Recently we attended a presentation by Andy Kuhn, director of the Southeastern Ohio Port Authority. The presentation was extremely informative, but one phrase has continue to play since the presentation. Andy reported that a lot of money is being left on the table insofar as development in the MOV is concerned. What does he mean? There are tax credits and multiple channels of financial assistance that people are simply not taking advantage of locally. Some of these incentive programs are through the state, and some opportunities for assistance are through the Port Authority itself.
We thought we would offer a quick overview of some of the programs Andy discussed. The more awareness there is about these programs, the more likely people will be to develop properties here in the Mid-Ohio Valley.
Assistance Directly from the Southeastern Ohio Port Authority
There are a few different ways the Port Authority can help your company directly. First, the Port Authority offers conduit financing. It is described on their website as follows:
Southeastern Ohio Port Authority (SeOPA) can issue bonds on behalf of a borrower for the purpose of making the proceeds available to the borrower for certain projects. SeOPA works in partnership with traditional lending institutions and its public partners to provide the most advantageous financing for a project. Ultimately, the financial strength of the transaction is based upon the credit-worthiness of the underlying borrower (and any credit enhancement available in the deal).
Moreover, Andy talked about the fact that as a nonprofit, SEOPA can avoid a lot of the construction taxation most companies have to endure. You can sign a property in development over to the Port Authority while construction is underway, and then the Port Authority will sign it back over to you for a very minimal amount.
Both of these programs obviously can be highly beneficial to any company looking for assistance in developing a property for business.
Community Reinvestment Areas
Another program Andy said is not taken advantage of enough is the Community Reinvestment Area. The value of this program is that the taxes on a property can be frozen for up to ten years while improvements and renovations are executed. Developers in a town like Marietta could certainly accomplish amazing things through a program like this, but believe it or not, most projects do not attempt to benefit from this initiative.
The Southeastern Ohio Port Authority website offers a wealth of information on local and state programs that your business can use to assist in development projects and dealing with development costs. Take a look in particular at the incentives page and the state assistance page. You’ll be able to catch Andy live and in person at the Belpre Rotary meeting on August 24th or at the board meeting in Waterford on August 28th. Always feel free to give us or Andy Kuhn a call for further information on how we can make your dreams for property development easier to achieve.