Columbus-Franklin County Finance Authority

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1 Jean Carter Ryan, President 350 E. First Avenue ~ Suite 120 Columbus, Ohio Telephone JRyan@columbusfinance.org Columbus-Franklin County Finance Authority The Columbus-Franklin County Finance Authority was created by the City of Columbus and Franklin County as a port authority under Ohio law (Ohio Revised Code Section 4582). The Finance Authority is a government entity designed to provide financing to facilitate economic activity and capital investments by private, non-profit and public sectors in Central Ohio. Ohio law allows port authorities to construct facilities, issue bonds, make loans, and sell or buy real and personal property. The Finance Authority is an eligible issuer of tax-exempt and taxable debt. The Finance Authority can structure, package and coordinate the financing transaction with multiple lenders including commercial banks, state financing and other public sector financing. The Finance Authority can own property; hold title under a capital lease; and own infrastructure that is essential to a project, such as parking structures. The Finance Authority has issued $485 million in financing since inception, closing on 30 projects that will invest more than $634 million and create over 1,955 jobs in Central Ohio Project Financing OCLC The Finance Authority issued $24 million in bond financing to the Online Computer Library Center to lease equipment from PNC Equipment Leasing and make building improvements to house the equipment. This is the third financing the Finance Authority has undertaken with OCLC with the other two projects totaling $50 million in bond financing. Ohio Capital Fund The Finance Authority issued $83 million in bonds for the Ohio Capital Fund for the purpose of refunding existing bonds and to issue new money. The Finance Authority also issued $157.9 million in bonds in May of 2010 for the Ohio Capital Fund. This Ohio Capital Fund is a fund of funds overseen by the State s Venture Capital Authority. The taxable research and development revenue bonds will be used to refinance existing debt 1

2 and raise additional funds to support venture capital investments in Ohio. The Ohio Capital Fund invests in private-capital venture funds to raise money for local technology firms. Gramercy (Easton) Parking Garage The Finance Authority took title to the Gramercy Parking Garage allowing a tax savings to the developer. ETC Garage, LLC built a $22 million, 1,060-vehicle parking garage along with a subterranean regional storm water detention facility located next to Macy s at Easton Project Financing Hubbard Parking Garage The Finance Authority issued $9,830,000 in bonds to finance a 250-space parking garage in the Short North. The project also features a 72-room apartment building and 17,000 square feet of retail with a total investment of $22.6 million. E.W. High Street, LLC (Wagenbrenner Development and Elford Construction) is the developer. The Finance Authority will also own the garage. MSC Industrial Direct MSC Industrial Direct plans to construct a 400,000 square foot distribution center on 70 acres of land near Bolton Field in Columbus. The Finance Authority issued $27.5 million in taxable bonds for the real estate investment and take title to the building. The lease financing supports the $55.5 million distribution center and the Finance Authority will take title to the building. MSC Industrial Direct will create 300 jobs. Cornerstone Academy Cornerstone is a 501(c)(3) charter school based in Westerville, Ohio, serving grades K-8. Cornerstone will acquire land, purchase and renovate its existing building, expand the building as well as refinance existing debt, at a cost of $10,455,000. The Finance Authority issued $10,140,000 in tax-exempt and taxable bonds for the 501(c)(3) borrower, take title to the facilities and lease back to the school. Cornerstone employs 50 people in Westerville with an enrollment of 480 students at its Westerville campus. The project allows the school s enrollment to grow to 750 students with an addition of 22 fulltime jobs and 15 part-time jobs. Lane Avenue The Finance Authority is providing lease financing for the $23.4 million mixed use development project on Lane Avenue. The Finance Authority issued up to $19 million in taxable revenue bonds and took title to the mixed use component of the project. The project consists of approximately 108 apartment units, 13,000 square feet of office space, 13,000 square feet of retail, a 109-room Homewood Suites Hotel, surface and structured parking. The total investment is $37.9 million. One Neighborhood Phase 2 - The Finance Authority issued a $2.090 million revenue bond through its Central Ohio Bond Fund program for public infrastructure associated with the One Neighborhood Phase Two project of the Edwards Companies. This is the Finance Authority s second issuance for the One Neighborhood project Project Financing Klingbeil Capital Management The Finance Authority was awarded a $2.3 million Clean Ohio Revitalization Grant on behalf of Klingbeil Capital Management to clean up a site on 2

3 Kinnear Road just west of Lennox Town Center. Once the site is cleaned up, it will be redeveloped into 190 Class A, LEED-certified apartments at an investment of $15 million. STAR Dynamics Corporation - The Ohio Department of Development (ODOD) and the Finance Authority entered into a purchase/leaseback incentive package for STAR Dynamics Corporation. The ODOD provided a $3 million Research and Development Loan to the Finance Authority for the purchase of a revolutionary technology XSTAR radar system developed by STAR Dynamics. The Finance Authority is leasing the radar equipment back to STAR Dynamics over a seven-year term, with STAR purchasing the equipment at the end of the lease term for $1. The company will create 20 new full-time jobs within three years and retain 81 jobs. Kern, Inc. - The Finance Authority partnered with the Ohio Department of Development (ODOD) with a purchase/lease-back incentive package that provides Kern, Inc. of Grove City with a $2 million Innovation Ohio Fund Loan. The ODOD provided a $2 million loan to the Finance Authority for the purchase of intellectual property in the form of a patent. The Finance Authority, in turn, leases the intellectual property that is valued at $4 million back to Kern. At the end of the 6-year lease, Kern will purchase the intellectual property for $1. Kern will create 55 new full-time jobs within three years and retain Project Financing Edwards Companies/One Neighborhood The Edwards Companies secured infrastructure financing for the first phase of its One Neighborhood downtown residential development through the Finance Authority. The Finance Authority has issued $2.45 million in taxexempt bonds to support the project through the Central Ohio Bond Fund. The financing will be used to fund landscaping, utility work and other public infrastructure improvements. The infrastructure financing is essential for the project s continued development which will be comprised of 300 residential units on nine-city blocks at build out. The project is bounded by Fourth and Gay and extends east to the Columbus College of Art and Design. entrotech entrotech benefitted from a $2 million sale-leaseback financing structure with the Ohio Department of Development and the Columbus-Franklin County Finance Authority. The state tapped its Research and Development Loan program to encourage entrotech, a growing Columbus technology company, to accelerate the development of a new paint replacement film that will replace traditional paint application methods. The film will be a solvent-free adhesive, thus significantly lowering the environmental impacts of industrial painting and coating. entrotech will create 35 jobs and retain 18 as a result of the project. Pizzuti The Finance Authority closed on $6.7 million in financing with the State of Ohio and Pizzuti to finance $10.9 million in public infrastructure improvements at Rickenbacker. The improvements in the City of Columbus surround a one million square foot warehouse developed by Pizzuti and occupied by Whirlpool. Whirlpool created 200 jobs and retained 70 jobs as a result of the project. Wasserstrom The Finance Authority issued $2.5 million in Recovery Zone Facility Bonds on 3

4 behalf of Wasserstrom s consolidation project related to its restaurant equipment business. Wasserstrom will consolidate Columbus distribution facilities to a new site in Northeast Columbus. Receipt of the Recovery Zone Facility Bond was one factor in Wasserstrom s decision to move forward with its investment in Columbus. The company will retain 115 jobs as a result of the investment. BalletMet The Finance Authority issued $3.45 million in bonds to refinance existing debt at BalletMet s facility on Mount Vernon Avenue in the City of Columbus. BalletMet and the Finance Authority are financing the project in partnership with Huntington National Bank which purchased the bonds. Under the American Recovery and Reinvestment Act of 2009, the BalletMet refinancing is the second Finance Authority financing that is permitted under changes to the bank qualified bond rules from the Federal Stimulus package. These changes allow each 501(c)(3) institution to issue up to $30 million in tax-exempt financing annually for capital projects and benefit from lower interest rates as a result. Ohio Capital Fund The Finance Authority issued $159 million in bonds for the Ohio Capital Fund, a fund of funds overseen by the State s Venture Capital Authority. The taxable research and development revenue bonds will be used to refinance existing debt and raise additional funds to support venture capital investments in Ohio. The Ohio Capital Fund invests in private-capital venture funds to raise money for local technology firms. 3MX/Children s The Finance Authority issued $2.2 million in bond financing for the 3MX/Nationwide Children s Hospital project in the City of Columbus. The 3MX/Children s project was the first project in Central Ohio to take advantage of Recovery Zone Facility Bond financing available through the American Reinvestment and Recovery Act, allowing for the project to be financed more competitively. The funds will be used to make improvements to a 17,200 sq. ft. building on East Main Street to support Nationwide Children s Hospital behavioral health unit. The project will retain 50 jobs and create 5-7 new jobs in the renovated building Project Financings Cardinal Health Working with the Ohio Department of Development (ODOD) and the City of Dublin, the Finance Authority has developed an innovative financing structure to help Cardinal Health continue to grow in Central Ohio. The structure allows for Cardinal s South Campus to become a shovel-ready site for expansion. The ODOD provided a $4 million low interest loan to the Finance Authority which, in turn, used the funds to purchase the 28-acre South Campus site from Cardinal. The Finance Authority entered into a 10-year lease on the property with Cardinal. During the lease term, the City of Dublin and the State of Ohio will complete water, sewer and road improvements to the site. The financing was contingent upon Cardinal s $60 million investment at its West Campus Headquarters which will create 675 jobs. OCLC II Through new legislation, the Finance Authority issued $30 million in tax-exempt financing to facilitate the creation and retention of 29 jobs. Under the American Recovery and Reinvestment Act of 2009, OCLC financing is the first Finance Authority financing and 4

5 perhaps the first in Ohio that takes advantage of changes to the bank-qualified bond rules. OCLC plans to make improvements that include upgrading office systems, computers, servers, computer software and other information databases. The project was undertaken in partnership with National City Commercial Capital Corporation. Grandview Yard The Finance Authority issued up to $12 million in tax-exempt bonds to support the first phase of the multi-use development project in the City of Grandview Heights. The private investment associated with the first phase is over $36 million which will have 376 full-time jobs. The first phase investment includes a 90,000 sq. ft. office building, a 126-room Hyatt Place Hotel and a 42,000 sf Urban Active fitness center. The Grandview Yard infrastructure improvements are anticipated to be more than $100 million over a multi-year period. Project completion is expected in the fall of Project Financings Dynalab Dynalab Electronic Manufacturing Services has invested $3.5 million through the Finance Authority, bringing 73 jobs to Central Ohio. Dynalab s project demonstrates that with a strong product and workforce, Ohio companies can compete successfully with products manufactured in Mexico, as the investment is directly tied to work formerly made in Mexico. Specifically, Dynalab invested in equipment to manufacture electronic circuit boards for electric meters. The Reynoldsburg-based company provides engineering and manufacturing support for Fortune 500 and other qualified companies. OCLC I A $20 million tax-exempt transaction assisted Dublin-based OCLC lease equipment that will create 42 full-time jobs. The tax-exempt financing was made in conjunction with JP Morgan Chase. The Finance Authority provided a streamlined approach to tax-exempt financing, enabling OCLC to obtain the computer and other resources needed to support its strategic directions and the growth of its services to more than 69,000 libraries in 112 countries Project Financings Dancor Tax-exempt financing was provided to Dancor for a $1.2 million investment for a digital printing press. National City Leasing was a key partner in the transaction. The project will create 5 jobs on the west side of Columbus. Franklin Park Conservatory - $7.1 million was issued on behalf of the Franklin Park Conservatory to expand its events facilities. The project will create 10 full-time and 10 parttime jobs in Columbus. Fifth Third Bank partnered with the Finance Authority in the financing. Harrison West TIF The Finance Authority issued bonds to finance $3.1 million in taxexempt financing for a project in the Harrison West neighborhood on Columbus near north side. The funds are being used to acquire land and build a park to complete a brownfield clean-up of the former AC Humko site. The repayment stream is redirected property taxes from the City of Columbus. 5