At a press conference today, Mayor Carty Finkbeiner spoke about the submission of an incentive package to City Council, aimed to keep HCR ManorCare in Toledo. For the last year-and-a-half, the City of Toledo's Department of Development and the Ohio Department of Development, have been working with Lt. Governor Lee Fisher, Ohio State Senator Mark Wagoner, Lucas County, Toledo-Lucas County Port Authority, and HCR ManorCare CEO Paul Ormond to develop an incentive package to retain HCR ManorCare in Toledo.
HCR ManorCare was presented with incentives from the states of Kentucky, Indiana, and Tennessee to relocate their headquarters ... and 684 Toledo jobs.
Toledo City Council is scheduled to vote on the incentive package next Tuesday, October 7. It is estimated that not only will this package keep HCR ManorCare and its 684 jobs, but that it will help create 52 new jobs over the next year.
http://www.wtol.com/Global/story.asp?S=9092676&Call=Email&Format=Text
The Ohio Development Financing Advisory Council in Columbus yesterday
approved a 20-year, $10 million, zero interest loan, and a 20-year, $11.64
million Ohio Enterprise Bond Fund loan at a rate to be determined at
closing, to help secure the purchase of the Summit Center building. Both
are subject to state controlling board approval.
Additionally, Toledo Mayor Carty Finkbeiner said yesterday the city had
put together a $4 million incentive package to accompany the state loans.
He urged Toledo City Council to approve the local package...The state also
is offering a $1.5 million economic development contingency grant and a
$2.9 million job creation tax credit, also subject to controlling board
approval, said Eileen Granata, the state's regional economic development
director for the nine-county Toledo region"
http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20080930/BUSINESS0...
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I wonder who underwrites these loans and grants. If it is taxpayer money,
that means that the employees who work for HCR are using their tax
contributions to fund the company they work for in an effort to retain
their jobs. Hmmm..........maybe they should be getting the accolades
instead of Mayor Finkbeiner.
This is an interesting clause in the deal.
"The state and city loans would allow the building to be acquired and leased back to HCR ManorCare for 20 years — the length of the loan terms."
"How does the Ohio Enterprise Bond Fund work?
Once a borrower has been approved by ODOD the Treasurer’s Office issues OEBF bonds and the bond proceeds are lent by ODOD to the borrower. The State of Ohio utilizes the strength of the OEBF’s “AA-” S&P rating to finance eligible projects at a low interest rate. Following the bond issuance, the borrower is responsible for repaying principal and interest on their loan."
http://www.tos.ohio.gov/content/view/803/436/