Project: Purchase and renovate 27,300 square foot facility at 4366 Hamann Parkway, Willoughby OH
Project amount: $736,600
Banking Partner FirstMerit Bank Loan: $368,300
Lake County Small Business Assistance Corp SBA 504 Loan: $294,640
Equity Injection: $73,660
Cast Nylons Company, established in 1979, is located in Willoughby, Ohio and is owned by John Thorp. Cast Nylons is the largest producer of cast nylon in North America. Their production process involves liquid nylon cast into molds to meet the needs of the most demanding applications. Cast Nylon products are a replacement for bronze, brass, steel, aluminum and other metals. The company offers 42 standard and customer specific formulations and includes cast nylon sheets, rods, tubular bars, rectangular bars, nylon sheaves, elevator buckets, discs, rings and custom cast components. Their products are used in various industries including metal processing, metal forming, pulp and paper, mining equipment, marine, material handling, automotive production, and many others.
Some of the benefits of Cast Nylons end products include excellent wear resistance, functions exceptionally well with or without lubrication, is resistant to high impact, is resistant to brittleness and deterioration as well as vibration resistant.
Cast Nylons production was constrained and needed additional space. They decided to purchase a 27,300 square foot property at 4366 Hamann Parkway and utilize it for warehousing and shipping. This location is just south of their existing plant at 4300 Hamann Parkway.
Cast Nylons employs 74 people running 3 shifts and operating 5 to 7 days a week. The company planned on adding 11 new jobs.
Project: Purchase and renovate 20,368 square foot facility at 117 West Walnut Street, Painesville, OH
Project Amount: $400,000
Banking Partner Huntington National Bank Loan: $200,000
Lake County Small Business Assistance Corp. SBA 504 Loan: $160,000
Equity injection: $40,000
IMAX Industries, Inc. is a design, engineering, and manufacturing business operating in Painesville, OH since 1993. They specialize in resistance welding equipment but are capable of handling other automation projects. Their staff of 16 handles all designing, engineering, fabrication, assembly, programming, shipping and installation of equipment.
A new business opportunity required IMAX Industries to rapidly expand its production capacity but it did not have the space at its existing plant. The opportunity was to manufacture parts for Stride Tool of Glenwillow, OH. Stride would relocate its flaring equipment line from South Carolina to IMAX's Painesville operation where IMAX personnel would utilize the equipment to produce flaring bars and yokes for Stride.
IMAX identified a suitable 20,368 square foot building at 117 Walnut St. in Painesville, a short distance from their existing plan. Five new jobs were immediately created and the potential for adding 2 to 5 additional employees exists; a total of up to 10 new jobs. IMAX went into production in June 2012.
Project: $6,000,000 Series 2013 Adjustable Rate Secured Tax
Exempt Development Revenue Bonds
The Lake County Ohio Port and Eco- nomic Development Authority ap- proved issuing $6 million in bonds to help finance two projects, including a new Goodwill store in Painesville Township and another store location is in Lexington Township in Stark County.
The 18,000-square-foot facility in Lake County is a brand new building at a cost of about $3 million and is expected to employ between 20 and 30 people. The store will provide job training skills and has a computer lab inside.
The bonds were issued in cooperation with the Stark County Port Authority, where Goodwill In- dustries also built a new facility. The Lake County Ohio Port and Economic Development Authority issued a cooperative agreement with the Stark County Port Authority to accomplish both projects for the client.
This cooperative agreement allowed Goodwill Industries to take advantage of the attractive bond financing rates in both counties.
The Lake County Ohio Port and Economic Development Au- thority achieved their overall goal to facilitate employment and economic development in both counties and will receive some revenue to assist in their continuing operations.
Project Bonds: $3,375,000
Property Assessed Clean Energy (PACE) 2012
The Lake County Ohio Port and Economic Development Authority worked with the City of Mentor and the Great Lakes Mall to create an Energy Special Improvement District (ESID) needed to take advantage of the PACE bond program. PACE bonds are a financial tool used by property owners to fund energy efficiency improvements on their properties.
Simon Properties, owner of the Great Lakes Mall, utilized the funds to upgrade their HVAC systems and install a new energy-efficient roof. These PACE bonds were owner financed by Simon Properties. They are responsible for repaying the principal and interest on the bonds over the next 10 years. This type of financing allows the mall to pass a portion of its costs through to tenants and others responsible for paying the property tax bills on the mall property.
“This is the third time PACE Bonds were utilized in the State of Ohio to fund energy related improvements. We were pleased to assist Simon Properties accomplish this transaction. This is also a fine example of how the Lake County Ohio Port and Economic Development Authority, the City of Mentor, and a private developer like Simon Properties can work together to facilitate economic development projects in the community.” said Martin Gareau, Director of Public Finance at the Lake County Ohio Port and Economic Development Authority.
Project Bonds: $15,750,000 Educational Facility Revenue Bonds, Series 2008
The Lake County Port Authority facilitated the financing and development of three properties on the Lake Erie College campus in Painesville, Ohio. The funding supplemented and enhanced privately generated donations to upgrade and renovate the Austin Hall of Science, the Equestrian Center and to purchase and renovate the former Andrews-Osborne Academy, turning it into the new Garfield Center for the campus.
The bonds were then purchased by Fifth Third Bank as a refinancing deal for Lake Erie College, which gave the college a 25-year term utilizing a variable rate. The risk taken by the college with the variable rate has so far paid off, giving them a one percent interest rate since the refinance.
Project Bonds: $4,000,000
Housing Revenue Bonds Series 2010-2011
The Lake County Ohio Port and Economic Development Authority facilitated the financing and development of a property in Willoughby Hills, Ohio, for the purpose of an apartment housing complex for low- to moderate-income senior adults. The bonds assisted with a portion of the costs associated with the acquisition, construction and equipment of the 34,000 square foot facility that will house 40 one- bedroom apartments. The project served a public benefit by lowering the cost of maintaining and expanding available housing opportunities for low and moderate income senior residents in Lake County.
In addition to the $4 million in bond financing the Lake County Ohio Port and Economic Devel- opment Authority helped the project obtain, they also received monies from the Department of Housing and Urban Development (HUD). Potential tenants must be at least 62 years old, meet HUD income limits and pass a criminal back- ground check. Rents are set at 30 percent of a resident’s income.
Project Amount: $2,700,000
Lender participant Cardinal Community Credit Union: $1,350.000
SBA 504: $650,000
The Steele Mansion is a historic building located across the street from Lake Erie College. The Shamakian family is rehabilitating the historic structure and converting it into an Inn. The plans are for sixteen rooms, each with its own historical theme. In addition they plan on having a boutique for guest shopping and banquet facilities for business meetings, small gatherings and photography.
The Shamakians are working closely with the Ohio Historical Society to ensure the renovation work meets historical standards since it is located within the National Registered Historic District of Painesville.
Mrs. Shamakian, a doctor, is currently taking Hospitality Management at Lakeland Community College to help her in running the establishment. They also plan on hiring professional management staff in addition to help from Mr. Shamakian and their children, Elissa Petrozzi and Brian Shamakian.
In addition to its historic significance, the Shamakians believe they will receive a tremendous draw of guests from parents and family of Lake Erie College students and alumni. Although there are existing Bed & Breakfasts in Painesville, there are no Inns that have the capacity of Steele Mansion.
The Lake County Small Business Assistance Corporation partnered with Cardinal Community Credit Union to provide the financing for the restoration. They are hoping to open for business on June 2, 2014 to coincide the birthday of George Steele.