issues for small business and aims to decrease regulatory burden and promote innovation for new and growing companies throughout the U.S. 

Specifically, the legislation offers that crowdfunding, a method for small businesses to raise funding through the Internet and various social media outlets, allows up to $1 million to be collected without having to file with the Securities Exchange Commission (SEC). Further, the number of public shareholders needed to trigger registration with the SEC was raised from 750 to 2,000, enabling small companies to reach out to a larger group of individuals for investment capital. For more on the JOBS bill, read the Reuters story here.

Twelve communities in and around Columbus announced last week an agreement designed to reign in the practice of job poaching, which involves communities incentivizing companies to move existing jobs (not newly created jobs) – and the income taxes they generate – across municipal lines, The Columbus Dispatch reports.

The clearly noticeable difference between this agreement and the tentative version released in December is that it "no longer includes a requirement that cities share half of the income-tax revenue, over five years, if that city used incentives to lure a central Ohio company with existing payroll of at least $10 million," the article said (see our December 28, 2011, blog post for more information). For more, including a list of the participating municipalities, read the full story here.

JobsOhio II, legislation that aims to solidify JobsOhio as the primary independent entity in charge of economic development in Ohio, was introduced in both the Ohio House of Representatives (Rep. Mike Dovilla (R-Berea) and Rep. Christina Hagan (R-Uniontown) introduced HB 489) and the Ohio Senate (Sen. Mark Wagoner (R-Toledo) introduced SB 314) this past Thursday, Gongwer reports. JobsOhio II follows HB 1, which was enacted in February 2011 and created JobsOhio. The legislature plans to have the JobsOhio II legislation passed and enacted prior to the 2012 summer recess. 

Besides providing further definition to the JobsOhio structure, the JobsOhio II bill language also provides for a number of related changes to the state’s economic development landscape. This non-inclusive list includes:

• The renaming and transfer of all responsibilities currently in the Department of Development to the “Development Services Agency” (DSA). 
• An appropriation to the DSA for fiscal year 2013. The budget bill (HB 153) had set aside a lump sum — $1.2 billion to DSA for FY ‘13, including $117.79 million from the General Revenue Fund — for the entity, but the new bill would formally appropriate the dollars to DSA. House sponsors said DSA’s role going forward would be to provide “essential services” to JobsOhio including the administration and oversight of loans and tax credits that will further create and expand Ohio businesses. The bill also clarifies the contracts between DSA and JobsOhio.
• The Tax Credit Authority would be reconfigured to include the director of the DSA, the chief investment officer of JobsOhio, and five members: the Senate president; the House speaker; an economic development specialist, a specialist in the development of new technology, and a specialist in taxation, each appointed by the governor.
• The bill would reconfigure the Ohio Third Frontier Commission, which would consist of 11 members, including the director of the DSA, the chief investment officer of JobsOhio, the chancellor of the Ohio Board of Regents, the governor's science and technology advisor, and seven others appointed by the governor with the advice and consent of the Senate.
• The bill clarifies that any JobsOhio documents that are not public records do not become public records when someone else possesses them. This type of language was a significant point of contention with the initial JobsOhio legislation, which deemed certain documents were not subject to public records requests — this provision may meet a similar level of scrutiny.
• The Development Finance Advisory Council (DFAC), the entity which currently approves economic development financing programs, will be phased out. The State Controlling Board will continue to review and authorize such loans.
• The Water and Sewer Commission, which has not met or taken action since 2007, will be eliminated.
• The Office of TourismOhio will be created within the DSA. TourismOhio, which will be funded through a five-year pilot program, will link funding for the office to the growth in sales tax revenues of tourism-related industries around the state. The bill will also create the TourismOhio Advisory Board, which will include industry experts to provide guidance and support efforts to promote Ohio tourism.
• The chief investment officer of JobsOhio would be appointed to the TourismOhio Advisory Board.

For more, read SB 314 and HB 489.

U.S. Senators Sherrod Brown (D-OH) and Rob Portman (R-OH) announced that an amendment to the transportation bill, which "includes language to provide the Department of Energy (DOE) the authority to transfer up to $150 million in existing funds to further the development of the American Centrifuge Research Development and Demonstration program at Piketon," passed last Tuesday, the Portsmouth Daily Times reports. The Piketon site will also receive "more than $120 million in cleanup funds through the DOE Office of Environmental Management program in the president's budget request" with a time frame for cleanup to be completed 20 years earlier than originally projected, the article said. For more, read the full story here.

As part of the Small Business Jobs Act of 2010, the U.S. Department of Treasury gave the Ohio Department of Development more than $55 million this past week to establish the Ohio State Small Business Credit Initiative (SSBCI), which will be used to increase the "amount of credit available to Ohio's small businesses," according to a press release from the department. According to the release, the Ohio Department of Development's Business Services Division will "administer three financing programs utilizing SSBCI funds": 

• Collateral Enhancement Program (CEP) – a $33.1 million program that provides banks with cash collateral deposits to use as additional collateral for eligible small businesses loans.
• Ohio Capital Access Program (OCAP) – establishes a "loan guarantee" reserve pool at lending institutions that participate in the program, which has been increased to $5 million and can provide financing to for-profit and nonprofit businesses that may be experiencing difficulty obtaining business loans using conventional underwriting standards.
• Targeted Investment Program (TIP) – a $15 million venture that supports the growth and expansion of targeted small businesses in Ohio's manufacturing, production, and logistics value chains by offering debt instruments tailored to the company's specific needs at or below market interest rates.

For more, read the full press release here.

On February 28, Ohio Attorney General Mike DeWine issued revisions to a general assembly report released late last year, titled Business Entity Compliance with State Awards for Economic Development, indicating that more businesses that had received state incentives "met with the terms of the awards than originally indicated," according to Gongwer (see our January 12 blog post for more information).

Whereas the original report said that 220 of 420 total businesses complied (52.4%), the new report indicates that 199 of 337 total businesses (59.1%) "substantially complied," the article said. Tracking errors were blamed for the inaccurate statistics, which the Department of Development intends to remedy by designing a new data tracking system and updating internal policies and procedures, among other measures, the article said. For more, read the revised report here.

A number of questions remain about which taxes may apply to wind, solar, and other green energy projects.  A recent Bricker & Eckler bulletin projects a quick list of the taxes that may apply to large or small-scale projects, and outlines some tax incentive programs and exemption opportunities that may be available to support such solar and wind projects.  For more, read the bulletin here. 

The Columbus Dispatch and Business First reported that Ohio Attorney General Mike DeWine has certified a petition, submitted by Yes for Ohio’s Energy Future, to place on the ballot an amendment to the Ohio Constitution for the "Ohio Clean Energy Initiative".  (The petition summary is available here).  This initiative would allow the state to issue $13 billion in bonds over a 10-year period starting in 2013 to fund energy infrastructure improvements and research and development of green technologies such as solar, wind, and geothermal energy.
 
This initiative is occurring as Sen. Kris Jordan (R-Powell) has introduced the repeal bill (SB 216), which would repeal Ohio's renewable portfolio standard ("RPS").  Ohio's RPS currently requires the state's utility companies to procure 25 percent of their energy from renewable and advanced energy sources by 2025 and was enacted with broad bipartisan support as part of SB 221 in 2008.  (See Bricker & Eckler 's Renewable Portfolio Standard Repeal Bill Receives Hearing publication (2/9/12) for more information).
 
Of the $1.3 million in bonds issued each year, the amendment would commit $65 million a year of the bond revenue to run the Ohio Energy Initiative Commission.  Project funding decisions would also be made by this Commission.  The petition now goes to the Ohio Ballot Board, which will decide whether the amendment to the Ohio Constitution requires multiple ballot issues, according to a press release.  If the proposal clears that hurdle, supporters could begin gathering the 385,253 valid signatures of registered Ohio voters needed to place the amendment on the Nov. 6 general election ballot.

On January 18, the Ohio Department of Development announced the International Market Access Grant for Exporters (IMAGE) program, which aims to "increase exports and create jobs by helping small businesses promote their products and services in new international markets," according to a news release from the department. The program will receive $983,399 for the first year through a State Trade and Export Promotion (STEP) grant from the U.S. Small Business Administration.

The program will award 111 grants of $6,000 as a 50 percent reimbursement for eligible expenditures, including international tradeshows, translation services, exporter education programs, international trade missions, etc. Companies located in the Ohio Appalachian region may qualify for an additional funding dollars.

To learn more about the guidelines and to download an application, please visit www.IMAGE.development.ohio.gov. For additional questions contact IMAGE@development.ohio.gov or (614) 466-5017.

The Ohio Attorney General's office has issued a report indicating that 47.6% of Ohio businesses whose economic development incentives expired in calendar year 2010 failed to meet the terms of their agreements with the state, which included creating or retaining a certain number of jobs, training workers, or investing capital, an article in Gongwer reports. Only 220 of the 420 businesses that had periods ending in 2010 "substantially complied with the terms and conditions of their economic development awards," the article said. It is important to note that more than 60 companies examined in DeWine’s report that were found not to be compliant, didn’t turn in a compliance form or didn’t receive one to begin with.

The Ohio Department of Development declared the report's results a success since they represent an improvement over fiscal year 2010, when only "16% of the 77 businesses that obtained grants actually met the terms of their contracts and 24% of the 82 companies that got state loans met their requirements," the article said. Additionally, The Columbus Dispatch reports that "companies were most likely to be in compliance with work-force training commitments (81.7%) and tax credits (54.3%)."

For more read the full Columbus Dispatch story here.

According to a press release from the Ohio Department of Development, the Office of Redevelopment will host six regional information sessions - with the first occurring today - from January 10-24, 2011, that address the Local Government Innovation Fund, a new program that "provides financial assistance to Ohio government subdivisions for planning and implementing projects that improve community services, as well as encourages collaboration at the local level to reduce the cost of focused community planning." For more, including details for each of the six information sessions, visit the Local Government Innovation Fund website here.

According to an article in Crain's Cleveland Business, Ohio is making a name for itself in venture capital investments.  A new study from Ohio State University's Fisher College of Business shows a 4-to-1 margin between Ohio and competing states. 

The report, entitled "Developing a Strong Foundation for Growth," found that Ohio businesses have received increases in investments annually since 2005, with a 70% increase in 2010.  Additionally, Ohio's late-stage companies reached a record $295 million in funding, and related financings tripled to 66.    

Read the full story here.  

Columbus Business First reports that of the $511 million Federal Transportation Investment Generation Economic Recovery (TIGER) grants awarded this month, two of the 46 projects are Ohio-based.

The City of Cincinnati will receive $10,920,000 in grant funding to design and construct an extension of their streetcar system – a project with a total cost of $156,290,000.  

The Greater Cleveland Regional Transit Authority will receive a $12,503,200 grant toward a $15,206,014 project that will relocate rail tracks, reconstruct a dilapidated train station, and rehabilitate two transit bridges.

For a complete list of the grant awards, visit the U.S. Department of Transportation's TIGER Grants website here. The Business First blog can be found here.

According to a recent article in The Columbus Dispatch, the City of Columbus and at least nine of its suburbs (Dublin, Gahanna, Grandview Heights, Grove City, Hillard, New Albany, Upper Arlington, Westerville, and Worthington) have "reached an agreement to curtail job poaching, the practice of enticing companies to move jobs – and the income taxes they generate – across municipal lines." This agreement is similar to an anti-poaching agreement approved in Cuyahoga County by County Executive Ed FitzGerald.  Click here to view our September 16 blog post for more background.  

Under the new agreement, if any of the cities to the agreement use tax incentives to lure a central Ohio company with payroll of at least $10 million, then it would "have to share half of the income tax revenue gained with the city that lost it," the article said.

For more, read the full story here.

The Ohio Department of Development’s Office of Energy recently announced the launch of the Energy Loan Fund program to provide low-cost financing to energy efficiency and renewable energy projects. With more than $7 million in state funding through the Advanced Energy Fund, as well as federal funds through the State Energy Program, this program targets manufacturers, public entities and small businesses.

To qualify, projects must, among other things, reduce energy consumption, improve environmental quality, and create or retain jobs. For more information, read the latest Bricker & Eckler Green Strategies E-alert.

Today the Ohio Department of Development goes live with the new state program to provide income tax credits on small business investments.

Details of the passage of the program was initially discussed on DevelopOhio on November 9. InvestOhio will provide a 10 percent income tax credit for investments up to $10 million in small businesses held for at least two years. The state expects the program to generate $1 billion in new investments.

Investors and small businesses could pre-register for the program beginning Nov. 14, but the first official application can be submitted at 8 a.m. today through the Ohio Business Gateway website, according to a ODOD press release.

For more on the InvestOhio program, including links to the program's rules and tutorials, read here.

A recent Gongwer News Service article reported that in an effort to "restrain government spending" with his first capital appropriations measure, Gov. Kasich has raised the state-funding threshold for new construction to a point that will eliminate "state-backed bond funding for special local projects like theaters, arts and sports facilities."  Despite a growing scarcity of general revenue appropriations in prior administrations; however, approximately $100 million was allocated for community projects in the last few capital bills, the article reports.

In a memo that was part of FYs 2013-2014 capital bill planning guidance documents, Office of Budget and Management Director Tim Keen wrote that the bill will "focus on necessary maintenance and upkeep."  He advised state agencies, colleges and universities to "only request funding for those projects that are most essential."

This news may be unsettling to many communities around the state, since there was no capital bill last year, and many community projects, which are typically economic-development focused and have broad community support, rely on this revenue source to partner on major prospective or developing projects of regional significance.  "If followed through by the legislature," the article reports, "the change would be a further blow to local governments that saw the historic revenue-sharing arrangement with the state cut considerably in the biennial budget (HB 153) – to the tune of hundreds of millions of dollars."  

All agency capital requests are due to the budget office by Dec. 16, according to the OBM's guidance documents.  Following the deadline, the budget office will spend approximately three months planning the bill for a spring rollout with legislative hearings to begin shortly thereafter.

Read the capital bill planning guidance here.

An article in the Dayton Business Journal reports that the Ohio Bureau of Workers Compensation (BWC) has introduced a new rating plan that would enable employers to save money and incent them to adopt a set of best practices aimed at "reducing work place injuries and getting injured workers back on the job more quickly." This proposal, called Destination: Excellence, was developed after statistics showed Ohio lagging behind other states in "getting injured workers back to their jobs," the article said.

The percentage of workers who return within a year has fallen from 75 percent to below 69 percent. BWC Directors will decide whether to adopt the rating plan at their next meeting on December 16.
 
For more read the full story here.

Crain's Cleveland Business (subscription required) reports that two programs, the Clean Ohio Fund and the Job Ready Sites program, will lose their funding source with the implementation of JobsOhio. The Clean Ohio Fund is a grant program created by the State to help cover or portion of the cost of cleaning up chemically contaminated land or vacant, asbestos-filled buildings for demolition or redevelopment and job creation. The Ohio Job Ready Sites Program is a competitive grant program targeted to offset costs traditionally incurred in speculative commercial and industrial development to accelerate investment decisions and to maximize the development potential of each property. Currently, both programs are funded with bond proceeds issued against the State of Ohio’s liquor franchise.  The Kasich Administration plans to repurpose the state's liquor franchise revenue stream to provide a sustainable funding source to operate JobsOhio.

Furthermore, both JobsOhio and the Third Frontier Commission are transitioning toward loans and away from grants for a number of programs. Proponents of this change say that applicants will "be more discerning about what they propose when they're on the hook to pay the money back," the article said. Opponents say that grants not only reduce the cost to property owners of redevelopment, but also "help cities compete against areas with environmentally cleaner properties or undeveloped land for companies looking for places for new factories or office space."

Authorization for the Job Ready Sites program is set to expire December 31, 2011.  Some theorize that the Clean Ohio Fund may end June 30, 2012, the date when grant awardees' will be announced for the current funding round for which communities are currently applying. Stay tuned…

"The Clean Ohio Council approved more than $27.5 million in Clean Ohio Revitalization Fund grants on November 18 for 15 brownfield clean-up projects throughout the state, which are expected to create and retain nearly 1,280 jobs," according to a news release from the Ohio Department of Development. The news release lists 15 projects that deal primarily with acquiring property, demolishing existing buildings, removing asbestos and universal waste, and installing or improving infrastructure.
 
As reported earlier, Clean Ohio funds were established to help clean and prepare former commercial or industrial sites in Ohio for new companies, thereby making it economically feasible for companies (or developers) to expand or establish themselves in Ohio.
 
During the administration of former Gov. Ted Strickland, the state planned to continue funding the program through 2014, but it now appears that the program may lapse under Gov. John Kasich.  For more information, click here.

Officials from the U.S. Small Business Administration (SBA) met with a group of local lenders in Columbus last week to "talk about how they can increase their customers' ability to access capital," the Business Courier reports.

On October 1st, the SBA revised the eligibility requirements of the CapLines program, which "provides small businesses with short-term working capital," Columbus Business First reports. The CapLines program backs loans of up to $5 million at a 75% guarantee. The changes aim to streamline the loan process by allowing banks to "do the same underwriting and paperwork...as they do for standard loans," the Courier reports. Also, business owners will no longer have to pledge their personal assets as collateral.

For more information, read the Business Courier article here and the Business First article here.

Tax increment financing (TIF) has become a common practice when it comes to funding local redevelopment and community improvement projects.   According to Wikipedia, thousands of TIF districts operate nationwide in the United States, from small and mid-sized cities to the State of California, which invented tax increment financing in 1952. California maintains over four hundred TIF districts with an aggregate of over $10 billion per year in revenues, over $28 billion of long-term debt, and over $674 billion of assessed land valuation (2008 figures). 

Bricker & Eckler LLP and its subsidiary, Argus Growth Consultants, Ltd. ("Argus"), have worked with their Ohio clients on a variety of TIF issues, including creation and implementation.  Our experience shows that TIF can be a successful economic development tool for local governments, especially when closely monitored throughout the term of the TIF. 

What should you keep an eye out for when assessing your TIF?  The attached article, written by members of Argus, shares with you some of the pitfalls and practical problems we have encountered and gives you ways to deal with them to safeguard your investment.  If you have any questions, please feel free to consult with any of the Argus members listed in the article.

Governor John Kasich signed an executive order Monday to "implement a new program that encourages investment in small businesses," an article in Gongwer reports. The Ohio Department of Development, in collaboration with the Ohio Department of Taxation, will immediately establish InvestOhio, a $100 million program created in the last budget bill (HB 153), that will encourage "investments of up to $10 million in eligible small businesses in exchange for a 10 percent income tax credit for investments held for two years," a news release from the Ohio Department of Development said. To qualify, small businesses must have less than $50 million in assets or less than $10 million in annual sales.

The executive order indicates that this program will assist small businesses that have difficulty securing capital to expand or sustain their businesses in tough economic times, which could in turn create more jobs and economic growth for Ohio. The rules establishing the program takes effect immediately. 

InvestOhio will have a two-phase application process with registration beginning November 14, 2011. "To help guard against fraud, both investors and small businesses must register through the Ohio Business Gateway," the release said.

For more on the InvestOhio program, including links to the program's rules and tutorials, read here.

On November 1, two Democratic Ohio state senators introduced Forward Ohio, a four-pronged economic development proposal intended to help the unemployed - particularly those in hard-hit urban areas - get back to work.  According to The Columbus Dispatch and information released by the offices of Sen. Eric Kearney (Cincinnati) and Sen. Nina Turner (Cleveland), the four-pronged plan is focused on:

·        Helping small businesses compete and expand,
·        Positioning Ohio's economy for future growth,
·        Creating pathways to employment for the long-term unemployed, veterans and youth,
·        Stabilizing and revitalizing our communities.

To accomplish this plan, the senators propose to:

1.  Create a revolving loan fund and provide micro loans to small-businesses up to $50,000 to assist with capital expenditures and operational expansions.
2.  Increase the maximum bonding line pre-qualification for minority-owned businesses from $1 million to $2 million.
3.  Increase the frequency of when the Minority Development Financing Advisory Board meets to ensure that bond requests are dealt with in a timely manner.
4.  Create the Ohio Infrastructure Development Loan Fund to leverage federal money for local infrastructure improvement projects.
5.  Exempt infrastructure related to broadband development in underserved areas from state taxes.
6.  Provide grant funds for school districts to retrofit buildings to improve energy efficiency and establish sustainable practices.
7.  Provide scholarships and grant assistance to long-term unemployed (over six months) to learn and develop new skills to leverage opportunities in high growth fields.
8.  Make reforms to Ohio’s unemployment insurance system expanding eligibility to those who need it most.
9.  Create work sharing programs to prevent mass layoffs.
10.  Award a $4,000 tax credit to employers for hiring long-term unemployed workers.
11.  Institute a $5,600 “Returning Heroes Tax Credit” for employers who hire jobless military veterans and employ them for at least six months.
12.  Institute a $9,600 “Wounded Warrior Tax Credit” for employers who hire veterans with service-connected disabilities who have been unemployed for at least six months.
13.  Train at-risk urban youth and awarding competitive grants to businesses that hire teenagers and young adults for summer employment opportunities.
14.  Provide incentives for the rehabilitation of distressed residential and commercial properties and including appropriations to the Clean Ohio Fund to help efforts by local governments to clean up brownfield sites.

With an estimated cost of $300-$400 million, the proposal would be funded with unused casino fees, elimination of certain tax exemptions, money from tobacco taxes, and the state's rainy day fund. Forward Ohio has received an endorsement from the National Urban League and its Ohio affiliates in Cleveland, Cincinnati, Columbus and Canton.

Last month's Ohio Governor's 21st Energy & Economic Summit featured presenters from a variety of industries to explore related policy and job creation issues that will impact the state over the next several years.  Gov. John Kasich concluded the two-day program with a letter to participants stating that Ohio should not waiver in its commitment to renewable energy.  However, just weeks before the summit, Ohio legislators had proffered a bill that could hinder growth initiatives in the alternative energy arena. 

Ohio State Senator Kris Jordan (R-Powell) introduced Ohio Senate Bill 216 (SB 216) (link to B&E article) to repeal Ohio's renewable portfolio standard ("RPS") (link to our SB 221 chart)which currently requires that the state's electric utilities provide 25 percent of their retail energy supply from advanced and renewable energy sources by 2025.  

A significant catalyst in the growth of Ohio's alternative energy industry was the 2008 implementation of Ohio Senate Bill 221 (SB 221).  SB 221 was enacted to encourage businesses and utilities to adopt renewable and advanced energy technologies.  It also created energy reduction and peak demand standards that utilities must meet through energy efficiency programs. 

According to a January 2011 report produced by the Environmental Law and Policy Center (ELPC), Ohio is a leading wind and solar component manufacturer in the United States and employs thousands of individuals across 160 companies engaged in the wind power (106) and solar power (63) supply chains. 

If S.B. 216 is approved by the General Assembly and signed by the Governor (first to be reviewed by the state's Energy and Public Utilities Committees), the shift in public policy could dramatically effect employers of advanced energy solutions, primarily their operations, workforce and strategic plans. 

For more information, read Bricker & Eckler's September 21 article:  Legislative Roundup: Ohio Senate Bill 216 Would Repeal Ohio's Advanced Energy Law. 

Employers that are new to Ohio will have a novel way to reduce their overhead costs while paving the way for expanded job growth.  The Ohio Bureau of Workers' Compensation (BWC) Board of Directors recently approved its job creation program, Grow Ohio.

Grow Ohio will provide employers new to Ohio on or after July 1, 2011, with two incentive options that could ultimately reduce premiums by as much as 51 percent. 

The two options include:

      •    a  25 percent discount on workers’ compensation premiums or
      •    immediate participation in the Group Experience Rating Program    

Previously there was a one-year waiting period for new employers after receipt of workers' compensation coverage to participate in the group rating program.

The goals of this new program are to encourage development activity in the state and signal to the business community around the country that Ohio is willing to be a risk-sharing collaborative partner in economic development and job creation. 

For more information about initial plans for the creation of the Grow Ohio program, view Bricker & Eckler's August 29 publication, Grow Ohio: Newly Proposed Economic Development Initiative Reduces Up-Front Costs to Businesses.

The Ohio budget bill, Am. Sub. H.B. 153, provides for a refundable jobs retention tax credit for enterprises that retain employment payroll in the state and make the requisite capital investment in the state.  A provision in the bill has generated two questions about the availability of the credit for companies that maintain multiple locations in Ohio, or that are not headquartered in Ohio.

In order to receive the credit, the enterprise must have 500 full-time equivalent employment positions and a total annual payroll of $35 million.  However, if the enterprise applies for the credit between July 1, 2011, and January 1, 2014, it is sufficient if the enterprise has $20 million in annual payroll.  Finally, the enterprise must have made a capital investment of at least $5 million over the three-year period that includes the year in which the credit is granted.

An additional requirement is that the capital investment must be made “in the political subdivision in which the taxpayer maintains its principal place of business.”  This provision seems to call into question the availability of the credit for companies with operations elsewhere. 

Based upon prior practice at the Department of Development with respect to the existing jobs creation and retention tax credits, and based upon testimony and discussion surrounding the adoption of this provision, it appears the credit was not intended to be construed so narrowly. It appears that the intent behind the provision was simply that the capital investment had to be made at the location where the job retention was to occur.  An enterprise maintaining operations in Cincinnati and Columbus, for example, could not combine capital investment made at the two locations to reach the $5 million threshold; nor could a credit for jobs retained in Columbus be justified by a $5 million investment in the Cincinnati location.  Rather, the location where the investment occurs must coincide with the location where the jobs retention occurs.

However, this conclusion is not certain, and formal guidance from the legal staff of the department has not been issued.  Enterprises counting on the credit in their financial assessment of any investment in Ohio should confirm with the department the manner in which this provision will be interpreted.

For more information, view Mark Engel's July publication:  HB 153 Biennial Budget Bill - Key Economic Development Budget Bill Provisions.

A recent report in Cincinnati.com did a very good job describing the inherent issues municipalities, particularly economic development officials, encounter while trying to grow their tax base.  These issues are 1) job attraction vs. job retention and 2) the phenomenon of neighboring communities actively recruiting or “poaching” each others companies.

The City of Cincinnati is currently facing both of these challenges.  Like any city, Cincinnati is expected to fight to retain their corporate partners and thereby hold onto existing jobs and maintain tax revenue for the community; however, in this economy, it is critical for cities to also look for ways to attract new jobs.  That means actively recruiting new employers.

In fact, as Cincinnati has been working to make a deal with Chiquita to keep its headquarters in Cincinnati, the city’s economic development staff also responded to an expression of interest from Omnicare Inc. to relocate its corporate operations to the city, which resulted in that company’s decision to return to Cincinnati from neighboring Covington, Kentucky.  What Cincinnati is finding, like many cities, is that the tools available to help retain good jobs in the community are different, and less enticing, than the incentives available to attract new employers.  That makes achieving both goals even more challenging.

Like many cities across Ohio, Cincinnati is debating the strategic questions regarding the importance of focusing resources towards job retention over job creation in this tough economy and determining when it’s appropriate to effectively utilize incentive programs to do so.  However, as the article notes, “there are more tax incentives available to lure a company than to keep one.”  These incentives come in the form of tax breaks for property, payroll and other project-related costs that combine to make a deal so attractive that a company is willing to relocate.

The challenge associated with the state incentive regime making available more tools for attraction than for retention is that it only fuels the battle that is increasingly pitting cities in the same region against each other.  In the case of Cincinnati and Covington, they both belong to the same MSA and economic partnership – Cincinnati USA. The partnership consists of a 15-county region that includes parts of northern Kentucky and southeast Indiana.

The relocation of Omnicare from Covington to Cincinnati may have netted the city 650 new jobs and a headquarters operation, but it may be viewed as “poaching” from a neighboring city.  The ironic aspect of this entire transaction is that Omnicare was lured away from Cincinnati to Covington approximately 10 years ago thanks in large part to a variety of incentives and other attraction mechanisms.  One might question whether the entire incentive regime, by placing so much emphasis on attraction as opposed to retention, simply encourages companies to relocate at the end of each incentive period.

This is a “hot-button” issue throughout Ohio, as just recently, Cuyahoga County Executive, Ed FitzGerald asked the county's mayors to sign a pact pledging that they will refrain from soliciting businesses from other communities within the county (see our DevelopOhio blog post on this article from September 16).  Mr. FitzGerald created the “Cuyahoga County Business Attraction and Anti-Poaching Protocol” specifically to stop communities from making highly attractive incentive deals with employers that are not beneficial to the region's overall economic well-being.

In the case of the City of Cincinnati, officials there did not actively solicit Omnicare to return to Ohio.  In fact, that company initiated the conversation.  However, many cities that are struggling to retain and attract businesses are aggressively pursuing companies within their regions by offering incentives for them to relocate. 

With all this said, the key question remains: How can we better recruit business to grow the tax bases of individual cities for the long haul while maintaining strategic partnerships that support an entire region, exclusive of actively or passively recruiting regional companies with the use of economic development incentives?

On September 20, 2011 the Job Tax Credit bill (H.B. 327) was introduced in the Ohio House of Representatives by Representative Anne Gonzales. 

If enacted as introduced, the credit would provide for a six-year trial period in which employers may receive a job creation or job retention tax credit for the employment of home-based employees.  A home-based employee is currently being defined as an employee whose services are performed primarily from the employee’s Ohio residence.  To qualify for the program, the minimum wage threshold would be $9.50 per hour.  The legislation would place administration of the program within the Ohio Department of Development and the credit would require Ohio Tax Credit Authority approval. 

At the end of the six-year period, the Director of Development would be required to issue a report gauging the effectiveness of the program and to provide a recommendation, if any, for extension of the program.  For more information on the proposed program, read the full text of H.B. 327.

The Site Selectors Guild (The Guild), a new professional association of international site selection consultants, will host its first annual conference in Orlando, Florida, on January 22-24, 2012. 

The group was founded in 2010 by 12 internationally recognized site selectors to advance the profession of international corporate site selection through networking and educational events and services.  The Guild also coordinates direct contact between businesses and site selection companies.

The Guild may prove to be an increasingly helpful resource to economic development professionals in Ohio.  The networking, training and information sharing platform could benefit communities and organizations by elevating their profile and providing opportunities for interaction with this group of individuals that influence an estimated 60 percent of corporate site selection projects internationally.  For more information on the Site Selectors Guild, visit their website at www.siteselectorsguild.com.

Cuyahoga County Executive Ed FitzGerald is asking the county's mayors to refrain from soliciting businesses to move from one community within the county to another.

Crain's Cleveland Business (subscription required) is reporting that Mr. FitzGerald is sending a document to the mayors of the 59 municipalities in the county called the “Cuyahoga County Business Attraction and Anti-Poaching Protocol.”  The policy is being created to discourage communities from showering employers with tax abatements or tax credits for moves that do not add to the region's economic output.  The agreement also lays out procedures for signatories to follow when they respond to requests from companies about possible relocations.

Under the protocol, when a company (or its site consultant) with 25 or more employees in the county, contacts a key public official in a new community about a possible move, that community is expected to notify the company's “home” community of the contact when the company has not already done so.  No incentives will be publicly offered until that notification has been made.  The community that could be losing the business has an opportunity to make a counterproposal.

By signing the pact, communities would also be agreeing not to pursue businesses that have not expressed an interest in relocating.  The county executive hopes all the county's 59 mayors will sign the voluntary agreement.  While voluntary, Mr. FitzGerald said cities that abide by the policy will have a better chance of receiving county financial help for economic development projects.  This statement is significant as Mr. FitzGerald works to create a $100 million economic development fund that would boost the county's ability to help attract and keep businesses. 

Mr. FitzGerald, who has been a strong advocate of regional collaboration, began his conversations with mayors in June.  Although yesterday's agreement was not as robust as Mr. FitzGerald originally envisioned, he ultimately presented a proposal that could receive majority acceptance from the mayoral contingency in an effort to create a status quo throughout the county.

The Ohio Department of Development (ODOD) released a notice yesterday highlighting the availability of funding through three urban development programs designed to promote economic growth and redevelopment in a variety of industrial, community and commercial settings.

Round 7 of the Ohio Historic Preservation Tax Credit is accepting applications until Friday, September 30, 2011.  A total of $30 million in tax credits is available for allocation.  Projected to leverage $1.5 billion in private redevelopment funding and federal tax credits, the program has benefited 35 projects.

The Brownfield Action Plan Pilot Program is a new initiative that assists communities in the expedited development and implementation of an area-wide Brownfield Action Plan.  Round 1 of applications is open until Friday, October 14, 2011.  The maximum level of assistance will be approximately $50,000 per grantee.

The Job Ready Sites Program is now accepting applications for Round 4 and must be submitted to the District Public Works Integrating Committees by Tuesday, November 1, 2011.  The grants, created to enhance the state's portfolio of industrial and commercial sites, are capped at $3 million or $750,000 depending on the intensity level of the project.

For more information, please visit the ODOD Urban Development Division or view the press release.