The Southern Ohio Port Authority is proposing to assist with paying the costs of a project estimated to cost $107 million and create approximately 60 new, “high quality” jobs at Hanging Rock, Ohio.
A Preliminary Financing Term Sheet outlining the terms of the financing being proposed by the Southern Ohio Port Authority related to the development of a solid waste disposal facility in Southern Ohio by PureCycle LLC is being proposed. The project is suppose to create high quality jobs with an average hourly wage that is 12 percent above the median household income in Scioto County.
Section 1 of an Inducement Resolution to be introduced at the SOPA meeting on Thursday reads:
“Based on information presented to date, it is hereby determined that the Project (i) will enhance, foster, aid, provide, and promote research and economic development within the jurisdiction of the Port Authority, all within the ‘authorized purposes’ of the Act, (ii) further, the Project will constitute “port authority facilities” within the meaning of the Act and (iii) the Project shall constitute a ‘solid waste disposal facility’ that is eligible for tax-exempt financing under Section 142(a) of the Internal Revenue Code.”
Subject to Section 1 of the resolution, the Port Authority will undertake to authorize and issue the Bonds, in one or more series, in a principal amount not to exceed $85 million for the purpose of financing the Project. According to the resolution, the Port Authority’s agreement to issue the Bonds is contingent upon (i) volume cap allocation from the State of Ohio, (ii) satisfactory financing terms and conditions, as reasonably determined by the Port Authority, and (iii) the satisfaction of the necessary requirements under the Internal Revenue Code for tax- exempt financing.
While the item is on the agenda for Thursday’s SOPA meeting, SOPA Executive Director Jason Kester cautioned that the project is still in the early stages and not a done deal at this time as several steps are needed to solidify the deal.
“SOPA is making the offer of assistance to PureCycle, LLC in order to incentivize the company to locate in Scioto County,” Kester said. “The inducement resolution and associated legal work is the first of many steps that would need to be taken if the company decides to locate in Scioto County. No site location decision has been made at this time and we’ll continue to work with the company to assist them with their project and location decision.”
Reach Frank Lewis at 740-370-0711