80 Exchange
(in millions)
Akron Civic Theatre is the magnificent jewel in Akron’s downtown revival. Just six months before the stock market crash of 1929, the historic building opened its doors bringing live performances and quality entertainment to the Akron community. After seventy years of community service, Akron’s exquisite landmark was deteriorating. In 2000 the Civic joined forces with the City of Akron, Summit County and the Development Finance Authority (DFA) with the goal of restoring the theater to its former elegance and expanding it into a premier performance space. The renovation was begun in October 2001 and completed in November 2002.
Find financing for an ambitious community development project.
Facilitate the financial collaboration of public and private partners in the project.
Benefits of Working with us
DFA acted as a public revenue source for $14.5 million of the total funding.
DFA’s flexible bidding procedures enabled effective balancing of costs and benefits for on-time and on-budget completion.
DFA was pivotal in attracting funding to this public-private project.
DFA insurable bonds resulted in a reduced interest rate for lower overall costs.
$14,500,000 – Development Finance Authority Bonds
$6,000,000 – Private Funding
$1,000.000 – State of Ohio Funding
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$21,500,000 – Total
3.6%
Development Finance Authority issued $14.5 million in fixed rate bonds to fund the project. The debt will be serviced from Summit County’s “bed tax” revenue. Additional funding for the project was raised by the Akron Civic Theater, local companies, and state, local and national foundations.
The Akron Community Revitalization Fund is designed to create a pool of funds to leverage other funding sources and provide additional loans between $500,000 and $2,000,000 with more flexibility, less stringent credit requirements and below market rates. Eligible project areas include downtown, North Hill, and parts of east, south and west Akron that have a poverty rate of at least 30% along with an unemployment rate of at least 10%. The projects are evaluated on their readiness, investment in the community, the number and quality of jobs created and/or retained, and the impact the product or service will provide the community.
The Fund is managed by the Development Fund of the Western Reserve (DFWR), a private non-profit (501c3) affiliate of the Development Finance Authority of Summit County (DFA).
The United Building - A $1.28M loan was issued from the Akron Community Revitalization Fund in order to finance the adaptive reuse of the existing historic United Building into a 71-room boutique hotel in downtown Akron. Total project costs are approximately $10M with other funding sources including Cortland Bank and Village Capital Corporation (a CDFI based in Cleveland). This hotel will create approximately 20 full-time and 9 part-time permanent positions as well as 83 construction jobs.
Middlebury Commons – A loan in the amount of $1.6M was used in order to finance the construction and buildout of the ground floor commercial/retail space of Middlebury Commons – a mixed-use project with 40 affordable apartments for seniors and first floor retail space. We anticipate that this project will increase residential and business density at the heart of Middlebury while providing access to necessary services and amenities for the residents of the building and the surrounding blocks. Middlebury Commons is a significant part of the strategy to transform Middlebury from an area of disinvestment into a thriving neighborhood on Akron’s eastside. We are pleased to collaborate with East Akron Neighborhood Development Corporation (EANDC) alongside others to make this crucial investment.
The Bowery re-development – The loan was in the amount of $1.67M in order to provide pre-development funds for the Bowery redevelopment project, a proposed six building, $40M mixed use project anchored by the historic Akron Civic Theatre. We anticipate this short-term loan will be repaid prior to year-end. Upon repayment, DFWR plans to make a subsequent loan in the equivalent amount for a tenant in the Bowery project after an additional underwriting process and review. As envisioned, the Bowery project is a key part of upgrading downtown Akron to improve public life and catalyze reinvestment and repopulation of the city. This development will completely revitalize 6 long-empty buildings to bring a fresh food market, retail, entertainment, office and residential elements to downtown Main Street that will likely stimulate further demand for residential and retail projects in Akron.
The DFA has closed its 5th bond fund deal of 2018 with the closing of Akron Rubber Development Laboratories PACE bond for $2.52M. ARDL represents the 3rd Property Assessed Clean Energy (PACE) bond that DFA has closed in 2018. This was the DFA’s first A- rated deal and closed at 4.38% rate fixed (taxable) over 15 years is which is great for our borrower. The project is located in the City of Barberton and consists of a new roof, electrical, lighting, controls, HVAC, cooling tower, exterior doors and windows, exterior wall insulation, and engineering costs constructed by Polymer Developments, Ltd. at its property located in the City. The Project and the Project Site are leased by Polymer Developments, Ltd. to Akron Rubber Development Laboratory, Incorporated for use in its business. The Project will qualify as an “energy efficiency improvement” under Chapter 1710 of the Revised Code, which will allow the Developer to finance the costs of the Project with special assessments on the Project Site and a Property Assessed Clean Energy (PACE) Bond.
The Authority will issue a series of bond fund bonds as a PACE Bond in a principal amount not to exceed $3,000,000 to finance the costs of the Project. The Developer, as construction agent to the Authority, will construct the Project. The Developer will petition the City and the Akron-Summit County Energy Special Improvement District, Inc. for the adoption of an improvement and services plan for the District, including the Project. The Developer will also petition the City to pass an ordinance levying special assessments on the Project Site to pay the costs of the Plan. The Special Assessments will be levied in an amount at least equal to the annual debt service and administrative amounts due and payable on the Bonds. To secure the Bonds, the City will assign the Special Assessments to the Issuer under a Cooperative Agreement, the Issuer will pledge the Special Assessments to the Trustee for the Bonds under the Indenture.
ASC Industries manufactures water pumps for the automotive and truck industry with facilities in the U.S. and China. Since 1999, ASC’s headquarters has been located in CAK Industrial Park, Green, Ohio. The company’s steadily growing business has necessitated an 80,000-square-foot addition to the Green, Ohio plant.
Find tax-efficient financing manufacturing facility expansion.
$7,250,000 – Development Finance Authority IRB, 1999 & 2002
The Development Finance Authority issued Industrial Revenue Bonds on behalf of ASC. Fifth Third Bank secured the conduit financing with a letter of credit. The DFA structured a capital lease. Under the terms of the lease, the assets accrue to ASC’s balance sheet as the lease payments service the debt. This allows ASC to claim asset depreciation for tax purposes. ASC also has the option to take full ownership of the property at the end of the lease term for a nominal cost.
The Austen BioInnovation Institute in Akron (ABIA) was developed as a conduit for life-enhancing and life-saving biomedical innovation for the 21st century. Positioned to become a leader in biomaterials and medical research, education, clinical services and commercialization, the Institute draws on Akron’s rich legacy in materials science to develop a world-renowned biomaterials and medicine program with special focus on orthopedic and wound care. The institute serves as a research, learning and training center for current/future healthcare professionals in new and advanced technology tools.
ABIA’s Operating collaborators include Akron Children’s Hospital, Akron General Health System, Northeastern Ohio Universities College of Medicine (NEOMED), The University of Akron, the John S. and James L. Knight Foundation, FirstEnergy Foundation and Summit County.
Focused on improving economic development and attracting business in downtown Akron, Ohio, the 45,000 sq ft ABIA Silver LEED Certified renovated portion of the the 76,000 sq ft facility at 47 N. Main St. will support Akron’s transition from a manufacturing center to a healthcare, biomedical, educational and service industry center. The Institute will also have a significant financial impact on the Akron area, with $150 million in annual academic and clinical research, $50 million in annual commercialization investments and new jobs for the Akron area.
Development Finance Authority (DFA) assisted as developer and property manager for the project. In addition to serving as the new headquarters of Austen BioInnovation Institute in Akron, DFA will maintain its offices on site. The DFA issued tax-exempt lease revenue bonds, and holds a mortgage on the property.
$7.0M DFA Development Revenue Bonds
$2.0M First Energy grant
$1.0M Austin BioInnovation Institute in Akron
$2.5M State of Ohio R&D Loan
n/a
20 year lease between ABIA and Development Finance Authority’s pledge to the repayment of the Bonds.
Summit County pledge of non-tax revenue to guarantee debt.
Construction of a 260,500 square foot state of the art Akron Technical Center coupled with an approximately 400,000 square foot Parking Facility. Both structures will be joined by a 260 foot Pedestrian connector to allow Bridgestone employees to safely access the Technical Center from the Parking Facility.
Present a viable and competitive offer to enable Bridgestone and its nearly 1,000 employees to remain in Akron, OH., building on a 100 plus year history.
The Development Finance Authority (DFA) structured a Capital Lease with the bank comprising Bridgestone’s credit facility. The bank then structured an Operating Lease with Bridgestone Americas Tire Operations, LLC who in turn was able to take advantage of the DFA’s sales tax exemption on construction materials related to the project and obtain the maximum use of Tax-Increment Financing (TIF) payments to leverage the project financing.
Public Partnership
Of the $70M, the County of Summit pledged $7.3M for the Parking Facility and Pedestrian Connector and the City of Akron pledged $500,000 toward the Pedestrian Connector. The County of Summit and the City of Akron allocated $7.8M of their respective Recovery Zone Bond Allocations to the project. The Development Finance Authority of Summit County (fka Summti County Port Authority) issued $70M for the Akron Technical Center on behalf of the company and an additional $7.3M on behalf of the County of Summit for the Parking Facility and the County agreed upon a share of the Pedestrian Connector ($500,000).
N/A
Through a public-private partnership the parking structure is available to the general public during off business hours and weekends for an adjacent municipal-owned ballpark.
One Cascade Plaza is situated on 4.3 acres in Downtown Akron. It is a 23 story office tower with over 237,000 square feet of leasable office space. Constructed in the 1960s, many of the original mechanicals remain in the building and the operations are highly energy inefficient.
DFA issued $5.75M in taxable development revenue bonds to be used to fund energy efficiency improvements that should save the building owner an average of $378,718 each year in projected energy savings. Using a Property Assessed Clean Energy (PACE) financing structure, the bonds will be repaid through a special assessment tax on the building over the next 20 years.
These improvements will provide direct benefits to current and future tenants.
Roetzel and Andress served as Bond Counsel and DiPerna Advisors served as Financial Advisor for the project.
Construction of various improvements to the City of Akron owned Canal Park Stadium including a new scoreboard/video board, LED Lights and associated camera, audio/video and operations equipment to manage and use the new scoreboard/video board, a new left field group seating area, a new right field corner dining area along main street and two sponsored outdoor party decks on the Loge Level of the Stadium. These improvements to Canal Park have enabled to the City of Akron to secure a new 25 year Lease to ensure Minor League Baseball will be a part of the City of Akron for the next quarter century.
Provided a viable long term tax-exempt financing structure using our ability to issue Development Revenue Bonds to allow the City of Akron to work with the new owner of the Akron RubberDucks to enter into a new 25 year lease agreement with an additional 5 year option. The DFA was able to expedite the financing arrangements using the powers granted to Port Authorities under Ohio Revised Code Section 4582 to ensure the first phase of improvements will be completed in time for the opening of the 2013 Akron RubberDucks season.
Through a Cooperative Agreement between the DFA, City of Akron and Akron Baseball, LLC, the DFA was able to provide a Sales Tax Exemption on all building materials purchased by the Construction Agent (Akron Baseball, LLC) for the improvements.
$3.6M low interest loan based on the A+ rating of the City of Akron
N/A
City of Akron Annual Appropriation in the amount sufficient to pay debt service on the bonds.
Through a cooperative agreement with the DFA, City of Macedonia and Mary Maria @ Summit Pointe, LLC, the developer will construct public improvements, financed by DFA conduit-issued bonds, on behalf of the City of Macedonia. The developer will install a road connecting Valley View Road and S.R. 82 including sidewalks and handicap ramps, street lighting, water lines, storm and sanitary sewer lines, fire hydrants and landscaping. The public improvements will benefit an Independent Living/Assisted Living Facility and an Active Adult Community to be constructed on property included in an incentive district (the “TIF District”) created by the City.
Fund the public improvements at the least cost to the developer, and as non-recourse to the City of Macedonia and the DFA.
$2,500,000 – Development Finance Authority Tax-exempt Revenue Bonds
$31,000,000 – Private Investment for Senior Housing Development
The City adopted the TIF Ordinance exempting the property in the TIF District for a period of 30 years.
Goodyear’s corporate headquarters and research and development center campus are located in downtown Akron, Ohio. The facilities needed a new heating and cooling system that would lead to $3 million in annual savings as well as environmental benefits.
Recent restructuring made it difficult for Goodyear to secure acceptable financing.
Project funding needed to be obtained at a favorable rate.
Coordination was required among port authorities, the State of Ohio and the City of Akron.
$5,500,000 – DFA Jobs & Investment Fund Bonds
$4,125,000 – Cleveland-Cuyahoga County Port Authority Bonds
$7,860,000 – Ohio Enterprise Bond Fund
$4,500,000 – Ohio Department of Development R&D Loan
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$ 21,985,000 – Total
DFA & CCPA, (Rated BBB+ by S&P) Fixed Rate Bonds: 5.75%
ODOD R&D Loan: 2.25%
The Development Finance Authority provided fixed rate bond fund financing. The City of Akron supported a portion of the DFA bonds with credit enhancement. Additional funding at comparable interest rates came from the Cleveland-Cuyahoga County Port Authority and the Ohio Department of Development’s Enterprise Bond Fund. The DFA also helped Goodyear obtain a research-and-development loan from the State of Ohio.
The Goodyear Tire & Rubber Company (Goodyear) completed their new 639,000 square foot Global and North American Headquarters building in 2013. The Development Finance Authority (DFA) worked cooperatively with Goodyear, the State of Ohio, the City of Akron and Summit County to provide over $60,000,000 of incentives to the project to retain the fortune 500 company in Akron for 25 years. Goodyear employs 3,000 people in Akron.
The Development Finance Authority structured a $100,000,000 capital lease structure and taxable bond issuance to fund a portion of the project. DFA’s lease structure created State and County sales tax savings of $4,500,000. The bond issue was structured as development revenue bond with a 25 year term and was sold as a Private Placement.
The Development Finance Authority also served as recipient of State grant and loan incentives through a master grant agreement between the Authority and the State. The Authority borrowed funds from the State of Ohio on behalf of Goodyear and the City of Akron using Tax Increment Financing Payments to repay State loans over a 20 year term.
$100,000,000 – Development Finance Authority Bonds
$ 4,500,000 – Development Finance Authority Sales Tax Savings
$ 20,000,000 – State 166 Loan
$ 10,000,000 – State R&D Loan
$ 16,800,000 – State Grants
$ 10,200,000 – Summit County Contribution
$161,500,000 – Total Sources
Hy-Ko Products is a leading manufacturer of numbers, letters, signs, keys and display products. They provide these products to some of the largest hardware, home center, grocery, drug and mass merchandise chains in North America. The company sources its parts globally and exports products to Canada and Mexico. Hy-Ko’s steady growth necessitated a new headquarters, manufacturing, distribution and warehouse facility. Plans were developed to move over 100 employees into Summit County. A new 125,000-square foot facility was planned in the Village of Northfield, Ohio.
Find the most effective means of financing new construction.
Provide a favorable environment for international business in Summit County.
Hy-Ko was able to finance the project without a construction loan.
As a conduit, the DFA issued debt to Hy-Ko at a reduced interest rate.
Due to DFA involvement, construction materials were tax-exempt, saving $102,000.
The DFA has extensive capital leasing experience.
The DFA lobbied the Department of Commerce to establish a Foreign Trade Zone.
Project Cost: $5.5 million
Source Funds:
$5,500,000 – Development Finance Authority Industrial Revenue Bonds
Interest Rate:
Variable
The Development Finance Authority provided conduit financing with industrial revenue bonds. KeyBank issued a letter of credit to secure the financing. Hy-Ko obtained an IRS-approved, tax-exempt variable interest rate. DFA also structured a capital lease with the following features:
Hy-Ko designs and builds the facility to its specifications
Hy-Ko claims the tax advantages of depreciation
Hy-Ko will become the owner for a nominal cost at the end of the lease term
Restaurant Depot is a membership based wholesaler that serves local restaurants, non-profits, caterers, and other small businesses with their food and equipment needs. There are successful locations in 30 states nationwide with 3 located in Ohio (Cleveland, Columbus, and Cincinnati). The site is a former brownfield that was purchased by the City of Akron for development. Restaurant Depot has created approximately 250 construction jobs using primarily local contractors. In addition to the construction jobs, 33 full time permanent union jobs were also created with that number expected to rise to over 50 jobs in the next 5 years. Capital One, in addition to being the NMTC investor, provided a $1.0M allocation through its CDE. Among other financing sources, Development Fund of the Western Reserve (DFWR) allocated $5.5 million in Federal New Markets Tax Credits.
The 44,000 sq. ft. Kent State University Twinsburg facility can accommodate up to 1,500 students and replaces the academic center previously housed on Route 91 in the “Old School,” still owned by the city of Twinsburg. The $13.7 million project was financed by Development Finance Authority of Summit County through the federal Build America Bonds program. The university will lease the building over a 30-year period, at which point it will own it outright.
The state-of-the-art building was completed by Premier Development Partners. The Regional Academic Center is an extension of the university’s Geauga campus which has offered classes in Twinsburg since 1990. The first students were employees of the Chrysler stamping plant who took onsite classes in basic mathematics, shop drawing and basic English, according to David Mohan, dean of the Kent State University at Geauga. As enrollment increased classes were moved to the school building in 1995, and the public was invited to take courses alongside the automotive workers. “This is a remarkable success story,” said David Mohan, dean of the Kent State University at Geauga, adding that Twinsburg had 175 students enrolled in 2004.
The Twinsburg center offers core Kent State courses, two- and four-year degree programs and now, even graduate-level programs. The building boasts large conference rooms in which the university will offer executive-level education and training.
Development Finance Authority of Summit County issued $7,700,000 Tax-Exempt Refunding Revenue Bonds, Series 2015 in December to refinance and refund $8,945,000 of Series 2005 Variable Rate Demand Bonds as issued by the Summit County Port Authority. The proceeds of the original issue were used for the School’s campus locations in Broadview Heights, Ohio and Sagamore Hills, Ohio. A TEFRA Hearing was held on November 16, 2015 and closed on December 2, 2015.
Lockheed Martin won contracts with the U.S. Department of Defense to build a High Altitude Airship as well as Persistent Threat Detector Systems (PTDS) . To fulfill the contracts, Lockheed Martin needed to remediate and improve its air dock facility. The facility had been largely vacant and under utilized. The company also required equipment for the manufacture of specialized material for the airships for the U.S. Army.
The airdock site was a brownfield requiring environmental remediation. Lockheed Martin required off-balance sheet financing.
DFA partnered with state and local authorities to fund project.
DFA’s experience enabled a creative financing solution.
DFA has extensive experience in real estate and equipment leasing.
$2,215,000 – DFA Jobs & Investment Bond Fund
$5,000,000 – Ohio Enterprise Bond Fund
$4,952,000 – Ohio Department of Development 166 Direct Loan
$2,000,000 – Brownfield Cleanup Revolving Loan Fund
$3,000,000 – Clean Ohio Revitalization Fund Grant
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$17,167,000 – Total
$20,300,000 – Lockheed Environmental Private Investment
$40,000,000 – HAA program investment
DFA Fixed Rate Bonds(for equipment) 5.55%
OEBF Bonds(for equipment) 5.35%
ODOD 166 Loan(for facilities) 1% in years 1-5, 3% in years 6-20
BCRLF .05%
The Ronald McDonald House of Akron serves the Akron Children’s Hospital. Akron Children’s Hospital is the 9th largest children’s hospital in the United States. With 20 rooms currently, the Ronald McDonald House of Akron was able to provide service to 821 families in 2014 with over 75% of those families being Ohio residents, and over 50% of the patients’ families served by the House are low income, Medicaid-eligible families.
The Ronald McDonald House of Akron serves families not just from Northeast Ohio, but from many parts of the state, country, and world. In 2014, they accommodated families from 46 Ohio counties, 23 states, and 8 countries.
The need far outweighed the resources currently available. In the same year that 821 families were accommodated by the Ronald McDonald House of Akron, over 6,000 families were turned away due to lack of space. This project will triple the number of rooms available from 20 to 60.
Additionally, this project will create 135 construction jobs, 8 full time and 3 part time quality jobs available to qualified local residents.
Construction on the facility expansion is anticipated to begin in late summer 2016. Akron-based contractor, Thomarios, has been hired for both the new construction and the renovation of the existing rooms.
Snap-on Business Solutions Inc., a division of Snap-on Incorporated, is a leading provider of integrated content and software solutions for the global Automotive, Powersports, Construction and Outdoor Power markets. The company provides manufacturers and their dealership networks with the information tools needed to sell more parts, repair vehicles and equipment more efficiently, and to profitably grow their parts and service operations business. Snap-on Business Solutions planned a new 105,000 square foot HQ building in Richfield, Ohio on an 8.5 acre site in the Kinross Lakes Office Park.
Find the most reasonable and cost effective method to finance new construction.
By utilizing the services offered by the Development Finance Authority (DFA), Snap-on Business Solutions was able to take advantage of sales tax savings on construction materials related to the project. Under a Cooperative Agreement between the DFA, the Village of Richfield, and Snap-on Business Solutions, the Village approved tax increment financing (TIF) to support the project. 300 jobs were retained in the County of Summit, Ohio with an additional 50 new jobs forecast over the next three years.
$16,500,000 – Development Finance Authority taxable revenue bond
7%
The DFA provided conduit financing with taxable revenue bonds. DFA also structured a capital lease with the following features: Through use of a construction agency agreement, Snap-on Business Solutions designs and builds the facility to its specifications. Snap-on claims the tax advantages of depreciation. Snap-on has the ability to become the owner for a nominal cost at the end of the lease term.
The Project is the acquisition, construction, equipping and improvement of an approximately 133,000 square foot assisted living facility containing approximately 50 independent living units, 49 assisted living units and 28 memory care units on approximately 12.2 acres in the City of Green. Spring Hill Senior Living, LLC or its assigns (the “Lessee”) will ground lease the Project site to the Authority and the Authority will issue revenue bonds (the “Bonds”) in a principal amount not to exceed $25,000,000 to finance a portion of the costs of constructing the Project. The Lessee, as construction agent of the Authority, will construct the Project. The Authority will lease the Project under a capital (the “Lease”) to the Lessee. A commercial banking institution selected by the Lessee will purchase the Bonds from the Authority in a direct purchase. The rental payments made by the Lessee to the Authority under the Lease will secure the debt service on the Bonds.
Summa Health System is one of the largest integrated health systems in Ohio. The Heart Center and Specialty Health Center added approximately 80,000 square feet of space to the Akron City Hospital Campus. The addition brought a wide range of patient services under one roof. The building provides a mix
Find optimum financing for Summa’s mixed for-profit and non-profit development.
Maintain Summa’s control of the facility’s construction and operation.
Summa financed 100% of the project with the Development Finance Authority (DFA) as substantive issuer.
The DFA’s non-profit status meant sales tax exemption on construction materials.
DFA-structured financing took advantage of the tax-exempt portion.
Lease end options will allow Summa to share in appreciation of the project.
Summa enjoys enhanced cash flow from off-balance sheet financing.
Fixed or floating rate financing means flexibility in capital and debt management.
Project Cost: Taxable: $17 million
Tax-exempt: $10.5 million
Source Funds:
$17,000,000 – Development Finance Authority Taxable Bonds
$10,500,000 – Development Finance Authority Tax-exempt Bonds
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$27,500,000 – Total
Interest Rate:
The DFA issued a total of $27.5 million in tax-exempt and taxable bonds to finance the project. The DFA structured a synthetic lease financing agreement with Summa. The lease was facilitated and underwritten by NatCity Investments, Inc. Under the terms of the agreement, Summa leases the buildings from the DFA, which owns the assets. Lease payments service the bond debt. During the lease term, Summa reports these payments as an operating expense, but may also take depreciation for tax purposes.
In an effort to better serve the public in a time where collaboration fosters efficiency and growth, the Summit County Health District combined with the City of Akron and City of Barberton Health Districts to create the Summit County Combined General Health District (SCCGHD) in 2011. The consolidation of the three (3) entities created the demand for an efficient operation model so the newly created Health District began to search for adequate space to serve as the new main campus. In December 2012 the Health District purchased the Fairway Center Building Complex located at 1867 Market Street, Akron, OH and began planning the required renovations needed to accommodate their needs to continue to assure access to health district services throughout the County. The site has free and ample parking and is located on a METRO RTA route.
The Summit County Combined General Health District approached the Development Finance Authority of Summit County (DFA) to assist with financing the renovation. The DFA issued $5,000,000 tax-exempt bank qualified bonds in collaboration with FirstMerit Bank to fund the SCCGHD improvements. The SCCGHD consolidated five (5) locations into one (1) to more conveniently and effectively serve the citizens of Summit County.
The Job Center provides businesses and residents access to career services at one state-of-the-art location. Administered by the Summit County Workforce Policy Board, an independent, 501c3 nonprofit organization, The Job Center opened in 2007 in a former warehouse. The new center provides 55,000 sq. ft. of space to the Job Center partners and 45,000 sq. ft. to be leased to other tenants. The services provided include:
$4,830,000 – DFA Series 2005 E & F Bonds
$2,000,000 – Summit County Loan
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$6,830,000 – Total
Series 2005 E Bonds: 5.000%
Series 2005 F Bonds: 4.875% (tax-exempt)
Development Finance Authority sold $4.8 million in development revenue bonds to finance the project. The debt will be serviced from tenant leases. Summit County provided a guarantee on debt service payable solely from non-tax revenues. Additional support was provided by the Greater Akron Chamber of Commerce.
The University Edge project is located on East Exchange Street between Sumner and Allyn Streets, adjacent to the University of Akron. The development site included 15 parcels assembled and financed privately by the developer. The completed project consisted of two five story buildings; one with retail on the ground floor and the other with a community facility for tenants on the ground floor. Both have private housing units, 40 in the retail building and 108 in the second building, on floors 2-5.
DFA issued two series of bonds using two different financing structures for the benefit of the developer, University Square Investors II, LLC and the City of Akron. The first series of bonds totaling $3M were issued as conduit lease revenue bonds with the assistance of Huntington Bank. By ground leasing the project site to the DFA, who then leased the site back to the developer and entered into a Construction Agency Agreement, University Square Investors II, LLC was able to utilize the DFA’s Sales Tax Exemption on building materials.
For the second series of bonds DFA issued $6.645M of TIF bonds through the DFA Jobs and Investment Bond Fund program for infrastructure improvements servicing the two buildings. This debt instrument also provided the Sales Tax Exemption on all the building materials.
Project Cost: $47.599M
Source Funds:
$30M – Conduit Lease Revenue Bonds purchased by Huntington Bank
$6.645M – DFA Jobs & Investment Bond Fund program-TIF (4.25% fixed rate fully amortizing debt)
$10.954M – Equity
$47.599M
The University Edge – Akron Project was comprised of a mixed use development project incorporating student housing and retail into two (2) adjacent buildings. The first building was designed as a five (5) story, 94,000 sq. ft. facility with 18,500 sq. ft. dedicated to retail on the first level and floors two (2) through five (5) and forty housing units. The second building was designed as a five (5) story, 194,000 sq. ft. building consisting of 108 housing units and nearly 5,000 sq. ft. of community facilities.
The Development Finance Authority of Summit County (DFA) issued two series of Bonds using two different financing structures for the benefit of the developer, University Square Investors II, LLC and the City of Akron.
The first series of Bonds, totaling $30,000,000, were issued as conduit lease revenue bonds with the assistance of Huntington Bank . By ground leasing the project site to the DFA, who then leased the site back to the developer and entered into a Construction Agency Agreement, University Square Investors II, LLC was able to utilize the DFA’s Sales Tax Exemption on building materials.
The DFA then issued $6,645,000 of TIF bonds through the DFA Jobs and Investment Bond Fund Program for infrastructure improvements and installation to fully serve the two (2) new facilities to be located at 270 E. Exchange Street in Akron. This debt instrument also provided the Sales Tax Exemption on all building materials.
The total project costs were $47.599M. To assist the community project, DFA and Huntington Bank collaborated to provide $30M for building construction costs. The University Edge project provided 400 construction jobs and created 35 new jobs.
Project Cost: $47, 599,000
Source Funds:
$30,000,000 -Conduit Lease Revenue Bonds purchased by Huntington Bank
$6,645,000 -DFA Jobs & Investment Bond Fund Program-TIF (4.25% fixed rate fully amortizing debt)
$10,954,000 -Equity
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$47,599,000 -Total Project Cost
Located in the far northeast corner of Summit County, the Village of Reminderville is city-close and country-quaint. The residents range from young families planting roots to senior citizens who have watched their family tree grow in the Village for decades. “A community recreation center has been a civic vision for years,” said Mayor Sam Alonso, “and we are excited and honored to have the opportunity to work with the DFA to present this facility to our residents as well as to those in the surrounding suburbs.” The DFA issued $5.1M in appropriation lease revenue bonds to help finance the facility.
The Reminderville Community Recreation Center will provide numerous amenities including around-the-clock access to the fitness center, the conveniences of chain-store gyms, while two basketball courts and three volleyball courts will allow Reminderville to play host to competitive leagues and tournaments. Specialized fitness programs, a much anticipated suspended walking track, and top of the line fitness equipment will ensure the correct workout for members, regardless of their individual fitness level. Community rooms will offer a perfect solution for senior group activities and private parties, and the facility will be home to community family events throughout the year. The latchkey program will provide peace of mind for those hard-working families that struggle to beat the bus home at the end of the day. A lap pool will be a valuable benefit for many and paired with a more casual kiddie zone, will be an ideal environment for everyone.
“As our motto states,” Mayor Alonso said, “Reminderville is ‘a great place to call home.’ And working with the DFA is making it possible to make it even greater.”
Development Finance Authority of Summit County (DFA) issued $7,930,000 in Tax-Exempt Revenue Bonds to fund the construction, renovation, installation, furnishing or equipping of real and/or personal property of Seymour Hall owned by Western Reserve Academy in conjunction with its private secondary education facility.
This project creates 90 construction jobs.