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Honorable Members of the General Assembly: On December 29, 2011, I issued a report entitled 2011 Report to the General Assembly: Business Entity Compliance with State Awards for Economic Development. Subsequent to the release of this report, the Ohio Department of Development discovered additional information regarding compliance with their economic development programs and shared that information with my office. This amended report reflects that new information. Very respectfully yours,
During the process of preparing last years 2011 Report to the General Assembly: Business Entity Compliance with State Awards for Economic Development, the Attorney Generals Office (AGO) requested specific information from the Ohio Department of Development (ODOD) regarding economic development awards the Department administered. Among all of the information requested, ODOD was to identify those economic development awards that were scheduled to be completed. Every award agreement designates a date when the recipient is obligated to begin working toward the performance metrics (the triggering date for performance); every award agreement also specifies the time frame in which the performance goals are expected to be met. The AGO defines closeout year as the calendar year in which an award recipient must achieve the performance metrics called for in its award agreement. The AGOs report focused on companies that received awards with a 2010 closeout year designation. By comparing the companies commitments for job creation, job retention, capital investment, and workforce training with the actual results documented in ODODs 2010 annual reports, the AGO assessed the level of compliance of such [business] entities with the terms and conditions, including any performance metrics, of their state awards for economic development, as required by R.C. 125.112(G). After publication of the 2011 report, ODOD discovered that some of the award recipients it had designated as having a 2010 closeout year actually had closeout dates occurring in other years, either because an improper triggering date had been used to calculate the closeout date or because the closeout date had been extended. At the same time, ODOD discovered that other award recipients indeed were scheduled for a 2010 closeout. Because the triggering dates used to determine closeout dates had not been actively tracked by ODOD, the AGO set out to identify each companys compliance record by physically examining all of ODODs award files that could even potentially have a 2010 closeout date.1 The Attorney General ordered this review in early January. Between January 5 and February 2, a total of 64 AGO attorneys spent 930 man hours examining 1,621 ODOD award files. The following chart contains the results of the review and provides the most accurate possible picture of businesses compliance with the terms and conditions of their award agreements.
To ensure every award with an actual 2010 Closeout Year date was reviewed, the AGO asked ODOD to provide files containing (1) every grant with funds encumbered between 2005 and 2009; (2) every tax credit approved by the Ohio Tax Credit Authority between 2004 and 2007; (3) every loan approved by the Controlling Board between 2004 and 2008; and (4) every workforce training award expiring between 2008 and 2011.
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Amended Findings Summary of Findings as Compared with 12/29 Report Amended Report Overall Compliance Rate: Grant Compliance Rate: Rapid Outreach: Roadwork Development: ISIF: EDCA: Tax Credit Compliance Rate: Job Creation: Job Retention: Loan Compliance Rate: Regional 166: 166 Direct: IOLF: R&D: OEBF: Pioneer Rural: Rural Industrial Park: Urban Redevelopment: Rural Development: Workforce Compliance Rate: OITP: OWG: ATIP: 59.1% (199/337) 27.0% (17/63) 24.5% (12/49) 27.3% (3/11) N/A 66.7% (2/3) 35.1% (17/54) 35.1% (17/54) N/A 23.9% (11/46) 21.7% (5/23) 14.3% (2/14) 0% (0/3) 33% (1/3) 100% (2/2) 100% (1/1) N/A N/A N/A 88.5% (154/174) 84.9% (73/86) 90.5% (67/74) 100% (14/14) All Awards The AGO reviewed a total of 1,621 award files maintained by ODOD and determined that 365 files had a Closeout Year of 2010. Of these awards, 199 substantially complied with the terms and conditions of their agreements; 138 awards did not comply. The overall compliance rate was 59.1 percent. 12/29 Report 52.4% (220/420) 15.6% (12/77) 16% (7/44) 4% (1/25) 80% (4/5) 0% (0/3) 54.3% (50/92) 53.3% (48/90) 100% (2/2) 24.4% (20/82) 20% (6/30) 26% (6/23) 7.7% (1/13) 33.3% (2/6) 0% (0/2) 50% (1/2) 50% (1/2) 100% (2/2) 50% (1/2) 81.7% (138/169) 84% (74/88) 77.3% (51/66) 86.7% (13/15)
Grant Awards2 The AGO reviewed 380 grant files and determined that 63 files had a Closeout Year of 2010. Of these 63 closeout grants, 17 awardees substantially complied with the terms and conditions of their agreements; 46 did not comply. The overall compliance rate was 27.0 percent. Noncompliant grant recipients are listed in Appendix 1. Tax Credit Awards3 The AGO reviewed 291 tax credit files and determined that 54 had a Closeout Year of 2010. Of these 54 closeout tax credit awards, businesses receiving 17 tax credits substantially complied with the terms and conditions of their tax credit agreements; 37 did not comply The overall compliance rate was 31.5 percent. Non-compliant tax credit recipients are listed in Appendix 2. Loan Awards4 The AGO reviewed 375 loan files and determined that 46 loans had a Closeout Year of 2010. Of these 46 closeout loan awards, businesses receiving 11 loans substantially complied with the
A typical grant award helps a business offset the cost of undertaking a new project in exchange for its promise to create and/or retain a specified number of jobs within three years of the projects completion. However, the recipient is not required to inform ODOD of the actual project completion date, nor does ODOD formally request it. As a result, this date is not known in most cases. ODOD ordinarily uses the last date grant funds are disbursed to the recipient based on the likely proximity of the final fund disbursement to the actual project completion date. In addition to job creation and retention commitments, some grant award agreements contain other performance metrics such as capital investment, minimum average hourly wage, and maintenance of operations. In practice, ODOD does not enforce these additional performance metrics. For purposes of this report, the AGO calculated performance end dates, assigned Closeout Year designations, and determined compliance based on job creation and/or job retention commitments consistent with ODOD practices. 3 A typical tax credit award enables a business acquiring or upgrading a facility to claim that credit against state tax liability in exchange for its promise to: (1) create and/or retain jobs within three years of the date the new or upgraded facility begins operating; (2) pay its employees a minimum average hourly wage of at least $10.88 per hour; (3) retain at least 25 employees throughout the term of the agreement; and (4) maintain operations at its facility for twice the term of the agreement. Award recipients declare their initial operations dates in annual reports filed with ODOD; the AGO calculated performance end dates and made Closeout Year designations based on those dates. For purposes of this report, the AGO determined compliance based on job creation, job retention, and minimum hourly wage commitments consistent with ODOD practices. In addition to the companies identified in this report as non-compliant, ODOD took action in 2010 against 34 other award recipients that failed either to maintain a minimum of 25 employees or maintain operations at their facilities. 4 A typical loan award provides a business with a low-interest loan to help finance a new project in exchange for its promise to create and/or retain jobs within three years of a specified trigger date. The performance date varies among loan agreements and can be the loan closing date, the first application date for loan assistance, or the project completion date. Dates when loans closed or were applied for were readily available. In loan agreements specifying the trigger date as the project completion date, the recipient is required to certify the actual project completion date in a letter to ODOD. The AGO used the certified project completion date to calculate performance end dates when the certification was contained in the loan file. However, for loans lacking such certification, ODOD ordinarily uses the final date funds were disbursed to the recipient. In addition to job creation and retention commitments, some loan award agreements contain other performance metrics such as capital investment, minimum average hourly wage, and maintenance of operations. For purposes of this report, the AGO determined compliance based on job creation, job retention, and minimum hourly wage commitments consistent with ODOD practices.
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terms and conditions of their loan agreements; 35 did not comply. The overall compliance rate was 23.9 percent. Non-compliant loan recipients are listed in Appendix 3. Workforce Training Awards5 The AGO reviewed 576 workforce training files and determined that 202 had a Closeout Year of 2010. Of these 202 awards, businesses receiving 154 awards substantially complied with the terms and conditions of their workforce training agreements; 20 did not comply. The overall workforce guarantee award compliance rate was 88.5 percent. Non-compliant workforce training award recipients are listed in Appendix 4. In addition, 28 businesses trained fewer workers than promised but were only reimbursed proportionately based on the actual number of workers trained. These businesses were categorized as neither substantially compliant nor non-compliant.
A typical workforce training award provides a business with a grant to offset the cost of training its workers in a new skill in exchange for its promise to train a specified number of workers within a designated period of time, usually between one and two years. The training completion date is included in each grant agreement. In addition to the worker training commitment, some workforce training award agreements contain other performance metrics such as capital investment, minimum hourly wage, and maintenance of operations. ODOD does not, as a matter of practice, ordinarily enforce these additional metrics. For purposes of this report, the AGO determined compliance based on worker training commitments consistent with ODOD practices.
Appendix1:NonCompliantGrantAwardRecipients
Beneficiary Location TypeofAward Amount Received Commitment Performance ReasonforNonCompliance RemedialAction Comments ODODconsiderscompliantinlightof thefactthatthecompanyretained greaterthan90%oftheaggregate numberofjobspromisedtobecreated andretained,despite0%jobcreation. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODconsiderscompliantinlightof thefactthatthegranteecreatedand retainedgreaterthan90%ofthe aggregatenumberofjobspromisedto becreatedandretained,despite89% jobcreation.
ADVICSManufacturingOhio,Inc.
CityofLebanon/Warren County
RapidOutreachGrant
$102,206.90
Create10jobs; retain624
Created0jobs; retained579
Failedtocreatepromised numberofjobs.
None
Alkermes,Inc.
CityofWilmington/Clinton County
RapidOutreachGrant
$100,000.00
Create275jobs; retain275
Created14; retained275
Failedtocreatepromised numberofjobs.
TBD
Aurora,Cityof
CityofAurora/Portage County
RoadworkDevelopment(629) Account
$180,000.00
Failedtocreatepromised numberofjobs.
None
ClintonCounty
Create600jobs; CityofWilmington/Clinton RoadworkDevelopment(629) $1,000,000.00 retain3,500 County Account Cityof Wellsville/Columbiana County CityofColumbus/Franklin County
Failedtosubmitannualreport.
Submissionofannualreportrequiredby Seekproper awardagreement;ODODdidnot annualreport contactawardrecipienttoreminditto documentation. submit2010report. TBD ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODconsiderscompliantinlightof thefactthatthecompanyretained greaterthan90%oftheaggregate numberofjobspromisedtobecreated andretained,despite0%jobcreation. ODODconsiderscompliantinlightof thefactthatthecompanycreatedand retainedgreaterthan90%ofthe aggregatenumberofjobspromisedto becreatedandretained,despite79% jobcreation.
ColumbianaCounty,PortAuthorityfor
$157,500.00
Create200jobs
Created0jobs
ColumbusSteelCastingCo.
$500,000.00
Retain500jobs Retained396jobs
TBD
CopelandCorp./EmersonTechnology,Inc. CityofSidney/ShelbyCounty
RapidOutreachGrant
$150,000.00
Create63jobs; retain1,613
Created0jobs; retained1,542
Failedtocreatepromised numberofjobs.
None
DefianceCounty
CityofDefiance/Defiance County
RapidOutreachGrant
$40,000.00
Create33jobs; retain85
Created22jobs; retained85
Failedtocreatepromised numberofjobs.
None
DellProductsCorp.
VillageofLockbourne/ FranklinCounty
RapidOutreachGrant
$500,000.00
Create665jobs
Failedtosubmitannualreport.
Submissionofannualreportrequiredby Seekproper awardagreement;ODODdidnot annualreport contactawardrecipienttoreminditto documentation. submit2010report. TBD ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012.
Dublin,Cityof
CityofDublin/Franklin County
$500,000.00
$200,000.00
TBD
RapidOutreachGrant
$50,000.00
Create84jobs
TBD
EPlay,LLC
CityofColumbus/Franklin County
RapidOutreachGrant
$200,000.00
Create136jobs
Failedtosubmitannualreport.
ODODsought$182,360clawback, ReferredtoAG's referredtoAGOforcollection;company officefor ceasedoperationsin2010;AGO collection. collectioneffortscontinue. TBD ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODforgavenoncompliance;no clawbacksought. ODODterminatedwithoutclawbackon 7/25/11. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODenteredintosettlement agreementwithcompany,whichrepaid $10,000. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012.
FormicaCorp.
CityofCincinnati/Hamilton County VillageofLockbourne/ FranklinCounty CityofDefiance/Defiance County CityofBryan/Williams County CityofNew Philadelphia/Tuscarawas County CityofCleveland/Cuyahoga County CityofCadiz/Harrison County CityofNorwalk/Huron County CityofPataskala/Licking County Goshen Township/Tuscarawas County CityofColumbus/Franklin
RapidOutreachGrant
$125,000.00
Create95jobs; retain507 Create488jobs Retain2,100 jobs Create40jobs Create75jobs; retain398 Create29jobs; retain1 Create25jobs; retain76 Create69jobs; retain52 Create130jobs Create100jobs; retain197
GradallIndustries,Inc.
RapidOutreachGrant
$200,000.00
Created0jobs; retained274 Created10jobs; retained1 Created0jobs; retained0 Informationnot available Created84jobs Created0jobs; retained76
Failedtocreateandfailedto retainpromisednumberof jobs. Failedtocreatepromised numberofjobs. Failedtocreateandfailedto retainpromisednumberof jobs. Failedtocreateand/orretain promisednumberofjobs. Failedtocreatepromised numberofjobs. Failedtocreateandfailedto retainpromisednumberof jobs. Failedtocreatepromised numberofjobs.
GreenSourceProducts,LLC
$25,000.00
TBD
HarrisonCountyCommissioners
$40,000.00
TBD
HighwayComposites,LLC
$50,000.00
Settlement
JeldWen,Inc.
RapidOutreachGrant
$100,000.00
TBD
KimbleAcquisitionCo.
RapidOutreachGrant
$250,000.00
TBD
LanguageAccessNetwork,LLC
RapidOutreachGrant
$20,000.00
TBD
LearOperationsCorp.
RapidOutreachGrant
$100,000.00
Leedsworld,Inc.
RapidOutreachGrant
$250,000.00
Lima,Cityof
CityofLima/AllenCounty
RoadworkDevelopment(629) Account
$60,000.00
Create35jobs; retain5
Failedtosubmitannualreport.
Submissionofannualreportrequiredby Seekproper awardagreement;ODODdidnot annualreport contactawardrecipienttoreminditto documentation. submit2010report. ODODsought$45,810clawback, ReferredtoAG's referredtoAGOforcollection;company officefor dissolvedin2010;AGOcollection collection. effortscontinue TBD ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012.
LogisticsSupportManagementGroup,LLC
RapidOutreachGrant
$45,810.00
Create125jobs; retain6 Create17jobs; retain33 Create25jobs; retain3 Create50jobs Created0jobs; retained15 Created2jobs; retained3 Created40jobs
RapidOutreachGrant
$10,000.00
$550,000.00
TBD
$50,000.00
TBD
OILevisParkSTS,Inc.
CityofPerrysburg/Wood County
RapidOutreachGrant
$200,000.00
Retain884jobs
Failedtosubmitannualreport.
OntarioSystems,LLC
CityofBerlin/Holmes County VillageofCommercial Point/PickawayCounty CityofSpringfield/Clark County CityofDelaware/Delaware County CityofGreenville/Darke County GroveCity/FranklinCounty
RapidOutreachGrant
$25,000.00
PeakPerformanceSolutions,Inc.
RapidOutreachGrant
$28,867.42
Failedtocreateand/orfailed ReferredtoAG's ODODsought$10,614clawback, toretainpromisednumberof officefor referredtoAGOforcollection;AGO collectedpaymentinfull. jobs. collection. ReferredtoAG's ODODsought$84,620clawback; Failedtocreatepromised officefor companysoldin2011;AGOcollection numberofjobs. collection. effortscontinue. Failedtocreatepromised numberofjobs. Failedtocreatepromised numberofjobs. Failedtocreatepromised numberofjobs. Failedtocreateandfailedto retainpromisednumberof jobs. Failedtocreatepromised numberofjobs. TBD ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODforgavenoncompliance;no clawbacksought. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. PerappendixoforiginalCompliance ReportissuedDecember29,2011, ODODconsideredgrantee noncompliantandforgave noncompliance.ODODnowconsiders compliantinlightofthefactthatthe granteecreatedandretainedgreater than90%oftheaggregatenumberof jobspromisedtobecreatedand retained,despite88%jobcreation. ODODtoreviewprojectstatusandtake appropriateactionbyApril30,2012. ODODsoughtclawback,referredto AGOforcollection;AGOrecovered paymentof$8,000,whichODOD acceptedassettledamount.
Qbase,Inc.
RapidOutreachGrant
$200,000.00
Create100jobs; Created27jobs; retain6 retained6 Create41jobs Create90jobs; retain91 Create45jobs; retain265 Create91jobs; retain204 Created29jobs Created12jobs; retained91 Created0jobs; retained114 Created3jobs; retained204
TosohSMDInc.
GroveCity/FranklinCounty
RapidOutreachGrant
$100,000.00
TBD
UnionTownship
$400,000.00
Failedtocreatepromised numberofjobs.
None
Versailles,Villageof
RapidOutreachGrant
$50,000.00
Create100jobs
Created26jobs
VogelSeed&Fertilizer,Inc.dbaSpring ValleyTurfProducts
RapidOutreachGrant
$25,000.00
Create32jobs
Created21jobs
WashingtonCountyCommissioners
$22,000.00
Create15jobs; retain30
Failedtosubmitannualreport.
Submissionofannualreportrequiredby Seekproper awardagreement;ODODdidnot annualreport contactawardrecipienttoreminditto documentation. submit2010report. PerappendixoforiginalCompliance ReportissuedDecember29,2011, ODODconsideredgrantee noncompliantandforgave noncompliance.ODODnowconsiders compliantinlightofthefactthatthe companycreatedandretainedgreater than90%oftheaggregatenumberof jobspromisedtobecreatedand retained,despite47%jobcreation.
WILResearchLaboratories,Inc.
CityofAshland/Ashland County
RapidOutreachGrant
$50,000.00
Create83jobs; retain500
Created39jobs; retained500
Failedtocreatepromised numberofjobs.
None
WraycoIndustries,Inc.
RapidOutreachGrant
$100,000.00
YUSACorp.
RapidOutreachGrant
$34,000.00
Failedtocreateandfailedto ODODtoreviewprojectstatusandtake retainpromisednumberof TBD appropriateactionbyApril30,2012. jobs. ODODsought$15,915clawback, Failedtocreateand/orfailed ReferredtoAG's referredtoAGOforcollection;AGO officefor toretainpromisednumberof collectedpaymentinfull. collection. jobs.
Appendix2:NonCompliantTaxCreditAwardRecipients
Amountof CreditsReceived ReasonforNon Compliance Failedtocreatepromised numberofjobs.
Beneficiary
Location
TypeofAward
Commitment
Performance
RemedialAction
A.M.Leonard,Inc.
CityofPiqua/MiamiCounty
JobCreationTaxCredit
$354.00
Create35jobs; retain84
Created4jobs; retained84
TBD
ActionGroup,Inc.
CityofBlacklick/Franklin County
JobCreationTaxCredit
$8,190.21
Create25jobs; retain69
Failedtosubmitannual report.
BilcoCo.
$51,490.20
Create60jobs
Created28jobs
ODODreferredtoOhioTax CreditAuthority;TCA reducedtherateandterm ofthecreditonJanuary30, Failedtocreatepromised 2012.TCAalsoreducedthe numberofjobs. newfulltimejob commitmentto28toalign withgranteesmostrecent employmentfigures. ODODreferredtoOhioTax CreditAuthority;TCA reducedtherateofthe creditonJanuary30,2012. Failedtocreatepromised TCAalsoreducedthenew numberofjobs. fulltimejobcommitment to18jobstoalignwith granteespeak employmentfigures submittedthusfar. ODODreferredtoOhioTax CreditAuthority;TCA reducedthetermofthe creditonJanuary30,2012. Althoughcompany achievedjobcreationand retentioncommitments, awardagreementalso stipulatedthatthe minimumaveragehourly wagethatcouldbepaidto workerswas150%of federalminimumwage ($10.88/hour);Company reportedaveragehourly wageof$10.00.ODODto reviewprojectstatusand takeappropriateactionby April30,2012. ODODtoreviewproject statusandtakeappropriate actionbyApril30,2012. ODODnotrecommending toOhioTaxAuthorityfor action. ODODtoreviewproject statusandtakeappropriate actionbyApril30,2012.
BudenheimUSA
CityofColumbus/Franklin County
JobCreationTaxCredit
$45,579.61
Create40jobs
Created17jobs
CDICorp.
$56,556.00
Create76jobs; retain1
CKTechnologies,LLC
CityofMount Airy/HamiltonCounty
JobCreationTaxCredit
$0.00
Create36jobs; retain162
Created49jobs; retained162
Failedtomeetminimum wagerequirement.
TBD
DonatosPizzeria,LLC
CityofColumbus/Franklin County
JobCreationTaxCredit
$112,897.68
Created16jobs; Failedtocreatepromised retained123 numberofjobs. Created27jobs; Failedtocreatepromised retained42 numberofjobs. Failedtocreatepromised numberofjobs.
TBD
DoubledayAcquisitions,LLC
$11,570.83
None
EgelhofControlsCorp.
CityofToledo/LucasCounty
JobCreationTaxCredit
$12,202.87
Create35jobs
Created21jobs
TBD
EMCOUSA,LLC
JobCreationTaxCredit
$73,152.80
Create59jobs
Created16jobs
Failedtocreatepromised numberofjobs.
ODODreferredtoOhioTax CreditAuthority;TCA reducedthetermofthe creditonJanuary30,2012. ODODreferredtoOhioTax CreditAuthority;TCA reducedthetermofthe creditonJanuary30,2012. ODODreferredtoOhioTax CreditAuthority;TCA reducedthetermofthe creditonJanuary30,2012. ODODtoreviewproject statusandtakeappropriate actionbyApril30,2012. ODODnotrecommending toTaxAuthorityforaction.
EmersonClimateTechnologies,Inc.
CityofSidney/Shelby County
JobCreationTaxCredit
$62,782.80
Create63jobs; retain1,613
Created0jobs; retained1,542
Failedtocreatepromised numberofjobs.
EnterpriseInformationManagement,Inc.
$7,352.29
Exel,Inc.
JobCreationTaxCredit
$40,899.42
Create45jobs; retain22
TBD
Fisher&PaykelLaundryManufacturing,Inc.
JobCreationTaxCredit
$166,883.48
Create118jobs
Created32jobs
None
Glud&MarstrandMediaPackaging,Inc.
CityofBryan/Williams County
JobCreationTaxCredit
$27,071.78
Create40jobs
Failedtosubmitannual report.
InfoCisionManagementCorp.
JobCreationTaxCredit
$16,289.57
Create73jobs; retain136
Created92jobs; retained136
Failedtomeetminimum wagerequirement.
TBD
Althoughcompany achievedjobcreationand retentioncommitments, awardagreementalso stipulatedthatthe minimumaveragehourly wagethatcouldbepaidto workerswas150%of federalminimumwage ($10.88/hour);Company reportedaveragehourly wageof$8.30.ODODto reviewprojectstatusand takeappropriateactionby April30,2012.
InfoCisionManagementCorp.
CityofUniontown/Summit County
JobCreationTaxCredit
$31,576.95
Create75jobs; retain170
TBD
Althoughcompany achievedjobcreationand retentioncommitments, awardagreementalso stipulatedthatthe minimumaveragehourly wagethatcouldbepaidto workerswas150%of federalminimumwage ($10.88/hour);Company reportedaveragehourly wageof$9.20.ODODto reviewprojectstatusand takeappropriateactionby April30,2012.
Intellinetics,Inc.
CityofColumbus/Franklin County
JobCreationTaxCredit
$9,755.77
Create11jobs; retain11
Created5jobs; retained11
ODODreferredawardto Failedtocreatepromised OhioTaxCreditAuthority; numberofjobs. TCAterminatedwithout clawback. Failedtocreatepromised numberofjobs. ODODtoreviewproject statusandtakeappropriate actionbyApril30,2012.
JamesGroup,LLC,The
JobCreationTaxCredit
$19,248.72
Create12jobs; retain14
Created4jobs; retained14
TBD
McMasterCarrSupplyCo.
CityofAurora/Portage County
JobCreationTaxCredit
$750,912.92
Create30jobs; retain497
Created0jobs; retained463
ODODreferredawardto OhioTaxCreditAuthority; Failedtocreatepromised TCAreducedthetermof numberofjobs. thecreditonJanuary30, 2012. ODODreferredawardto OhioTaxCreditAuthority; TCAterminatedwithout clawbackonSeptember26, 2011.
MicrotekLaboratories,Inc.
$12,217.90
Create25jobs; retain7
MidlandCo.,The
CityofAmelia/Clermont County
JobCreationTaxCredit
$217,661.70
ODODreferredawardto TheOhioTaxCredit Create150jobs; Created88jobs; Failedtocreatepromised OhioTaxCreditAuthority Authoritywillconsiderthe retain839 retained839 numberofjobs. andrecommendedtherate recommendationofODOD ofthecreditbereduced. onFebruary27,2012. ODODtoreviewproject statusandtakeappropriate actionbyApril30,2012.
PEQConsulting,Inc.
JobCreationTaxCredit
$203,300.11
Create45jobs; retain18
PPGIndustries,Inc.
CityofMilford/Clermont County
JobCreationTaxCredit
$0.00
Create10jobs; retain56
Created0jobs; retained56
Failedtocreatepromised numberofjobs.
Qbase,Inc.
CityofSpringfield/Clark County
JobCreationTaxCredit
$165,910.33
ODODreferredtoOhioTax CreditAuthority;TCA reducedtherateofthe creditonJanuary30,2012. Create100jobs; Created27jobs; Failedtocreatepromised TCAalsoreducedthenew retain6 retained6 numberofjobs. fulltimejobcommitment to27jobstoalignwith granteesmostrecent employmentfigures. Create87jobs; retain71 Create63jobs; retain48 Created39jobs; Failedtocreatepromised retained71 numberofjobs. Created49jobs; Failedtocreatepromised retained48 numberofjobs. ODODtoreviewproject statusandtakeappropriate actionbyApril30,2012. ODODnotrecommending toOhioTaxAuthorityfor action.
RightThing,LLC
JobCreationTaxCredit
$32,416.57
TBD
SamuelStrappingSystems,Inc.
JobCreationTaxCredit
$19,164.54
None
SelectArc,Inc.
$19,767.69
Create40jobs; retain88
Created8jobs; retained88
Failedtocreatepromised numberofjobs.
SkyClimber,LLC
CityofDelaware/Delaware County
JobCreationTaxCredit
$74,198.54
Create41jobs
Created29jobs
Failedtocreatepromised numberofjobs.
SpartechPlastics,LLC
CityofGreenville/Darke County
JobCreationTaxCredit
$43,173.47
Create90jobs; retain91
ThinkAMove,Ltd.
JobCreationTaxCredit
$16,806.67
Create21jobs; retain8
Created8jobs; retained8
Failedtocreatepromised numberofjobs.
USEC,Inc.
VillageofPiketon/Pike County
JobCreationTaxCredit
$0.00
Create325jobs
Created254jobs
Failedtocreatepromised numberofjobs.
TBD
V&PHydraulicProducts,LLC
CityofDelaware/Delaware County
JobCreationTaxCredit
$16,170.77
Create25jobs; retain49
TBD
WhirlpoolCorp.
CityofClyde/Sandusky County
JobCreationTaxCredit
$276,436.10
Create553jobs; retain3,098
Created0jobs; retained2,897
Failedtocreatepromised numberofjobs.
TBD
WornickCo.,The
CityofCincinnati/Hamilton County
JobCreationTaxCredit
$121,830.02
ODODreferredtoOhioTax CreditAuthority;TCA reducedtherateandterm ofthecreditonJanuary30, Create315jobs; Created35jobs; Failedtocreatepromised 2012.TCAalsoreducedthe retain544 retained544 numberofjobs. newfulltimejob commitmentto35toalign withgranteesmostrecent employmentfigures. Thecreditwasoriginally grantedtoSharonStairs, ODODreferredtoOhioTax whichwasacquiredby Failedtocreateandretain CreditAuthority;TCA WorthingtonStairs.Dueto promisednumberofjobs. agreedtoterminatethe changesinstrategic projectonMay23,2011. businessplanningno longerwishesto participateintheprogram. ODODreferredtoOhioTax CreditAuthority;TCA reducedthetermofthe creditMarch28,2011.
WorthingtonStairs,LLC
CityofAkron/Summit County
JobCreationTaxCredit
$39,126.52
Create87jobs; retain94
Created0jobs; retained37
WraycoIndustries,Inc.
CityofStow/SummitCounty JobCreationTaxCredit
$75,407.32
Create90jobs; retain182
Created0jobs; retained159
Failedtocreateandretain promisednumberofjobs.
Appendix3:NonCompliantLoanAwardRecipients
Beneficiary Location CityofWarrensville Heights/CuyahogaCounty TypeofAward Research& Development InvestmentLoanFund Commitment Performance Amount Received Reasonfor Noncompliance Failedtocreatepromised numberofjobs. RemedialAction Comments ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report.
4450CranwoodParkway,LLC
TBD
AvionPark,LLC
CityofHighland Heights/CuyahogaCounty
166DirectLoan
Create62jobs
$1,000,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
BestTransport.com,Inc.
CityofColumbus/Franklin County
InnovationOhioLoan Fund
$783,700.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
BilcoCo.,The
CityofCambridge/Guernsey County
166DirectLoan
$1,000,000.00
Failedtocreatepromised numberofjobs.
TBD
CutRiteManufacturing,LLC
VillageofFort Recovery/MercerCounty
Regional166DirectLoan
Createan estimated3jobs
$124,300.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
DancoMetalProducts,LLC
CityofAvonLake/Lorain County
166DirectLoan
Create25jobs; retain48
$1,000,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
DaytonPolymericProducts,Inc.
$420,000.00
TBD
DoubleDayAcquisitions,LLC
Create40jobs
$1,200,000.00
TBD
ECraneInternationalUSA,Inc.
Create7jobs
$245,000.00
TBD
FarrAutomation,Inc.
CityofAshland/Ashland County
Regional166DirectLoan
Create2jobs
$59,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
FennerDunlop(Toledo),LLC
CityofToledo/LucasCounty
166DirectLoan
Create5jobs; retain41
$662,681.25
Failedtosubmitannual report.
Seekproperannualreport documentation.
FergusonTools,Inc.
$100,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
FlatsEquipmentCo.,Ltd.
Create5jobs
$143,600.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
GradallIndustries,Inc.
166DirectLoan
Create75jobs; retain150
$2,000,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
HarrisonConcrete,Inc.
$264,000.00
Failedtosubmitannual report.
TBD
HighwayComposites,LLC
CityofNorwalk/Huron County
166DirectLoan
Create69jobs; retain26
$1,000,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
JALHamilton,LLC
CityofToledo/LucasCounty Regional166DirectLoan
Create3jobs; retain4
$116,600.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
K&KAsadorianDevelopment,LLC
$350,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
LandmarkPlasticCorp.
CityofAkron/SummitCounty
166DirectLoan
Create10jobs; retain134
$750,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
Linus,LLC
Create6jobs
$350,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
LLLInvestmentsII,LLC
CityofMassillon/Stark County
166DirectLoan
Create50jobs; retain70
$1,000,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
LotridgeEnterprises,LLC
CityofBotkins/Shelby County
Regional166DirectLoan Create10jobs
$234,000.00
Failedtosubmitannual report.
TBD
Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Companyinbankruptcy;shared foreclosureactionpending. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012.
M21Industries,LLC
Create4jobs
$112,000.00
MillatCapital,Ltd.
CityofDayton/Montgomery County
166DirectLoan
Retain47jobs
$872,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
MillatIndustriesCorp.
CityofDayton/Montgomery County
166DirectLoan
$750,000.00
Failedtosubmitannual report.
TBD.
PMCFacilitiesManagementCorp.
$350,000.00
Failedtocreatepromised ODODisworkingwithcompanyto numberofjobs. payoffitsloaninfull. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report.
PMCGage,Inc.
$190,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
Quatech,Inc./B&BElectronicsManufacturing Co.
CityofHudson/Summit County
InnovationOhioLoan Fund
Create22jobs; retain35
$2,266,612.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
RPMCarbideDie,Inc.
Regional166DirectLoan
Create7jobs
$222,000.00
TBD
StevenDouglasCorp.Holdings,LLC
Regional166DirectLoan Create10jobs
$350,000.00
TBD
SuzanneHilleary/CentralOhioGraphics,Inc.
Create7jobs
$64,000.00
TBD
$300,000.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
VivoBrothers,Ltd.
Regional166DirectLoan
Create9jobs
$292,500.00
TBD
Weastec,Inc.
166DirectLoan
Create42jobs
$2,500,000.00
TBD
WesternDatacomCo.,Inc.
CityofWestlake/Cuyahoga County
InnovationOhioLoan Fund
Create20jobs; retain10
$756,755.00
Failedtosubmitannual report.
Seekproperannualreport documentation.
Appendix4:NonCompliantWorkforceTrainingAwardRecipients
Beneficiary ABritePlatingCo. Location CityofCleveland/Cuyahoga County CityofSidney/ShelbyCounty TypeofAward OITP AmountReceived $4,000.00 Commitment Train100workers Performance Trained6 Reasonfor RemedialAction Noncompliance Failedtotrain promisednumberof TBD workers. Failedtotrain promisednumberof TBD workers. Failedtosubmit closeoutreport. Failedtotrain promisednumberof workers. Failedtosubmit closeoutreport. Failedtotrain promisednumberof workers. Failedtotrain promisednumberof workers. Failedtotrain promisednumberof workers. Seekproperannual report documentation. Comments ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Contracthasbeenclosedand companyreimbursedforeligible costs. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report. ODODtoreviewprojectstatusand takeappropriateactionbyApril30, 2012. Submissionofannualreport requiredbyawardagreement; ODODdidnotcontactaward recipienttoremindittosubmit2010 report.
AmericanTrim,LLC
WorkforceGuarantee
$21,440.00
Train163workers*
Trained71
ColumbiaChemicalCorp.
CityofNewBrunswick/Medina County
OITP
$24,800.00
Train50workers
DaytonProgressCorp.
CityofDayton/Montgomery County
WorkforceGuarantee
$5,881.00
Train112workers*
Trained13
TBD
DimcoGrayCorp.
CityofDayton/Montgomery County
OITP
$3,315.63
Train30workers
OITP
$15,000.00
Train64workers
Trained51
TBD
WorkforceGuarantee
$300,000.00
Train403workers
Trained360
None
CityofAkron/SummitCounty
WorkforceGuarantee
$62,500.00
Train138workers*
Trained70
TBD
Innerwood&Company,LLC
CityofMilford/Clermont County
OITP
$21,000.00
Train30workers
Trained11
Lastar,Inc.
CityofMoraine/Montgomery County
OITP
$9,135.00
Train116workers*
Failedtosubmit closeoutreport.
MikeSell'sPotatoChipCo.
CityofDayton/Montgomery County
OITP
$13,938.85
Train179workers*
Failedtosubmit closeoutreport.
MorganAdhesivesCo.
CityofStow/SummitCounty
OITP
$42,388.00
Train83workers*
Failedtosubmit closeoutreport.
NorthStarBlueScope,LLC
CityofDelta/FultonCounty
OITP
$28,733.00
Train340workers
Failedtosubmit closeoutreport. Failedtotrain promisednumberof workers. Failedtotrain promisednumberof workers. Failedtotrain promisednumberof workers. Failedtotrain promisednumberof workers. Failedtosubmit closeoutreport. Failedtotrain promisednumberof workers. Failedtosubmit closeoutreport.
NorwalkFurnitureCorp.
OITP
$32,481.42
Train256workers*
Trained124
TBD
OhioBilling,Inc.
WorkforceGuarantee
$4,000.00
Train7workers*
Trained4
TBD
PCCAirfoils,LLC
WorkforceGuarantee
$4,600.00
Train60workers
Trained18
TBD
RieterAutomotiveNorthAmericaInc.
CityofOregon/LucasCounty
OITP
$100,000.00
Train200workers
Trained137
TBD
SpecialtyMetalsProcessing,Inc.
CityofStow/SummitCounty
OITP
$2,800.00
Train25workers*
TeledyneTekmarCo.
CityofMason/WarrenCounty
OITP
$28,000.00
Train100workers
Trained87
TBD
WayneTrailTechnologies,Inc.
CityofFortLoramie/Shelby County
WorkforceGuarantee
$19,492.37
Train30workers*
*OBMimposedbudgetcutsinJuly2009,resultinginmandatoryfundingreductionsforsomeactiveworkforcetraininggrants.Foraffectedcompanies,ODODreducedtrainingcommitmentsinproportiontotheamountofthefundingreduction.Training commitmentslistedabovereflectthenew,reducedcommitmentssetbyODODratherthantheoriginalcommitmentssetforthintheawardagreements.