Port Authority

The mission of the Lorain County Port Authority is to promote economic development by assisting private industry initiatives; by encouraging development and redevelopment; and by promoting investment in business, industrial and transportation projects.

The BOND RESERVE FUND is designed to provide long term fixed interest rate financing for qualified industrial, commercial and public infrastructure projects. It enables small and medium sized companies to access the national capital markets through a system of reserves that serve as credit enhancement.

Eligible Borrowers: Private Corporations, Non-Profits and Political Subdivisions

Eligible Projects: New construction; acquisition of land/building renovation of building; purchase/installation of machinery & equipment; and construction of public infrastructure

Issuer of Bonds: Lorain County Port Authority or designated conduit entity

 Types of Bonds: Subject to market conditions and variations in law & subject to qualifications

Term of Loans: Average loan term may be between ten (10) and twenty (20) years; Loans for M&E do not typically exceed seven (7) years and are subject to useful life

Interest Rates: Fixed at the time bonds are sold, for the entire term of the bond, and based upon the rating of the bond fund as well as the type of project bond

Loan Size: $1 million to $10 million (dollars may be combined with other financing sources)

PORT LEASE STRUCTURED FINANCING options are generally utilized for large-scale projects.  In-depth descriptions are available through the LCPA offices.

Lease Structures: Capital, Operating, and Synthetic (Structured Operating)

Capital Lease Tax Exemption Program: 

To provide  a company or developer an exemption from the payment of sales tax for materials used in contraction.  Pursuant to   R.C. 4582.20 Ohio Port Authorities are exempt from sales tax. Under a Structured Lease arrangement, the Port enters into a Capital Lease with the Lessee (which can be a company or a developer). As a result of the Port holding title to the project the materials used in construction are exempt from sales tax.

Under this structure the Port:

• Owns the project (via a ground lease);
• Leases the project directly to the business (via an operating lease);
• Engages the business to develop the project on behalf of the Port (via a Development Agreement);
• Enters into an Indemnification Agreement whereby the business agrees to indemnify the Port under the transaction.

The advantages of this program are:

• The business is able to construct its facility without the payment of sales tax.
• The Lessee can book the asset, and any debt related thereto on its balance sheet.
• The Lessee receives all ownership benefits for federal tax purposes, i.e. depreciation, interest expenses.
• After construction, the ground lease is terminated, and the project is returned to the business.

Project Profile information

Project Application

Tax Exemption Application

LCPA Records Request Policy