Capital Leases

Filter Projects

80 Exchange

Issuer(s)
DFA
Investment Amount(s)
(in millions)
24.5
Closing Date
2013
County
Summit

Akron Children’s Hospital – Mansfield

Issuer(s)
DFA
Investment Amount(s)
(in millions)
$6.3M
Closing Date
February 13, 2018
County
Richland

Akron Children’s Hospital (ACH) Medical Center is expanding medical services and their footprint.  ACH partnered with the City of Mansfield, Development Finance Authority and Raemelton Park Developers have to construct a new two (2) story, 45,000 square foot medical office to be located in the City of Mansfield.

DFA issued Taxable Development Revenue Bonds to assist in financing the $14.5M project.  With the DFA issuance, the purchase of construction and building materials are exempt from state and local sales taxes.

During the construction phase of the project, approximately 130 new jobs will be created.  Upon completion, there will be an additional 25-30 new jobs created for doctors, nurses and additional support staffing.

Brouse McDowell served as Bond Counsel and DiPerna Advisors served as Financial Advisor for the project.

Akron General Medical Center // City of Green Wellness Center

Issuer(s)
DFA
Investment Amount(s)
(in millions)
25.6
Closing Date
2011
County
Summit

Arhaus HQ & Distribution Center

Issuer(s)
DFA
Investment Amount(s)
(in millions)
40.0
Closing Date
2015
County
Summit

ASC Industries, Phases 1 & 2

Issuer(s)
DFA
Investment Amount(s)
(in millions)
7.25
Closing Date
1999 & 2002
County
Summit

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.

The Value Provided

Find tax-efficient financing manufacturing facility expansion.
ASCBuilding

Benefits of Working with us

  • The DFA has extensive experience in structuring capital leases.
  • ASC gains tax advantages and nominal-cost ownership options from capital leasing.
  • DFA conduit financing resulted in a reduced interest rate.
  • DFA involvement exempted the project from sales tax on materials, saving $161,000.

Project Cost: $7.25 million

Source Funds

$7,250,000 – Development Finance Authority IRB, 1999 & 2002

Interest Rate

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.

Bridgestone Americas Tech Center & Parking Facility

Issuer(s)
DFA
Investment Amount(s)
(in millions)
70.0
Closing Date
2010
County
Summit

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.

The Value Provided

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.

Benefits of Working with us

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.

Project Cost: $70M

Source Funds

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).

Interest Rate

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.

Concord-Testa Hotel

Issuer(s)
DFA
Investment Amount(s)
(in millions)
14.4
Closing Date
2014
County
Summit

Goodyear Innovation Way Parking Deck

Issuer(s)
DFA
Investment Amount(s)
(in millions)
45.895
Closing Date
2011
County
Summit

Goodyear Riverwalk Global Headquarters

Issuer(s)
DFA // ODOD - Loans // ODOD - Grants
Investment Amount(s)
(in millions)
97.885 // 30.0 // 17.0
Closing Date
2011
County
Summit

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 Value Provided

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.

Benefits of Working with usGY HQ Ribbon Cut

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.

Project Cost

Source Funds:

$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

Goodyear Riverwalk Innovation Center

Issuer(s)
DFA
Investment Amount(s)
(in millions)
46.7
Closing Date
2011
County
Summit

Hy-Ko Products, Inc.

Issuer(s)
DFA
Investment Amount(s)
(in millions)
5.5
Closing Date
2003
County
Summit

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.

The Value Provided:

Find the most effective means of financing new construction.
Provide a favorable environment for international business in Summit County.

Benefits of Working with us

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

Pepperidge Farms

Issuer(s)
DFA
Investment Amount(s)
(in millions)
40.0
Closing Date
2013
County
Huron

Pepperidge Farm, Incorporated based in Norwalk, Connecticut is a leading provider of premium quality fresh bakery products. It is a subsidiary of Campbell’s Soup Company. Pepperidge Farm chose to invest $93M for a 227,000 square foot expansion of its facility located in Willard, OH. The plant expansion will create 50 new jobs and retain 524 jobs in Huron County. To help with the expansion, the Huron County Development Council partnered with DFA to provide $40M for the building construction.

The Value Provided

Find the most reasonable and cost effective method to finance new construction.

Benefits of Working with us

    • DFA’s extensive experience in structuring capital leases.
    • Pepperidge Farm gains tax advantages and nominal-cost ownership options from capital leasing.
    • DFA conduit financing resulted in a reduced interest rate.

Project Cost: $93,235,649

Source Funds:

$40,000,000 – DFA Capital Lease
$53,235,649 – Machinery & Equipment Private Capital
—————
$93,235,649 – Total

Interest Rate

N/A

Ramco Associates, LLC

Issuer(s)
DFA
Investment Amount(s)
(in millions)
13.6
Closing Date
2015
County
Summit

Snap-on Business Solutions Inc.

Issuer(s)
DFA
Investment Amount(s)
(in millions)
16.5
Closing Date
2008
County
Summit

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.
Snap-on building

The Value Provided

Find the most reasonable and cost effective method to finance new construction.

Benefits of Working with us

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.

Project Cost: $16,500,000

Source Funds:

$16,500,000 – Development Finance Authority taxable revenue bond

Interest Rate

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.

St. Ed’s Springhill Assisted Living

Issuer(s)
Development Finance Authority
Investment Amount(s)
(in millions)
$25M
Closing Date
July 2018
County
Summit

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.

Star of the West Milling Co. of Ohio

Issuer(s)
DFA
Investment Amount(s)
(in millions)
10.0
Closing Date
2014
County
Huron

Summa Enterprise Group (Hudson Wellness Institue)

Issuer(s)
DFA
Investment Amount(s)
(in millions)
15.405
Closing Date
2006
County
Summit

The Bowery

Issuer(s)
DFA
Investment Amount(s)
(in millions)
$42M
Closing Date
2019
County
Summit

University Edge

Issuer(s)
DFA
Investment Amount(s)
(in millions)
30.0
Closing Date
2013
County
Summit

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