One-Time Community Investments Package Set to Become Law

June 25, 2024

Shortly before the end of the state’s fiscal year on June 30, Ohio legislators are aiming to appropriate over $3.5 billion in infrastructure and development projects as part of the state’s biennial capital budget. Within this larger effort and in addition to the state capital improvement projects typically funded every two years, such as local public infrastructure, school facilities, higher education facilities, and local jails, the General Assembly is set to appropriate an additional $717.8 million this year for One-Time Strategic Community Investment Funds (OTSCIFs).

The purpose of these one-time funds, according to Senate Finance Chairman Matt Dolan, is to “return taxpayers their money through community projects throughout the state which enhance our quality of life.”

Background

On June 17, the House introduced H.B. 629, which specified $717.8 million in total community projects and $3.51 billion in public infrastructure projects. The House built the H.B. 629 package on the Senate package introduced last week (S.B. 288), which allocated $700 million to 653 community projects, including 58 projects in Cuyahoga County and 33 projects in Franklin County.

H.B. 629’s additional one-time community fund appropriations were authorized in Section 513.10(E) of the FY 2024-25 biennial budget (H.B. 33) the General Assembly passed last July. This provision created a new fund in the state Treasury, Fund 5AY1 line item 042509, specific to the OTSCIF. As a result, OTSCIF funds are not subject to capital budget bondability requirements that apply to capital budget grants, or grant requirements specific to state agencies other than the Office of Budget and Management. These requirements generally limit annual capital budget grantees to governmental entities and non-profit organizations, and limit eligible spending purposes to those purposes enumerated in Ohio Constitution Article VIII, Public Debt and Public Works. The OTSCIF therefore provides broad flexibility to state legislators to make grants to assist in or complete the capital stack of private developers.

H.B. 629 does require the Office of Budget and Management (“OBM”) to enter into a grant agreement with the recipient prior to disbursement. After the funds are spent, the recipient must complete a final report detailing how grant funds were used to OBM.

Summary of Selected Projects

Following is a listing of select notable appropriations for projects throughout Northeast Ohio by county:

Cuyahoga County

$20 million for the North Coast Connector Project
$7 million for the Rock and Roll Hall of Fame Expansion and Renovation Project
$8 million for the Bedrock Riverfront Development
$5 million for the Cleveland Port Bulk Terminal Modernization
$3.5 million for the Flats River Development
$2.4 million Cleveland West Side Market
$2 million for the Irishtown Bend Development
$2 million for Cahoon Park lakefront redesign
$2 million for Valor Acres Brecksville
$1.8 million for the Blue Abyss site for new astronaut training center in Brook Park, Ohio
$1 million for the YMCA of Greater Cleveland New Facility Project
$1 million for the Cleveland Women’s Soccer Stadium

Lake County

$2 million for Willoughby Osborne Park Shoreline Protection
$1.5 million for Uptown Mentor Revitalization

Lorain County

$2.5 million for Lorain County Community College Desich Entrepreneurship Center 3rd Floor Microelectronics Training Hub
$2.5 million for Lorain County Fairs

Stark County

$9.8 million for Hall of Fame Village
$7.0 million for Pro Football Hall of Fame Modernization

Medina County

$2.5 million for the City of Wadsworth Brickyard Athletic Complex and Fixler Reservation
$1.5 million for Lake Medina
$1.4 million for Akron Children’s Medina Health Center

Summit County

$5 million for Cascade Plaza in Akron
$3.8 million for New Franklin Sewer Project
$3.2 million for Akron-Canton-Airport West Side Development for Aeronautic Activity
$3 million for Cuyahoga Falls Regional Fire Training Complex
$2 million for Akron Art Museum – Center for Digital Discovery
$1.75 million for Akron Zoo Veterinary Hospital

Trumbull

$2.15 million Cortland Safety Service Complex/Training Facility
$1.5 million for West Warren Industrial Park Traffic and Fire Suppression Improvements

Following is a listing of select notable projects in other Ohio counties with larger populations:

Franklin County

$20 million for the Ohio Center for Advanced Technologies
$18.5 million for the Columbus Symphony Orchestra
$10 million for the Downtown Columbus Capital Line
$8 million for the Heritage Trail Expansion Project
$7.5 million for John Glenn International Airport Improvements
$2.8 million for the OP Chaney Grain Elevator Restoration
$1.5 million for the Columbus Downtown Security Command Center
$1.23 million for the Historic Dublin Riverfront Revitalization Project

Hamilton County

$46 million for the Hamilton County Convention Center District Development
$16.75 million for the University of Cincinnati Health
$9.75 million for Xavier University College of Osteopathic Medicine
$8 million Riverbend 2.0 riverfront concert venue

Lucas County

$3 million for the Lucas County Seawall and River Edge Reconstruction Project
$3 million for the Toledo Innovation Center
$2.9 million for the Inclusive Multigenerational Community and Recreation Center
$2.7 million for the Virginia Stranahan Trail and Senior Affordable Housing/Senior Development
$2 million for The Eugene F. Kranz Toledo Express Airport Terminal Renovation Project
$2 million for the Toledo YWCA Domestic Shelter Project

Montgomery County

$3 million for Miami Chapel Inspire Zone Youth Workforce Development Center – Boys & Girls Club
$2 million for Dayton Aviation Heritage Site (Wright Factory)
$2 million for Dayton International Airport Concourse B

Other notable projects include to be funded from the One Time Strategic Community Investments line item are:

$27.5 million for Cincinnati Open Tennis Tournament in Warren County
$24 million for Transportation Research Center, Inc. Impact Lab Upgrades in Union County
$12 million for Cedarville Opera House in Greene County
$10 million for Lima Veterans Memorial Hall Improvements in Allen County
$8.5 million for Buckeye Lake North Shore Park and Pier in Licking County
$5 million for Wayne National Forest Welcome Center in Lawrence County
$5 million for Indian Lake Advocacy Group in Logan County
$5 million for Hopewell Regional Visitor Center in Ross County
$5 million for Shawnee State University College of Health and Human Services in Scioto County

The Senate Finance Committee held hearings on the package last week, and the legislation is subject to potential amendments before passage by the General Assembly before the June 30th deadline.

KJK is involved in a large number of development projects and works with municipalities in Northeast Ohio on strategies to secure state and federal funding. KJK is available to provide advice at varying levels of analysis regarding alternative financing sources available to build out the capital stack of a local development project, ranging from an initial consultation to a full incentives study. For more information on how KJK can assist with alternative financing sources for a real estate project, please contact KJK Partner Rich Morehouse at RAM@kjk.com or Charlie Bolton at CHB@kjk.com.