Ohio Bipartisan Job Stimulus Plan - Logistics and Distribution Stimulus Program

Logistics and Distribution Stimulus Program Update June 2, 2009

Congratulations to all of the round one Logistics and Distribution Stimulus Program award recipients! To date, the Ohio Department of Development has awarded $48 million to eligible logistics and distribution projects that help expand connections to logistics and intermodal centers, improve the flow of freight and increase access to new markets.

As of May 18, 2009, all round one funding decisions have been finalized. We are now in the process of completing the necessary procedures to ensure the proper spending and accounting for all awarded funds. As we work to ensure the success of each project we will not process any new applications. Project evaluations will resume in September, 2009.

Although letters of intent and new applications will still be accepted, please be aware that projects will not be formally evaluated until September unless the applicant can present extraordinary circumstances related to the immediate creation of a high number of full-time positions as part of an interstate competitive project. If your project was reviewed in round one and you have not received a funding decision, your project will automatically be considered for funding in round two.

Additionally, all prospective round two applicants should submit the formal application no later than Friday, August 14 to be considered for funding as part of the remaining $50 million in the Logistics and Distribution Stimulus program. If your project was reviewed in round one and you have not received a funding decision, your project will automatically be considered for funding in round two.  The Intent is to Allocate Substantially All of the Remaining Logistics and Distribution Program Funding From Applications Received Before August 15, 2009.

Please feel free to contact Nyla Potter at Nyla.Potter@development.ohio.gov if you have any questions or concerns.


Program Summary

The Ohio Department of Development's Logistics and Distribution Stimulus Program was created to promote economic development and job creation in the state of Ohio. The Department of Development, in cooperation with the Ohio Department of Transportation and the Ohio Rail Development Commission, will allocate $100 million in the form of loans for eligible transportation, logistics, and infrastructure projects in the State of Ohio. Loans will be made on favorable terms, including interest at or below market rates, opportunities to earn forgiveness of principal and accrued interest based on attainment of defined performance measures and use of loan proceeds for construction financing.

Eligibility
Public, private for-profit, and private not-for-profit organizations are eligible for funding. To be funded, a project must make fixed asset investments that will create jobs and improve Ohio's position as a leader in the transportation and logistics industry.

Funding Uses
Funds from the Logistics and Distribution Stimulus Program may be used for the following: the purchase of land or buildings, purchase of machinery and equipment, building construction and/or renovation costs, purchase of ongoing business' fixed assets and general construction costs. See Section II of the Program Guidelines for a more complete definition of "eligible costs."

Anticipated Projects
The Logistics and Distribution Stimulus Program anticipates funding capital infrastructure projects, including but not limited to, road, rail line, air, or port improvement projects that expand connectivity to logistics and/or intermodal centers, reduce chokepoints and freight bottlenecks, enhance the flow of freight and/or improve access to new markets for Ohio businesses.

Funding Criteria

  • Loan funds awarded cannot exceed $10 million or 75 percent of the total project costs, whichever is less.

  • To be considered for funding, applicants must provide a match investment of at least 25 percent of the total project costs. At least 10 percent of the applicant's match investment must be equity in the form of cash and/or the appraised value of land, buildings and other structures. No more than 5% of the match investment can be in-kind contributions such as engineering, architectural and legal service fees and expenses.

  • Up to 50 percent of the applicant's match investment requirement may be satisfied by eligible financial or in-kind contributions made during a five-year look back period. Please refer to Section III (Eligibility) of the Program Guidelines and Application Procedures for information on eligible match investments and the five-year look back period.

Agreement Terms
Loans will be subject to approval by the Development Financing Advisory Council and the State Controlling Board. Loans will also be subject to customary loan documentation in form and substance acceptable to the Director of Development.

Program Fees

  1. A $1,500 non-refundable application fee is required upon submitting a Logistics and Distribution Stimulus Program Application.

  2. A processing and commitment fee of one percent of the loan amount up to a maximum of $50,000 is due upon acceptance of a loan commitment letter.

  3. An annual servicing fee equal to a quarter of one percent (.25 percent) of the outstanding principal amount of the loan will be assessed.
Prevailing Wage
Projects that receive funds through the Loan Program will be subject to Ohio's prevailing wage law. Payment of prevailing wage rates will be required for all project-related construction activities. Wage rates and administrative requirements applicable to payment of prevailing wages are determined by the Ohio Department of Commerce's Wage and Hour Bureau.

Application/Evaluation Process
All prospective applicants must submit a letter of intent prior to submitting a formal application. Applications will be accepted and reviewed on a rolling basis. Each letter of intent will be reviewed by members of the Logistics and Distribution Stimulus Review Team, which includes representatives from Ohio Department of Development, Ohio Department of Transportation, and Ohio Rail Development Commission. Applicants may submit a formal application at any time after the letter of intent has been submitted but are strongly encouraged submit formal applications after receiving feedback from the Logistics and Distribution Stimulus Review Team.

Applications will also be evaluated by the Logistics and Distribution Stimulus Review Team. After initial review, applicants will be contacted for a meeting with the Review Team to personally present the project. Immediately following the meeting, the Review Team will complete its evaluation and make funding recommendations for consideration by the Director of the Ohio Department of Development. In selecting projects, the Director will consider the Review Team's evaluation of the project, regional distribution of program awards, representation of transportation modes among approved projects, statewide regional economic impact, and alignment with other Ohio economic projects. During the selection process, the Director will consult with the Director of the Ohio Department of Transportation.

The decision of the Director of the Ohio Department of Development in selecting applications for approval is final and not appealable, and subject only to the approval of financial assistance by the Development Financing Advisory Council and the State Controlling Board.




The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services.