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Entries for category:   Financial Incentives

 
Jul 31, 2014

Port of Greater Cincinnati Development Authority announces new EB-5 public finance program
 

The Port of Greater Cincinnati Development Authority recently announced “it has established a public finance program to make available EB-5 financing as an option for qualifying job-creating capital projects in Cincinnati and Hamilton County,” according to their press release. EB-5 stands for Employment-Based Fifth Preference Program, a program of the U.S. Citizenship and Immigration Services. According to the release, EB-5 “was created by Congress in 1990 to stimulate job creation. It is a vehicle for foreign nationals to make capital investments in U.S. Economic Development projects. Foreign nationals receive expedited consideration for U.S. residency in return for making a minimum capital investment of $500,000.” In a Cincinnati.com article, port authority President and CEO Laura Brunner said EB-5 "is a new tool for the Cincinnati area, and we see ample evidence that this capital source will add value to our development community and to the prosperity of our region. EB-5 capital is easily leveraged with tax-increment financing and other development financing programs." For more, read the full release and the full article.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Jun 30, 2014

State of Ohio and small towns loan millions, but tech jobs did not materialize
 

A Cleveland businessman, C. David Snyder, told officials in several northern Ohio communities that his company, Ruralogic, was poised to generate new jobs and economic growth throughout the region. In exchange, the state of Ohio and the municipalities of Archbold, Bryan and Napoleon granted Ruralogic more than $1.2 million in loans and grants. The promised jobs and growth, however, never materialized. The Toledo Blade reports that “these issues follow a pattern of financial irregularities at Mr. Snyder’s companies, which either acquired or worked on projects that received more than $28 million in government financing during a five-year period.” The article states that most of the money has not been repaid and that the businesses involved “face allegations that they misappropriated taxpayer or corporate funds.” For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates  State Updates   |   Permalink

 

May 14, 2014

Bricker & Eckler and Argus Growth Consultants launch the DevelopOhio Economic Incentives Toolkit
 

Incentives can be very important for economic development projects, and the incentive landscape is rapidly changing in Ohio. The attorneys and economic development professionals at Bricker & Eckler LLP and the firm’s economic development subsidiary Argus Growth Consultants, Ltd. are pleased to provide the DevelopOhio Economic Incentives Toolkit. The toolkit is the only resource that outlines in one place the many ways economic development projects can maximize state and local assistance programs.


 
Posted by R. McCarthy in  Financial Incentives   |   Permalink

 

May 05, 2014

New TIF will help fund infrastructure and technology improvements in Dublin
 

The Dublin City Council and the Dublin Board of Education recently gave their unanimous approval to an agreement to establish Tax Increment Financing (TIF) financing within the community’s Bridge Street District until December 31, 2046, according to ThisWeek Community News. Under the terms of the agreement, the school district "will continue to receive the amount of property taxes it gets when the TIF is created; increases in property tax revenues, however, will go to the city." TIF districts created in the Bridge Street District "will put funds from property tax increases toward infrastructure." The $1.5 million that the city will pay Dublin City Schools annually as part of the arrangement will be used for "technology improvements throughout the district," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Apr 23, 2014

Ohio House committee advances H.B. 492 to ease restrictions on InvestOhio and the distribution of local tax credits
 

The Ohio House of Representatives Ways & Means Committee recently advanced H.B. 492, which would ease restrictions on the InvestOhio program to "spur investment in small businesses," according to the Gongwer Ohio Report. InvestOhio, which "offers a non-refundable 10 percent personal income tax credit for investing up to $10 million in small businesses," was created as part of Gov. John Kasich's previous mid-biennium budget review (MBR). H.B. 294 is part of the governor's current MBR and would reduce from five to two the number of years that investors must hold the investment under the tax credit requirements. Ohio Development Services Agency (DSA) officials told the committee that the five-year requirement limited interest in InvestOhio. H.B. 492 also would "eliminate a provision in the law that allows municipalities to award local job creation and job retention tax credits only when the Ohio Tax Credit Authority approves the state version first," the article said. For more, read the full text of H.B. 492.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  Legal Developments  Regional Updates  State Updates   |   Permalink

 

Apr 22, 2014

Toledo officials opposed to H.B. 289 defend JEDZs
 

Toledo officials recently met with Ohio Senate officials to protest H.B. 289, which the Ohio House of Representatives passed in late February, The Blade reports (See our Feb 27, 2014, blog post for more information). The bill aims to phase out Joint Economic Development Zones (JEDZs), a statutory creature relied upon by many local communities to promote economic development by drawing upon municipal and township cooperation. Its sponsor, Rep. Kirk Schuring (R-North Canton), introduced the bill to "prohibit cities and townships from joining forces to 'cherry pick' large businesses and employers for income taxation while providing little or no new economic development." Rep. Schuring is considering a rewrite to create a grandfather clause for existing JEDZs that would "allow for future renewals that do not involve a geographic expansion or increased tax rate." Toledo officials argued that northwest Ohio has not experienced the abuse of JEDZs that the legislation seeks to end, and that H.B. 289 would remove a tremendously success tool "for townships and cities to work together to engender economic development," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Legal Developments  Regional Updates  State Updates   |   Permalink

 

Apr 18, 2014

Mahoning County withholds recommending continued tax abatements for two companies
 

The Mahoning County Tax Incentive Review Council recently voted to "withhold recommending to the Mahoning County Board of Commissioners to continue abatements" for InfoCision Management Corp. in Austintown and Simon Roofing in Youngstown, The Business Journal reports. The council did approve abatements for five companies, but "in both cases where the council held off endorsing continuing the abatements, the companies involved fell short on either meeting employment or investment projections, but exceeded the projection in the other measure." Simon Roofing received a 10-year, 60 percent tax abatement, but has added only 13 of the projected 25 jobs. InfoCision has "created 95 more jobs at its Austintown call center than projected after six years," but the company's total investment has been only $4.47 million, which "falls below the $5.25 million to $6.13 million projected," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Apr 17, 2014

Youngstown Initiative Committee defers $100,000 grant for DNV Energy pending discussions with the City of Campbell
 

The Youngstown Initiative Committee recently approved financial assistance for four enterprises while deferring a decision "regarding a fifth application from DNV Energy LLC, an offshoot of Youngstown Pipe and Supply Co.," The Business Journal reports. The company wants $100,000 from the city to "purchase equipment and machinery, and to cover computer networking costs" related to its $1.15 million expansion project, which is projected to "create 11 jobs over a three-year period, six full-time and five part-time positions." Complicating matters for the DNV Energy LLC incentive is the fact that "the building straddles land in Youngstown and Campbell." The company received a $100,000 grant to move into the building in 2008, and the cost of the incentive and the tax revenues were shared between Youngstown and Campbell, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Apr 16, 2014

National settlement with mortgage servicers funds unprecedented rate of demolition and reclamation across Ohio
 

An "unprecedented rate of demolition is happening all across Ohio" as communities make sweeping efforts to "tear down blighted buildings and build back neighborhoods," Cincinnati.com reports. The efforts are funded by the more than $75 million the counties received for these efforts as part of the state's share of a "$25 billion national settlement with mortgage servicers stemming from the housing collapse." In Hamilton County alone, "more than 526 vacant homes and apartment buildings have been torn down in the past 18 months." For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates  State Updates   |   Permalink

 

Apr 10, 2014

House passes bill that would allow TIF revenue to be used for natural gas infrastructure
 

On Wednesday, the Ohio House of Representatives passed Am. Sub. H.B. 483 along party lines. After undergoing changes in the House Finance & Appropriations Committee earlier this week, the bill passed the House 57-33, according to the Gongwer Ohio Report. Part of the mid-biennium budget review (MBR), Am. Sub. H.B. 483 would allow communities to apply PILOT payments to “the provision of gas or electric service facilities owned by nongovernmental entities when such improvements are determined to be necessary for economic development purposes.” For more, read the full text of Am. Sub. H.B. 483.


 
Posted by R. McCarthy in  Financial Incentives  Legal Developments  State Updates   |   Permalink

 

Apr 04, 2014

Seeing demonstrated progress, Ohio Controlling Board votes to release funding to Rocket Ventures
 

After agreeing in 2012 to withhold 2014 funding for the Toledo-based venture capital firm Rocket Ventures LLC, the Ohio Controlling Board recently unanimously approved the Ohio Third Frontier Commission's request to release the taxpayer-guaranteed bond money for the entity, The Blade reports. An independent evaluation in 2012 criticized the firm's "success rate in nurturing start-up companies, a perceived inexperience in product commercialization, and a lack of regional collaborators," which led the board to provide $1 million for 2013, but withhold 2014 funding until improvement was demonstrated. Since that time, the Ohio Development Services Agency (DSA) has expressed satisfaction with the entity's direction. In addition to severing its ties with the University of Toledo, Rocket Ventures has also "solidified its partnership with the Regional Growth Partnership as it seeks to demonstrate more of an 18-county northwest Ohio approach," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  Regional Updates  State Updates   |   Permalink

 

Apr 03, 2014

Critics decry Cleveland Heights City Council's use of a tax abatement for Turkey Ridge housing
 

Cleveland Heights city officials promised to do more next time to inform the public about a tax deal before closing on it, The Plain Dealer reports. In March, the city council approved a 100-percent tax abatement for up to 15 years for new housing and house repairs of existing homes within the area known as Turkey Ridge. The 6-1 vote established the Turkey Ridge Community Reinvestment Area with critics on hand to decry passing the abatement for what they described as "one of the wealthiest and most stable neighborhoods of Cleveland Heights," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Mar 28, 2014

Shale Industry’s Impact on Your Finances Seminar on April 25
 

Bricker & Eckler LLP along with the Marietta Area Chamber of Commerce present Shale and You: How the Shale Industry Can Impact Your Finances, a seminar on April 25 from 8:00 a.m. to noon at Washington State Community College.

Presentations and panel discussions will discuss general economic development as a result of the shale industry, personal finances and estate planning in the world that shale built and how to break into or work alongside the shale industry.

There is no cost to attend. For registration and contact information, please visit the MACC website.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates  State Updates   |   Permalink

 

Mar 20, 2014

House committee approves bill that would allow parcel owners to opt out of incentive-district TIF
 

A bill introduced last June that would allow parcel owners to opt out of incentive-district TIFs was recently voted out of the Ohio House of Representatives State and Local Government Committee (See our June 11, 2013, blog post for more information). H.B. 198 would require new TIF districts to be square or rectangular – though if rectangular, the districts could not be too elongated. In addition, the legislation would require that TIF improvements benefit all parcels in the district and would require notice informing owners of property that will be partially within a proposed TIF that they have the right to exclude their property from the TIF district. For more, read the full Ohio Legislative Service Commission Bill Analysis of Am. H.B. 198.


 
Posted by R. McCarthy in  Financial Incentives  Legal Developments  State Updates   |   Permalink

 

Mar 14, 2014

Economic development provisions included in Kasich administration’s second mid-biennium review budget bill
 

On March 11, 2014, Gov. John Kasich’s administration unveiled its second mid-biennium review budget bill (MBR). The bill, introduced as H.B. 472, highlights six major areas of interest for the administration, but includes many new policy and appropriation items. On Wednesday, March 12, Ohio House of Representatives Speaker William Batchelder (R-Medina) indicated that it is the House’s intent to divide the MBR into at least 11 bills, which would then be sent to committees for hearings. Below is a summary of the economic development components of the budget. Read this Bricker & Eckler publication for a comprehensive review of the MBR.


Incentive Requirements and Compliance

The MBR would establish August 1 as the uniform due date for reporting by recipients of state assistance through the Development Services Agency, the Ohio Venture Capital Authority, Third Frontier Commission, and the Ohio Coal Development Office.  Additionally, the MBR would require businesses seeking research and development financial assistance in connection with a relocation to notify local governments that will be affected by their relocation before entering into an agreement with the State for the assistance.  In the event that the recipient of a Research and Development Loan Tax Credit fails to comply with certain requirements related to its state assistance, the MBR would authorize the Development Services Agency to reduce the amount, percentage, and term of the tax credit.  Finally, the MBR would authorize the Development Services Agency to access Department of Taxation information as necessary to verify information provided by incentive recipients and to ensure compliance with tax laws.

JCTC Computations

The MBR would reduce the value of certain job creation tax credits during their first year.  Under continuing law, the value of a tax credit is equal to the income tax base revenue in the year at issue, minus the baseline income tax revenue in the twelve months before the Tax Credit Authority approves the project, multiplied by the tax credit percentage established by the Tax Credit Authority.  The MBR would eliminate a provision in current law providing that the baseline income tax revenue in the first year in the first year of the tax credit is to be reduced in proportion to the number of days in the year prior the tax credit in which the tax credit recipient was not eligible for the tax credit.  By eliminating this provision, the MBR would reduce the value of tax credits in their first year so that they will be based on the growth in income tax revenue for that year.

Municipal Tax Credits

The MBR clarifies that municipalities can offer job-creation tax credits and job-retention tax credits to employers, regardless of whether the employers also receive tax credit assistance from the Development Services Agency.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  Legal Developments  State Updates   |   Permalink

 

Mar 07, 2014

City of Heath approves five-year economic development agreement with German automotive supplier xperion
 

The Heath City Council and the German automotive supplier xperion Energy & Environment USA LLC recently finalized a five-year economic development agreement in which the company "will manufacture composite tanks for compressed natural gas applications in a 50,000-square-foot facility under construction at the Central Ohio Aerospace and Technology Center campus," the Newark Advocate reports. Effective January 1, 2015, the deal "provides the company a five-year, 50-percent tax credit applied to its business profit tax" with the agreement that the  company will create about 59 full-time equivalent positions by December 31, 2016. The payroll during the five-year period is expected to total almost $4.9 million. The Ohio Tax Credit Authority recently approved a seven-year, 50-percent job creation tax credit for the project, as well (See our Nov 6, 2013, blog post for more information). For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Mar 04, 2014

Cincinnati USA Regional Chamber's Minority Business Accelerator launches its $1.7 million GrowthBridge Fund
 

The Cincinnati USA Regional Chamber's Minority Business Accelerator (MBA) recently announced the launch of the first phase of funding for its L. Ross Love GrowthBridge Fund, which will "provide debt capital to finance growth projects of established, highly competitive, African American- and Hispanic-owned firms in the region," The Cincinnati Herald reports. Since the fund was announced in June 2013, it has "raised more than $1.7 million from 28 investors representing both corporations and private commitments." Fundraising will continue until July 31st to "secure a goal of at least $2 million," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Professional Associations  Regional Updates   |   Permalink

 

Feb 27, 2014

Ohio House of Representatives passes Sub. H.B. 289 to phase out JEDZs
 

On February 26th, the Ohio House of Representatives passed Substitute House Bill 289. If also passed by the Senate and signed into law, the bill would phase out Joint Economic Development Zones (JEDZs), a statutory creature relied upon by many local communities to promote economic development by drawing upon municipal and township cooperation.

Unlike prior versions of the legislation, however, Sub. H.B. 289 does not substantially affect Joint Economic Development Districts (JEDDs).  Among other things, the new version eliminated provisions that would have required written consent of each property owner and lessee in territory proposed to be included within a JEDD and that would have imposed territorial contiguity and revenue use restrictions with respect to JEDDs (See our Nov 1, 2013, blog post for more information).

As passed by the House, Sub. H.B. 289 would eliminate the authority of municipalities and townships to create JEDZs, effective January 1, 2015. It also would de-authorize the renewal of existing JEDZ contracts after December 31, 2014. The bill further requires the contracting parties of existing and proposed JEDZs to create a review council to monitor the performance of the JEDZ. The county auditor, an economic development organization representative, a member of the public and the owners of the four largest businesses within the territory (measured by number of employees) would make up the seven-member review council. They also would have authority to approve any new JEDZ contract or substantial amendment to a JEDZ contract before it could take effect. Finally, Sub. H.B. 289 provides specific authority for owners or employees of two or more businesses jointly to bring a suit to invalidate or suspend the income tax in a JEDZ.

For more about Sub. H.B. 289, read this Cincinnati.com article. For more information about the prior version of the bill, read this Bricker & Eckler publication.


 
Posted by R. McCarthy in  Financial Incentives  Legal Developments  Regional Updates  State Updates   |   Permalink

 

Feb 24, 2014

First Batch Incubator in Cincinnati will accept applications from entrepreneurs until March 17th
 

From February 17th through March 17th, the First Batch Incubator in Cincinnati will be accepting applications from "entrepreneurs seeking production funds, mentorship and business development training," Soapbox Media reports. The four-month accelerator program "connects inventive entrepreneurs with resources, training and funding needed to take a prototype to the first batch of manufactured product sales." The incubator also covers up to $8,000 of "expenses incurred in manufacturing the first round of product" per participant, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Professional Associations  Regional Updates   |   Permalink

 

Feb 21, 2014

Chillicothe considers a special tax abatement to help Adena Health System move into the Carlisle Building
 

The Chillicothe City Council is considering amending its ordinance involving tax abatements to encourage Adena Health System to move into the Carlisle Building, which has been empty since a fire in April 2003, The Chillicothe Gazette reports. Currently, "commercial and industrial facilities can only receive a 50 percent abatement for up to 12 years within a designated Community Reinvestment Area" (CRA). The proposed change would increase the maximum abatement rate to 75 percent and increase the maximum number of years for an abatement to 15. The Chesler Group, a Cleveland-based developer, is "leading the charge to renovate the building." It plans to purchase the building next month and, in April, to begin construction on a $7 million project that includes nearly three dozen apartments for medical students and staff, a retail pharmacy, office space and stores. For more, read the full story.

Update: On February 13, Adena signed a 15-year deal to lease the Carlisle Building, Columbus Business First reports. The Ohio Development Services Agency (DSA) approved $1.4 million in preservation tax credits for the historic building, which was built in 1885. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Feb 17, 2014

Mayor John Cranley proposes new parking deal to the Cincinnati City Council
 

Cincinnati Mayor John Cranley is proposing a new parking meter deal to Cincinnati City Council, WXIX.com reports. The proposal calls for the Port of Greater Cincinnati Development Authority to issue $30 million in bonds to upgrade each meter in the city to eliminate coins. While the city council would determine the rates and hours of operation, the city's parking services department would maintain control over all of the city's parking. Mayor Cranley said that upgrading the meters to have credit card and smartphone technology "could generate $6.2 million in revenue next year and up to $7.4 million by 2019." After the November election, the incoming mayor and several incoming city council members halted a parking lease deal developed by former Mayor Mark Mallory that would have netted the Port Authority an estimated $18 million over 30 years (See our Jan 27, 2014, blog post – "Cincinnati port authority looks for funding to move forward with major economic development goals"). For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Feb 14, 2014

Westlake approves financing agreements for American Greetings' planned world headquarters
 

Westlake City Council recently passed several financing agreements for a project to construct Crocker Park Creative Studios, which will host the new world headquarters for greeting card company American Greetings, The Morning Journal reports. A tax increment financing (TIF) agreement with the company is expected to generate at least $450,000 annually for the Westlake City School District, and bonds will be used "for construction of roads, utilities and three public parking garages." Tax revenue for Westlake is "guaranteed to be at least $132 million" once all of the company's 1,800 employees and other retailers move to the expanded area. As part of the deal, American Greetings receive a tax rebate on employee income taxes of 0.5 percent. "Westlake will collect 1.5 percent from employees, while agreeing to give the company 0.5 percent back. Refunds will be issued to the company in the form a grant," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Feb 13, 2014

S.B. 134 would limit the ability of local governments in other states to directly finance economic development projects in Ohio
 

The Ohio General Assembly is considering a proposal to limit the ability of other states and their local governments to directly finance economic development projects in Ohio. Under Senate Bill 134, so-called “foreign entities” (i.e., governments outside Ohio) would need to seek the approval of an Ohio local government before providing financing for an Ohio project. The bill follows recent efforts by several port authorities to offer bond financing across state lines.

The bill requires a foreign entity seeking to finance a capital improvement project in Ohio to apply to the port authority, municipal corporation or county in which the proposed project will be located. If the local government determines that it cannot or will not provide financing on similar or better terms, it must approve the foreign entity’s application. If the local government denies the application, the foreign entity can appeal to the Ohio Development Services Agency (ODSA).

If a foreign entity finances a capital improvement project without applying for local approval or after its application has been denied, the local government that could have financed the project or the director of the ODSA can obtain a court order halting the financing. The foreign entity also can be required to repay either 75 percent of the fees it received from the financing or 100 percent of the fees that the local government would have generated by financing the project, whichever is greater. An Ohio government agency that works with a foreign entity in violation of the bill will have its actions voided and can be jointly and severally liable for the fee. For more, read these Bloomberg, Wall Street Journal and Bond Buyer stories.

 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  Legal Developments  Regional Updates  State Updates   |   Permalink

 

Feb 07, 2014

Residents to vote on a 1.5 percent JEDZ that would encompass all of Springfield Township in Hamilton County
 

Springfield Township trustees in Hamilton County unanimously passed a resolution to put a joint economic development zone (JEDZ) on the May 6th ballot, Cincinnati.com reports. The proposal would make the entire township a JEDZ and "would collect an earnings tax of 1.5 percent for workers in Springfield Township and 1.5 percent of business profits." Home businesses and residents who don't work within the township would not be subject to the tax, which it is estimated will raise about $1.125 million. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Feb 03, 2014

JEDZ agreement celebrated as an economic development success that mutually benefited three local governments in Lucas County
 

A 550-acre Joint Economic Development Zone (JEDZ) established in 2003 among the cities of Maumee and Toledo and Monclovia Township is being celebrated as an economic development success story, The Blade reports. The agreement establishing the JEDZ prevented the entities from competing for and engaging in a "fractious governmental squabble" over Dana Corp.'s 170,000-square-foot technical center project, which created hundreds of jobs in the area. Under the terms of the agreement, "Toledo sold the land to Dana, Maumee annexed the land, and Monclova Township got to levy property taxes on the site like it always had, plus it got a third of the income tax levied on Dana. Toledo and Maumee got to split two-thirds of the tax revenues." Dana ultimately moved its headquarters to a site within the JEDZ, and just last month it was revealed to the Toledo City Council "that a mystery company purchased 37 acres of land" within the JEDZ with plans to invest $10 million in a new headquarters and factory, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Jan 29, 2014

Controlling Board approves seven Ohio Third Frontier loan requests totaling more than $7 million
 

Last week, the Controlling Board for the State of Ohio approved seven Third Frontier loan requests totaling more than $7 million, according to the Gongwer Ohio Report. In December, the Ohio Third Frontier Commission "announced $12.8 million worth of awards,” which include the seven projects approved by the board (See our Dec 17, 2013, blog post – "Ohio Third Frontier approves $12.8 million in funding for 16 projects"). For more, read this Ohio Development Services Agency news release.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA   |   Permalink

 

Jan 20, 2014

Appalachian Partnership for Economic Growth receives $1.7 million Make It in America Challenge Grant
 

The Appalachian Partnership for Economic Growth (APEG), a coordinated program through the Buckeye Hills-Hocking Valley Regional Development District, and the Ohio Valley Employment Resources organization were recently awarded a $1.7 million Make It in America Challenge Grant to help fund worker training, domestic business investment and supply chain access, according to the Ohio Conference of Community Development, Inc. The grant – part of a national $20.5 million challenge grant program – will target the metal fabrication, polymers and chemicals, and other manufacturing industries throughout the region. The $1,700,844 grant "includes $400,888 from the U.S. Department of Commerce's Economic Development Administration and $1,299,956 from the U.S. Department of Labor's Employment and Training Administration." For more, read the full news release.


 
Posted by R. McCarthy in  Federal Updates  Financial Incentives  Professional Associations  Regional Updates   |   Permalink

 

Jan 17, 2014

Youngstown approves grants and tax abatements to help spur economic growth
 

The Youngstown City Council recently approved a 10-year, 75 percent tax abatement in an effort to lure Vallourec subsidiary VAM USA's new $81.5 million pipe-threading mill to the city's Ohio Works Industrial Park, The Business Journal reports. At least two other cities are under consideration for the project. Meanwhile, city officials also approved Youngstown Initiative performance grants for the following economic development agreements:

  • $8,042 to assist Kiraly Tool & Die Inc. with an expansion and equipment purchase project.
  • $2,731 to assist One Hot Cookie LLC with an expansion and equipment purchase project.
  • $23,408 to assist Meals on Wheels with an expansion and equipment purchase project.
  • $14,500 to assist Rhy the Bar LLC with renovations and construction of a new craft beer business.
For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Jan 14, 2014

Global automotive glassmaker to invest $200 million in a former GM plant in Moraine and create 800 jobs
 

Ohio Gov. John Kasich announced on Friday that the Fuyao Glass Industry Group Co. Ltd – the largest automotive glass supplier in China, with 65 percent of the market and 18 percent of the global automotive glass market – will build its first North American automotive facility in Moraine. The project, supported by the efforts of JobsOhio, is expected to create approximately 800 new jobs during the next five years and will involve a $200 million investment in more than one million square feet of the former GM Moraine plant. The facility is expected to be manufacturing glass by the end of 2015. Based on information from the foreign investment tracking organization FDI Markets, the deal will be "the largest Chinese investment ever made east of the Mississippi River and the largest Chinese automotive industry investment ever made in the U.S. since records have been kept." For more, read the full news release.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  Regional Updates  State Updates   |   Permalink

 

Jan 08, 2014

Lorain School Board protests the city's TIF plan for a new Family Dollar store
 

Lorain City Council recently approved a 10-year tax increment financing (TIF) plan for a Family Dollar store that is scheduled to open soon, The Chronicle-Telegram reports. Under the plan, Lorain School District will receive 25 percent of the projected $10,890 in annual tax revenue. The city will receive the remainder for use in attracting more businesses to blighted areas "without using general funds to pay for the improvements." The deal was approved despite concerns expressed by certain members of the Lorain School Board of Education about the tax incentive, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Jan 02, 2014

Lawsuit threatened against Los Angeles economic development success story
 

A city that just a few years ago used "the land assemblage and brownfields revitalization tools of redevelopment," along with a payment in lieu of taxes (PILOT) agreement, to enthusiastically land "a low-impact project with high employment" is now threatening to bring a lawsuit against the company, The Bond Buyer reports. Huy Fong Foods opened its 650,000-square-foot, $40 million Sriracha sauce plant in Irwindale in Los Angeles County, California, in October 2010, creating hundreds of jobs, including many high-paying positions. The city provided the company with "a $15 million interest-only loan for 10 years with a balloon payment at the end to cover the cost of the land" – a redeveloped brownfield – as well as a PILOT of $2.5 million payable over 10 years. Residents living near the project, however, began complaining that the plant was responsible for "burning eyes, itching throats and a pervasive smell of chili peppers." Despite Huy Fong’s installation of a filtration system to reduce the emissions, a Los Angeles County Superior Court judge has "ordered that the plant cease any activity resulting in noxious odors" and the California Department of Public Health has ordered "that the factory should hold the product for 30 days before shipping, halting shipments through mid-January." City officials are working with the company to find a solution to keep the project alive, which appears to be in the form of another filtration system that will cost between $500,000 and $600,000, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives   |   Permalink

 

Dec 30, 2013

JobsOhio to publish monthly report itemizing details about incentives, incentive recipients
 

JobsOhio recently announced that, beginning sometime in the first quarter of 2014, it will publish an itemized report "on its website within three business days of the end of each month" detailing which companies receive money, The Columbus Dispatch reports. All financial aid that "has been dispensed thus far" will be accounted for in that first report. The report also will include information about "the name of the company, its location, the amounts of jobs it will create or retain, the amount of capital the company plans to invest in its project and the amount of JobsOhio assistance it will receive," the article said. The type of incentive will also be identified in the report, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Dec 27, 2013

Officials plan to ask Kentucky for a three-year extension on its tax credit for the Newport on the Levee entertainment complex
 

Citing "growing competition from Cincinnati's Banks development, Horseshoe Casino Cincinnati and a resurgent Over-the-Rhine," Levee officials in Kentucky plan to ask for a "three-year extension of tax incentives under the Kentucky Tourism Development Act," Nky.com reports. The tax breaks enabled developers to complete construction of Newport on the Levee, which is a "400,000-square-foot entertainment complex on the southern shore of the Ohio River" that revitalized Northern Kentucky's riverfront. Officials stress that they are not asking for additional money, but for additional time to realize the $40 million total that Kentucky law provides for "new or expanding tourist attractions to recoup up to 25 percent of a project's cost for up to 10 years by keeping a portion of sales tax receipts," the article said. They estimate that a three-year extension would generate about $6.3 million, which they said would be invested in "capital projects such as expanding onto an adjacent surface parking lot and redeveloping the long-shuttered IMAX theater." For more, read the full story.


 
Posted by G. Lestini in  Financial Incentives  Regional Updates   |   Permalink

 

Dec 24, 2013

Constitutional Modernization Commission considers restrictions on public investments in private enterprises
 

As the Ohio Supreme Court continues to review claims challenging the creation of JobsOhio, members of the Ohio Constitutional Modernization Commission's Finance, Taxation & Economic Development Committee have heard several witnesses testify as to whether "restrictions on transferring public funds to private interests" should be removed from the Ohio Constitution, according to the Gongwer Ohio Report. Ohio State University law professor Dale Oesterle, in justifying the restrictions, told the committee "that the constitution was the only way for policymakers to guard against the political pressure that threatens to bog governments down with debt." The committee also has heard testimony from former Ohio Department of Development director Lisa Patt-McDaniel, however, explaining that the "constitution's restrictions on using taxpayer funding for private enterprise" is "an impediment to job creation efforts." Although a 1965 constitutional amendment "alleviated the outright prohibition somewhat by allowing state and political subdivisions to help finance private projects involving construction, equipment and facilities," Patt-McDaniel testified that the limitations relating to the kinds of economic development activities permitted by the Ohio Constitution should be removed so that the General Assembly can serve as the "gatekeeper to determine appropriate job-creating efforts," the article said.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Dec 23, 2013

Company transforms shuttered pottery in New Waterford to produce "made in America" mugs for Starbucks
 

California-based American Pioneer MFG LLC, which was formed four months ago to supply mugs to the Seattle-based Starbucks Coffee Co. as part of the coffee giant's "Create Jobs for USA" initiative, will open a new Ohio facility, The Business Journal reports. Upon finalizing a deal to supply mugs to the largest coffeehouse company in the world, American Pioneer decided to "transform a shuttered pottery in New Waterford [Columbiana County] into a sleek, modern production hub." The Mahoning Valley Economic Development Corp. (MVEDC) in Liberty Township "helped to secure $140,000 in loans toward the purchase of equipment related to the project," which is being heralded as an effort to "help resurrect the tradition of the Ohio Valley's pottery industry," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Dec 20, 2013

AG report highlights importance of economic development incentive compliance
 

Capping a groundbreaking year for economic development incentive compliance in Ohio, the Ohio Attorney General’s office released its 2013 report on incentives offered by the State of Ohio through the Ohio Development Services Agency. The annual report, which is required by Ohio Revised Code Section 125.112, is the fourth of its kind. This year’s report focuses on incentives with 2012 closeout dates. It identifies noncompliance with respect to 120 awards — approximately 45 percent of the awards reviewed.

The report underscores the increasing importance of accountability and transparency in economic development. This year has been packed with milestone events in incentive compliance, including forceful efforts by governmental entities to enforce compliance and unprecedented media scrutiny of incentives. If the ongoing litigation and political spats relating to the accountability and transparency of JobsOhio are any indication, these trends will intensify throughout 2014. For more, click here.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Dec 18, 2013

Article details risks, rewards of effort by Cleveland-area business leaders to land an unnamed company's new headquarters
 

A recent Crain's Cleveland Business article explores the intricate process that went into Solon being selected for Nestlé USA's expansion of its pizza division, which the company announced in late October (See our Nov 6, 2013, blog post for more information). When site selection professionals with California-based Deloitte Consulting initially contacted Cleveland's economic development entities about the possibility of a new regional headquarters operation being located there, virtually all details about the project – including the company itself – were withheld as proprietary business information. Business development leaders throughout Cuyahoga County quickly banded together to provide comprehensive site information to Deloitte on tight deadlines. Without knowing the company or its industry, some of these leaders as business owners risked introducing a competitor into their market for the sake of developing the greater Cleveland area, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Dec 11, 2013

Grove City Council approves JEDD with Scioto Township and the Village of Commercial Point
 

After months of heated debate and two postponed votes, Grove City Council in Franklin County recently voted to approve a joint economic development district (JEDD) agreement with Scioto Township and the Village of Commercial Point, both of which had already approved the agreement, ThisWeek Community News reports (See our Sept 10, 2013, blog post – "Commercial Point Village Council votes to join proposed JEDD"). Under the agreement, Grove City will impose its two percent income tax rate on a designated area within the Village of Commercial Point and Scioto Township, the latter of which as a township cannot levy its own income tax. Grove City will then receive 10 percent of the income, while Scioto Township will receive 88 percent and the Village of Commercial Point will receive two percent, the article said. The district includes two state prisons, the workers from which do not pay a local income tax and were adamantly opposed to the JEDD as a tax grab. While proponents insist the JEDD is a way for Grove City to help Scioto Township and the Village of Commercial Point fund their fire and other emergency services so that the city's resources are available for its own residents, one Scioto Township trustee "took issue with the fact the township's three previous attempts at a fire levy had been defeated by voters," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Dec 09, 2013

Ohio Tax Credit Authority approves 11 projects
 

The Kasich administration recently announced that the Ohio Tax Credit Authority (TCA) had approved tax credit awards for 11 projects set to create 733 jobs and to retain 310 jobs statewide. These projects are expected to generate more than $35 million in new payroll and $152 million in investments statewide. The approved projects are:

Ride Corporation will receive a 35 percent, six-year Job Creation Tax Credit for a new location project at a location (to be determined) that is expected to create 40 full-time positions and to generate $1 million in additional payroll.

SK Food Group dba SK Food Group NAHQ will receive a 55 percent, 10-year Job Creation Tax Credit for a new location project at a location (to be determined) that is expected to create 253 full-time positions and to generate $7.7 million in additional payroll.

Central Ohio:


Famous Enterprises, Inc. will receive a 40 percent, five-year Job Creation Tax Credit for a new location project in Columbus, Franklin County, that is expected to create 20 full-time positions and to generate $1 million in additional payroll.

Greenville Technology, Inc. dba Moriroku Technology North America will receive a 50 percent, eight-year Job Creation Tax Credit for a new location project in Marysville, Union County, that is expected to create 50 full-time positions, to generate $2.8 million in additional payroll and to retain $1.9 million in existing payroll.

Harris, Mackessy & Brennan, Inc. will receive a 45 percent, seven-year Job Creation Tax Credit for an expansion project in Westerville, Delaware County, that is expected to create 75 full-time positions, to generate $5.6 million in additional payroll and to retain $11.6 million in existing payroll.

Northeast Ohio:

Matalco Inc. will receive a 50 percent, eight-year Job Creation Tax Credit for a new location project in the Village of Lordstown, Trumbull County, that is expected to create 60 full-time positions and to generate $4 million in additional payroll.

Mesnac Americas Co., Ltd. will receive a 40 percent, five-year Job Creation Tax Credit for a new location project in Akron, Summit County, that is expected to create 35 full-time positions and to generate $3.9 million in additional payroll.

Pennex Aluminum Company, LLC will receive a 45 percent, six-year Job Creation Tax Credit for an expansion project in the Village of Leetonia, Columbiana County, that is expected to create 65 full-time positions, to generate $2.3 million in new payroll and to retain $3 million in existing payroll.

Southwest Ohio:

AIM MRO Holdings, Inc. will receive a 40 percent, five-year Job Creation Tax Credit for an expansion project in Miami Township, Clermont County, that is expected to create 50 full-time positions and to generate $3 million in additional payroll.

AlvaEDU will receive a 45 percent, six-year Job Creation Tax Credit for a new location project in Cincinnati, Hamilton County, that is expected to create 50 full-time positions and to generate $3 million in additional payroll.

Tom and Chee Worldwide LLC will receive a 45 percent, seven-year Job Creation Tax Credit for an expansion project in Cincinnati, Hamilton County, that is expected to create 65 full-time positions, to generate $3.5 million in additional payroll and to retain $215,385 in existing payroll.

For more, read the full press release.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  Regional Updates  State Updates   |   Permalink

 

Nov 21, 2013

Ohio Rep. Kirk Schuring introduces H.B. 358 to impose a 90-day moratorium on the creation of most new JEDDs and JEDZs
 

Ohio Rep. Kirk Schuring (R-Canton) has introduced emergency legislation, House Bill 358, that would impose a 90-day moratorium on the creation of most new Joint Economic Development Districts (JEDDs) and Joint Economic Development Zones (JEDZs). House Bill 358 also would restrict the ability of townships and municipal corporations to amend existing contracts during the 90-day period. For more, read the full text of H.B. 358.


 
Posted by R. McCarthy in  Financial Incentives  Legal Developments  State Updates   |   Permalink

 

Nov 14, 2013

Clean Ohio Council approves more than $6 million in grants in its final meeting
 

During its final meeting, the Clean Ohio Council approved more than $6 million in Clean Ohio Revitalization grants for five projects across the state, the Ohio Development Services Agency (DSA) announced. The program is sun-setting and will be replaced by the JobsOhio Revitalization Program, which will commit up to $43 million annually for revitalization projects and will have an increased focus on job creation (See our Nov 11, 2013, blog post for more information).

The City of Dayton received a $900,000 grant to clean up asbestos at the Kettering Center, which has been closed since the asbestos was discovered in 2007. Wright State University has committed to renovate the building after the cleanup.

The City of Cleveland received a $3 million grant for the Flats East Bank redevelopment project, which will create a 300,000-square-foot retail and office complex as well as 72 residential units.

The Stark County Port Authority received a $1,275,000 grant to clean up the former Alliance Community Hospital in Alliance. The hospital will work with Stark State Community College to construct a 100,000-square-foot facility for a new satellite school that will offer healthcare training.

The City of Columbus received a $1 million grant to clean up the LC RiverSouth property downtown. Upon completion, Lifestyle Communities, Ltd. will develop an eight-story building with 106 residential units, a parking garage and first-floor retail space.

The City of Marion received a $340,589 grant to help demolish and remediate the former Fairfield Engineering site. Carksco Properties LLC plans to develop the property for industrial use after the cleanup.

For more, read the full press release.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  Regional Updates  State Updates   |   Permalink

 

Nov 06, 2013

Ohio Tax Credit Authority approves 10 projects
 

Last week, the Kasich administration announced that the Ohio Tax Credit Authority (TCA) had approved tax credit awards for 10 projects set to create 846 jobs and to retain 7,155 jobs statewide. These projects are expected to generate more than $46 million in new payroll and $58 million in investments statewide. The approved projects are:

Bang Printing of Ohio, Inc., dba Hess Print Solutions, will receive a 40 percent, six-year Job Creation Tax Credit for an expansion project in Brimfield Township, Portage County, that is expected to create 100 full-time jobs, to generate $3.5 million in additional payroll and to retain $12.9 million in existing payroll.

Cheryl & Co. will receive a 45 percent, six-year Job Creation Tax Credit for an expansion project in Westerville, Delaware County, that is expected to create 92 full-time jobs, to generate $2.9 million in additional payroll and to retain $6.6 million in existing payroll.

The General Electric Company will receive a 50 percent, 11-year Job Retention Tax Credit for a restructuring plan that is expected to result in the retention of 5,000 full-time positions as well as $140 million in existing payroll.

J-W Measurement Company will receive a 55 percent, seven-year Job Creation Tax Credit for a new location project in Brookfield Township, Trumbull County, that is expected to create 150 full-time jobs and to generate $6.8 million in additional payroll.

Nestle USA, Inc. and Approved Affiliates will receive a 65 percent, 10-year Job Creation Tax Credit for a new location project in Solon, Cuyahoga County, that is expected to create 250 jobs, to generate $21.8 million in additional payroll and to retain $63 million in existing payroll.

Owens Corning and Approved Affiliates will receive a 40 percent, five-year Job Creation Tax Credit for a retention project in Toledo, Lucas County, that is expected to create 50 full-time jobs, to generate $1.8 million in additional payroll and to retain $95.8 million in existing payroll.

PQ Shelters, Inc. will receive a 50 percent, six-year Job Creation Tax Credit for a new location project in Mason, Warren County, that is expected to create 100 full-time positions and to generate $4.2 million in additional payroll.

Quest Specialty Coatings, LLC will receive a 40 percent, six-year Job Creation Tax Credit for an expansion project in Massillon, Stark County, that is expected to create 25 full-time jobs, to generate $895,000 in additional payroll and to retain $5.6 million in existing payroll.

Siemens Medical Solutions USA, Inc. will receive a 50 percent, seven-year Job Creation Tax Credit for a new location project in Cleveland, Cuyahoga County, that is expected to create 20 full-time jobs and to generate $2.6 million in additional payroll.

xperion Energy & Environment USA LLC will receive a 50 percent, seven-year Job Creation Tax Credit for a project in Heath, Licking County, that is expected to create 59 full-time jobs and to generate $2 million in additional payroll.

For more, read the full press release.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA   |   Permalink

 

Oct 29, 2013

Toledo Blade investigates compliance in state economic development incentive programs
 

The Toledo Blade has published a three-part series analyzing economic development incentives provided by the Ohio Development Services Agency and its predecessor, the Ohio Department of Development. The series examines compliance by state award recipients as well as efforts by the state to monitor and enforce noncompliance. For more, read part 1, part 2 and part 3.  


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Oct 28, 2013

Two Ohio economic development entities receive federal grants to help bring jobs to the United States
 

Two Ohio organizations – the Buckeye Hills-Hocking Valley Regional Development District of Reno, Ohio, and the N.E.O. Foundation of Cleveland – were among 10 organizations awarded a total of $20.5 million worth of grants for "their work encouraging companies to bring jobs to the United States," The Columbus Dispatch reports. Buckeye Hills received $1.7 million for workforce training and also to "help identify, research and document attributes of up to 1,000 development sites" in the eight southeastern Ohio counties that it represents. N.E.O. received $1.79 million to "help identify up to 25 firms with the potential to attract foreign investment from the biomedical, automotive and advanced-energy sectors in Akron, Canton, Cleveland, Lorain and Youngstown," as well as for technical assistance and workforce hiring and training in advanced-materials development. For more, read the full story.


 
Posted by R. McCarthy in  Federal Updates  Financial Incentives  Regional Updates  State Updates   |   Permalink

 

Oct 23, 2013

H.B. 219 would authorize tax credits for private investments in economic and infrastructure development projects
 

Earlier this month, Ohio Rep. Jim Butler (R-Oakwood) delivered sponsor testimony on H.B. 219, which would authorize tax credits for contributions of money to economic and infrastructure development projects undertaken by local governments and nonprofit organizations (See our June 27, 2013, blog post for more information). Butler said the bill would create the Neighborhood Infrastructure Assistance Program (NIAP) to encourage public-private partnerships and neighborhood investments, according to the Gongwer Ohio Report. The program is capped at $5 million per year in credits – $3.5 million initially, with the remaining funds being made available later to give "entities two shots at securing the credits," according to The Hannah Report. Projects are eligible only if they are determined to be "catalytic" for an area's development – meaning "they can be expected to induce sustainable investment." For more, read the full text of H.B. 219.


 
Posted by R. McCarthy in  Financial Incentives  Legal Developments   |   Permalink

 

Oct 21, 2013

Boardman Township to create special district enabling the Southern Park Mall to receive PACE financing for energy-related upgrades
 

Last week, the Western Reserve Port Authority advanced a plan to provide up to $4 million in Property Assessment Clean Energy (PACE) bonds to help Indianapolis-based Simon Property Group, which owns the Southern Park Mall in Boardman Township, finance "upgrades to the mall's roof and a complete interior lighting retrofit," The Business Journal reports. Through this deal, the property owner would be able to finance "100 percent of the costs of the improvements, with no out-of-pocket costs, and repay the bonds for a term up to the useful life of the improvements," with the port authority receiving a 1.5 percent fee based on the value of the loan. Before the port authority can give final approval, the Boardman Township Board of Trustees must create an Energy Special Improvement District (ESID). Bricker & Eckler is counsel to the Township on this matter. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Oct 18, 2013

Port of Greater Cincinnati Development Authority and the Greater Cincinnati Energy Alliance partner to promote PACE financing
 

This week, the Port of Greater Cincinnati Development Authority approved a partnership with the Greater Cincinnati Energy Alliance that has the potential to "unleash more than $100 million in energy-related real estate investments in Hamilton County over the next five years," WCPO.com reports. The new partnership, which already has "a pipeline of 20 projects involving 570,000 square feet of commercial real estate where $50 million in energy upgrades are being reviewed for potential financing," will be "the region's main vehicle" for Property Assessed Clean Energy (PACE) financing. PACE bonds are a financial tool used by property owners to fund energy efficiency improvements on their properties.

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. 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.  Please contact Bricker & Eckler attorney J. Caleb Bell at (614) 227-2300 or jbell@bricker.com with questions.

For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Oct 14, 2013

Budget bill removes PILOTs from the school funding formula
 

H.B. 59, the biennial budget bill that Gov. John Kasich signed into law on June 30, 2013, contained a little-noticed provision that may have a big impact on economic development in Ohio. Under a prior version of R.C. 3317.021, the state school funding formula considered the value of PILOTs (Payment in Lieu of Taxes) in determining the financial resources available within a school district. PILOTs are a common feature of tax increment financing (TIF) districts, whereby cities or townships that create TIFs offer school districts direct payments to replace taxes they might have received without the TIF. The budget bill, however, eliminated this consideration from the state school funding formula, effectively increasing the value of PILOTs to school districts with TIFs. For more, read the full text of H.B. 59.


 
Posted by R. McCarthy in  Financial Incentives  State Updates   |   Permalink

 

Oct 10, 2013

Mahoning County approves a TIF for the Hollywood Gaming Racino
 

Mahoning County Commissioners recently approved a tax increment financing (TIF) district for Penn National Gaming and its Hollywood Gaming at Mahoning Valley Racecourse, which is currently under construction in Austintown, WKBN.com reports. The agreement will direct "50 percent of the racino's property taxes [to] infrastructure improvements along the Meridian Road corridor." About $6.5 million is expected to be generated from the TIF. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Oct 09, 2013

Details emerge about a proposed 50-year economic development agreement with Canton, Plain Township and Jackson Township
 

The City of Canton, Plain Township and Jackson Township are negotiating plans for a proposed 50-year joint economic development agreement, the CantonRep.com reports. The agreement would include an annexation restriction for both Canton and North Canton. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Oct 08, 2013

Ohio Rep. Tony Burkley gave sponsor testimony on legislation to include police and fire levies among those exempted from being used for TIF payments
 

In June, Ohio Reps. Jim Butler (R-Oakwood) and Tony Burkley (R-Payne) introduced legislation that would require reimbursement of police and fire levy revenue foregone because of the creation of a tax increment financing (TIF) incentive district. During sponsor testimony presented to members of the Ohio House Ways and Means Committee last week, Burkley said that H.B. 217 would change the current law to include police and fire levies among the certain types of levy money that are exempted from being used for TIFs. Under the law, exempted levies currently include those for "community mental health, senior citizen facilities, county hospitals, alcohol and drug addiction services, libraries, children's services, zoos and park districts." He said that TIF districts lead to new development projects such as buildings and roads, which create a "bigger workload" for fire and police. For more, read the full text of H.B. 217, as well this press release from Burkley.


 
Posted by R. McCarthy in  Financial Incentives  Legal Developments   |   Permalink

 

Oct 08, 2013

Ohio Tax Credit Authority approves 12 projects
 

Last week, the Kasich administration announced that the Ohio Tax Credit Authority (TCA) had approved tax credit awards for 12 projects set to create 1,265 jobs and retain 687 job statewide. These projects are expected to generate more than $66.4 million in new payroll and $187.6 million in investments statewide, WOUB.org reports. The approved projects are:

Clinical Outcomes Management Systems, LLC dba COMS Interactive, will receive a 45 percent, six-year Job Creation Tax Credit for an expansion project at a location (to be determined) that is expected to create 119 full-time positions, generate $8.7 million in additional payroll and retain $1.8 in existing payroll.

Rapid Prototype and Manufacturing LLC will receive a 50 percent, seven-year Job Creation Tax Credit for an expansion project at a location (to be determined) that is expected to create 130 full-time positions, generate $9.5 million in additional payroll and retain $380,000 in existing payroll.

Central Ohio:

American Howa Kentucky, Inc. dba AHK, Ohio will receive a 50 percent, eight-year Job Creation Tax Credit for an expansion project in Delaware, Delaware County, that is expected to create 60 full-time positions, generate $1.8 million in additional payroll and retain $2.4 million in existing payroll.

Northeast Ohio:

Hendrickson USA, LLC dba Hendrickson Trailer Commercial Vehicle Systems, will receive a 40 percent, six-year Job Creation Tax Credit for an expansion project in Canton, Stark County, that is expected to create 40 full-time positions, generate $2.1 million in additional payroll and retain $14.2 million in existing payroll.

OMNOVA Solutions Inc. will receive a 50 percent, five-year Job Creation Tax Credit for an expansion project in Beachwood, Cuyahoga County, that is expected to create 70 full-time positions, generate $4.7 million in additional payroll and retain $18.5 million in existing payroll.

Northwest Ohio:

Edgerton Forge Inc. will receive a 35 percent, seven-year Job Creation Tax Credit for an expansion project in the Village of Edgerton, Williams County, that is expected to create 25 full-time positions, generate $1 million in additional payroll and retain $2 million in existing payroll.

Southwest Ohio:

CE Power Solutions, LLC will receive a 40 percent, six-year Job Creation Tax Credit for an expansion project in Cincinnati, Hamilton County, that is expected to create 24 full-time positions, generate $1.8 million in additional payroll and retain $3.8 million in existing payroll.

iMFLUX Inc. will receive a 60 percent, eight-year Job Creation Tax Credit for a new location in Butler County that is expected to create 221 full-time positions and generate $17.5 million in additional payroll.

MINTH North America Inc. will receive a 70 percent, 12-year Job Creation Tax Credit for a new location in Lebanon, Butler County, that is expected to create 418 full-time positions and generate $12.6 million in additional payroll.

Systecon Inc. will receive a 35 percent, five-year Job Creation Tax Credit for an expansion project in West Chester Twp., Butler County, that is expected to create 18 full-time positions, generate $810,000 in additional payroll and retain $4.3 million in existing payroll.

Western Ohio:


PolyOne Corporation will receive a 50 percent, seven-year Job Creation Tax Credit for an expansion project in Greenville, Drake County, that is expected to create 130 full-time positions, generate $5 million in additional payroll and retain $5 million in existing payroll.

Riverside Computing, Inc. dba Agil IT and Elevation Healthcare will receive a 35 percent, six-year Job Creation Tax Credit for a new location in Butler Twp., Montgomery County, that is expected to create 20 full-time positions, generate $940,000 in additional payroll and retain $2.1 million in existing payroll.

For more, read this full WOUB.org story.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  Regional Updates  State Updates   |   Permalink

 

Oct 08, 2013

City of Franklin terminates four TIF districts due to a Warren County Auditor's Office error that resulted in a $512,403 overpayment
 

The City of Franklin, in Warren County, has agreed to a settlement with several other local governments after determining that it overcollected TIF payments totaling more than $500,000, the Dayton Daily News reports. The settlement follows the discovery that the Warren County Auditor's Office had used "the wrong base year to calculate payments in four tax increment financing districts for tax years 2007 through 2012," resulting in the error. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Oct 07, 2013

Munroe Falls Community Investment Corp. is providing gap financing loans to start-up and existing businesses
 

Originally formed in 2009, the Munroe Falls Community Investment Corp. (CIC) began receiving funding from the Munroe Falls City Council in late July of this year, The Stow Sentry reports. The delay occurred because of the depressed real estate market. The nonprofit entity now is "seeking proposals from start-up and existing businesses interested in a gap financing loan program." The program basis is "designed to offer loans to businesses in cooperation with a bank," and only fills in funding gaps – it will not completely finance any project. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Oct 07, 2013

Lawmaker presses the DSA to explain why it rescinded its plan to award $108,000 in tax credits to Pure Romance
 

Last month, JobsOhio and Cincinnati officials initially agreed to award "relationship enhancement" company Pure Romance $108,000 in state tax credits for the company to "move 60 employees from Loveland to a new headquarters in Downtown Cincinnati and create 60 more jobs," Cincinnati Enquirer reports. Ohio Development Service Agency (DSA) officials, however, said the state ultimately "decided not to grant the tax credits because the company's bedroom-related products don't fall under the state's nine target industries." Chris Redfern (D-Catawba Island), who sits on the board that approves the DSA's loans and grants, said that the reasoning was flawed because "headquarters are also a stated priority for the state, no matter what the industry.” For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  Regional Updates   |   Permalink

 

Oct 03, 2013

Cincinnati awards $140,000 in tax credits to retain Vega Americas Inc. headquarters
 

The Cincinnati City Council's Budget and Finance Committee recently gave unanimous approval for approximately $140,000 in tax credits over seven years for Vega Americas Inc. to "keep its headquarters in Cincinnati for 10 years, retain its 192 employees and create 40 new jobs," Cincinnati Business Courier reports. The company manufactures "level, density, weight and pressure measurement equipment for industry." For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Oct 01, 2013

Ohio Development Services Agency (DSA) begins accepting applications for the second round of its Incumbent Workforce Training Voucher Program
 

On September 30, the Ohio Development Services Agency (DSA) began accepting applications for round two of the Ohio Incumbent Workforce Training Voucher Program, which provides grant assistance for employers conducting employee training programs (See our September 5, 2013, blog post for more information). The first round, which included $20 million in awards released in January 2013, disappeared in less than 24 hours. Ohio's recently passed budget bill provides up to $30 million for such awards in fiscal year 2014 – $27 million for first-come, first-served grants and $3 million for loans. These awards reimburse employers or employees for up to $4,000 per employee of workforce development efforts.

For more information about the Ohio Incumbent Workforce Training Voucher Program, visit http://development.ohio.gov/bs/bs_wtvp.htm or call Bricker & Eckler attorney Chris Schmenk at 614.227.2323.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA   |   Permalink

 

Sep 25, 2013

Toledo-Lucas County Port Authority applies for $60 million in federal New Market Tax Credits
 

The Toledo-Lucas County Port Authority is applying for $60 million in New Market Tax Credits through the U.S. Department of Treasury's Community Development Financial Institution fund, Toledo News Now reports. The port authority has used $15 million in previously awarded tax credits to redevelop the former Chevron site. It hopes to use additional funding to redevelop the Overland Industrial Park and boost community service programs. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Sep 17, 2013

Medina County and Granger Township work on Community Reinvestment Area proposal to attract unnamed company's planned headquarters
 

The Medina County Economic Development Corp. and the Granger Township trustees are working to create a Community Reinvestment Area (CRA) proposal that would "grant 50 percent tax abatement for up to 15 years" to an unnamed large corporation that has expressed interest in building a headquarters near state Route 18, The Medina-Gazette reports. Supporters of the measure note it will relieve the tax burden on the township's homeowners, but opponents are concerned about granting a property tax rebate to a commercial property after the state eliminated "the 12.5 percent rollback provided to homeowners for all new levies," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Sep 13, 2013

Tiffin City Council is considering a 50 percent income tax credit to help businesses create jobs and increase payroll
 

Last week, legislation regarding a new income tax incentive program moved out of committee to the Tiffin City Council, The Advertiser-Tribune reports. Under the proposal, businesses would "receive 50 percent of their city income tax back as a credit against the business's Tiffin profit tax or an individual's income tax." In exchange, the business would be required to "create at least 10 new full-time or full-time equivalent jobs" that pay, on average, "at least 150 percent of minimum wage." Any business receiving the credit would also be required to "increase its payroll by at least $660,000." Business would be able to apply for a maximum of five years, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Sep 05, 2013

Ohio Development Services Agency announces second round of Incumbent Worker Training Vouchers
 

The Ohio Development Services Agency (DSA) has announced it is making available the second round of Incumbent Worker Training Vouchers. These awards reimburse employers or employees for up to $4,000 per employee of workforce development efforts. The first round, which included $20 million in awards released in January 2013, disappeared in less than 24 hours. Ohio’s recently passed budget bill provides up to $30 million for such awards in the current fiscal year. $27 million will be awarded on a first-come, first-served basis, while the remaining $3 million will be used for loans. Grant program applications will be accepted for review on Sept. 30. Stay tuned to DevelopOhio for more updates about this exciting new opportunity for Ohio businesses.

For more information about the Ohio Incumbent Workforce Training Voucher Program, visit http://development.ohio.gov/bs/bs_wtvp.htm or call Bricker & Eckler attorney Chris Schmenk at 614.227.2323.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Sep 02, 2013

Ohio awards $175,000 to the Edison Incubator Program at Lorain County Community College to develop sensor technology
 

The State of Ohio recently granted $175,000 to the Edison Incubator Program in the Great Lakes Innovation and Development Enterprise (GLIDE) at Lorain County Community College, The Morning Journal reports. GLIDE is a startup business incubator that "provides support for existing technology companies while encouraging the creation and growth of early-stage technology companies" in northeastern Ohio. The grant will be used to pay for a new Center for Advanced Systems Applications, where "university and industry partners will access state-of-the-market equipment and marketing to develop sensor technology," the article said. For more, read the full story.


 
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Aug 31, 2013

Ohio State University approves a $100 million investment pool for regional economic development projects
 

Last week, the Ohio State University board of trustees approved a policy revision that enables the university to "invest up to $100 million in operating funds from the school's $3.1 billion long-term pool" in Ohio and Midwestern economic development projects, The Columbus Dispatch reports. The university president, provost and senior vice president for business and finance – "in consultation with the board's finance-committee chairman" – will be in charge of awarding the funds. For more, read the full story.


 
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Aug 30, 2013

Ohio Tax Credit Authority approves nine projects
 

Last week, Gov. John Kasich announced that the Ohio Tax Credit Authority (TCA) had approved nine projects set to create more than 591 jobs and retain 943 jobs statewide, and to generate more than $29 million in new payroll and $40 million in investments across the state. The approved projects are:

Northeast Ohio:

Myers Industries, Inc. will receive a 40 percent, seven-year Job Creation Tax Credit for an expansion project in the Village of Middlefield in Geauga County that is expected to create 65 full-time positions, generate $2 million in additional annual payroll and retain $11 million in existing payroll.

The Royal Appliance Manufacturing Company will receive a 60 percent, seven-year Job Creation Tax Credit for an expansion project in the Village of Glenwillow, Cuyahoga County, that is expected to create 212 full-time positions, generate $12.4 million in additional payroll and retain $20 million in existing payroll.

Southwest Ohio:

The Benjamin Steel Company, Inc. will receive a 40 percent, six-year Job Creation Tax Credit for a new location project in Cincinnati, Hamilton County, that is expected to create 40 full-time positions and generate $1.5 million in additional annual payroll.

Contingent Network Services LLC will receive a 45 percent, six-year Job Creation Tax Credit for an expansion project in West Chester Twp., Butler County, that is expected to create 75 full-time positions, generate $3.4 million in additional annual payroll and retain $7.8 million in existing payroll.

Healthcare Regional Marketing LLC will receive a 50 percent, five-year Job Creation Tax Credit for an expansion project in Union Township, Clermont County, that is expected to create 30 full-time positions, generate $1.3 million in additional payroll and retain $1.6 million in existing payroll.

Pioneer Cladding and Glazing Systems, LLC will receive a 40 percent, five-year Job Creation Tax Credit for a relocation project in Mason, Warren County, that is expected to create 50 full-time positions, generate $3.3 million in additional annual payroll and retain $3.7 million in existing payroll.

Western Ohio:

The Casad Company, Inc. will receive a 40 percent, six-year Job Creation Tax Credit for an expansion project in Celina, Mercer County, that is expected to create 59 full-time positions, generate $1.4 million in additional annual payroll and retain $1.5 million in existing payroll.

The Independent Can Company will receive a 45 percent, seven-year Job Creation Tax Credit for a new location project in Vandalia, Montgomery County, that is expected to create 30 full-time positions and generate $1.4 million in additional annual payroll.

Intelligent Decisions, Inc. will receive a 45 percent, five-year Job Creation Tax Credit for a new location project in Dayton, Montgomery County, that is expected to create 30 full-time positions and generate $2.4 million in additional annual payroll.

For more, read the full press release.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates  State Updates   |   Permalink

 

Aug 26, 2013

Economic incentives in the news last week
 

Following the state's approval of a 45 percent, six-year tax credit, the Hamilton city council approved its own tax incentive for ThyssenKrupp Bilstein of American Inc.'s $11.2 million expansion in Hamilton recently, the Middletown Journal reports (See our Aug 07, 2013, blog post for more information). The city council approved "a credit on income taxes of 60 percent for nine years, an estimated annual value of $39,944." The state's incentive requires the creation of 100 jobs, while the city's requires "reasonable effort to be made to hire Hamilton residents," the article said.

Pepperidge Farm is planning a $93 million expansion of its Willard plant to make more Goldfish crackers, The Plain Dealer reports. The expansion project, which is expected to create about 50 jobs, received "job-creation and workforce training assistance from JobsOhio," as well a tax abatement from Willard and Huron counties, and bond financing from the Development Finance Authority of Summit County.

The Parma City Council recently approved a tax increment financing (TIF) agreement between the city, Parma City School District and Phillips Edison & Co. to help finance renovations of The Shoppes at Parma, The Plain Dealer reports. Under the terms of the TIF agreement, Parma city schools would lose $355,000 annually in property taxes. In exchange, Phillips Edison, which owns the mall, "would give the schools an upfront payment of $2.35 million to help offset the loss in property-tax revenue."


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates  State Updates   |   Permalink

 

Aug 25, 2013

Bipartisan legislation introduced to add $100 million to DSA's technology investment program
 

Ohio Sens. Eric Kearney (D-Cincinnati) and Bill Seitz (R-Cincinnati) are cosponsoring S.B. 120 – legislation that would increase the total amount of tax credits awarded under the Technology Investment Tax Credit (TITC) Program from $45 million to $145 million, according to The Daily Reporter. The TITC Program is "designed to offer a variety of benefits to Ohio taxpayers who invest in small, research and development, and technology-oriented firms." The Ohio Development Services Agency, which administers the program, stopped accepting new TITC applications in November 2012 after the program reached its cap of $45 million. DSA officials said a "strong increase in the number of investor applications" was responsible for the program hitting its cap, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  Legal Developments  State Updates   |   Permalink

 

Aug 24, 2013

New York Times post assesses the impact of business incubators
 

A recent post on The New York Times' small business blog reviewed assessments of business incubators and accelerators and their impact on economic development. One academic study mentioned in the article examined 20,000 businesses that had been incubated at some point during the last 20 years and found that those companies had a lower success rate than comparable companies that hadn't been incubated. Another report cited by the article showed that business incubators and accelerators are more successful at launching nonprofits than businesses. Supporters of incubators, however, explain that the metrics for success are not agreed upon, that startups can be bought and sold several times (which can muddy the company's ties to the incubator), and that goals like creating "jobs and fostering the entrepreneurial climate in the community" are achieved through nonprofit development as well as through business growth. For more, read the full blog post.


 
Posted by R. McCarthy in  Federal Updates  Financial Incentives  Regional Updates  State Updates   |   Permalink

 

Aug 14, 2013

Procter & Gamble may locate massive new distribution center in Dayton
 

As part of its expanding distribution network through the country, Cincinnati-based consumer goods company Procter & Gamble appears to be planning to locate a new two million-square-foot distribution facility in the Dayton area that "could cost upwards of $100 million and employ at least 1,000 people," Dayton Business Journal reports. "[S]everal rounds of public incentives" may be needed before any deal is finalized, but "all signs indicate" that a recent agreement to build an access road into an industrial park in the City of Union is "prep work for P&G's project," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Jul 26, 2013

Buckeye Hills Resource Conservation & Development Council makes low-interest business loans available to help spur regional job creation and retention
 

The Buckeye Hills Resource Conservation & Development (RC&D) Council announced this week that low-interest loans are available to existing and startup businesses in the nine-county Buckeye Hills region encompassing the following counties: Athens, Belmont, Hocking, Meigs, Monroe, Morgan, Noble, Perry and Washington, Pomeroy Daily Sentinel reports. Funding is available for projects that tie directly to "job retention, job creation or expanded job duties for existing employees." A project can get up to $15,000 per employee, with a maximum loan amount of $50,000. Qualified borrowers can receive "a five-year, fixed loan interest rate of four percent," the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Jul 18, 2013

Ohio Third Frontier Commission considers awarding significantly larger grants in light of unused funds
 

Halfway through 2013, the Ohio Third Frontier Commission has only awarded 14 percent of its 2013 budget – or $33 million – as grants to technology companies and projects, Crain's Cleveland Business reports. The remaining $203 million figure includes $61 million that was left over from last year, when investments slowed during the transformation of the Ohio Department of Development (ODOD) into the Development Services Agency (DSA). The length of time needed to solicit and evaluate proposals has also contributed to the delay, DSA says. Should projects that "could significantly expand Ohio's ability to create jobs in a particular technology sector" materialize, the commission is considering expanding its $50 million Technology Commercialization Centers program to grant awards as large as $10 and $25 million at a time, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  State Updates   |   Permalink

 

Jul 11, 2013

7signal startup receives $250,000 from JumpStart Inc.
 

7signal, an Akron tech startup that "specializes in wireless technology for the health care industry and higher education," recently received $250,000 from the Cleveland-based, nonprofit economic development group JumpStart Inc., Akron Beacon Journal reports. The startup moved to the United States two years ago and set up shop at the Akron Global Business Accelerator. It has received $1.1 million in investment so far this year, and last year it attracted $2 million in investments, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Jul 06, 2013

Fairborn Development Corporation receives $170,000 from city council to buy and revitalize blighted properties
 

A new organization that plans to foster economic development in Fairborn by purchasing, revitalizing and then selling blighted properties along Broad Street recently received $170,000 in initial funding from the Fairborn City Council, Dayton Daily News reports. The Fairborn Development Corporation (FDC) plans to use the funds to purchase, improve and sell a blighted property and then to apply any profit it generates to improve additional properties. For more, read the full story (subscription required).


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

Jul 04, 2013

Ohio Third Frontier creates three new programs to bolster the state's tech-based economy
 

Last week, Ohio Third Frontier announced the creation of three programs to create jobs and strengthen Ohio's tech-based economy. The Technology Commercialization Center will offer up to $25 million to help commercialize technology that is developed from research from universities, medical centers and nonprofit institutions. Additionally, the Commercial Acceleration Loan Fund will provide loans ranging from $500,000 to $2.5 million to assist companies having difficulty securing funding due to "risks associated with developing technologies." Finally, the Technology Asset Grant will offer $5 million for up to three years to support infrastructure projects such as facilities or equipment that at least "two Ohio companies or a federal procurement agency [support as] critical to commercialize technology." For more, read the full press release.


 
Posted by R. McCarthy in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Jun 24, 2013

Ohio House approves tax credit for the rehabilitation of vacant industrial sites
 

On Wednesday, June 19, the Ohio House of Representatives passed H.B. 135, which would create a nonrefundable credit against the income tax and certain business taxes for the rehabilitation of certain vacant industrial sites. According to The Hannah Report, proponents of the bill said the credit would spur manufacturing and redevelopment in Ohio, particularly in areas that suffered plant closings. For more, read the full text of the bill.


 
Posted by R. McCarthy in  Financial Incentives  State Updates   |   Permalink

 

Jun 05, 2013

Ohio House hears testimony supporting the brownfield redevelopment tax credit
 

The Ohio House of Representatives recently heard testimony in support of H.B. 135, which would authorize nonrefundable credits against the income tax and certain business taxes for the rehabilitation of vacant industrial sites (see our April 22, 2013, blog post for more information). Witnesses explained that redeveloping a brownfield site inherently involves "chronic risks and volatile costs" that make it difficult to acquire bank loans during the critical early stages of development, according to the Gongwer Ohio Report. For more, read the full text of H.B. 135.


 
Posted by R. McCarthy in  Financial Incentives  State Updates   |   Permalink

 

Jun 03, 2013

Hamilton provides $150,000 recoverable grant to create 10 full-time jobs at Vora Technology Park
 

The City of Hamilton is using $150,000 in Community Development Block Grant funds to provide various economic development incentives to support the creation of 10 full-time jobs at Vora Technology Park, Hamilton Journal News reports. Under the terms of the grant agreement, Vora has "12 months to create and maintain" the jobs, six of which must be filled by or made available to "employees from low- and moderate-income households with below 80 percent of median income." Should the company fail to perform as required by the agreement, it must return to the city a sum equal to $15,000 for each job it fails to create and maintain, the article said. For more, read the full story.


 
Posted by R. McCarthy in  Financial Incentives   |   Permalink

 

May 22, 2013

Ohio Senate passes a two-year extension of the Enterprise Zone program
 

Last week, the Ohio Senate passed S.B. 112, which will provide a two-year extension to the Enterprise Zone program.  According to the Gongwer Ohio Report, the program is intended to encourage business development in distressed communities. Proponents of the program described it as a "valuable economic tool" that is sometimes the best way for many communities to attract new business, while opponents remarked that the program failed to meet its initial goal and was instead encouraging development in "more affluent suburban areas," the article said. For more, read the full text of S.B. 112.


 
Posted by R. McCarthy in  Financial Incentives  State Updates   |   Permalink

 

May 17, 2013

New program will make $1 million in low-interest loans available for home energy efficiency upgrades
 

The Greater Cincinnati Energy Alliance, a nonprofit economic development agency, announced last week that homeowners working to make energy efficiency upgrades as part of its Home Performance with Energy Star Program will now have financing available for their projects through the agency's new Greater Cincinnati Home Energy Loan Program, Cincinnati Enquirer reports. The agency is putting $1 million into the program's fund, which will be used to provide low-interest loans that will enable homeowners to finance their home energy efficiency projects. The projects must, at a minimum, cause "a 15 percent reduction in their home's energy usage," the agency said on its website. For more, read the full Cincinnati Enquirer story and the full Greater Cincinnati Energy Alliance story.


 
Posted by R. McCarthy in  Financial Incentives  Regional Updates   |   Permalink

 

May 03, 2013

Study: Clean Ohio Revitalization Fund's returns on investments prove strong
 

"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.


 
Posted by R. McCarthy in  Financial Incentives  State Updates   |   Permalink

 

Apr 29, 2013

Five Ohio groups receive $145 million from the New Markets Tax Credits program
 

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.


 
Posted by R. McCarthy in  Federal Updates  Financial Incentives  Regional Updates  State Updates   |   Permalink

 

Apr 12, 2013

Major companies use the PACE program to fund renewable energy and energy efficiency projects
 

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.


 
Posted by R. McCarthy in  Financial Incentives   |   Permalink

 

Apr 09, 2013

Defaulting Small Business Administration loans have cost taxpayers $1.3 billion since 2000
 

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.


 
Posted by R. McCarthy in  Federal Updates  Financial Incentives  Regional Updates   |   Permalink

 

Mar 14, 2013

Ohio Development Services Agency partners with APEG to offer assistance to manufacturers in southeastern Ohio
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  Regional Updates   |   Permalink

 

Mar 13, 2013

Clean Ohio streamlines approval process for brownfield project
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Mar 12, 2013

Senators introduce infrastructure bank legislation to fund transportation projects
 

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.


 
Posted by Q. Harris in  Federal Updates  Financial Incentives   |   Permalink

 

Mar 11, 2013

Ohio Historic Preservation Tax Credit program now accepting applications for Round 10
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Mar 07, 2013

Site Selection magazine ranks Ohio second in 2012 Governor's Cup race; ranks 21 Ohio cities for new and expansion projects
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  Regional Updates  State Updates   |   Permalink

 

Mar 06, 2013

JobsOhio created and retained fewer jobs in 2012 than in 2011
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Mar 05, 2013

JobsOhio releases 2012 Annual Report and 2013 Strategic Plan
 

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.


 
Posted by Q. Harris in  Financial Incentives  Legal Developments   |   Permalink

 

Mar 01, 2013

JobsOhio’s economic development strategy looks beyond financial incentives
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Feb 20, 2013

Deadline to apply for SBA working capital loans is March 1
 

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.


 
Posted by Q. Harris in  Federal Updates  Financial Incentives   |   Permalink

 

Feb 14, 2013

The PACE program: a new approach to financing commercial energy efficiency and renewable energy upgrades
 

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.


 
Posted by C. Bell in  Federal Updates  Financial Incentives  Regional Updates  State Updates   |   Permalink

 

Feb 13, 2013

New report calls the practice of using tax incentives to retain and attract businesses “interstate job piracy”
 

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.


 
Posted by Q. Harris in  Financial Incentives  Professional Associations  State Updates   |   Permalink

 

Feb 13, 2013

Last Cuyahoga County community signs anti-poaching agreement
 

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.


 
Posted by Q. Harris in  Financial Incentives  Regional Updates   |   Permalink

 

Feb 04, 2013

Transaction complete: Ohio’s wholesale liquor franchise transferred to JobsOhio
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  Legal Developments  State Updates   |   Permalink

 

Jan 29, 2013

Gov. Kasich will not readily use tax incentives to retain and attract businesses
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Jan 29, 2013

January 2013 Ohio Tax Credit Authority and Ohio Controlling Board overview
 

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.

 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  Regional Updates  State Updates   |   Permalink

 

Jan 23, 2013

State Sen. Beagle to chair newly created Committee on Workforce & Economic Development
 

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.


 
Posted by Q. Harris in  Financial Incentives  State Updates   |   Permalink

 

Jan 23, 2013

22 higher education institutions to receive $11 million in funding for co-op/internship programs
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  State Updates   |   Permalink

 

Jan 17, 2013

Extension of wind energy tax credit brings relief to wind energy employees and project developers in Ohio
 

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.


 
Posted by Q. Harris in  Federal Updates  Financial Incentives   |   Permalink

 

Jan 15, 2013

SBA rule amends eligibility for small business research funds to include contractors with outside investors
 

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.


 
Posted by Q. Harris in  Federal Updates  Financial Incentives   |   Permalink

 

Jan 14, 2013

All communities in Cuyahoga County sign anti-poaching pledge … except one
 

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.


 
Posted by Q. Harris in  Financial Incentives  Regional Updates   |   Permalink

 

Jan 11, 2013

Ohio Incumbent Workforce Training Voucher Program receives $21.4 million in funding requests
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA   |   Permalink

 

Jan 10, 2013

JobsOhio receives high ratings on bonds to be used to lease Ohio’s liquor business
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  Legal Developments   |   Permalink

 

Jan 08, 2013

The Heath-Newark-Licking County Port Authority regains its status as a SBA HUBZone
 

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.


 
Posted by Q. Harris in  Federal Updates  Financial Incentives  Legal Developments  Regional Updates   |   Permalink

 

Jan 07, 2013

Tech Belt Energy Innovation Center joins the JumpStart Entrepreneurial Network
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  Regional Updates   |   Permalink

 

Jan 07, 2013

New $6 million venture fund aims to help launch a dozen startups in three years
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  Regional Updates   |   Permalink

 

Dec 26, 2012

$35.9 million in Ohio Historic Tax Credits awarded to 23 recipients in round nine
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  Regional Updates  State Updates   |   Permalink

 

Dec 21, 2012

Keeping up the PACE: Bricker & Eckler serves as bond counsel for Ohio’s third PACE bond transaction
 

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.


 
Posted by C. Bell in  Financial Incentives   |   Permalink

 

Dec 19, 2012

Ohio Attorney General Mike DeWine releases the 2012 Economic Development Accountability Report
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  Legal Developments   |   Permalink

 

Dec 18, 2012

Ohio Third Frontier recommends funding for three economic development programs
 

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.


 
Posted by Q. Harris in  Financial Incentives  JobsOhio/ODSA  Regional Updates   |   Permalink

 

Dec 17, 2012

Ohio Senate passes bill to raise the annual limit on the Ohio New Markets Tax Credit Program from $10 million to $50 million
 

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.


 
Posted by Q. Harris in  Financial Incentives  Legal Developments  State Updates   |   Permalink

 

Dec 14, 2012

AEP Ohio selects Lime Energy Co. for its Small Business Direct Install Program contract
 

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.


 
Posted by Q. Harris in  Financial Incentives  Regional Updates   |   Permalink

 

Dec 14, 2012

Ohio Development Services Agency and Ohio University launch new solar supply chain database to promote Ohio manufacturing
 

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.

 


 
Posted by Q. Harris in  Financial Incentives  State Updates   |   Permalink

 

Dec 12, 2012

December 2012 Ohio Tax Credit Authority overview
 

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.


 
Posted by Q. Harris in  Financial Incentives  Regional Updates  State Updates   |   Permalink

 

Nov 27, 2012