AIA Bulletin

The state has added $29.9 million in Job Ready Site grants to $4.6 million in other public infrastructure awards for 14 commercial and industrial sites receiving assistance from the Ohio Department of Development.

Gov. Ted Strickland announced the grants at the University of Dayton Research Institute and Innovation Center in Montgomery County, which will receive $3.5 million from the Job Ready Site program to renovate 60,000 square feet of the former NCR World Headquarters.

 Administration officials also announced taxpayer-funded grants to commercial projects in 10 other Ohio counties.

 “The Job Ready Site program is about taking locations that have been left behind and transforming them into work sites that are ready for business, new jobs and new opportunities for Ohioans,” Strickland said. “These investments reinforce our message to companies across the nation considering expansion or relocation projects that there is no better place to build your business than Ohio and no better workforce to make your product than Ohioans.”

 Authorized by voters in 2005, the Ohio Job Ready Site program has awarded approximately $135 million in public money to private interests, leveraging nearly $198 million in additional investments.

 Other economic development projects receiving grants include the following:

Beck Industrial Commerce Park, located in Louisville (Stark County), has been awarded $3.5 million from the Job Ready Site program to develop a 230-acre industrial site. Work at the project site includes construction of an access road and bridge as well as extensions of utilities and rail siding.

CASTLO Manufacturing Site, located in Struthers (Mahoning County), has been awarded $3,491,000 from the Job Ready Site program to demolish a 312,000 square foot building to redevelop 66 acres within the CASTLO Industrial Park. Work at the site includes demolition of a building, environmental remediation, and extension of roadway and utilities into the site.

MidTown Tech Park, located on Euclid Avenue in Cleveland (Cuyahoga County), has been awarded $3.5 million from the Job Ready Site program to construct a technical research center. Work at the site includes land acquisition, site remediation, and constructing a 112,000 square foot building to attract biomedical-related industries.

Iron Highway Industrial Park, located in the village of Leipsic (Putnam County), has been awarded $3.5 million from the Job Ready Site program to create a 244-acre industrial site served by three rail providers. Work at the site includes land acquisition, extension of water and gas lines, and installation of a rail switch.

Miami Heritage Technology Park, located in Oxford (Butler County), has been awarded $3.5 million from the Job Ready Site program to construct a Leadership in Energy and Environmental Design (LEED) Platinum certified technical research center. Work at the site includes land acquisition, construction of a data center facility, road construction, and utility extensions.

Pickaway Progress Park, located along U.S. 23 in Circleville (Pickaway County), has been awarded $3.5 million from the Job Ready Site program to redevelop a 226-acre site to accommodate 2.5 million square feet of industrial and manufacturing facilities and 400,000 square feet of mixed-use facilities. Work at the former Thomson Consumer Electronics site includes constructing an access road and extending utilities through the park.

MATC Technical and Research Complex, located in Miamisburg (Montgomery County), has been awarded $1,217,000 from the Job Ready Site program and $2,283,000 from the Roadwork Development (629) program to construct a roadway for enhanced access to the 64-acre technical research park. Work at the Superfund site includes road and utility extensions, site remediation, improvements to the PerkinElmer building, and demolition of buildings for parking lot construction.

Prospect Industrial Park, located in the village of Navarre and Perry Township (Stark County), has been awarded $1.1 million from the Job Ready Site program and $2.4 million from the Roadwork Development (629) program to develop a 340-acre industrial site. The project site sits adjacent to the 26-acre intermodalWheeling and Lake Erie rail yard. Work at the site includes road and utility extensions, construction of a bridge, site grading, and construction of a water tower.

Canton Corrugated Paper Center, located in Canton (Stark County), has been awarded $750,000 from the Job Ready Site program to assist in creating a pilot corrugating plant. The project involves building demolition to accommodate a 20,000 square foot building to support manufacturing, testing, and demonstration of the corrugated paper industry. This project will result in the creation of 50 jobs over a five-year period.

D.O. Hall Business Center, located in Cambridge (Guernsey County), has been awarded $750,000 from the Job Ready Site program to construct an access road that will open 121 acres of land for development, and extend water and sewer lines to the industrial site.

Eastern Ohio Regional Industrial Park, located in the village of Barnesville (Belmont County), has been awarded $750,000 from the Job Ready Site program to extend water lines to the 200-acre industrial park.

Ingenuity Center, located in Marietta Township (Washington County), has been awarded $750,000 from the Job Ready Site program to construct a building to assist in attracting companies in the temperature-controlled cabinet industry specific to research and medical fields. Work at the site includes acquiring five acres of land within the Seven North Commerce Park and constructing a pre-engineered 35,000 square foot building.

PrimeOhio II Corporate Park, located along Interstate 70 in Springfield (Clark County), has been awarded $150,000 from the Job Ready Site program to extend road access and improve gas line capacity to the project site.

Right-to-work advocate Associated Builders and Contractors (ABC) has renewed its attack on the Ohio School Facilities Commission (OSFC), criticizing commission Director Richard Murray for soliciting bids on the Ohio School for the Blind and School for the Deaf projects that are allegedly 40 percent over-budget.

Former state legislator and now ABC Director of Government Affairs , Bryan Williams, previously charged Murray with union coddling and called for his resignation. In a letter dated July 30, he accuses the OSFC director of misstating the effect of project labor agreements on the School for the Deaf and School for the Blind projects – bids for which he said are now $11 million over budget.

“I write to encourage you to follow the law and throw out all of the bids,” Williams says. “Equally important, you should rebid the project without the discriminatory and anti-competitive use of a project labor agreement.”

The former state legislator and Rep. Kris Jordan (R-Powell), a current member of OSFC, first questioned the PLA-bid projects in June. 

In his letter, Williams also addresses the larger issue of prevailing wage, which is required for state-funded construction.

“If you were to re-bid this project without prevailing wage – as required by law for all other school construction projects – the state would save millions more in needless construction costs,” Williams says.

Murray’s office responded to the letter Monday. Erik Roush, chief of external and legislative affairs, did not dispute Williams’ basic analysis of contractor bids.

“Our preliminary look at the numbers right now – I don’t know if the construction manager has looked at them – is that if they’re more than 10 percent over-budget, they have to be rebid,” he said. “It appears to be going in that direction.”

Roush cautioned however, that it is too early to say what is causing the top-heavy estimates.

“It could be a number of things – material cost, estimates, scheduling – a number of factors go into this,” he said. “We need to continue to work with the construction manager, architect and internal staff. I know they’re doing that analysis now … There are a lot more factors currently at play.”

Roush rejects the notion that PLAs are specifically to blame for estimates’ being over-budget, or that they discriminate between union and non-union firms.

“I don’t think that we can say the project labor agreement caused this. This is already a prevailing wage project – it has to be because it’s a state project,” he said, noting open-shop contractors are free to bid on the jobs if they agree to union terms.

Roush also dismissed Williams’ suggestion that the School for the Blind and School for the Deaf be rebid without the prevailing wage.

“There’s no a way for the state to rebid that without prevailing wage,” Roush said. “The commission has to follow the Ohio Revised Code.”

http://www.ada.gov/regs2010/ADAregs2010.htm 

The Ohio School Facilities Commission (OSFC) reviewed its work for FY10 Thursday and awarded another $345 million in school construction projects to get a start on FY11. The commission is providing just under $200 million of that amount, with the rest coming from local matching sources. 

OSFC Executive Director Richard Murray said a significant portion of state funding will come from the $4.1 billion tobacco securitization initiated by Gov. Ted Strickland and approved by the Ohio General Assembly in 2008.

“This agency is committed to working with these districts by provide quality learning environments that enhance our children’s future,” Murray said in a statement following the monthly meeting. “These school construction projects will have a significant economic impact on local communities as today’s commission action translates into as many as 3,520 job opportunities for Ohio workers.”

Under the Green Schools Initiative adopted by the commission in 2007, all of the building designs will employ the energy-efficient and environmentally-conscious LEEDrating system developed by the nonprofit U.S. Green Building Council.

“Schools built to this standard have been proven to make a tremendous positive impact on student health, test scores, teacher retention, school operational costs and the environment,” the commission said.

The funding awards must still receive Controlling Board approval. Districts must also produce local matching funds within a one-year window before state funding can be released.

In related business, OSFC approved nearly $80 million for construction contracts in 23 school districts.

Members also reviewed total OSFC spending for the past 13 years, noting the rise to $1.05 billion in FY09, falling slightly to $1.006 billion in FY10.

In other business, the director also touched on the flap involving several school districts in Scioto County, which have filed a complaint with the Ohio Inspector General’s Office against OSFC for allegedly pressuring schools to accept union-friendly project labor agreements. 

“I made no such attempt to influence them or pressure them,” Murray said of specific allegations by New Boston School District.

In a separate statement Thursday, Inspector General Thomas Charles said the complaint against OSFC has yet to be resolved.

“We felt it had merit, we did open a case, and it’s ongoing,” he said.

More than 85.7 percent of Ohio small businesses with fewer than 25 employees will be eligible this year for tax credits to help pay the cost of employee health coverage, according to a new report issued by Families USA and Small Business Majority.

The tax credit program, a part of the Patient Protection and Affordable Care Act, targets small employers with up to 25 workers. In Ohio, this means 127,800 small businesses out of a total of 149,100 small businesses will qualify. Nationally, more than 4 million small businesses – 83.7 percent – are eligible in 2010 for the credit.

The report, “A Helping Hand for Small Businesses: Health Insurance Tax Credits,” also notes that 38,900 Ohio small businesses will qualify for the maximum tax credit of 35 percent. These are businesses that employ 10 or fewer workers who earn an average wage of less than $25,000, and traditionally have the most difficult time affording insurance. The credit is completely phased out for employers with more than 25 full time workers or with average wages of more than $50,000. In both cases, businesses must cover at least 50 percent of each employee’s health insurance premiums.

“Many small businesses – like the local diner, the hardware store down the street, or the neighborhood repair shop – face special challenges in providing health coverage for their small number of employees,” said Families USA Deputy Executive Director Kathleen Stoll, in a teleconference with media on Wednesday. “They will now receive substantial help.

“For example, in 2008, employers with fewer than 10 workers had to pay, on average, nearly $350 more for each employee’s health insurance than firms with 50 or more workers,” Stoll said. “It’s no surprise, therefore, that less than half of these smallest businesses offered coverage to their employees. This new tax credit should certainly help to improve that record.”

Small businesses are financially less able to provide health coverage for their workers than larger businesses. Nationally, 72 percent of small businesses with 10 to 25 workers offer health coverage, while more than 95 percent of businesses with 50 or more workers offer coverage, said Cathy Levine, co-chair of Ohio Consumers for Health Coverage.

The new law aims to redress that imbalance with tax credits, offering the maximum credit of 35 percent to the smallest companies. Nonprofit employers also benefit, with a maximum credit of 25 percent. As the number of employees and their average wages rise, the tax credit is reduced on a sliding scale.

To further provide assistance, the law allows employers to count two half-time workers as one full-time worker, meaning that an employer with mainly part-time workers will be able to qualify for the tax credit.

“Employers have been willing to provide health coverage for their employees, but economies of scale have made this almost impossible for many small businesses,” Levine said. “Starting this year, they will have access to a new tax credit to help provide this essential benefit, enabling them to hire and keep good workers who want and need health coverage.”

“There’s been a lot of speculation about how many small businesses will qualify for tax credits, and this report clears up a lot of those questions,” said John Arensmeyer, founder and CEO of Small Business Majority. “We now have real numbers that show the vast majority of small businesses in Ohio will qualify for tax credits under the new law. That’s huge.” 

The report notes that the health reform law has additional provisions to aid small businesses now and in coming years. Among those provisions:

– Starting this month, small business owners are able to view all existing health coverage options in their state on a user-friendly website.

– Starting in 2014, small employers will be able to purchase quality coverage with strong consumer protections through state-based health coverage marketplaces called “exchanges.”

– Starting in 2014, small employers will be eligible for tax credits up to 50 percent, or 35 percent for nonprofits, to cover their workers with policies obtained through the state exchanges.

– Starting in 2014, insurers will be prohibited from charging small employers higher premiums based on their workers’ pre-existing conditions.

– In addition, the act addresses “medical loss ratio” by requiring health plans for small businesses “to spend at least 80 percent of the premium dollars that they receive on providing medical care and improving health care quality for enrollees, instead of on administration, marketing and profits.”

The study was done for Families USA and the Small Business Majority by The Lewin Group.

On the other side, the NFIB maintains that “the tax credit is not a panacea for small businesses.”

Bill Rys, NFIB’s tax counsel, maintained in a release that while, “[s]upporters claim 4 million small businesses are eligible for the credit … less than 2 million small businesses will receive it. And those that do receive a credit aren’t guaranteed a large check. Words and data are funny things – the use of ‘eligible’ versus ‘would receive’ certainly changes the meaning. And if you only look at part of the equation you miss some important numbers.

“For example, the latest research shows how many small businesses will be eligible, but it doesn’t take into account whether the firms even offer health insurance. Of the four required criteria to receive a credit – they only looked at two pieces (firm size, average wage). They leave out whether the business offers insurance and pays for half (both are required to receive a credit). The truth is about one-third of firms under 25 employees offer insurance. And, the lower the average wage of a firm, the less likely they are to offer insurance.”

The organization goes on to maintain on its website that, “Very few small businesses will actually qualify for the tax credit … early estimates by CBO [Congressional Budget Office] cite that just 12 percent of the small business population would benefit in any way.

“The credit is very restrictive and puts small business owners through a series of complicated ‘tests’ to determine the actual amount of the credit. Three conditions must be met for small businesses to qualify for any portion of the credit: 1. Business size – Very few small firms will receive the full credit (only firms with 10 employees or less). For firms with 11-25 employees, the credit is reduced per employee. Firms with more than 25 employees get NO credit. 2. Average employee wages – The credit is tied to the average wage of workers. Only firms who pay their workers $25,000 or less are eligible for the full credit. The credit is reduced as the average wage goes up, stopping at $50,000. (Note: Average wage for a firm with 10 or fewer employees is approximately $27,000.) 3. Employer contribution – Only firms covering 50 percent or more of insurance costs will be eligible.

“The credit is only available for a maximum of six years, but health care costs will continue to increase well after those six years.”

Ohio Department of Development Director Lisa Patt-McDaniel announced $597,500 in Brownfield Revolving Loan Fund grants Wednesday to four Ohio projects through the American Recovery and Reinvestment Act (ARRA). The city of Toledo, Colony Historic Theater Association, Famicos Foundation, and the city of Akron will each receive grants for remediation and rehabilitation efforts to remove asbestos.

Last August, the state received $1.8 million from the U.S. Environmental Protection Agency for brownfield revitalization efforts. Up to $200,000 in ARRA funding is available to eligible nonprofit and local government entities to remediate asbestos in historic buildings.

“Brownfield redevelopment contributes significantly to the environmental and economic sustainability of our communities,” Patt-McDaniel said. “These awards will help make these treasured buildings in Toledo, Marietta, Akron and Cleveland safer and cleaner, and will strengthen the historic urban fabric of these communities.”

City of Toledo (Lucas County) will receive $200,000 to conduct remediation on the S.S. Willis B. Boyer Museum Ship. The $203,000 project will include the removal of asbestos from the docked ship, which dates back to 1911 and sees an average of 6,000 visitors a year. It also hosts multiple port security exercises. It opened as a museum in 1987.

Hippodrome/Colony Historic Theatre Association (Washington County) will receive $200,000 to conduct remediation on the Colony Theatre in Marietta. The project will include the removal of asbestos in the 1,000-seat theater, which is undergoing an estimated $5 million renovation. The project is expected to create 246 construction jobs and 46 full-time positions. The theatre was built in 1919 and has been vacant since 1985.

Famicos Foundation (Cuyahoga County) will receive $100,000 to conduct remediation on Cleveland’s 1341 East Boulevard Property, built in 1910. The project will include the removal of asbestos as part of a project totaling more than $1.3 million. Rehabilitation of the property supports the revitalization of other historic buildings in the area. The project is expected to create and retain 54 construction jobs.

City of Akron (Summit County) will receive $97,500 to conduct remediation on the Landmark Building. The project will include the removal of asbestos. The Landmark is one of seven historic buildings located at Main and Bowery Streets in downtown Akron that developers are working to rehabilitate and develop into a mixed-use center. The 12-story Landmark, built in 1923, is part of a $20 million project that will include apartments on the upper levels and a restaurant below.

Clean Ohio Funds Assist Cleveland, Piqua

The Ohio Department of Development announced that $391,850 in Clean Ohio Assistance Fund grants will go to Cleveland and Piqua for brownfield redevelopment. The awards have already been approved by the Controlling Board.

“Clean Ohio Assistance Fund grants are vital to the ability to reuse brownfield sites around Ohio,” Patt-McDaniel said. “We are continually looking for ways to improve the environment in our communities and spur economic development.”

City of Cleveland (Cuyahoga County) will receive a $191,947 Clean Ohio Assistance Fund grant for a Phase II Environmental Assessment at the East 66^th Midtown Redevelopment site. The assessment will determine the environmental suitability of the property and the possible need for any remediation.

City of Piqua (Miami County) will receive a $199,903 Clean Ohio Assistance Fund grant for a Phase II Environmental Assessment at the Piqua Memorial Hospital site. The assessment will determine the environmental suitability of the property and the possible need for any remediation.

A ruling by the Ohio Supreme Court Wednesday adds a new dimension to the dispute between the Ohio Inspector General’s Office and the Ohio Department of Transportation (ODOT) over bid preparation costs, and puts the Ohio solicitor general’s office on the losing side of the private contractor debate.

In April 2008, the University of Akron (UA) solicited bids for construction on its new InfoCision football stadium. Meccon Inc. submitted a bid for the heating, ventilation and air conditioning (HVAC) work, but the university awarded the contract and other portions of the project to a second bidder, S.A. Communale. Meccon filed suit in the Ohio Court of Claims and alleged UA had violated the state’s competitive bidding law as well as its own project proposal. The company sought a temporary restraining order and temporary and permanent injunctions to halt construction, also requesting monetary damages to cover bid preparation costs and other alleged damages resulting the university’s failure to award the HVAC contract to Meccon.

UA argued that the Court of Claims lacked jurisdiction to hear the case, and the court granted its motion to dismiss, finding a disappointed bidder on a public improvement contract may only obtain injunctive relief, as opposed to monetary damages, and that the Court of Claims may only hear monetary claims against the state. 

On appeal, the 10^th District Court of Appeals reversed and remanded the case to the Court of Claims, saying a disappointed bidder can recover bid preparation costs from the state, and that because such costs are monetary damages, the Court of Claims does have jurisdiction to hear the type of claims Meccon asserted.

Solicitor General Benjamin Mizer appealed UA’s case to the Supreme Court, which heard oral arguments in January. 

In Wednesday’s unanimous 6-0 decision, the Court affirmed the judgment of the appeals court and ruled that when a rejected bidder establishes that a public authority violated competitive-bidding laws, the contractor may recover reasonable bid-preparation costs if it promptly sought and was denied an injunction pending a resolution of the dispute, and if it is later determined the bidder was wrongfully rejected and injunctive relief is no longer available.

Writing for the Court, Justice Robert Cupp rejected UA’s claim that the Court’s 2006 decision in Cementech Inc. v. Fairlawn had precludes disappointed bidders on public improvement projects from recovering monetary damages. He said when the Court found a bidder cannot recover lost profits after an unlawful bid process, it did not address the kind of grievance advanced by Meccon.

“We decline to extend the holding in Cementech to this circumstance,” he said. “We reach this conclusion because the reasons articulated in Cementech for denying recovery of lost profits as damages do not carry over to the circumstances in which bid-preparation costs are sought after denial of a timely application for injunctive relief. A significant distinguishing factor in those circumstances is the lack of any other remedy for a public authority’s wrongful conduct….

“We hold that when a rejected bidder establishes that a public authority violated state competitive-bidding laws in awarding a public-improvement contract, that bidder may recover reasonable bid-preparation costs as damages if that bidder promptly sought, but was denied, injunctive relief and it is later determined that the bidder was wrongfully rejected and injunctive relief is no longer available.”

Cupp noted, however, that the 10^th District never reached the question of whether the company’s request for injunctive relief was timely, which would determine its eligibility for bid preparation costs. The Court therefore remanded the case for further proceedings on the timeliness of Meccon’s claims.

Cupp was joined by Justices Paul Pfeifer, Evelyn Lundberg Stratton, Maureen O’Connor, Terrence O’Donnell and Judith Ann Lanzinger. Chief Justice Eric Brown did not participate in the case.

The full opinion can be found at www.supremecourt.ohio.gov/rod/docs/pdf/0/2010/2010-Ohio-3297.pdf.

Wednesday, July 21, 2010  03:53 AM

By Barbara Carmen

Faulty rules that Franklin County followed to hire contractors to build its courthouse, ballpark and dog shelter will be revised, Commissioner John O’Grady said.

Ohio’s top court rebuked the county commissioners in March for disqualifying bids from contractors who had settled petty wage disputes with the state. Commissioners, the Ohio Supreme Court ruled, overreached by branding those settlements with the Ohio Department of Commerce as violations of state prevailing-wage laws.

The court told commissioners to define precisely what constitutes a violation, and to consider many factors when weighing a contractor’s worthiness.

Commissioners now face paying the Painting Co., which lost a job at the Huntington Park baseball stadium. The county also had to reconsider an electrical contractor’s low bid for the new dog shelter, which it eventually accepted.

In April 2009, O’Grady convened a panel to review the county’s quality-contracting standards. But he put any changes on hold as the state Supreme Court considered the Painting Co.’s lawsuit.

“Our standards by and large have been very successful,” he said. “There are a couple things we’re going to address. We’ll do a better job of defining what a ‘violation’ means.”

O’Grady expects the panel to start meeting in August but with a few additional members. The Ohio Chapter of Associated Builders and Contractors, which had sued the county alongside the Painting Co., asked to participate. O’Grady said the group is welcome.

“That’s great. We’re going to have a seat at the table,” said Mary Tebeau, chapter president. “I’d like to create a policy that all groups believe in, that everyone is amenable to.”

Panel members, however, seem poised to clash. Tebeau called a proposed draft of changes to the county’s 18 original rules “alarming.” She said it appears even more stringent than the current wage standard, which repeatedly landed the county in court.

The draft is being circulated by a union lawyer.

Luther L. Liggett Jr., who represents the National Electrical Contractors Association, suggests in the draft that contractors be disqualified for jobs even if their prevailing-wage blunder was unintentional. He also proposes that settlements with the state count as violations.

“I think we get tripped up over the word violation,” Liggett said. “When the state makes a finding, that’s the trigger. I think it is clearer, not more stringent.”

Richard Hobbs, president of Associated General Contractors of Central Ohio, calls the county standards the “good housekeeping” seal for reputable contractors. He said the rules are important to protect.

“But what sounded great as they were crafted years ago are different in a practical world,” he said, noting that the standards have since been tested on big projects.

“The commissioners, they want to do this right,” Hobbs said. “You want fair and responsible guidelines in place. Tax money is too precious to be squandered.”

County Administrator Don L. Brown said the review panel will include the contractors associations, facilities experts from local universities, lawyers, labor leaders and county officials.

Brian Damant, manager for the electrical contractors’ central Ohio chapter, said the county must continue vigilance in screening bidders.

“In construction, you can’t just come in and say, ‘Here’s my little number.’ It’s not like looking at a tomato at the grocery and deciding it’s worth the price,” Damant said. “When I go into construction, I’m buying a promise. I’m looking at dirt. Can you deliver it per code, per specs? It’s how you treat employees.”

He suggests that the county review all 18 standards and remove the politics by prequalifying bidders and then opening the sealed bids to determine who will get the job.

bcarmen@dispatch.com

Ohio Department of Development Director Lisa Patt-McDaniel has announced the first recipient of Ohio’s Brownfield Revolving Loan Fund grants through the American Recovery and Reinvestment Act (ARRA).

The Cleveland Public Theater project will receive a grant in the amount of $200,000 for remediation and rehabilitation efforts to remove asbestos from the facility.

The state received $1.8 million from the Recovery Act from the U.S. Environmental Protection Agency last year for brownfield revitalization. Eligible nonprofits and local government entities may receive up to $200,000 in ARRA funding to remediate asbestos in historic buildings, supporting economic revitalization and improved health and safety for building occupants.

ODOD says the Cleveland Public Theater project is central to the rebirth of the Gordon Square Arts District, which is listed on the National Register of Historic Places and is projected to impact Cuyahoga County with more than 300 permanent jobs and 400 construction jobs.

“The projects are vital to the urban revitalization of Cleveland, and these resources will not only help make these buildings safer and cleaner, but also create jobs, generate community reinvestment, and continue to strengthen the historic urban fabric of the city of Cleveland,” Patt-McDaniel said. “Brownfield redevelopment also contributes greatly to the environmental and economic sustainability of our communities.”

More information about the Brownfield Revolving Loan Fund may be found at www.recovery.ohio.gov.

State procurement contracting with minority-owned businesses has risen in recent years, but spending levels are still far below the legal minimum and the Strickland Administration is pressuring agencies to do more.

In fiscal year 2009 cabinet agencies increased spending on firms participating in the Minority Business Enterprise and Encouraging Diversity, Growth and Equity programs by $94 million over the previous year, according to the most recent MBE/EDGE annual scorecard. 

Nonetheless, only one cabinet-level agency, the Department of Taxation, met the MBE set-aside requirement in the law for 15% of total procurement spending go to firms owned and controlled by African Americans, Latinos, Asians, and Native Americans. Cabinet agencies directed about $43 million, or 4.3% of their spending on goods and services to MBE firms in FY 2009, an increase from $26 million the prior year.

Department of Administrative Services spokesman Ron Sylvester said the Governor’s Office has lately been taking an aggressive role in getting agencies to comply with the MBE law and EDGE goals.

“If you’re not making progress and you’re an agency director, you will find yourself in a meeting at the Governor’s Office explaining what your plan is to meet the letter of the law and get your numbers up,” he said.

“The fact is both of these programs are state law and have been for many years and the Strickland Administration is doing everything it can to adhere to the law,” he said.

Cabinet agency spending on EDGE-certified companies increased 4.3% from FY 2008 to $134 million in FY 2009, the scorecard says. Participating companies must be owned by “www.birdzpedia.com/” individuals, but unlike MBE, the program is open to all races.

Non-cabinet level agencies doubled MBE expenditures from $1.5 million to $3 million in FY 2009 while EDGE spending held steady at $9 million. State colleges and universities totaled $47 million in MBE and $26 million in EDGE.

A federal court struck down state set-asides for construction contracts in 1998, but the Ohio Supreme Court subsequently upheld similar quotas for the procurement of goods and services.

While there is still has a long way to go to meet the state’s diversity goals, the procurement spending increase represents a departure from previous administrations, Mr. Sylvester said.

“For many years there was not a lot of attention paid to being compliant with the MBE law, in particular,” he said. “We’ve moved the ball on that account.”

Gov. Strickland signed a 2008 executive order aimed at boosting participation rates of minority-owned businesses as part of an effort to increase state spending on Ohio-based companies. 

Rep. Sandra Williams (D-Cleveland), president of the Ohio Legislative Black Caucus, said the administration’s efforts to boost minority business spending are proving effective.

“We want to congratulate governor for trying to take on this endeavor to begin to comply with this law that’s been in place for almost 20 years,” she said. “We definitely believe it’s an improvement over the 2008 scorecard, but I would not classify it as success until they reach that 15%.”

The administration has been working with OLBC and community groups on outreach efforts in the major metropolitan areas, she said. “So they have been doing their due diligence. But the goal is to get it done. And it’s not good enough until it’s done.”

Mr. Sylvester said low MBE and EDGE participation rates were due in some cases to a lack of certified businesses capable of providing the required goods and services.

The administration has worked to increase the number of registered MBE and EDGE businesses, he said, noting the two-part process involves getting certified and then registering with the Office of State Procurement to get information about bidding opportunities.

“DAS has been working really hard with the businesses to get them to do both steps of the process,” he said, noting the biennial budget increased funding for DAS’s Equal Opportunity Division to hire an MBE/EDGE outreach coordinator and upgrade computer systems to improve tracking and communication within the programs.

Census Bureau: The number of minority-owned businesses in the U.S. increased by 45.6% to 5.8 million between 2002 and 2007, more than twice the national rate for all businesses, the U.S. Census Bureau reported this week. The number of women-owned businesses also increased 20.1% during the same period.

The total number of U.S. businesses increased by 18% to 27.1 million between 2002 and 2007, the agency said.

Receipts of minority-owned businesses rose 55.6% during the five-year period percent to $1.0 trillion, the bureau said. Receipts of all U.S. businesses increased by 33.5% to $30.2 trillion.

The Ohio School Facility Commission (OSFC) is raising the bar on what its means to do school design, and therefore school construction, in the new millennium. The commission hosted the 21^st Century School Design Symposium at the Riffe Center this week, featuring forward-thinking experts on the future of technology and educational culture in the U.S. and around the globe.

“This is not about ‘21^st century’ branding….” founder Chris Long of education consultant Be Playful said, offering as an example of student-centered learning one school district that moved toward collaboration and open inquiry. “This district is better because they do this every day.”

The first of two speakers at Thursday’s school design symposium, Long said the real key to 21^st century learning is not so much technology as the kind of student interaction and curiosity found even in some 20^th century schools.

“There was no Internet. We didn’t use that newfangled stuff. But we did theater, we took the kids on trips. It wasn’t big money, it was a choice. The school committed to certain things.”

Long offered the story of a young high school student who was allowed to interact individually by two-way Internet with one of the country’s top slam poets, who mentored her and gave her critical feedback.

“She doesn’t have 30 years to ask your permission,” he said, acknowledging the value of real-time interaction via new media. “It’s now, because it’s important.”

Long suggested classrooms must and will become “learner-centered” and “question-centered” rather than teacher-centered and answer-centered.

“How do we do school?” he said of the question educators and policymakers will always ask. “The kids co-create that.”

Though this has not always been the case, Long said it is the only rational approach to education in the 21^st century, when the U.S. is competing every day with the rest of the interconnected world.

“Instead of putting stuff on a hard drive or desk top, it’s in the clouds …,” he said outside the symposium. Schools need “high-powered” space for interaction and discovery, said Long, “not keyboarding rooms.”

The inevitable outcome will be life-long students who learn “any time, any place, any path.” Long said instructional resources will come from all directions, redefining the word public. “As Malcolm X said, ‘By all means necessary.’”

State Superintendent Deborah Delisle did not attend the symposium but acknowledged OSFC’s openness to “designing for technology and ensuring there are a variety of learning spaces to accommodate different educational approaches,” which she included in a letter to OSFC Executive Director Richard Murray.

“It is no longer enough to incorporate 21^st century teaching and learning,” Delisle said. “The ideas generated in these workshops are broad and robust, dealing with issues such as planning tools for schools, the importance of sustainability, designing for technology and ensuring there are a variety of learning spaces to accommodate different educational approaches.”

While visiting the Schofield Building in Cleveland on Friday, Gov. Ted Strickland announced that it and 12 other historic building renovations throughout the state will receive Ohio Historic Preservation Tax Credit awards.

 “Strong cities strengthen our state and strengthen our economy. And we are pleased to announce a new round of projects that will transform several fading buildings across the state back into newly productive economic life,” Strickland said. 

 The Ohio Historic Preservation Tax Credit awards are part of the state stimulus plan, which included $120 million set aside for this purpose.

Friday’s awards totaled $28.3 million in tax credits to the 13 projects, completing the allocation allowed under the state stimulus. In total, the Ohio Historic Preservation Tax Credit program, which was launched in 2007, has awarded $246 million to 111 projects in 27 different cities – leveraging more than $1.3 billion in expected total project investments.

The Ohio Historic Preservation Tax Credit program provides recipients tax credits equal to 25 percent of qualified rehabilitation expenditures. Ohio’s Historic Preservation Office determines that rehabilitation plans comply with the U.S. Secretary of the Interior’s Standards for Rehabilitation of Historic Properties. These 13 recipients are expected to leverage more than $206 million in non-state investments. This means that for every one dollar the state invests, $7.30 dollars of private capital will be invested in these projects. 

The Round 4 Ohio Historic Preservation Tax Credit recipients include the following:

 Armory Square (Marietta, Washington County) 
Total estimated project expenditures: $4.0 million
Total value of credit: $874,038

Constructed in 1914 for the Ohio National Guard, the long-vacant Marietta Armory will be revitalized into a multi-use facility to complement the city’s heritage and tourism industry. The Front Street building will house an intermodal travel center, visitor information center, banquet and meeting space and a community market place. The visitor’s center will be operated by the Marietta/Washington County Convention and Visitor’s Bureau and feature kiosks highlighting the history and offerings of Marietta, the first settlement in the Northwest Territory.

Berdan Building (Toledo, Lucas County) 
Total estimated project expenditures: $21.6 million
Total value of credit: $2,251,331

Constructed in 1902, the Berdan Building provided warehouse space for the Berdan Company in the 19^th and early 20^th centuries. Located in Toledo’s warehouse district, the BerdanBuilding is an example of commercial architecture from that era. The rehabilitation of the building will create 123 apartment units.

 Federal Building (Youngstown, Mahoning County) 
Total estimated project expenditures: $2.4 million
Total value of credit: $445,884

Standing four stories in height, the Federal Building anchors a corner in downtown Youngstown. Renovations will convert the building, constructed in 1899 and designed by world-renowned architect Daniel Burnham, for a mix of uses. Studio and two bedroom apartments on the upper floors will provide housing for 24 new residents. The first floor will accommodate a downtown restaurant and commercial office space.

Federal Reserve Building (Cincinnati, Hamilton County) 
Total estimated project expenditures: $20.2 million
Total value of credit: $2,476,000

Once occupied by the Federal Reserve Bank, the 16-story Federal Reserve Building is located in downtown Cincinnati’s West Fourth Street Historic District. Rehabilitation of the building will convert 11 floors from office to residential units, reflecting the ongoing demand for downtown housing. The bottom five floors will be retained for retail and commercial office use.

Feick Building (Sandusky, Erie County) 
Total estimated project expenditures: $7.5 million
Total value of credit: $1,726,407

As the tallest building in downtown Sandusky, the Feick Building has been a local landmark since it was topped off at eight stories in 1916. Renovation plans call for the incorporation of several sustainable design principles, including geothermal heating and cooling, energy efficient lighting, water conserving plumbing fixtures, low-e glass windows, and a vegetative green roof to reduce water runoff. It boasts unobstructed views of Sandusky Bay and Lake Erie from its upper floors.

First Congregation Church (Conservatory of Music Annex) (Berea, Cuyahoga County) 
Total estimated project expenditures: $17.3 million (church portion only)
Total value of credit: $3,598,642

 Dating to 1867, the former First Congregational Church will be rehabilitated as part of the larger Conservatory of Music expansion project at Baldwin-Wallace College. Located on the college’s South Campus, the Conservatory of Music Annex will provide world-class program space to over 300 talented students. Baldwin Wallace’s Conservatory of Music already attracts students and faculty from across the country. The additional space will provide necessary room for the program to expand.

 Hannons Block (Toledo, Lucas County) 
Total estimated project expenditures: $2.7 million
Total value of credit: $628,808

 The Hannons Block, built in 1874, occupies the corner of Monroe and Erie Streets in downtown Toledo’s Warehouse District. The red brick commercial block will be rehabilitated to provide loft office space for small businesses. Interest in the renewed facility is already significant and a local art organization has intentions to bring its offices and a small gallery to the building’s ground floor.

 Metropole Building (Cincinnati, Hamilton County)
Total estimated project expenditures: $53.7 million 
Total value of credit: $5,000,000

 Located at the center of an emerging arts entertainment district on Walnut Street in downtown Cincinnati, the Metropole Building will be transformed into a 160-room hotel, part of the 21c Museum Hotel banner. In addition to offering full-service hotel amenities, the 21c Museum Hotel will feature 7,000 square feet of art exhibition and event space, a restaurant and bar serving locally produced foods, and arts education programming. Rehabilitation plans for the 1924 building also include incorporating permanent art installations into the fabric of the building and streetscape. The hotel is expected to compliment surrounding arts venues, including the Contemporary Arts Center and the Aronoff Center for the Arts, which are both located in the same block as the Metropole.

Metropolitan Block (Lima, Allen County)
Total estimated project expenditures: $9.2 million 
Total value of credit: $2,059,052

Also known as the Stippich Building, the ornate Metropolitan Block stands five stories directly across from the Allen County Courthouse in downtown Lima. Victorian Romanesque in design, the structure will receive all new mechanical systems, structural repairs, and an elevator to support commercial office uses. The top floor of the building is planned to house corporate suites complete with in-suite restrooms and kitchenettes.

 Kaiser Building (Akron, Summit County) 
Total estimated project expenditures: $1.9 million
Total value of credit: $374,415

Located in downtown Akron, the Kaiser Building is the oldest remaining building on Main Street. The three-story structure is in the heart of a district seeing new investment and interest, including expansion of the University of Akron into downtown. Once restored, the Kaiser Building will house retail spaces on the first floor and professional office suites above.

Schofield Building (Cleveland, Cuyahoga County) 
Total estimated project expenditures: $44 million
Total value of credit: $5,000,000

Poised to be one of the most dramatic historic restoration projects in Cleveland, the Schofield Building anchors the intersection of the city’s two main streets (East Ninth Street andEuclid Avenue). Partially hidden under 1970’s era metal cladding, the striking brick structure will be transformed for residential and hospitality uses. The new hotel will compliment ongoing development of new convention facilities in the city while the location capitalizes on the recently opened Healthline transit corridor.

Union Building (Cleveland, Cuyahoga County) 
Total estimated project expenditures: $18.9 million
Total value of credit: $3,292,104

A prominent building in the College Town District surrounding Cleveland State University, the Union Building will undergo a complete renovation. The terra cotta building will maintain its original use with retail on the ground level and office space on the upper seven floors. The office floors are currently vacant and require rehabilitation to accommodate modern office needs.

Wonder Bread Building (Columbus, Franklin County) 
Total estimated project expenditures: $3.2 million
Total value of credit: $597,000

A widely recognized landmark in Columbus’ Italian Village neighborhood, the historic Wonder Bread Building will be turned into a multi-use arts space. To be called Wonderland, the renovated facility will house artist studios, arts organizations, rehearsal space for musicians and performers, and creative retail tenants. Wonderland will be designed to foster collaboration among artists and the creative entrepreneurs and companies it will house. The facility’s renovation will preserve the industrial heritage of the building, including the prominent Wonder Bread sign, a local novelty.

The Ohio Historic Preservation Tax Credit program is administered by the Ohio Department of Development’s Urban Development Divisio,n with assistance provided by the Ohio Historic Preservation Office of the Ohio Historical Society and the Ohio Department of Taxation. 

The program provides a tax credit for the rehabilitation expenses to owners of historically significant buildings, subsidizing 25 percent of qualified rehabilitation expenditures for historic rehabilitation projects. The expenditures represent hard construction costs generally consisting of improvements made to the building structure and interior that meet national standards.

A building is eligible if it is individually listed on the National Register of Historic Places, is located in a registered historic district, is certified by Ohio’s Preservation Officer as being of historic significance to the district, or is listed as a historic landmark by a certified local government.

To date, the program has seen 20 projects completed representing $149 million in total project investments and $30 million in Ohio Historic Preservation Tax Credits. These completed projects have created more than 1,500 full-time construction jobs, house more than 1,100 permanent jobs and provide more than 600 residential units. 

More information about the Ohio Historic Tax Credit program, including the 2009 Annual Report can be found online at http://development.ohio.gov/urban/OHPTC.