Catalyze Private Investment to Improve Property Value and Promote Job Creation
As an economic development agency, the Port Authority has finance tools and expertise to initiate large scale community priority projects as well as complex real estate projects for developers, manufacturers, and other established companies that catalyze private investment to improve property value, and promote job creation. Since 2000, the Port Authority has issued more than $694 million in revenue bonds to fund a wide variety of economic projects in the City of Cincinnati and Hamilton County.
Why use the Port Authority’s Public Finance Practice? Development and company expansion projects can benefit greatly when a Port Authority is involved as a project partner. Port Authorities can borrow funds, purchase property, construct and own facilities and lease property efficiently and cost-effectively, and pass advantages along to the private developer or owner. Port Authority participation provides assurance that financing mechanisms will achieve project goals, achieve favorable terms, and coordinate with all other components of the deal structure for best outcome. We are eligible to issue tax-exempt debt and offer flexibility within terms that are designed specifically to each deal. We can marshal additional state and local resources, including grants.
The benefits of public finance include the access to and/or a lower cost of capital. The intersection between public finance products and private sector investment can yield a beneficial mix of lower interest rates, sales tax exemption savings, longer-term/fixed rate options, and potential reinvestment of capital dollars back into the project and community.
Our public finance program provides innovative financing options tailored to the distinct needs of a project and its development entity. With strong public finance and policy practice, the Port Authority has broad development-related powers under state law that enable our strategic participation in tax-exempt bonds, EB-5 financing, tax increment financing and special assessment debt, conduit bond financing, lease bond structures, and property assessed clean energy financing.
The public finance team at the Port Authority can serve as the central point of contact, investigating and procuring local, state and federal business-retention and expansion incentives, and has access to local, state and federal grant funds. The Port Authority public finance team affords distinctive benefits including: flexibility, market knowledge, program pairings, economic inclusion, and leveraged resources. As a quasi-public entity, we fill a needed role in funding transformative projects, and, at the same time, addressing all fiscal and public policy considerations.
The evaluation and use of public finance tools in private sector projects should be evaluated on a case-by-case basis. However, the growing use of public finance tools in economic development projects has proven the need and benefit of utilizing these tools at the right time. We continue our outreach to regional municipalities, bankers, attorneys, developers and other COIs to introduce and educate about the financing tools available to the Port Authority, and to discuss how we can partner to help with development projects.