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January 2015
At DFA our view is we are stronger as a region when we work together. We should all benefit from our shared assets, especially to attract private investment capital. We have worked to expand our Jobs & Investment Bond Fund lending capacity throughout Northeast Ohio, as well as provide access to New Markets Tax Credits. Working with partners and clients, we have now financed projects in Cuyahoga, Medina, Lorain, Portage, Mahoning, Stark, Huron and Summit Counties. This newsletter features two of our most recent transactions and provides some updates regarding the NMTC program. We hope this information proves worthwhile and entertaining. Thank you for taking the time to read it.
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HILTON GARDEN INN HOTEL AKRON GRAND OPENINGl to r: Richard Miller, owner; Garry Moneypenny, City of Akron, Council President; Stuart Lichter, owner; Chris Semarjian, owner; Tim Ross, liaison to Governor Kasich
DFA assisted in financing the hotel.
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Hilton Garden Inn Hotel Akron Lobby
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Akron East End Redevelopment
One of Akron's oldest established areas is now the home of "East End," a redevelopment project of the former Goodyear Headquarters, Goodyear Hall and surrounding campus. Industrial Realty Group, LLC (IRG) began its redevelopment of these historic properties in 2013.
Goodyear Hall's renovation to a mixed-use facility will be completed in 2015. It will feature one- and two-bedroom apartments, with retail on the first floor. The Hall's historic 1500-seat auditorium will be updated as part of the process. Other amenities include a fitness center, racquetball and basketball courts. The East End also has one new facility, the Hilton Garden Inn Hotel. The hotel opened in November 2014. It offers 135 rooms, swimming pool, exercise room, business center and meeting rooms.
DFA, as part of the financing structure, issued a $6.1 million bond. The bond is structured as a Tax Increment Financing (TIF) bond. This structure provides IRG with additional upfront capital (bond proceeds) to complete East End improvements, which will be repaid through assessments on the Goodyear Hall, Hilton Garden Inn and adjacent parcels.
DFA also assisted with financing the hotel providing $6.5 M in New Markets Tax Credits for the $19.2 M project.
Link to East End Akron
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 | | Goodyear Hall renovations |
 | | Hilton Garden Inn Akron |
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New Markets Tax Credit (NMTC)- OHIO
The New Markets Tax Credit (NMTC), enacted in 2000, has been called perhaps the most significant effort ever to help hard-pressed communities lift themselves up through private investment and entrepreneurship. The program was created to address a persistent problem in economically distressed areas despite the presence of attractive business opportunities and untapped demand. The cost and scarcity of patient, flexible capital is a substantial impediment to local economic growth. To ease the flow of private sector investments to these communities and promote an economic turnaround, the NMTC provides investors with a modest federal subsidy.
The NMTC has succeeded in its chief goal of delivering capital to highly targeted low-income communities. Between 2003 and 2012, the program generated well over $100 billion in economic activity in long-distressed communities, and expanded the tax base of state and local governments by creating 744,267 jobs in low-income rural and urban communities, including 457,487 construction jobs and 286,781 full-time equivalent jobs in nearly every industry sector of the economy; seventy-six percent of NMTC projects were located in severely distressed communities.
Development Fund of the Western Reserve (DFWR), a private non-profit managed by the DFA, enables investments that target eligible low-income. DFWR was one of 263 applicants for the 2014 round of the NMTC program
ECONOMIC IMPACT OF NMTC IN OHIO 2003-2012
- $1.6 billion in NMTC investments leveraged an additional $1.7 billion from other sources for a total of $3.3 billion in total project investments.
- A total of 323 businesses in Ohio have received NMTC financing.
- 30,814 construction jobs
- 11,822 full-time jobs
- link to the NMTC Coalition
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 Summit County Health Department building ribbon cutting- November 21, 2014
l to r: Donna Skoda, Asst Health Commissioner; Billy Soule, Asst to Mayor Plusquelic; James Nelson, Chairman, Dist. Advisory Council, SC Public Health; Leon Ricks, President, Board of Health, SC Public Health; Gene Nixon, Health Commissioner, SC Public Health; Ilene Shapiro, President, Summit County Council; Russ Pry, Summit County Executive; Richard Hodges, Director, Ohio Department of Health; Tonya Block, Community Health Director, SC Public Health.. |
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Summit County Combined General Health District project
The Summit County Health District combined with the City of Akron and City of Barberton Health Districts in 2011. DFA assisted with financing renovations to the Fairway Center building complex in 2013 by issuing $5 M tax-exempt bank qualified debt.
link to Summit County Public Health website
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