The Arts connect business activity with creative and community oriented programs that improve the quality of life. Business has now broadened it’s perspective and now entertainment, the arts and education are considered an important component of economic development. The Cincinnati area has over $ 200M invested in The Arts.
The Arts has to plan and establish program objectives just like business and government. The Arts offer a variety of experiences both at the personal and organizational level. Long range planning and strategy is important for the Arts especially when operating costs increase and funding sources are limited.
What does The Arts mean to you personally as well as business? Rick talked about raising confidence and self-esteem. Personally the confidence to dance in front 2K people at the Capitol Theater in Wheeling, WV in 1956 is something I have never forgotten. It taught me I could do something that seemed impossible at the time.
1956 and I still remember looking out from the stage at all those people at the Capitol Music Hall.
AMS Consulting did a study to determine if Hamilton could support a Performing Arts Center. The conclusion was that Hamilton was not quite ready for the Performing Arts Center. Their recommendation was that the private and public sector should come together to market the Arts to a broader audience.
The Art District in Hamilton was designated in 2009.
The Arts impact the local, regional and national economy. Rick talked about the region and the construction of facilities and establishment of arts programs in Butler County.
Billions of dollars in impact that shows a significant increase in 2005.
Arts Centers in many communities in Butler County. MAC has an average of 160-175 classes offered during the year to students ages preschool to 90+ in all levels of experience. Enrollment for the classes and workshops averages 1500-1800 annually.
Described as one of the crown jewels of Fairfield's Village Green, the $10 million Community Arts Center houses a 250-seat theater, an arts and crafts studio, dance and fitness studio, children’s room, senior lounge, a banquet room with a balcony overlooking Village Green Park and an art gallery.Village Green Park, with its beautiful fountains, sculptures and amphitheater, is one of Fairfield's premier venues for community events and is home to a popular summer concert series and numerous festivals.The Village Green also includes the new, state-of-the-art Lane Public Library that has nearly 400,000 items in regular circulation.A prime example of what happens when business, citizens and government work together, Fairfield's Town Center and Village Green are inspired works of city planning and landscape architecture that are as beautiful as they are functional.
Art investments and programs throughout Butler County are significant.
Regional arts assets are significant and give Butler County another level of resources.
while validating new opportunities within our confines as prescribed in the Ohio Revised Code…Our mission statement is broad just like ORC 4582. We are funded currently by fees. The Commissioners provided $150K in 2008 as seed money to assist us in organizing our program. There are 7 Board Members appointed by the Butler County Commissioners with one ex officio member Mike Juengling the Economic Development and Planning Director for Butler County. The BCPA schedule one meeting per month at various locations throughout the County. The photo on this slide is from our September meeting in St. Clair Township. (largest conference table in the world)
Toledo PA portfolio - small and medium sized companies access to the national capital market as if they were BBB Investment Grade companies. Its portfolio of projects includes entities such as the Cleveland Cavaliers, BAX Global, Toledo School for the Arts, Xunlight, Dana. Rock & Roll Hall of Fame $92M project - the Cleveland Port Authority issues $38,995,000 and owns the facility on a 50 yr. lease. To make it work the State of Ohio guaranteed $2.1 of payments per year. Source of repayment is bed taxes. The Akron Civic Theater was a $21M project with $14.5M bonds issued from the Summit PA and $6.5M from private. Bed taxes are used to service the debt. Cleveland Cavaliers practice facility project was almost $28M with three Port Authorities – Summit/Cleveland/Toledo and the City of Independence – an example of multi-funding sources.
The organization, company or institution must stand on its own credit OR create a partnership of credit guarantee. In 2007 Port Authorities combined to report a $6.5B annual impact on Ohio’s economy. There are nearly 60 port authorities in Ohio with many of them operating as primarily economic development financing organizations. Issue bonds for small (common bond funds are available in Toledo, Dayton and other port authorities), medium and large that do not have easy access to bond markets.
Our experience includes an Industrial Development Bond $10M, MRH Deconstruction (the largest green deconstruction of a hospital in Ohio) $9.1M, YMCA Institution Conduit, Rail Electric Switch Locke that involved a grant from the Ohio Rail Development Commission and assistance from Butler County TID, Intermodal Rail Study – there’s currently a regional and statewide study of freight underway, Ohio Enterprise Bond Fund and ODOD loans for Intelligrated on an off balance sheet PA owns the facility project, Greenwood Fuel a Recovery Zone Facility Bond energy related project.
Port Authorities have the ability to do conduit financing, off balance sheet as the owner of the facility, third party grants and multi-jurisdictional transactions. Manufacturing, commercial, healthcare, education and mixed use which can include The Arts. Long-term 20 yrs or more and lower interest rate are the features. Bond (finance)From Wikipedia, the free encyclopediaIn finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit (CDs) or commercial paper are considered to be money market instruments and not bonds. Bonds must be repaid at fixed intervals over a period of time.Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity stake in the company (i.e., they are owners), whereas bondholders have a creditor stake in the company (i.e., they are lenders). Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. An exception is a consol bond, which is a perpetuity (i.e., bond with no maturity).
Not for profits, for profits, institutions and healthcare facilities. Our electric lock switch project for three companies in Butler County was a special project that needed a funding system and process created – a rail car rebate agreement was developed to pay for the upfront costs of installation. $70K loan from Butler County TID and a $70K grant from ORDC.
Funding categories and where the Port Authority fits into the picture. Not as defined but works with all the funding categories.
The BCPA received a Recovery Zone Facility Bond allocation of more $13M. We will use $5. PABs Private Activity Bonds have been more difficult to fund because credit has not been available. As a community with common interests we can prepare for the next round of Public Activity Bonds IF they happen as part of an omnibus spending bill or Extender Bill early next year.
Policy has evolved with the ARRA, Federal Agencies such as HUD, EPA, Dept of Commerce implementing grants and matching funds for green development and redevelopment projects. At the same time energy policy has targeted energy savings – ESIDs Energy Special Improvement Districts. ODOT has included additional economic development in the funding mix and stresses partnerships, job creation and retention around infrastructure.
Strategy is to prioritize a project that will bring the necessary revenue streams and guarantees (letter of credit) to make a project feasible. Sources of funds for a project could include grants, bonds, loans, equity investment and/or public-private participation.
Strategy for USEPA grants. The Intermodal Rail Study was completed in 2007 and has been the basis for our USEPA Hazardous Waste $400K and Petroleum Grant $400K. Connecting the Route 63 extension to brownfield site assessment for a larger geographical area.
Strategy for funding projects that have a transportation requirement. New funding criteria and the need for collaboration and partnerships. This slide is based on our Council of Port Authorities Meeting that ODOT attends. ODOT planning studies and emphasis on economic development in project development.
How do we make it work? Discuss how a project can be funded and what it takes to sustain a long-term development and/or redevelopment project. What organization – private or public has the guarantee available to back the revenue streams? What sources of funds are possible?
Wide range of projects manufacturing, office, commercial, healthcare, non-profit, mixed use, the arts, education and even rail. Multi-jurisdictional with other ports, townships, municipalities etc. Take away today….Lessons learned…
The Arts brings people into the community and the people can and will invest in quality of life projects.
Arts mean business one a
Quality of Life – The Arts ---- Connects the Community <br />The arts Mean business<br />
The Importance of the Arts <br />“In my own philanthropy and business endeavors, I have seen the critical role that the arts play in stimulating creativity and in developing vital communities. As this study indicates, the arts have a crucial impact on our economy and are an important catalyst for learning, discovery, and achievement in our country.” Paul Allen – Co-Founder Microsoft<br />
Economic Development Impact of Arts<br />55,000 to 75,000 program participants<br />Over $5M in funds brought into the local and regional economy<br />Access to the Arts improves the quality of life<br />
The Arts Economic Impact - National<br />$80.8<br />$53.2<br />Audience Expenditures<br />$103.18<br />$63.1<br />Billions of Dollars <br />
Butler County Community Art Centers and Arts Resources<br />Fairfield<br />Middletown<br />Hamilton<br />Oxford<br />
Regional Economic Development <br />Art Investment and Resources in Butler County<br />Fitton Center for Creative Arts <br />Middletown Arts Center and the Pendleton Arts Center in Middletown <br />Fairfield Community Arts Center<br />The Arts Council of West Chester and Liberty<br />Oxford Community Arts Center<br />
Regional Art SW Ohio <br />Dayton Art Institute<br />Cincinnati Contemporary Art Center<br />Art Institute of Cincinnati <br />
Butler County Port Authority Mission<br /> Use powers to enhance, support, facilitate and coordinate the economic health of Butler County<br />BCPA Board Meeting<br />in St. Clair Township<br />
Ohio Port Authority Projects <br />Sports<br />Akron Civic Theater<br />Music - Arts -Entertainment<br />
Port Authorities in Ohio<br />Ohio Revised Code 4582Broad powers under ORC 4582: Allows transactions, grants, sales tax and financing cost savings<br />Established financing and project development capability in the late 1980’s<br />BCPA started in 2004 and operational in 2005. <br />
Butler County Port Authority<br />Ohio Revised Code Section 4582 Provides bond funding for projects in Ohio Revised Code 4582Broad powers under ORC 4582: Allows transactions, grants, sales tax and financing cost savings<br />Established financing and project development capability in the late 1980’s <br />BCPA started in 2004 and operational in 2005<br />Conduit Financing<br />Off Balance Sheet financing as owner of facility<br />Third Party Grant Management<br />During construction Port ownership of property can provide sales tax savings<br />$3M and larger<br />Transactions<br />
Types of Organizations for Port Authority Projects<br />Rail Project Car Rebate and Grants<br />
Commercial Lending and Funding Categories<br />Economic Development Organizations and Banks – private and public ---- CDC example<br />Angel Investors and Venture Capitals<br />Investment Bankers<br />Public Markets<br />
American Recovery & Reinvestment Act of 2009<br />
Strategy and Funding Process<br />Policy<br />American Recovery & Reinvestment Act<br />Walkable Waterfronts and ODOT funding<br />Collaborative Partnerships<br /> to develop projects with <br />Institutional partners<br />Strategy<br />Local Private<br />State Non-Profit<br />Federal Institutions<br />Funding<br />
Strategy<br />Funding Sources:<br />Ohio Dept. of Development, Ohio Dept. of Transportation, Ohio Rail Development Commission – freight and intermodal<br />Funding for Project Development<br />Clean Ohio Revitalization Funds, ORDC Grant, BRLF, USEPA , Bonds <br />
New investment </li></li></ul><li>Quality of Life Redevelopment & Development in Butler County <br />Riverfront Arts District, ArtSpace, RiversEdge, Boathouse, Riverside Riverwalk<br />Pendleton Arts Center in Middletown and Downtown Redevelopment<br />Middletown, Hamilton, Fairfield and Trenton - Bike Path for Riverfront<br />Oxford Arts Center and the Art Council of West Chester and Liberty <br />
The Arts, Riverfronts, Recreation and Outdoor Pursuits, Health and Wellness, Education<br />
Fairfield and Middletown Redevelopment<br />Patterson Place Redevelopment in Fairfield<br />Pendleton Art Center in Middletown<br />
Butler County <br />Aquifer and Water<br />Rail and Interstate Access <br />Education Resources<br />Quality of Life Opportunities in <br /> the Arts<br />"Liveability" is what Butler County is all about. The county's desirable location along Interstate-75; healthy mix of businesses and services; strong educational network; accountable government; and array of cultural, civic and recreational offerings make Butler County one of the most exciting growth areas in Ohio and the Midwest.<br />
The Arts Mean Business Key Points <br />Strategy – Sources and Uses of Funds<br />The Port Authority can do a wide range of projects<br />Importance of the Arts and Quality of Life Projects for the future of Butler County and the region <br />Leadership Means Action -Support Strategic Planning Organizations such as CICs, Chambers, Economic Development Organizations and Planning Departments<br />