“Thanks, but no thanks.”
That appears to be the response from Ohio port authorities to out-of-state companies such as a Wisconsin group now seeking to issue bonds on behalf of businesses and nonprofit and government borrowers not just in its home state, but across the U.S.
Ohio port authorities — including the Development Finance Authority of Summit County — say the Wisconsin group is invading their turf.
“I’d like to ask the people in Wisconsin, ‘How would you feel if I showed up and we did something in your state?’ ” said Chris Burnham, who heads the Development Finance Authority, the economic development arm of Summit County.
The Wisconsin group is “not reinvesting back into the community,” Burnham said. “They’re generating fee income and leaving.”
On Monday, the Summit County Council will consider a resolution supporting proposed state legislation that would make it more difficult for out-of-state authorities to issue bonds for Ohio economic development projects.
Illinois and Washington state have passed similar legislation. Officials with the Wisconsin group — the Public Finance Authority of Wisconsin — could not be reached for comment Friday.
The proposed state legislation was requested by Ohio port authority officials and is sponsored by state Sens. Tom Sawyer, an Akron Democrat, and Frank LaRose, a Copley Township Republican.
Burnham said he didn’t know of any existing Akron area bond deals involving the Wisconsin group. The Summit agency — which until last year was called the Summit County Port Authority — stimulates development by floating loans and issuing bonds for projects through its Jobs & Investment bond fund.
The Summit authority — because it can issue tax-exempt bonds — is able to attract private investors for big and small deals throughout the area, including the worldwide headquarters for Goodyear Tire & Rubber Co. in Akron.
Borrowers pay fees to the port authority which then replenish bond reserves and pay the authority’s operational expenses. Burnham noted his agency last year used some of its reserves to pay for legal and other work necessary for it to land New Market Tax Credits used to help finance local community and economic development projects.
“We attracted $20 million of tax credits,” Burnham said.
A chunk of those tax credits went to help finance the new Kent State University hotel and conference center — “a very important thing in Kent — a regional institution,” Burnham said.
Burnham said another concern about out-of-state bonding authorities is that they aren’t as familiar with the Ohio economic landscape.
“Things can go wrong,” with the financing, Burnham said.
“We’re here. It’s our community. We’re in it for the long haul. Part of what we do is resolve problems,” he said.
Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com.