Tuesday, January 24, 2012
By Marc Kovac
COLUMBUS
A lawmaker panel is set to sign off on contracts that will enable a new, private nonprofit to take control of state-run economic- development programs.
The paperwork also includes the transfer of the state’s lucrative liquor operations to JobsOhio, providing funding for incentives and related business- boosting programs over the next 25 years.
And additional legislation, to be introduced by lawmakers in coming weeks, will solidify the group as the state’s go-to organization for building and retaining jobs.
Gov. John Kasich and other members of his administration touted the setup Monday as groundbreaking.
“I would predict that this model that we are creating in the state of Ohio is one that’s going to be studied across the country and, if we do it right, it will be one that will be envied,” Kasich told reporters.
Mark Kvamme, longtime Kasich friend, jobs adviser and JobsOhio head, added, “I want this to be a framework that in 25 years is something that is truly unique to the state of Ohio, that gives us an advantage that no other state has.”
JobsOhio was created by lawmakers and the governor early last year, bringing to fruition a priority initiative outlined by Kasich while campaigning for office.
Supporters believe the nonprofit will be better positioned to work with businesses considering expansions or relocations in Ohio, with executives feeling more comfortable discussing such matters behind closed doors than through existing approval processes that are open to public perusal.
Since opening shop in July, JobsOhio has established a statewide network for its economic- development efforts. And Kasich and Kvamme say the nonprofit already has been involved in 245 business projects committing to create nearly 22,000 jobs and retain an additional 61,686.
But additional legislation and contact agreements must be finalized for JobsOhio to take control of the state’s economic- development programs.
The state Controlling Board will review Monday a couple of contracts to accomplish part of the process.
One involves the transfer of the state’s liquor operations to JobsOhio. The long-term lease will provide a dedicated funding source for the nonprofit, which will contract with the Department of Commerce to continue to oversee liquor operations as it currently does.
JobsOhio will pay about $1.4 billion for a 25-year lease liquor enterprise, covering those costs through bonding and potential other regular payments to the state of future liquor profits.
A second contract is with the Ohio Department of Development, which will pay JobsOhio about $4.8 million over two fiscal years to become the “forward face of economic development in Ohio.”
The nonprofit would oversee economic-incentive programs, serving as the lead organization for negotiations with companies considering expansions or relocations and providing recommendations to the state on incentive packages.
JobsOhio will be required to provide regular reports on the number of jobs, new payroll and other details of projects it finalizes. Any incentives involving public funds will require approval from state agencies.
“This ensures that the public interest is protected during these negotiations,” said Chris Schmenk, director of the Ohio Department of Development.