AIA Bulletin

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.

Union contracts for school construction projects dominated Thursday’s Ohio School Facilities Commission (OSFC) meeting, with the commission’s director defending his actions on two particular projects and an association representing contractors calling for him to resign.

Two months after being chosen by Gov. Ted Strickland to lead the Ohio School Facilities Commission, Richard Murray attended the school board meeting in the small Ohio River district of New Boston.

The message he delivered: Your building project has problems, but if you use union labor, they will go away, according to New Boston Superintendent Mike Staggs.

“If you sign the PLA, we’ll make it work,” Murray told the packed room about a “project labor agreement,” according to Staggs’ detailed notes of the meeting that included union officials.

Now, Ohio Inspector General Thomas P. Charles is digging into the case to determine whether Murray has crossed any lines by pushing for districts to use union labor through project labor agreements, according to several people interviewed by state investigators. Charles declined to comment.

Since its inception in 1997, the commission has distributed more than $8.3 billion for school construction and renovation, resulting in 760 new and renovated schools for about 423,000 children.

“We would categorically deny any quid pro quo for anything,” said commission spokesman Rick Savors. Murray was in meetings Friday and was not available for comment, Savors said.

Staggs said Murray attended a Nov. 19 meeting and discussed projected cost overruns as well as the need for a costly retaining wall at New Boston’s site for an $18.5million school for its 467 students.

The school board was considering whether to enter a project labor agreement that would require the use of union labor.

“Our board was under the impression that if we signed a PLA, we wouldn’t have to worry about excess cost or the retaining wall,” Staggs said.

He thinks the commission delayed state approvals because the school board backed out of the PLA after union bids in a nearby district came back 22 percent over budget. The commission then objected to the New Boston building site, using what Staggs considered bogus reasons, and proposed another site without consulting school officials, he said.

“It’s unethical … unbelievable,” Staggs said. The original site ultimately was approved by the state about a month ago.

Strickland spokeswoman Amanda Wurst said the governor is awaiting Charles’ report and will carefully review his analysis and recommendations.

“The governor knows Rich Murray to be a man of high integrity with a dedication to making decisions in the best interest of the people and schoolchildren of Ohio,” Wurst said.

Murray formerly was the head of Ohio LECET, a group that assists union workers and the firms employing them in winning construction contracts. Strickland recommended him for the facilities commission post, and the commission agreed, hiring him Sept. 3.

Two of the commission’s three voting members report directly to the governor. Strickland, a Democrat, is seeking re-election this year with unions’ backing.

Last month, Murray unilaterally decided that union workers will rebuild the Ohio deaf and blind schools in Columbus’ Beechwold neighborhood, saying a project labor agreement there will help to ensure safety.

Murray replaced Michael Shoemaker, a Democratic former state lawmaker and school teacher who also had been a Strickland pick. Shoemaker said he was under intense pressure from union officials to oust non-union firms from jobs.

For the first 10 years of the commission’s operations, under Republican governors, it prohibited PLAs or the payment of prevailing union wages, which effectively locked unions out of the work, Shoemaker said. When Strickland took over, unions were demanding payback, Shoemaker said.

“This is still a fight in the civil war over prevailing wage that started in 1997,” Shoemaker said Friday.

“To be fair, I could have probably still been there if I had thrown out the non-union guys. I think the construction managers have been told: ‘You find something wrong with these non-union contracts.’ I think that’s the method to the madness.”

Tony Mantell, superintendent of the small Clay school district near Portsmouth, said he has been interviewed by investigators amid the district’s work on a building project.

“I fear that everybody’s motives are not pure right now” at the school facilities commission, Mantell said. “I don’t feel it should be a union, non-union issue.”

Elaine Barnes quit her job as green schools program manager this year partly because of what she described as Murray’s unwritten rules to help unions.

“I think it’s just borderline criminal what’s going on,” Barnes said.

“The last thing I’m going to do is spend my energy on projects where the rug is constantly being pulled on people. It was really decimating the morale of the design-construction team,” she said. “Everybody knew what was going on, but nobody spoke about it. It felt nefarious. … The entire executive staff was running around like scared chickens.”

Staggs wrote Strickland about his concerns Feb. 17 and complained to commission members at their Feb. 25 meeting. Murray said there was no connection between the PLA, or lack of one, and the approval of the district’s building site.

Chairman J. Pari Sabety, also the state budget director, said at that meeting that there had been no change in policy permitting school districts to choose between union labor or the hiring of non-union companies.

Kathleen Somers, president of the Ohio Valley chapter of the non-union Associated Builders and Contractors, said school districts have been steered toward more-expensive union labor since Murray took over the commission.

“They are feeling a lot of pressure to use PLAs. It all seems to boil down to ‘You have to play ball my way, or you’re not going to get your money.’ It just doesn’t seem tax dollars should be manipulated in this matter.”

The Board of Trustees at Ohio State University authorized release of $925 million for design, construction, and construction management contracts related to the OSU Medical Center’s ProjectONE.

The project is one of three in a pilot program the General Assembly authorized to test alternative methods of managing public construction in the state.

The $1 billion medical tower is being financed with money borrowed through university bond sales, and $75 million in development funds.

Trustee action came as Governor Ted Strickland, OSU President Gordon Gee, Columbus Mayor Michael Coleman and others broke ground for the expansion that is expected to result in creation of 10,000 full-time jobs.

Mr. Strickland said the project would provide an immediate economic boost to central Ohio by creating 5,000 new construction jobs while transforming the center into a worldwide leader in innovation.

“But the project will also have a long-term impact on central Ohio’s economy by attracting the best students, doctors and scientists to fill some of the 10,000 permanent jobs that will be created here,” the governor said.

“The result will be faster and greater job-creation, more path-breaking medical research, and better care for patients and their families,” he said.

OSU said 6,000 of the full-time jobs created over the course of the project would be at the medical center. At least 4,000 indirect, full-time jobs would be generated throughout the region from spending by the university, its faculty, staff and visitors.

By 2015, ProjectONE is forecast to pump $4.1 billion annually into the Ohio economy.

Included is construction of a central, single tower that will house a new Arthur G. James Cancer Hospital and Richard J. Solove Research Institute, along with a new critical care building, integrated spaces for research, education and patient care, and upgrades to existing facilities.

Though House and Senate panels moved closer May 12 to having alternative energy tax incentive bills go to their respective chambers for a vote, those backing the two bills have very different visions of what the legislation should look like. 

A day after Gov. Ted Strickland called for legislators to move before summer recess legislation on, among other things, renewable energy tax treatments, committees in both chambers planned Wednesday to report the bills out of committee.

The House Ways and Means Committee, however, did not follow through with its plan to offer amendments or vote to advance the bill. Committee Chairman Tom Letson (D-Warren) said in an interview, however, the bill will likely hit the House floor in two weeks.

“There are differences in the substance as to what the bills do,” Mr. Letson said. “One of them is we really see this as an Ohio jobs bill and (there are) more jobs incentives in the House version then there are in the Senate version.”

The House measure would offer tax incentives exclusively to wind and solar energy projects. The Senate version goes beyond those two to include other forms of alternative energy, such as clean coal and cogeneration.

“The others are laudable ideas and may well be dealt with in separate bills at some future date,” Rep. Letson said. “This is really a request from and a desire to put jobs in Ohio and construction over the next two years.

“Quite frankly the inclusion of those other types of energy generation either are not possible to even get started in the time frame that the federal government and the state are looking at or they are already things that receive tax breaks, such as current base line coal production,” he said.

Ultimately the chairman thinks the House version is the more substantial of the two.

“I believe that in terms of the origin of the two bills, I believe the Senate version is a skeleton, and I believe we put flesh on the bones as how to actually work it,” Rep. Letson said.

The Senate committee did report its proposal, but didn’t draw unanimous support even from majority Republicans. The Senate Energy and Public Utilities Committee approved its heavily amended version of the legislation with dissenting votes from Sen. Karen Gilmore (R-Tiffin) and Sen. John Husted (R-Kettering).

Additionally, Sen. Steve Buehrer (R-Delta) said although he would vote for reporting the bill, he has concerns about the impact on landowners. Once people see what industrial wind farms look like, officials are going to hear more complaints because the turbines will change the landscape of communities.

Bill Hearings: Senate committee members voted to harmonize the amendments in the bill and waive a fiscal provision. Amendments approved by the Senate committee Wednesday would:

 ·       Extend an amendment added Tuesday to allow county commissioners to not only approve a project but to specify additional requirements the project should meet, including modification of the payment in lieu of taxes amount.

·       Ensure each taxing unit within a project’s affected counties would receive a copy of the application from the Department of Development.

·       Clarify that projects started by Jan. 1, 2010, would be eligible for the tax treatment.

·       Clarify that the director would receive a certificate of completion no later than 60 days after the effective date of the bill.

·       Add cogeneration technology as an eligible form of alternative energy for the tax treatment.

·       Clarify eligibility applies to those owners that contract for the sale of power with a rural or municipal power agency.

·       Expand involvement of special improvement districts.

·       Require the Public Utilities Commission to conduct a study of reactive power in the state.

On the last amendment, Sen. Tom Sawyer (D-Akron) said he is concerned that by adding additional generator capacity to the state’s transmission system, the state will not have sufficient reactive power, which could result in a blackout similar to the one in 2003.

“As we add additional generator capacity in the form of particularly wind capacity, I’m concerned that we don’t make sufficient provision for reactive power,” he said.

Sen. Jimmie Stewart (R-Albany) said he decided not to offer an amendment to give every consumer the ability to opt out of utility assessments. He said, however, the matter warrants further study.

Also at the Senate panel’s ninth hearing on the bill, John Warrington, of Crawford County, gave testimony against the bill because of the negative impact wind turbines have on property owners.

Companies say they cannot be profitable without further tax relief. “I say they lie,” he said.

Following him was David Applebaum, director of regulatory affairs for NextEra Energy Resources, who said the measure is a jobs bill.

Sen. Schaffer asked the witness what his company tells homeowners near where a wind turbine will be placed. Mr. Applebaum said the company provides the family with all the information they need.

When asked to clarify, Mr. Applebaum said the company works with homeowners to lease their property and, presumably, there are specific standards in place to deal with setback to ensure there is no impact on homes. Once the turbine is installed, the company will help property owners study and mitigate issues.

The House Ways and Means committee heard the same testimony from NextEra Energy Resources, but from a different witness: John DiDonato, vice president of development.

Rep. Terry Boose (R-Norwalk) asked if Ohio is ready for this construction and will the construction workers come from Ohio. The witness said he thinks Ohio is ready; the construction companies are not headquartered in Ohio, but they would likely hire Ohioans.

Mr. Boose asked from where the parts of the wind turbines would be derived. Mr. DiDonato said the parts will be assembled in the U.S. Ancillary businesses will likely set up in Ohio.

Rep. Terrence Blair (R-Washington Township) asked how many ongoing jobs will be created with each wind turbine. Mr. DiDonato said for about every 10 wind turbines there is one permanent job created. A study has shown, however, statewide 1,600 other jobs were created as the result of a wind farm.

Rep. Winburn asked how load centers impact a wind turbine farm. The witness said wind energy would never be a baseload resource. The megawatts produced by a wind turbine would displace whatever highest cost unit would otherwise be dispatched.

Also in the House Committee, members heard testimony from Hardin County Commissioner Edward Elliott, who said he supports the bill because of the positive impacts wind farms have had in his county.

Milo Schaffner, vice president of the Van Wert County Township Association, testified in opposition to the bill, saying wind energy actually costs more and pollutes more because of the backup generation that must be supplied during intermittent power.

The Supreme Court of Ohio gave legs Thursday to its prevailing wage ruling against the Franklin County Commission, finding the county had committed the same abuse of discretion against the low-bid contractor for the county’s new animal shelter as it had in the widely publicized dispute over Huntington Park baseball stadium.

Gaylor Inc., an interstate electrical contractor, submitted the lowest bid for the county animal shelter but was told by the Department of Public Facilities Management last December that it had violated the county ban on firms out of compliance with prevailing wage laws more than three times in a two-year period within the last 10 years. The stipulation is one of 25 criteria purportedly used to determine whether a “bidder’s bid is the best,” as enumerated in Section 8.2.4 of the county guidelines.

“The county’s determination that Gaylor had violated prevailing-wage law was based on its own review and investigation of Ohio Department of Commerce records, even though the department has never found that Gaylor violated prevailing-wage law,” wrote the 4-2 Court. “All of Gaylor’s alleged violations were unintentional underpayments that it had settled without admitting liability or any administrative or judicial finding of liability.”

The company appealed the finding, submitting further evidence that it had never been classified by the state of Ohio as a prevailing wage violator. After meeting with Gaylor, county facilities management Director James Goodenow affirmed the department’s original determination and denied the protest on Feb. 9.

“The county’s rejection of Gaylor’s bid was based solely on the county’s interpretation of Section 8.2.4.15 despite having no evidence that Gaylor had been found by any administrative or judicial authority to have violated prevailing-wage law; the county did not consider any of the other criteria,” the Court said.

The company filed a complaint with the Supreme Court on Feb. 22 and asked that Franklin County be enjoined from proceeding with the planned construction.

“The next day, Feb. 23, the Franklin County Board of Commissioners awarded the electrical-systems contract for the county animal-shelter project to Jess Howard Electric Inc., for about $100,000 more than Gaylor’s bid, executed the contract, and issued a notice to the company to proceed,” the Court noted.

Despite the county’s charge that work had commenced on the project and that an injunction would be “moot,” the Court stayed further action on the animal shelter until it could issue an expedited ruling.

“This case is not moot,” the Court said. “Gaylor filed this action challenging the county’s rejection of its low bid on the electrical-systems contract for the county animal-shelter project and sought a stay of respondents’ actions on Feb. 22, which was before the board awarded the contract to another contractor. And although the board did, in fact, award the electrical-systems contract to another bidder on Feb. 23, which preceded our March 12 stay, respondents have introduced no evidence that the other contractor commenced construction pursuant to the awarded contract before we issued the stay.”

The high court reviewed the case record and determined, as it had in State ex rel. Associated Builders & Contrs. of Cent. Ohio v. Franklin Cty. Bd. of Commrs.(see The Hannah Report, 3/26/10), that Franklin County was once again guilty of an over-reliance on a flawed interpretation of fair labor standards.

“Notwithstanding the language in the county’s invitation to bid, the county treats the prevailing-wage violations of Section 8.2.4.15 as dispositive and it ignores other factors once it determines that a bidder has violated prevailing-wage laws more than three times in a two-year period in the last ten years….” the Court determined.

The Court denied, however, the company’s request that Franklin County commissioners be compelled outright to grant Gaylor the electrical contract.

“It is not entitled to this relief because it did not timely amend its complaint to include a request for it and it is ultimately the board’s determination under R.C. 307.90(A) whether Gaylor is the lowest and best bidder,” the Court said.

 The late Chief Justice Tom Moyer had led the majority in the Associated Builders decision but did not participate in the Gaylor opinion. Justice Judith Ann Lanzinger once again joined acting Chief Justice Paul Pfeifer in dissent, citing the minority opinion in Associated Builders.

If the General Election in November is anything like the May 4 primary election, then Ohio voters are in for a wild ride. Many of the top races were expected to be settled by now, but voter discontent and last minute switches have added new elements to the statewide races. Voters will also have two statewide issues in front of them that may be familiar.

The first, Issue 1, asks approval for bonds to fund the Third Frontier program. It has bipartisan endorsements and support along with no organized opposition. But times are tight, and voters may not want to approve more borrowing by the state. Other criticisms of the program include that it allows the state to pick winners and losers, something that should be decided by the free market.

Issue 2, which relocates the Columbus casino, also has no organized opposition that have previously worked to defeat earlier casino issues. An added benefit to the issue is the support of many in Franklin County who had opposed the casino issue last November. But the issue needs approval statewide, and voters sick of gambling issues or confused by why they are being asked to decide a Columbus issue … it’s in the state constitution, so it needs state approval … might throw the “No” switch.

Secretary of State

In early 2009, it appeared that the fierce primary battle for secretary of state would be on the Democratic side, with Rep. Jennifer Garrison (D-Marietta) battling Franklin County Commissioner Marilyn Brown over who would succeed Jennifer Brunner.

On the Republican side, Sen. Jon Husted (R-Kettering) had built himself a sizeable war chest and looked to cruise into the 2010 General Election. But then Brown dropped out, and Garrison was pushed aside by state Democrats in favor of Maryellen O’Shaughnessy, and 2006 spoiler Sandra O’Brien, the former Ashtabula County auditor, entered the Republican primary.

Much of the race has focused on the wild card potential of Ohio Tea Party groups. Husted has been traveling the state speaking to Republicans touting his conservative credentials in commercials, but some groups have concerns with Husted stemming from when he was House speaker, and O’Brien pulled the surprise before when she upset Treasurer Jennette Bradley in the 2006 Republican Primary. The race could be a gauge of the influence and power of the Tea Party movement and how dissatisfied voters are with any current officeholder.

Auditor

This has become another race that has sparked primary excitement when none was expected early on.

That excitement came after Auditor Mary Taylor decided not to run for re-election and instead joined Republican gubernatorial candidate John Kasich as his lieutenant governor running mate.

Delaware County Prosecutor Dave Yost is the Ohio Republican Party Executive Committee-backed candidate, having received the endorsement after he agreed to switch from the attorney general’s race to the auditor’s race. He is facing Rep. Seth Morgan (R-Huber Heights), who has Tea Party support and has tried to paint Yost as the establishment and “liberal media” backed candidate.

This race is another test of the influence the Tea Party has gained within the Republican Party’s grassroots.

The Ohio Liberty Council, a coalition of Tea Party groups, has endorsed Morgan, a freshman legislator, with many of its members saying they weren’t happy with Yost when he chose to switch to the auditor’s race instead of challenging former U.S. Sen. Mike DeWine in the attorney general’s race.

U.S. Senate

While Lt. Gov. Lee Fisher has more money and a lead in the polls over his primary opponent Secretary of State Jennifer Brunner, there are a number of undecided voters still in the race. In a Quinnipiac Poll released on Wednesday, 34 percent of likely Democratic primary voters surveyed said they did not know who they would vote for, and 51 percent of those who chose a candidate said they may change their mind.

The poll also showed Fisher leading Brunner by 17 percentage points. Fisher went on the air last week with advertisements aimed at swaying those undecided voters.

Brunner has played the underdog throughout the campaign, and is running a grassroots campaign. If elected, she would be the first woman to serve in the U.S. Senate from Ohio.

Whoever emerges from the race will face a formidable foe in former U.S. Rep. Rob Portman, who has built a $7.6 million war chest as he is unopposed in the primary.

April issue of SAO eNews is now available at the State Architect’s Office website at http://www.ohio.gov/sao (click on SAO eNews – April 2010).

The House Ways and Means Committee took conflicting testimony April 20 on HB 464 which would exempt qualifying wind and solar energy facilities from property taxation for up to 20 years and  require payments in lieu of taxes on the basis of each megawatt if production capacity of such facilities.

House committee members heard from various representatives of wind developers and Ohio-based businesses. The meeting ended with a lone opponent to the legislation calling the bill, “unwarranted.”

Tom Stacy, an engineer, said he has studied wind energy versus other types of energy sources full-time for the past two years. During his testimony he challenged the information given to committee members about this issue, specifically calling out the American Wind Energy Association (AWEA).

“While a renewable energy mandate is in place in Ohio, it was constructed without proper consideration of net environmental impact, net job impact, land use or a perspective on the economics involved in the renewable business,” Stacy said.

He asserted that it has been a long standing tactic of the wind energy industry to point out that “neighboring states are more generous.” He asked rhetorically whether the members have the will to vote against an unneeded tax giveaway to an industry who threatens to leave the state unless their requirements are met.

He said because the wind energy cannot be stored, it should actually be devalued. Stacy added that he has challenged the Ohio Air Quality Development Authority (OAQDA) to evaluate the implications of wind on net energy emissions. He has not received a formal response.

“Energy storage is not scalable or affordable, and timely production is vital for electricity – which is an infinitely perishable commodity,” Stacy said.

He challenged the members to consider energy a commodity with the leverage of a value added tax. “Electricity is used in every step of manufacturing of everything, and its price accumulates in end products – often accounting for half or more of the total cost content – of everything. Manufacturing competitiveness is important to Ohio and our nation, and expensive, low value energy will hurt us. If we must have it, any tax revenue from its deployment is justified,” Stacy said.

On the other side of the issue was Terrence O’Donnell, representing Horizon Wind Energy, which plans to develop a large wind farm in Paulding County.

O’Donnell said that the OAQDA bonding program for wind projects does cause some challenges with regard to personal property tax and real property tax, however they do agree with the steady 2 percent escalator.

Another issue he pointed out was the timeline set out in the bill to have an Ohio Power Siting Board (OPSB) certification completed. He urged members to modify the deadline for certification by the end of 2010 to “be filed by the end of the year.”

Rep. Huffman asked about prevailing wage requirements for Horizon project workers. O’Donnell said the company pays wages at or above prevailing wage and doesn’t oppose it. He said the company would also support using as much of its supply chain from within Ohio as possible.

Jim Bowser, superintendent of Upper Scioto Wind/Energy Academy and assistant superintendent of Upper Scioto Valley Schools in Hardin County, has been a proponent of this issue and has testified in both the Senate and the House on this issue.

Bowser said he is looking at these wind projects as not only an energy cost saver, but an educational and career tool for area students.

Rep. Boose asked if his school would be looking into tax deductions for energy from solar or waste. Bowser said they would apply for tax incentives for both solar and waste energy.

Also testifying in support of HB464 were Greg Noetlich, COO for Elyria Foundry; Larry Viterna, president and CEO of Nautica Windpower LLC; and Jason Clark, representing the Ohio Vicinity Regional Council of Carpenters, Millwright Local 1066.

The Ohio Manufacturers Association, the Ohio Environmental Council, and director of Invenergy, LLC, all submitted written testimony.

The Ohio Department of Transportation’s plan to offer $1 million stipends to unsuccessful bidders for its I-90 inner belt bridge project in Cleveland came under scrutiny Friday from Inspector General Thomas Charles, whose office released a report that found ODOT lacks clear authority to pay stipends and failed to show evidence backing its argument that the loss of stipends could hamper bidding.

The department has selected three teams to submit design-build proposals for the $450 million project.  Without the stipends, ODOT argues, firms might be less likely to spend the time and money to develop proposals for such a large, complicated project. Unsuccessful bidders would be entitled to the stipends if their proposals score at least 70 out of 100 points. The department says it is following federal transportation guidelines in offering the stipends, which are subject to Controlling Board approval.

Charles’ report said his office decided to investigate the matter after learning about the intent to pay stipends in a Feb. 1 Columbus Dispatch story.

“ODOT failed to present any concrete data or evidence showing that design-build teams will shy away from competing for the $450 million project without a stipend,” the report states. “Indeed, ODOT officials could not cite a single example of a past project that suffered because a stipend was not offered. Given the economic climate in the nation and the state of Ohio, we believe that firms should be expected to assume both the risk and potential reward of bidding on the Inner Belt Bridge.”

The report also raises doubts about ODOT’s legal authority to pay stipends.

“ODOT believes that it can pay the stipends because the statute does not expressly prohibit it from doing so; however, there is no legal foundation for this belief. While the absence of clear statutory or rule authority to pay the stipends is not necessarily dispositive, we believe that it highlights the need to closely scrutinize ODOT’s actions,” the report states.

Additionally, Charles’ report says, the department hasn’t provided justification for the amount of the stipends, noting that during the investigation, “ODOT conceded that it did not make any effort to determine whether a lesser amount would achieve the same or similar results as a $1 million stipend. Because it did not do so, ODOT cannot convincingly argue that the payment of $1 million stipends to unsuccessful biddings is necessary, or even advisable.”

The report recommends that if ODOT wants to pay stipends, it should lobby for express legal authority to do so; require documentation of unsuccessful bidders’ actual costs; and evaluate the usefulness of the unsuccessful bidders’ designs.

Scott Varner, ODOT’s communications director, responded by saying the department already had a process in place to evaluate the unsuccessful proposals, “but with the recommendations of the inspector general, we will now clarify how those teams will document their actual costs and expenses, and make sure that they provide that information to the department before we authorize any payment.”

But he said the efficacy of design-build and stipend payments is already well known.

“The process that we have in place is based on national standards, federal regulations and the best practices of other states across the country, where this process is typical,” he said. “The concept of payment for preliminary engineering and project approach has been successfully administered in many other states.”

He said Charles’ investigation and the changes made as a result are not expected to delay construction, which is to begin next year and finish in 2014.

Asked about Charles’ suggestions that ODOT seek explicit legal authority to pay stipends and limit them to no more than a bidder’s actual expenses, Varner said the department “continues to review the inspector general’s recommendations.”

The Ohio Housing Finance Agency recently awarded $6.7 million in funding for the construction or rehabilitation of four affordable apartment communities in Allen, Scioto, Licking and Clinton counties as part of the Tax Credit Exchange and Tax Credit Assistance Programs, created in the American Recovery and Reinvestment Act.

Each of the rental properties, originally funded through the Housing Tax Credit program, provides affordable units to residents who are unable to afford comparable living arrangements at market rents.

Through comprehensive renovation and modernization, Melford Village, Boston Commons and Concord Apartments will improve resident quality of life and allow the properties to develop a competitive advantage in the marketplace by offering amenities, services and overall living arrangements that fulfill the needs of low-income families.

The funding will provide necessary capital improvements and is intended to extend the economic and physical life of the buildings into the foreseeable future.

Blanchester Senior Apartments is a new construction housing credit development designed for seniors in Clinton County. It will be developed by LDC Housing Corporation and managed by the Clinton County Community Action Program.

Limited Brands, Porter Wright Morris & Arthur LLP and Anshen + Allen were recognized by Columbus Mayor Michael B. Coleman with GreenSpotLight Awards. Each business took steps throughout 2009 to reduce their impact on the environment as part of the mayor’s GreenSpot program.

“GreenSpot provides a framework for businesses to take practical steps toward lessening their environmental impact,” Coleman said. “I am proud of the three businesses and hope others will follow the example they set in their commitment to get green.”

A sample of accomplishments by the award winners included the following:

– Limited Brands hosted their first ever Earth Day event spanning an entire week; reduced waste by more than 30,000 pounds; and reduced water usage by 15,902 CCF.

– Porter Wright Morris & Arthur LLP offers employees the opportunity to buy pre-tax bus passes; reduced energy needs by consolidating more than 40 physical servers into five, reducing energy consumption used to run the servers and to cool the data center; and reduced waste by 30 tons of paper and 1,700 pounds of aluminum and plastic.  

– Anshen + Allen was awarded LEED Silver Certification from the U.S. Green Building Council; performed an energy audit; and installed bike racks in a secure location for employees.

According to the release, Coleman launched GreenSpot in July 2008 as part of his Get Green Columbus initiative. Developed to inspire, educate and recognize those in the community who are taking steps to protect the environment, the web-based program now has more than 1,600 members.