1. 240 North Champion Street
  2. Youngstown, OH 44503
  3. 234.228.9696

Financing

Capital Leasing

The Northeast Ohio Development and Finance Authority can provide bond financing of large construction projects with a Capital Lease Option that enables borrowers to take advantage of savings on development costs.

Benefits: 

  • Exemption of the sales tax on construction materials
  • Lease payments will fully amortize debt
  • Buyout option allows company to buy asset for $1 at the end of lease
  • Assets and liabilities are placed on the company’s balance sheet
  • No Prevailing Wage Requirement
  • Reduces construction costs and improves Loan-to-Value

Featured Project: Hollywood Gaming (May 2013)

  • Provided $60 million in capital lease financing
  • Financing used for stables, race track, parking lots and other buildings
  • Lease term is 20 years

Property Assessment Clean Energy (PACE)

The PACE Program finances investments in energy-related improvements in new and existing real estate property, thereby reducing the operating costs through energy cost savings. Eligible improvements include heating and cooling systems, roof, insulation, windows, and solar and geothermal projects. The PACE bonds are paid by the property owner with special assessments levied on the project.

Benefits: 

  • Little to no up-front investment
  • Reduced operating costs
  • Improved property value
  • Long-term financing
  • Immediately benefit from savings

Featured Project: Southern Park Mall

  • Worked with Simon Property Group and Boardman Township to establish ESID to allow PACE financing

Tax Incremental Financing (TIF)

Tax Incremental Financing (TIF) helps developers, governmental entities and other organizations finance improvements such as streets, curbs and parking facilities.

Benefits:

  • Infrastructure improvements drive long-term economic development
  • Possibility of 100% financing
  • Lower cost of construction
  • Fixed interest rate, tax-exempt financing
  • Terms of up to 32 years

Featured Project: The Inn at Poland Way

  • Infrastructure is paid through future property tax revenues over ten years
  • Additional drop-turn lane added in order to improve public safety and access to the development

Conduit Revenue Bonds

The Northeast Ohio Development and Finance Authority can serve as the Issuer for the purpose of making proceeds available to an entity in furtherance of a public purpose by way of Industrial Revenue Bonds, Hospital Revenue Bonds, Non-Profit Bonds and Housing Bonds.

Benefits:

  • Financial strength based upon credit of the company or non-profit organization
  • Rated or non-rated bonds sold in capital markets or privately placed with banks
  • Capacity to issue bank-qualified, tax-exempt debt