News from Hicks Partners LLC

In This Issue

Legislative Update

JobsOhio and Ohio Third Frontier

Economic Development Hightlights

November Elections

Client Spotlight

July 2012

Dear Friends:

The first half of the year has been busy and productive for Hicks Partners. So busy in fact, that our quarterly newsletter has become biannual!

In this issue, we'll highlight some of the successes of the past few months and look ahead to the November elections, the fall legislative session and to economic development opportunities in the coming months.

As always, please feel free to contact any of us at Hicks Partners if we can be of assistance.

Sincerely,

Brian K. Hicks

President & CEO

Legislative Update
A Busy and Productive Legislative Session It was a busy spring session for the Ohio General Assembly. While the bulk of legislative activity focused on Governor John Kasich's Mid-Biennium Review, several other important bills were passed focusing on issues as diverse as energy, environmental regulations, the state's capital budget and control of dangerous wild animals. Working with several outstanding clients, we were able to accomplish much in the first half of 2012, including: * Ensured waste heat recovery was included in Ohio's Renewable Portfolio and Energy Efficiency standards as part of SB 315. These provisions encourage the development and deployment of technologies to transform waste heat into clean, emission-free electricity. * Removed the "off-peak" energy storage requirement to receive credit under renewable portfolio standards. * Obtained EPA statutory language to help protect public health by ensuring that infectious waste is properly reported prior to transport and disposal. * Included public health officials on the advisory committee for the regulation of exotic animals in the dangerous wild animal bill. * Helped Stark State College secure $10 million to develop an energy center in Canton. The award was part of the state's $400 million biennial capital budget approved in April. The new energy campus will address education and training needs of the emerging oil and gas industry. * Helped secure ongoing federal funding for the fuel cell industry in Washington, DC. For the second year in a row, we have helped restore $25 million of funding for the solid oxide fuel cell research and development in the US Department of Energy budget. We are now working to maintain this funding through the congressional appropriations process. While it is possible the legislature will act on public pension system reform this summer, most other significant legislative action will not occur until after the November elections. Many issues left unresolved in the early part of the year may be considered during the lame-duck session, including: * Governor Kasich's proposal to increase the oil and gas severance tax and reduce personal income taxes; * expansion of the Ohio Venture Capital Authority and other economic development issues; * reforms to Ohio's workers compensation system. These bills could move quickly through the legislative process. If you have an interest in one of these or other issues which are expected to receive action this fall, it is important that you prepare well in advance. For more information on Hicks Partners legislative services or if you have questions on how to approach a government relations issue please contact Zach Holzapfel or Tony Brigano.

JobsOhio and Ohio Third Frontier

JobsOhio

JobsOhio

JobsOhio, the private economic development agency formed by Governor Kasich, has been running full-steam ahead for several months. JobsOhio now has approximately 25 staff members in Columbus, plus the JobsOhio Network that reaches to all corners of the state. Since its inception, the agency published "The JobsOhio Strategic Framework for 2012" and helped Ohio's companies create 21,000 new jobs in Ohio through 245 separate investments.

While permanent funding for JobsOhio has been delayed, the JobsOhio team is forging ahead with its efforts to transform Ohio's economy and to reshape how the state of Ohio does business with business.

Hicks Partners has been pleased to work with JobsOhio on a number of important projects during the first half of the year. See below. More information about what is happening at JobsOhio can be found at www.jobs-ohio.com.

Ohio Third Frontier Future Opportunities Are Plentiful

While JobsOhio moves full speed ahead, the Ohio Third Frontier Project has slowed considerably. At the end of the state fiscal year on June 30, the Ohio Third Frontier (OTF) Commission had approved approximately $41 million of its available $225 million for the year. The fiscal year 2012 plan included many new or revised programs under three categories: Open Innovation, Entrepreneurial Support and Value Chain Development.

Fortunately, all unused funds will carry forward to fiscal year 2013 which has an allocation of $175 million. Consequently, approximately $359 million in OTF funds will be available for use in FY13, and there will be plenty of opportunities for this economic development program to help grow Ohio companies. Members of the OTF Advisory Board and Commission will hold a retreat in the late summer to discuss the FY13 program plan. While there is still some level of uncertainty, we anticipate much more activity in the fall with the release of additional OTF funding.

If you are interested in Third Frontier funding there are a numbers of steps you can take now to be prepared. For more information on the Ohio Third Frontier Project or to see how Hicks Partners can assist your company, please contact Emily Turner.

Economic Development Highlights

Hicks Partners' Clients Win Economic Development Incentives

We have been pleased to assist several clients access valuable economic development incentives in the past few months.

The Timken Company, a leader in industrial components and highly engineered steels, Timken Headline 2012 announced a $225 million expansion of its Faircrest steel mill in Canton, Ohio, in April. Hicks Partners was pleased to assist Timken with economic development incentives to support this major expansion. Investing in the Faircrest plant will expand the company's capabilities and increase capacity by 25% to meet the challenging needs in energy and industrial applications throughout the U.S. and in the developing economies of the world.

Governor at Timken 2012 "Americans make things better than anybody else," according to Governor Kasich, who was joined at the groundbreaking ceremony by US Senator Rob Portman, Congressmen Jim Renacci and Bob Gibbs and Ohio House Speaker Bill Batchelder.

"Demand for Timken® steel to support the challenging needs of energy and industrial applications continues to grow in this region, throughout the United States and in the developing economies of the world," Chairman of the Board Ward J. "Tim" Timken, Jr., told the crowd gathered for the groundbreaking. "This investment is part of the company's ongoing strategy to expand in markets that value the reliability and efficiency of our world-leading products and offer opportunity for sustained long-term growth."

Since 2006 The Timken Co. has announced investments totaling nearly $500 million aimed at improving local steel production.

Attending Quantum Health's HQ expansion were Franklin County Commissioner Paula Brooks, Columbus Mayor Michael Coleman, QH CEO Kara Trott, QH President & COO Randy Gebhardt and Governor John Kasich.

Quantum Health
After a multi-state site selection analysis conducted by Hicks Partners, Quantum Health, Inc. announced the expansion of its Columbus headquarters and the addition of more than 500 jobs in the coming years.

Quantum Health assists public and private sector employers to help their employees navigate health care and health care coverage. The state of Ohio is supporting the company's expansion with job creation tax credits and workforce training grants. The City of Columbus and Franklin County are also providing economic development assistance to support Quantum Health's growth.

At an announcement ceremony attended by Quantum Health associates and clients, Governor Kasich noted the company simplifies the health care process and ultimately saves money. "If you can squeeze the waste out, it means you can continue to get the same level of health care that's being provided for you in a more rational way - it's what I think everybody in America wants," remarked the Governor.

Synapse Biomedical
Hicks Partners' client Synapse Biomedical, Inc. was awarded valuable job creation tax credits to support hiring an additional 60 jobs in Oberlin, Ohio. Synapse Biomedical's NeuRx Diaphragm Pacing Stimulation System helps patients dealing with spinal cord injuries. The device, used by the late actor Christopher Reeve, helps patients breathe by stimulating the diaphragm, the muscle used in breathing. Synapse Biomedical won FDA approval last fall to use the device for people with ALS, also known as Lou Gehrig's disease.

In total, Hicks Partners has helped clients secure more than $125 million of economic development grants, loans and tax credits through the years. To learn how we can help your company, please feel free to contact Emily Turner or Keith Conroy.

Keith Conroy joins Hicks Partners

KC headshot Longtime economic development professional, Keith A. Conroy, joined Hicks Partners, LLC as Vice President in April. In this role, Keith is responsible for advancing economic development projects and public policy initiatives to support the firm's clients.

Keith has more than 20 years of experience with government entities and economic development projects. He previously served as Assistant Deputy Director for the Ohio Department of Development, served on the Governor's Energy Task Force and was one of the architects of Ohio's Advanced Energy Loan Program. Additionally he played a key role in attracting many international companies to the State of Ohio. Conroy was directly involved with the creation of a number of key programs and initiatives including: Jobs Ready Site Program, AEP Infrastructure Grant and the Industrial Site Improvement Fund. Prior to joining Hicks Partners, Keith advised and closely worked with a number of state and federal agencies, including the US Department of Energy.

Conroy is a Certified Economic Finance Professional from the National Development Council. He served on the Development Finance Advisory Council (DFAC) and the Board of the Ohio Water Development Authority. Conroy lived and worked in Japan for more than five years and has traveled extensively throughout Asia.

Please feel free to contact Keith Conroy.

November Elections

Political Season is Upon Us elephant and donkey patriotic

In addition to the hotly contested races for President and US Senator, several other important races and issues will be decided in November.

In state legislative races, most observers agree that Republicans will maintain their majority in both the Ohio House and Senate. Nonetheless, there are a number of competitive races worth watching:

* House District 03: This Northwest Ohio seat is comprised solely of Wood County. Incumbent Rep. Randy Gardner won this seat in 2010 with 66% of the vote. Gardner has been a member of the Ohio General Assembly since 1985 and is vacating his House seat to reclaim the Ohio Senate seat he previously held from 2000-2008. With no incumbent running, this race will see Wood County Commissioner Tim Brown (R) running as the favorite against small business owner Kelly Wicks (D).

* House District 07: This Cuyahoga County district features a rematch of the 2010 race between incumbent Rep. Mike Dovilla (R) and former Rep. Matt Patten (D). Patten, a labor organizer from Strongsville, served one term in the Ohio House before being defeated by Dovilla with 52% of the vote. Dovilla, a Navy veteran and small business owner, resides in Berea.

* House District 28: This suburban Hamilton County seat is another rematch of a 2010 contest between incumbent Rep. Connie Pillich (D) and her challenger Mike Wilson (R) an IT professional. Robert Ryan, a Libertarian, is also in the race. Pillich defeated Wilson by roughly 600 votes (49%) in a three person contest in 2010.

* House District 64: This Northeast Ohio district includes parts of Ashtabula and Trumbull Counties. Incumbent Rep. Tom Letson (D) will face former Rep. Randy Law who was defeated by Letson in 2006 with approximately 55% of the vote. Letson is an attorney in Warren and running for his fourth term in the Ohio House. Law is a small business owner and also resides in Warren.

* Senate District 30: A key Senate race to watch will be the 30th district which runs along Ohio's eastern border. The district is currently represented by Senator Lou Gentile (D) who was appointed to the seat in 2011. Republicans will field St. Clairsville businessman and former National Guardsman Shane Thompson. Thompson is vice president at a battery recycling company.

Voters will also see two statewide issues on the ballot in November. The first will ask voters to authorize constitutional convention to review, modify or update Ohio's constitution. The second issue will change the process for drawing Ohio's congressional and state legislative districts. Under the proposed new process, the duty of drawing Ohio's legislative and congressional districts would be removed from the Apportionment Board and the General Assembly respectively, and given to a citizen's commission created by the amendment.

Client Spotlight

EchoGen Power Systems hosted Governor John Kasich for the signing of SB 315, the Governor's proposal which makes sweeping changes to Ohio's energy policy. The legislation changes state policy dealing with shale gas drilling standards, smart electric grids, energy efficiency, renewable energy and clean coal technology. It covers energy conservation at state buildings, alternative fuel transportation programs and pipeline safety. It also promotes the use of natural gas and streamlines state permitting. In addition, SB 315 modifies Ohio's

Phil Brennan, CEO of EchoGen Power Systems, looks on with state officials, policymakers and the EchoGen Power Systems team as Governor John Kasich signs SB 315 into law.

Alternative Energy Portfolio Standard on renewable energy to include waste heat recovery.

Akron-based EchoGen has developed a breakthrough power generation cycle for waste heat recovery using supercritical CO2 as the working fluid, which provides significant advantages regarding system efficiency and footprint. The company's technology has applications as broad as bottom cycling in gas turbines, industrial waste heat recovery, solar thermal, geothermal and hybrid alternatives to the internal combustion engine.

Hicks Partners was pleased to work with EchoGen Power Systems, the Kasich Administration and members of the legislature to include waste heat recovery as part of SB 315. More information about EchoGen Power Systems can be found at www.echogen.com.

Hicks Partners, LLC www.hickspartners.com 800-556-0227