Agencies’ relationship solidified
By Marc Kovac
COLUMBUS
Lawmakers signed off Monday on agreements between two state agencies and a new nonprofit group, a next step in the privatization of Ohio’s economic development programs.
The State Controlling Board approved the paperwork solidifying relationships between the Department of Development and the Department of Commerce and Jobs- Ohio after nearly an hour of discussion, with one of two Democrats (Rep. Clayton Luckie, from the Dayton area) on the seven-member panel opposing.
“Today, we’re taking the next big step, I think, and a pretty significant change with how we’ve been dealing with economic development here in the state of Ohio,” said Rep. Jay Hottinger, a Republican from Newark. “Unfortunately, what we don’t have before us today is the ability to see the future of how well, how successful this is going to be. But I think everyone agrees that the status quo of doing things the way we have done them over the last several decades just apparently wasn’t sufficient and wasn’t getting the job done.”
JobsOhio was created by lawmakers and the governor early last year, bringing to fruition a priority initiative outlined by Gov. John Kasich while he was 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 rather than through existing approval processes that are open to public perusal.
Toward that end, the controlling board on Monday approved agreements related to the transfer of the state’s liquor operations to JobsOhio and between the nonprofit and the Ohio Department of Development to conduct economic-development programs on its behalf.
David Goodman and Chris Schmenk, directors of the departments of commerce and development, respectively, were on hand to answer lawmakers’ questions about the agreements.
The long-term lease of the state’s liquor operations will provide a dedicated funding source for Jobs-Ohio, which will contract with the Department of Commerce to continue to oversee liquor operations as it currently does.
The nonprofit will pay about $1.4 billion for a 25-year lease on the liquor enterprise, covering those costs through bonding and potential other regular payments to the state of future liquor profits.
The development department also will pay Jobs- Ohio about $2.8 million over two fiscal years to serve as the lead organization on negotiations with companies and to provide recommendations to the state on incentive packages.
Lawmakers still have to pass legislation to change other portions of state law to accommodate Jobs-Ohio’s efforts. That bill has not yet been introduced but is among the priorities mentioned by the Ohio House and Senate for coming months.