Presentation to

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Presentation to CREW Midwest Regional
Conference April 24, 2009
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• WHAT IS A PORT AUTHORITY?

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What is a Port Authority?

• Quasi-governmental organization
• Port authorities were created to conduct
  maritime, airport, and now economic development
  activities
• Activities that increase, foster, aid, or promote

Transportation Education Economic
development Government operations Housing Cult
ure Recreation Research
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Advantages of a Port Authority

• Cooperative, cross-jurisdictional powers
• Exercise powers on behalf of another subdivision
• Can form cooperative arrangements with multiple
  subdivisions on the same project
• Land assembly and redevelopment
• Own, lease, sell and construct improvements to
  real property

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Advantages of a Port Authority

• Unique economic development financing products
• Issue revenue bonds including lease bonds
• Issue tax exempt debt as appropriate
• Establish bond funds
• Aggregation / coordination of project capital
• Receive federal and state grants and loans
• Maintain confidentiality of private businesses

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Port of Greater Cincinnati Development Authority

• Jointly created and funded by the City of
  Cincinnati and Hamilton County
• Perform the execution function for a
  municipality (i.e., issue revenue bonds, grant
  application and administration)
• Historically had two primary missions
• Brownfield redevelopment
• Development bond financing

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Brownfield Redevelopment
150 acres, 10.7MM in Clean Ohio Fund Grants
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Development Bond Financing
440MM for 9 Financing Projects
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• PUBLIC / PRIVATE PARTNERSHIPS

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QCS Public / Private Partnership

• Participants Western Southern, City of
  Cincinnati,
• Port of Greater Cincinnati Development Authority
• City approves the TIF, 3.75MM in grants
• Port Authority owns the project, leases project
  to master lessee, issues TIF and Lease bonds
• WSFG develops and manages the project,
  provides funding

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Public / Private Partnerships

• True partnerships are about more than just money
• Financing tools and tax incentives
• Common vision can increase community support
• Teamwork can streamline the process
• Allows the project to proceed

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Public / Private Partnerships

• Considerations when forming a partnership
• Complexity
• Paperwork
• Non-fungible sources of capital
• Contracting
• Fees
• Open records laws
• Politics

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• ECONOMIC INCLUSION

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Economic Inclusion

• Port Authority Economic Inclusion Policy
• Economic Inclusion Policy adopted by Board of
  Directors in June 2001 and revised February 2009
• The Policy established aspirational goals for
  economic inclusion for construction, supplies,
  and professional services
• The Policy is included with every contract for
  service for both internal and external projects

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Economic Inclusion

• The aspirational goal of the Policy is to
  achieve, in all projects and services of the Port
  Authority, a total target goal of
• 25 Minority Business Enterprise (MBE)
• 7 Women Business Enterprise (WBE)
• 30 Small Business Enterprise (SME)

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Economic Inclusion

• Economic Inclusion Efforts on Queen City Square
• Hired inclusion consultant
• Quarterly outreach meetings
• Showcase the project at events
• Benchmark other large scale projects
• Set realistic goals by trade

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Economic Inclusion

• Economic Inclusion Efforts on Queen City Square
• Clearly communicate the importance
• Actively work with prime contractors to maximize
  opportunities for inclusion
• Provided extensive lists of M/W/SBEs
• Reorganized bid packages to provide more
  opportunities for inclusion
• Added a focus on workforce development

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• PROJECT FINANCING

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Project Budget

• Land
• Design
• Construction
• Financing
• Other Costs
• Total Project Cost

22,000,000 10,000,000 270,000,000 23,000,0
00 15,000,000 340,000,000
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Project Financing

• Lease Bonds
• TIF Bonds
• City Funds
• WSFG
• Total Financing

225,000,000 54,000,000 3,750,000 57,250,00
0 340,000,000
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TIF Bonds

• Allows local governments to invest in
  infrastructure and other improvements and pay for
  them by capturing the increase in property tax
  revenues generated by the enhancements

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Lease Bonds

• Three main types of structured lease bonds
• Capital
• Operating
• Synthetic
• Typically used with investment grade credits
• Offers the user financial, federal tax and
  accounting advantages, attractive purchase
  options and other incentives

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• QUESTIONS ANSWERS