Development Finance

Project Summaries: 1993-1999

Rock and Roll Hall of Fame and Museum
$34,855,000 – May 1993

Cleveland (Cuyahoga County) 

Total project cost of approximately $92 million. The Port Authority issued $34.855 million in revenue bonds, owns the facility and leases it to the Museum on a 50-year lease term with an option for a 49-year renewal. This issue had a $2.1 million (per year) guaranty from the State of Ohio. Source of repayment for the bonds were Bed Taxes from Cuyahoga County.

 

Applied Industrial Technologies (Bearings, Inc.)
$18,835,000 – March 1996

Cleveland (Cuyahoga County)

Total project cost of approximately $37 million. The Port Authority owns the facility and leases it to Applied on a 20-year lease term with two, ten-year options. The Port Authority issued $18.835 million through an operating lease structure and is off-balance sheet, meaning it is not on the Company’s balance sheet, thereby improving certain financial statement ratios. This project retained 311 jobs in the City of Cleveland and State of Ohio, as the Company was looking out-of-state for this project. Other lenders on this project include State of Ohio, City of Cleveland, Cuyahoga County, and Cleveland Development Partners (Cleveland Tomorrow).

 

C & P Ore Docks (CBT)
$6,640,000 – March 1997

Cleveland (Cuyahoga County)

Total project cost approximately $7.7 million. The Port Authority issued $6.640 million in bonds to acquire a portion of Whiskey Island from Conrail. Oglebay Norton Company is leasing and operating the facility from the Port Authority. Debt service is paid by the Lease with Oglebay.

 

Cleveland Stadium
$139,345,000 – June 1997

Cleveland (Cuyahoga County)

Total project cost approximately $250 million. The Port Authority participated in a $139.345 million Certificate of Participation (COP) financing that was undertaken by the City of Cleveland to assist in the construction of an open-air municipal stadium for the Cleveland NFL franchise. A ground lease was granted to the Port Authority for the project from the City of Cleveland, and the Port Authority then leased it back to the City. Because of this structure, the debt for this issuance was not counted against the City of Cleveland’s debt capacity.

 

ESSROC Cement
$3,795,000 – November 1997

Cleveland (Cuyahoga County)

Total project cost of approximately $4.2 million. The project consisted of infrastructure improvements to Port Authority property known as Dock 20/22. The improvements allowed ESSROC Cement to proceed with their project on the southwest quadrant of the property. ESSROC Cement is paying debt service on this project through their lease agreement with the Port Authority. The Port Authority issued $3.795 million through the Fixed Rate Financing Program.

 

Jergens
$5,720,000 – February 1998

Cleveland (Cuyahoga County)

Total project cost approximately $9 million. Jergens, Inc. is a longtime Cleveland Company formerly located on Nottingham Road. The new facility is a 92,000 square feet manufacturing and office 2 April 2012

complex located in the new Collinwood Yard Industrial Park in the City of Cleveland. Other lenders on this project included the State of Ohio and the City of Cleveland. The Port Authority issued $5.720 million through the Fixed Rate Financing Program.

 

Northeast Ohio Areawide Coordinating Agency (NOACA)
$3,345,000 – March 1998

Cleveland (Cuyahoga County)

Total project cost approximately $3.7 million. NOACA purchased and renovated the Levy Furniture Building on East 13th and Superior Avenue in Cleveland, a building that was vacant for many years. The building serves as the headquarters for the transportation-planning agency that serves five counties in Northeast Ohio. The Port Authority issued $3.345 million through the Fixed Rate Financing Program.

 

OfficeMax
$20,330,000 – December 1998

Highland Hills (Cuyahoga County)

This project consisted of the acquisition of 34 acres of land in Highland Hills in the City of Cleveland’s Enterprise Park, and the construction of a 101,000 square feet back office operation for OfficeMax. The Port Authority issued $20.330 million in bonds and the State of Ohio also participated in this financing with a $1.8 million loan to the Port Authority. The Port Authority owns this project and leases it to OfficeMax through a synthetic operating lease. This lease structure allows the Company to buy the project at the end of the lease term for a price equal to the unamortized portion of the financing.

 

Port Authority Improvements
$12,070,000 – May 1999

Cleveland (Cuyahoga County)

This Port Authority project was financed through the Fixed Rate Financing Program in the amount of $5.230 million and $6.840 million for a total of $12.070 million in 5-year Tax Anticipation Notes. Proceeds from the financing are being used for land acquisition, the building of a 1,100 lineal foot dock and other Port improvements.

 

MetroHealth Hospital
$10,973,006 – November 1999

Cleveland (Cuyahoga County)

The Port Authority issued $10.973 million bonds to finance the governmental tax-exempt synthetic lease for the construction of a 750-car garage for employee parking at MetroHealth Hospital. The structure of the financing allows the Hospital to keep the assets off their balance sheet. The term of the financing is for up to 10 years.

 

Universal Heat Treatment
$1,480,000 – December 1999

Cleveland (Cuyahoga County)

Total project cost approximately $1.5 million. This project included an expansion to the Company’s current facilities located on East 93rd Street in Cleveland, and the purchase of two heat treating furnaces. The Port Authority issued $1.480 million through the Fixed Rate Financing Program.

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