MANSFIELD — It didn’t take the Richland County Port Authority long to start making deals.
The new governmental entity, formed in June, approved on Wednesday $23 million in revenue bonds that will assist with two local economic development efforts.
The property lease-leaseback approvals will allow the two developments — one in Mansfield and one in Ontario — to proceed with state and local sales-tax exemptions in exchange for fees paid to the local authority.
Both are the kinds of economic-incentive deals local officials imagined when the Richland County Board of Commissioners created the new Port Authority in June.
Both deals were brokered by the Richland Area Chamber & Economic Development/Richland Community Development Group, which was officially “hired” by the Port Authority on Wednesday to handle its administrative services.
The developer in both projects is responsible for obtaining private financing for the bonds and is also ultimately responsible for repaying them, according to Columbus attorney Gregory Daniels, the Port Authority’s legal representative.
“The actual bond agreement is between the developer and the bank,” Daniels said. “The port is involved, but its liability is limited to the money it gets from the developer.”
In these types of agreement, Daniels said, the developer leases the land to the Port Authority, which then immediately leases it back to the developer.
“What this does is satisfy one prong of the two-prong test with sales tax exemptions that we own the improvements that are being constructed and that we’re providing the (tax) exemption for,” he said.
The Port Authority then issues the revenue bonds, also needed to satisfy state tax requirements.
In the agreements, which Daniels said are negotiable, the Port Authority can levy an upfront fee, based on the value of the exemption. It can also assess an annual fee until the bonds are paid off.
The Port Authority, a five-member board appointed by county commissioners, approved:
— revenue bonds totaling up to $16 million for Industrial Commercial Properties, which plans to build a 456,000-square foot industrial building on 25 acres at 2355 W. 4th St. in Ontario, the site of the former General Motors factory. The site will be used as part of an expansion by Charter Next Generation at what’s been dubbed the Ontario Commerce Center.
Charter Next Generation currently has a 134,000 square-foot space at the Commerce Center, while ICP is still marketing the rest of the two million square feet of manufacturing and distribution space.
What is a port authority?
A port authority is authorized under Ohio law to construct facilities, issue bonds, make loans, and sell or buy real and personal property.
A port can also offer economic development financing products in which other governmental organizations cannot.
— It can acquire, construct, furnish, equip, maintain, repair, sell, exchange, lease to or from, lease with an option to purchase, convey other interests in, or operate real or personal property;
— Issue bonds or notes for the acquisition, construction, furnishing, or equipping of any real or personal property;
— By resolution of its board of directors, it can issue revenue bonds beyond the limit of bonded indebtedness provided by law, for the acquisition, construction, furnishing, or equipping of any real or personal property;
— It can do any of the following, in regard to any interests in any real or personal property, or any combination thereof, including: loan moneys to any person or governmental entity for the acquisition, construction, furnishing, and equipping of the property; acquire, construct, maintain, repair, furnish, and equip the property; sell to, exchange with, lease, convey other interests in, or lease with an option to purchase the same or any lesser interest in the property to the same or any other person or governmental entity; guarantee the obligations of any person or governmental entity;
It can construct, maintain, repair, furnish, equip, sell, exchange, lease, or lease with an option to purchase, any property that it is authorized to acquire. A port authority that is subject to this section also may operate any property in connection with transportation, recreational, governmental operations, or cultural activities.
“I think this is a catalyst for significant future growth at the site,” said Richland County Commissioner Tony Vero, who attended the meeting with fellow commissioners Darrell Banks and Cliff Mears.
The deal is expected to net ICP $686,401 in sales tax savings on a total project estimated at $20,687,799. The developer will pay the Port Authority $171,600 in one-time fees and also $5,000 annually as long as the lease bonds are outstanding as part of the deal.
A CNG official said the company looks forward to the expansion.
“We’re proud to expand our footprint in Richland County with a new facility that enhances our capabilities and supports long-term growth across the region,” said Brandon Hall, executive vice president of operations.
“This investment brings new jobs, strengthens our supply chain, and reinforces our commitment to innovation, operational excellence, and the communities we call home. It’s another important step forward as we continue to lead in specialty films and sustainable material solutions,” Hall said.
— revenue bonds totaling up to $7 million for Airport II West, LLC (Adena Corp.) for a $13 million, 150,000 square foot industrial building on 15.8 acres at 1750 Airport West Parkway near Mansfield Lahm Regional Airport.
That “spec building” project has been in the works since early 2024. The Ohio Dept. of Development announced in July 2024 that that Airport West II, LLC, headed by Adena Corp. CEO Randy Payne, will receive $4 million to assist in financing the construction.
The state loan funds will come through a low-interest, loan program that will assist in the construction. ODOD said the structure could be expanded to 300,000 square feet.
With the Port Authority deal, it’s estimated Adena Corp. will save $401,118 in state and local sales taxes on all materials purchased for the project. Adena will pay the Port Authority a one-time fee of $100,279 and $3,000 annually as long as the lease bonds are outstanding.
Randa Payne, a Port Authority board member and general counsel at Adena Corp., abstained from the discussion and the vote on the agreement.
Both agreements leave blank the section that would provide construction dates and how many new jobs each are expected to create.
Board member DeLee Powell said she was comfortable with that aspect of the agreement.
“Since we are working with the Chamber and RCDG … they have properly vetted these projects. So they’re already determining that it’s going to (generate) more income tax, more people employed there,” she said.
Officials said those blank spaces will be filled in as the agreement is fleshed out.
