Financing Programs

The Lorain Port Authority has helped to finance a number of projects in the city of Lorain and surrounding areas to a total of $144 million issued in bonds to date.

The Lorain Port Authority is an independent lender offering solutions for capital finance challenges and special projects in our area providing creative financing options to accommodate your individual needs. As a partner with the Cleveland­-Cuyahoga County Port Authority, the Lorain Port Authority’s customized lending tools can be used for equipment, construction, land and building acquisition, and facility improvements.

To learn more contact our Executive Director, Tiffany McClelland at tmcclelland@lorainportauthority.com or (440) 204-2269.

Who Might Qualify: Developers, Business Owners

The Construction Financing Program can assist qualified businesses to receive a sales tax exemption on all construction materials related to the project by having the Port Authority lease the facility to the company.  The borrower is the owner for federal tax purposes and acquires the project for $1.00 at the end of the lease term.   The borrower retains full control of the property.

Who Might Qualify: 501c3 Non-Profit Organizations, Manufacturing Projects

The Conduit Financing Program provides tax-exempt financing for land and building acquisition, renovations, new construction and equipment purchase. The program can provide up to 100% financing.  In order to reduce transaction costs, the borrower may consider direct placement of the bonds with a local bank.

Who Might Qualify: Developers, Business Owners, Non-Profit Organizations, Governmental Entities

The PACE Program can finance investments in energy related improvements in new and existing real estate property, thereby reducing the operating costs of the borrower through energy cost savings.  Eligible costs include any improvements that reduce energy costs, including heating and cooling systems, roof, insulation, windows, doors, solar, geothermal projects, etc.  The PACE bonds are paid by the property owner with special assessments levied on the property. The program can provide up to 100% fixed-rate financing for a term not to exceed the expected useful life of the improvements. [Note—If the property owner has mortgaged the property via nonrecourse/CMBS financing or may wish to consider such financing in the future, then this program may not be a suitable option.]

Who Might Qualify: Developers, Business Owners

The Special Assessment Financing Program assists developers and business owners in financing public infrastructure projects such as roads, curbs, streetlights, utilities, sidewalks, landscaping, public parking garages, etc.  Special assessment financing can be used to supplement TIF bonds.  Special assessment bonds allow the borrower to reduce the amount of equity or conventional financing, and are non-recourse.  The local municipality levies an annual special assessment on the project in an amount sufficient to finance debt issued to pay for certain public infrastructure costs related to the project.  This program can provide 100% fixed-rate, tax-exempt financing for 10 to 33 years.

Lorain County Area Wide Planning Project (AWP)

Lorain County has begun work with the community and other stakeholders to develop a redevelopment plan and implementation strategy for the sites at the mouth and along the banks of the Black River. The project area has been impacted by the downturn in the domestic steel production industry and has experienced disinvestment, poverty, and abandonment. The area contains vacant industrial, commercial, and residential land, which create hazardous conditions for residents and the environment. The area-wide plan will enable the county to transform the project area into a revitalized, mixed-use, and sustainable community featuring trails that connect to open access of Lake Erie.

Lorain Draft Project Area: LorainDraftProjectArea10-6-17

An Opportunity Zone is a census tract that has been classified as an economically- distressed community where new investments may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury.

The goal of the Opportunity Zone Program is to drive investment in rural and low-income urban communities that have struggled to recover post-recession. The Program is designed to unlock private capital currently held in appreciated assets and redeploy that capital into distressed areas that have struggled to attract investment.

The Opportunity Zone Program allows a taxpayer to reinvest proceeds from the sale of an eligible business or property (proceeds that otherwise would be required to pay capital gains tax liability) into an Opportunity Fund. This Opportunity Fund, in turn, will invest in one or more businesses or properties located within qualified Opportunity Zones.

Property Assessed Clean Energy (PACE)

The Lorain Port Authority has partnered with NOPEC to provide a PACE loan program to the city of Lorain and surrounding areas.

PACE is a mechanism that allows property owners to finance energy efficiency and renewable energy improvements through assessments on their real property tax bills. This program is designed to meet the needs of owners by providing upfront capital to complete the improvements and provide stable, predictable payments over the term of the loan. This structure is called PACE, Property Assessed Clean Energy.

There are a number of benefits to the borrower including:

  • Can allow for zero up-front cash to make the investment
  • Provides long-term, fixed-rate financing
  • Assessments stay with the property, even if it’s sold during the loan term
  • Preserves borrowing capacity through off-balance sheet financing
  • Allows borrower to pass payments through to tenants
  • Provides greater long-term property value and rental benefits
  • Commercial properties are eligible for the PACE loan. Eligible projects include both energy-efficiency improvement and renewable energy projects.

    Efficiency improvement examples include:

    • Lighting
    • HVAC
    • Windows
    • Doors
    • Roofing
    • Insulation

    Renewable examples include:

    • Geothermal
    • Wind
    • Solar-photovoltaic
    • Solar-thermal water heating systems
    • Biomass energy
    • Gasification projects

The loan can range from $100,000 to $500,000. The loan term can range from 5 to 20 years. The term will depend on the amount being financed, the useful-life of the asset(s) financed and the projected savings from the improvements. The fixed interest rate of the loan can range from 2.5%-4%.

The goal of the Opportunity Zone Program is to drive investment in rural and low-income urban communities that have struggled to recover post-recession. The Program is designed to unlock private capital currently held in appreciated assets and redeploy that capital into distressed areas that have struggled to attract investment.

The Opportunity Zone Program allows a taxpayer to reinvest proceeds from the sale of an eligible business or property (proceeds that otherwise would be required to pay capital gains tax liability) into an Opportunity Fund. This Opportunity Fund, in turn, will invest in one or more businesses or properties located within qualified Opportunity Zones.

Any commercial property owner is eligible if the property is part of the NOPEC program. This include for-profit, non-profit, multi-family, retail, commercial, industrial and government properties. Eligibility requirements include:

  • Property is in a NOPEC member community
  • Application
  • Energy Audit

If you are interested, or want to learn more about the PACE loan program, contact:

Tiffany McClelland: tmcclelland@lorainportauthority.com

Financed Projects

The Lorain Port Authority has helped to finance a number of projects in the city of Lorain and surrounding areas to a total of $144 million issued in bonds to date.

Ariel on Broadway

Financing a 55 room hotel and rooftop conference center

  • 2019
  • $10 Million
  • Capital Lease Financing

Horizon Education Center

Building of a facility for Horizon Education Centers in Cleveland

  • 2018
  • $7.6 Million
  • Tax Exempt Revenue Bonds

Camaco Expansion

Constructing and equipping an expansion of the Camaco LLC manufacturing plant in Lorain

  • 2016
  • $4.6 Million
  • Capital Lease Financing

Ohio Guidestone

Financing and refinancing Port Authority facilities

  • 2016
  • $7.8 Million
  • Economic Development Revenue Bonds

Clover

Financing a Port Authority facility for a 125 unit independent senior living facility

  • 2016
  • $6 Million
  • Capital Lease Financing

Fairfax Renaissance Development Corporation

Refunding Cuyahoga County Ohio multi-mode variable rate civic facility revenue bonds

  • 2013
  • $6.225 Million
  • Variable Rate Revenue Bonds

Refunding Cuyahoga County Ohio adjustable rate demand health care facilities revenue bonds

  • 2012
  • $10 Million
  • Variable Rate Revenue Bonds

Marshall Plaza Apartments

Financing the acquisition and rehabilitation of a 90 unit multi-family residential rental facility in Lorain

  • 2011
  • $3.5 Million
  • Revenue Bonds

Making a loan to assist Horizon in financing the costs of Port Authority facilities

  • 2008
  • $6 Million
  • Economic Development Revenue Bonds

Acquiring the execution and delivery of an agreement of lease and a sublease

  • 2004
  • $3 Million
  • Revenue Bonds

Advanced Automotive Systems

Authorizing execution of contracts for the acquisition, construction, equipping, furnishing & improving of project

  • 2001
  • $1 Million
  • Open End Mortgage

Authorizing the execution and delivery of an agreement of lease and a sublease

  • 1999
  • $3.5 Million
  • Revenue Bonds

Brush Wellman Inc.

Financing the cost of the acquisition construction, equipping and improvement of a Port Authority facility

  • 1996
  • $8.5 Million
  • Variable Rate Industrial Development Revenue Bonds

Spitzer Project

Financing of costs of the acquisition, construction, equipping, and improvement of an addition to port authority facilities

  • 1996
  • $1.24 Million
  • Revenue Bonds

Refunding all of the outstanding $5.1 million Lorain Port Authority, Ohio Port development series 1988 bonds

  • 1994
  • $4.735 Million
  • Adjustable Rate Revenue Bonds

Financing of costs of the acquisition, construction, equipping, and improvement of an addition to port facilities

  • 1989
  • $1.5 Million
  • Port Development Revenue Bonds

Assisting Republic Steel Corp. in the financing of costs of acquiring and improving real property to be used as a site

  • 1981
  • $6.55 Million
  • Revenue Bonds

Financing the costs of acquiring, constructing, and equipping improvements and facilities for the receipt

  • 1981
  • $31 Million
  • Revenue Bonds

Paying the costs of adding to the industrial facilities of the project

  • 1980
  • $4 Million
  • Revenue Bonds

Promote the industrial and economic development of Ohio by creating jobs and increasing opportunities

  • 975
  • $3.5 Million
  • First Mortgage Revenue Bonds

 Compromising a terminal facility consisting of a terminal for storage and distribution of petroleum

  • 1973
  • $5 Million
  • First Mortgage Revenue Bonds

Financing the costs of acquiring, constructing, and equipping facilities related to building ships

  • 1967
  • $7 Million
  • First Mortgage Revenue Bonds