Trending
STEUBENVILLE -- The team of organizations and individuals involved in getting a spec building erected in the Jefferson County Industrial Park is crystalizing, as a consultant offered his expertise to the Jefferson County Port Authority's Board of Directors Wednesday.
Mike Jacoby of Argus Growth Consultants, the economic development arm of Bricker Graydon LLP, was hired by the county commissioners to lend his experience to the port authority, contribute to the chain of communication and "get the ball rolling" on a spec building for the 13.36-acre site.
Jacoby has also served as the executive director of Progress Alliance, during which time he aided the commissioners with selling another spec building that had since been empty for four years.
Jacoby is also the former president of Ohio Southeast Economic Development, a 25-county nonprofit regional development organization that Jacoby said gave him the experience with programs he recommends the port authority make use of to finance the spec building. The programs in question are JobsOhio's Ohio Site Inventory Program and the Ohio Department of Development's Rural Industrial Park Coal program, which both provide low-interest loans for eligible spec building projects, with RIPL providing partial loan forgiveness.
Jacoby expressed approval of the port authority's desire to work with the property development assistance company Agracel Inc., which port authority Executive Director Robert Naylor brought on board after getting connected through a September meeting with the Ohio Mid-Eastern Governments Association.
Naylor said working with both Agracel and Jacoby would be beneficial, putting multiple sets of eyes on the spec building project. With Commissioner Dave Maple being involved on behalf of the commissioners, the spec building team's is close to being finalized, though further deliberations among the board will decide its final direction.
Jacoby took time after his introduction to the board to answer questions about spec buildings, at one point telling the board: "Spec buildings are the most effective thing you can do to bring businesses into your community. But I'm not going to candy coat it -- it's risky, so you have to have the stomach for it."
Time is of the essence to apply for the RIPL program, Jacoby said, with the program's two-year funding ending in June -- the Ohio General Assembly will hopefully continue to fund the program afterward.
The port authority is currently evaluating its four architectural proposals, received following the posting of a request for qualifications. This is an important first step, Jacoby noted, but a final selection will have to be made after the port authority decides on essential qualities for the spec building, such as square footage.
Part of the risk for a spec building comes from the challenge to create a building businesses want -- a spec building is speculative, meaning it is built with the hope that a business will lease or purchase it. Jacoby advised the board to design the building with a desired type of business in mind.
Agracel and OhioSE both possess data on market demand for certain building specifications, Jacoby said, which can help the port authority decide what its building should be. Jacoby said that while he can provide region-specific perspective, the multi-state operating Agracel can provide a more broad perspective, so the two will go hand-in-hand.
Whether the port authority will establish a spec building-centered committee remains to be seen, but building designs must be finalized to do a cost estimate and and start making applications. Naylor warned that meeting times should be established for the involved parties to formulate a plan, understand the financial commitment and mitigate wasted time for the already time-sensitive project.
Separately, Naylor updated the board on the West Virginia Division of Highway's application for grant funds to replace the Market Street Bridge. Naylor said the grant program -- replacing the bridge where it stands, eliminating the need for environmental studies -- could conceivably have a new bridge in place by 2030.
The port authority submitted a letter of support for the program in November, and Naylor said a decision is expected by the end of the first quarter. A new bridge would be beneficial for its role as a traffic reliever and an asset for drawing residents and businesses.
With a budget estimate of $175 million, West Virginia asked for $87.5 million in funds, planning to use other funding sources to make up the difference. Naylor said West Virginia's application has "strong congressional support," a claim supported by calls he has participated in with various legislators.
In other business:
• The board approved transferring $500,000 -- paid to the port authority by JSW Steel USA Inc. for services rendered for the 2023 bond issuance -- from the port authority's primary account into an investment account to earn interest, at the recommendation of Fiscal Officer Gary Folden.
• The board approved Resolution 2024-01, a certificate of estimated resources that anticipates the port authority's revenue for the year and has a role in determining grant funding.
• The board approved Resolution 2024-02, determining the port authority's annual appropriations. The resolution included a 3.4 percent salary increase for the director paid retroactively to Jan. 1, a pay raise from $750 to $1,035 per month for the fiscal officer and the prearrangement for the addition of medical insurance for the director.
• The board's officers maintained their positions, effective until 2025. The officers are Chairman Bill Lucas, Vice Chairman Russel Kuntz and Secretary John Mascio.
• The board approved paying expenses for Naylor to attend the CDFA Fundamentals of economic Development Finance WebCourse on Jan. 23 and 24 from noon to 5 p.m.