The Western Reserve Port 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.
- 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
The Western Reserve Port Authority can issue bonds for the purpose of making proceeds available to an entity in furtherance of a public purpose. This includes tax exempt options like Industrial Revenue Bonds, Hospital Revenue Bonds, Non-Profit Bonds, Housing Bonds, and other Private Activity Bonds.
- Interest rates for the bonds sold in capital markets are based upon the financial strength of the company, developing agency, and credit enhancements provided by the Port Authority, thereby providing significant cost savings to the developer.
- Debt capacity may be increased due to this as well.
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.
- Little to no up-front investment
- Reduced development costs
- Reduced operating costs
- Improved property value
- Long-term subordinate debt financing
- Immediate savings benefit
Featured Project: Southern Park Mall
- The Southern Park Mall in Boardman worked with the Port Authority to make improvements to the facility that will increase energy efficiency with low-cost, long-term financing. PACE financing was used to replace the roof over a common area, upgrade the interior lighting fixtures with more energy-efficient LED units, and other energy related improvements. The Port Authority created an Ohio Energy Special Improvement District (ESID) in Boardman Township for the project and issued a $2,338,000 PACE Revenue Bond.
Tax Incremental Financing (TIF)
Tax Incremental Financing (TIF) helps developers, governmental entities and other organizations finance improvements such as utility lines, streets, curbs, and parking facilities.
- 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 30 years
Featured Project: The Inn at Poland Way
The ten-year tax increment estimates revenues of approximately $718,320. Those funds completed the following projects on behalf of the development and Poland Township.
- 600-foot public access road
- Sanitary sewer lines on State Route 224
- Resurfacing of Clingan Road, Struthers Road, and intersections
- Sanitary sewer improvements in the area of Frontier and Circle Drive (match)
- Roadway improvements
- Additional drop-turn lane added in order to improve public safety and access to the development
Conduit Revenue Bonds
The Western Reserve Port 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.
- 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