MANSFIELD — A proposed new 150,000-square foot industrial spec building near Mansfield Lahm Regional Airport has moved a step closer to reality for Adena Corp. CEO Randy Payne.
The Ohio Dept. of Development announced Monday that Airport West II, LLC, headed by Payne, will receive $4 million to assist in financing the construction of a new building on a 15.8-acre site at 1750 Airport West Parkway.
The funds will come through a state low-interest, loan program that will assist in the construction of the planned new $13 million spec building. ODOD said the structure could be expanded to 300,000 square feet.
The new building will be constructed immediately north of the $9 million building Adena finished building in 2022, which was leased to Hedstrom Ball, Bounce and Sport in December.
The state loan program promotes economic development by providing low-interest direct loans to assist eligible applicants in financing the development and improvement of industrial parks and related off-site public infrastructure improvements.
This project was one of five announced by the Ohio Department of Development on Monday that included $9.7 million through three state-funded programs. Each project is designed to boost businesses and enrich communities.
During the meeting in April, Payne said he was optimistic about the future in north central Ohio.
“I am a firm believer that we need to keep pushing forward with what we are doing to keep the momentum going. We need to have new stuff available,” he said then.
At the meeting in April, Payne was joined by Ellen Heinz, president and CEO of the Richland Area Chamber & Economic Development and Barrett Thomas, the chamber’s director of economic development.
Thomas said it was the first time an entity in Richland County has applied for the state’s Rural Industrial Park Loan Program.
The program is an Ohio Department of Development effort that could loan Adena millions at a lower interest rate than otherwise available commercially.
“We don’t have this conversation very often because we don’t have this kind of partnership with somebody who can do a building of this size very often,” Thomas said.
“But Randy came to us and said, ‘Hey, we’ve got the land, we’ve got this site plan, we’re ready to go, but it’s on hold because the project doesn’t pencil.’
“So we found out the RIPL program fits what we’re trying to do here. We said here’s a great opportunity. And so that’s why this is moving forward when it wouldn’t otherwise,” Thomas said.
Payne said in April he would not plan a new spec building without the state loan program due to current high interest rates.
“We would not do it without this. If we do not get this part of the thing financed (through the state load), it’s not viable to do it.
“Lease rates are not keeping up with the cost of construction and the interest. So it would sit until either interest rates came down or lease rates went up,” Payne said.
He said interest rates he paid from his initial spec building are now nearly double.
“This program just simply provides access to partial funds for the project. They’ll allow it to be feasible at the rate that it’s at,” Payne said.
Lydia Mihalik, director of the Department of Development, said the low-interest loan program supports prosperity at the local level.
““These projects will help businesses flourish and strengthen the foundation of these communities for generations to come,” she said.
An additional $14.6 million approved Monday will support the state’s first project-ready site through the All Ohio Future Fund.