Panelists: Matt Deptola, Jeremy Druhot, Scott Ziance

1. D E C E M B E R 6 , 2 0 1 9
Cr eative Pr oject - Centr ic Solutions

2. #ED411
1. PACE Financing: How to leverage energy efficiency financing
2. JobsOhio’s Customized Solutions
3. Creative Solutions
4. Roundtable Project Discussion
agenda
Today’s
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Manager of Programming and Projects
Columbus-Franklin County Finance Authority
J e r e m y D r u h o t
Contact Information
O: 614-429-0438
C: 419-591-6640
jdruhot@columbusfinance.org
http://www.columbusfinance.org
PA C E F i n a n c i n g
How to leverage energy efficiency
financing to modernize commercial
properties in your community

4. #ED411
The Columbus-Franklin County Finance
Authority is a public agency that provides
creative and timely financing solutions for
economic development projects in Central
Ohio. We were established in 2006 by
legislative action of the Columbus City Council
and the Franklin County Board of
Commissioners and are organized as a port
authority under Ohio law.
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Overview of the Finance
Authority

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In partnering with economic developers, government entities and banks, the Finance
Authority provides creative funding options for projects in the private, non-profit and
public sectors. Our portfolio of projects includes:
o Public improvement projects
o Mixed-use properties
o Capital leases
o Energy efficiency improvements
In business for over 10 years, the Finance Authority has facilitated more than $2
billion in financing and has an A- bond fund rating from Standard & Poor’s Rating
Services for our Central Ohio Bond Fund
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Overview of the Finance
Authority

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PACE Financing
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EXAMPLES
• Lighting
• HVAC
• Roofing
• Windows and insulation
• Solar
• Electric Vehicle Charging
MEASUREMENT
• Retrofit: improvements that
reduce energy consumption of
building (or renewable)
• New build: improvements that are
more efficient than building code
(or renewable)
PACE Fi nanci ng –
El i gi bl e I mpr ovements

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 Financing is tied to the property, not to the property owner
 Off-balance sheet financing
 No upfront cash required. 100% of the cost of improvement is provided
including evaluation and design, equipment, labor, and professional fees
 Reduction of operating budget expense
 Energy and maintenance savings can pay for the improvements
 Improvements can be made quickly when needed
 Vehicle for local governments to modernize their available commercial
properties
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PACE Financing - Benefits

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Energy Loans
Closed
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E s t i m a t e d
P r o j e c t P r o c e s s
a n d Ti m e l i n e
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 Financing: $325,000
 Savings: $37,000 annually
 Upgrades: Lighting, HVAC
 Other Programs: TIF, land bank
(Central Ohio Community
Improvement Corporation),
Worthington grant
CASE STUDY
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Trivium Worthington

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 Financing: $941,000
 Savings: $92,000 annually
 Upgrades: Chillers, LEDs, control systems
 Other Programs: Ohio Air Quality
Development Authority Bond
CASE STUDY
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4400 North High Street

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 Energy Service Companies (ESCOs): firms that perform energy audits
 Consultants: link projects to lenders
 Private PACE lenders
 Contractors
 Ohio Air Quality Development Authority
 Ohio Development Services Agency
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Other Enti ti es I nvol ved i n
Ener gy and PACE

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THANK YOU Jeremy Druhot
Manager of Programming and Projects
O: 614-429-0438
C: 419-591-6640
jdruhot@columbusfinance.org
http://www.columbusfinance.org

15. JobsOhio’s Customized
Solutions

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Senior Project Manager, JobsOhio
M a t t D e p t o l a Contact Information
O: 614-300-1149
deptola@jobsohio.com

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Introduction to JobsOhio
JobsOhio is a private non-profit corporation designed to drive job creation and capital investment in
Ohio through business attraction, retention, and expansion efforts.
House Bill 1
enacted,
authorizing the
creation of a
nonprofit
corporation to
perform the
state’s
economic
development
functions
FEBRUARY
2011
House Bill
153
enacted,
authorizing
the state to
transfer
the state’s
liquor
enterprise to
JobsOhio
JUNE
2011
Incorporation
of
JobsOhio and
first meeting
of its Board
of Directors
JULY
2011
Completion
of the liquor
enterprise
acquisition
Completion of
$1.6 billion
private debt
offering
FEBRUARY
2013
Ohio Supreme
Court decision
ended all
outstanding
legal matters
surrounding
the
establishment
of JobsOhio
JUNE
2014
SEPTEMBER
2017
JobsOhio
named No. 3
best U.S. state
economic
development
organization,
according to
survey by
Development
Counsellors
International
(DCI)

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FY-2019 Results
JobsOhio’s lease of
the state’s liquor
franchise runs
through 2038GOES TO JOBSOHIO
BEVERAGE SYSTEM TO
OPERATE LIQUOR
BUSINESS IN OHIO
12%GOES TO THE STATE
71%
17%
GOES TO
$21
$0
FY2019 Liquor Profits Granted to JobsOhio
$350 Million
Economic Development Programs
$112 Million
Marketing Expenses
$10 Million
Operating Expenses
$26 Million
Available for Future Use
$188 Million
JobsOhio Network Funding
$14 Million

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JobsOhio and Ohio Development Services Agency funds cover a wide-range of project
drivers:
 Up-front costs (JobsOhio Economic Development Grant)
 Longer-term operational costs (Ohio Job Creation Tax Credit / Data Center Tax Exemption)
 Workforce quality (JobsOhio Workforce Training Grant)
 Workforce quantity (JobsOhio Talent Acquisition Services)
 Public infrastructure (629 Roadwork Grant)
 Financing (through JobsOhio or ODSA)
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Frequently Used Tools
Structured on a project-by-project basis

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Talent Services
 JobsOhio’s team designs a customized talent attraction and/or talent development strategy to improve hiring
outcomes
JobsOhio Economic Development Grant
 Flexibility with eligible costs (on case-by-case basis): IT infrastructure, software development, employee
relocation or relocation of machinery & equipment, etc.
Extension of Project Window
 Some flexibility to looking at 5-year job creation window as opposed to traditional 3-year window, based on hiring
ramp-up
Use of ODSA’s Volume Cap allocation or OWDA / OAQDA financing
 Projects with large capital investment requirements tapping into other state resources
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Trends at JO…

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Workforce:
 Research analysis to build confidence in Ohio labor market
 Connections to local and regional workforce groups to create pipelines, identify training partners, and identify available funds
for training
 Connection to local transportation group to assist with public transportation routes
Site Development:
 Coordination with local municipalities to plot construction timeline against necessary permitting timelines
 Shovel-ready property was identified at the Dayton Airport (Colliers represented) that was a speculative build already under
construction
Tax Policy:
 Facilitated call w/Ohio Dept. Taxation to understand Sales Tax Exemption for Logistics & Distribution equipment to confirm
eligibility, which created significant cost savings when combined with Ohio’s 0% tax on personal property
Incentives:
 Structured incentive package to address main drivers:
 JobsOhio Talent Services: to build workforce pipelines and create local training program for candidates and new hires
 Job Creation Tax Credit: to reward hiring w/uncapped and reimbursable value
 Local groups supported workforce, fixed asset purchases, and job creation
Business case: state tax advantages, comprehensive workforce solutions, and financial incentives
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Crocs Relocation to Dayton

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THANK YOU

23. B u i l d i n g t h e R i g h t S o l u t i o n f o r Y o u r C l i e n t -
C h a l l e n g i n g p r o j e c t s r e q u i r e c r e a t i v e s o l u t i o n s

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Partner, Vorys, Sater, Seymour and Pease LLP
S c o t t J . Z i a n c e
Contact Information
O: 614-464-8287
sjziance@vorys.com
http://www.vorys.com
Scott Ziance is a partner in the Vorys Columbus office. He leads the firm’s
multi-disciplinary economic development incentives team – utilizing economic
development incentives, public-private partnerships and special economic
development entities to assist developers, operating businesses and political
subdivisions in developing and redeveloping property and creating jobs and
economic growth throughout the United States. A Harvard Law School and
Bowling Green State University graduate, Scott is recognized as a national
leader in the economic development incentives practice. He has represented a
number of large businesses, including multiple West Coast-based Fortune 50
companies, on their tax incentives transactions throughout the United States.
He also has drafted or assisted in the drafting of 18 statutory amendments
related to economic development incentives, and he has served as incentives
counsel in connection with three of the largest five incentives projects in the
history of the Ohio Department of Development. He represents a number of
the country’s largest developers and currently serves as president of NAIOP of
Ohio, president of NAIOP Central Ohio Chapter, and as a member of the
national NAIOP board of directors.

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 Consider the project as broadly as possible
 Some incentive programs may require a narrower approach, but cast
your net wide
 Consider the positives and negatives of every potential incentive
 Match uses, including private uses, to sources, including private sources
CREATIVE PROJECT SOLUTIONS COME IN MANY FORMS
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Creative Solutions

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 Ohio Water Development Authority financing
 Local Economic Development Loans
 Construction financing for local government entities
 Tax Exempt Bonds for Privately Owned Facilities (Volume Cap/DSA)
 Drinking Water, Wastewater, Stormwater and other purposes
 Brownfield Loans (apply through DSA)
 Construction and Planning and Design
 Alternative Stormwater Infrastructure Loans (apply through DSA)
 Construction
AN EXAMPLE OF A CREATIVE PROJECT SOLUTION
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Creative Solutions

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Multiple options to allow assessment of real property to support financing, such as:
 Special Improvement Districts
 60% of owners that front to public improvement or
 75% of the owners in the land area
 No more than 10 years from approval (with exceptions – energy SIDs)
 TIFs
 No owner consent (unless minimum service payment obligation)
 Up to 30 years
 Special assessments
 Limited uses – generally public infrastructure
 Current and prior five years’ assessments cannot exceed 33 1/3% of actual value of parcel
 New Community Authority
 Developer owns or controls land
 Not time limited and very flexible uses, including land acquisition, land development, construction,
acquiring community facilities and providing services
DESIGNING A CREATIVE SOLUTION IS ONE THING – YOU STILL HAVE TO PAY FOR IT
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Paying for Creative Solutions

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 New Community Authorities:
 Used effectively in Columbus, New Albany, Dublin, Grove City, and in Delaware
County
 Chapter 349 of the Ohio Revised Code provides flexibility for the Authority
 Community facilities can include property, structures and furnishings to benefit the
community
 Buildings, auditoriums, educational facilities, health care facilities, day care,
natural resources (parks) and more
 Also includes infrastructure, water and sewer, energy and other community
facilities
DESIGNING A CREATIVE SOLUTION IS ONE THING – YOU STILL HAVE TO PAY FOR IT
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P a y i n g f o r C r e a t i v e S o l u t i o n s C o n t . :

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 Authorities can generate revenue a variety of ways:
 Authorities can charge user fees and other charges
 Community development charges, similar to real estate taxes or special
assessments
 Charges similar to taxes on income or gross receipts
 Uniform fees on each parcel owned, sold or conveyed
 Community development charges may run with the land, and are a lien if unpaid
DESIGNING A CREATIVE SOLUTION IS ONE THING – YOU STILL HAVE TO PAY FOR IT
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P a y i n g f o r C r e a t i v e S o l u t i o n s C o n t . :

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 Corporate Offices (JobsOhio, City and Port)
 Rehabilitation and New Build (JobsOhio and City)
 Brownfield Issues (OWDA and DSA)
 Infrastructure Challenges (OWDA, ODOT, DSA, JobsOhio and City)
 Mixed Use Development Opportunity (City)
 Monetize Tax Abatement (City)
 Grant Opportunities (City)
 Key Partners
 Port Authority, City, JobsOhio, OWDA, DSA
Challenging Projects Require Creative Solutions
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Case Study

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THANK YOU