Chapter 5501:6-1 Financing of Qualified Projects

5501:6-1-01 Definitions.

As used in this chapter:

(A) The term "qualified project" means a transportation project, including without limitation, planning, construction, reconstruction, resurfacing, restoring, rehabilitation, or replacement of public or private transportation facilities within the state, or studying the feasibility thereof; any highway, transit, or other transportation project eligible for financing or aid under any federal or state act or program; and any project involving the maintaining, repairing, improving, or construction of any public or private highway, road, street, parkway, or transit project, and any related rights-of-way, bridges, tunnels, railroad-highway crossings, drainage structures, signs, guardrails, or protective structures.

(B) The term "borrower" means any public entity or private entity.

(C) The term "public entity" means a state agency, county, city, township, regional transit board, port authority organized under Chapter 4582. of the Revised Code, transportation improvement district organized under Chapter 5540. of the Revised Code, or other governmental entity organized under the laws of this state for the primary purpose of facilitating and improving transportation.

(D) The term "private entity" means a corporation, partnership, association, or limited liability company.

(E) The term "financial assistance" includes any of the following:

(1) Loans or bonds,

(2) Financing leases,

(3) Credit enhancements;

(4) Reserve funds;

(5) Interest rate subsidies;

(6) Letters of credit and credit instruments; and

(7) To provide other forms of debt financing or methods of leveraging funds approved by the director of transportation.

R.C. 119.032 review dates: 09/18/2012 and 09/18/2017
Promulgated Under: 111.15
Statutory Authority: 5531.09
Rule Amplifies: 5531.09 , 5531.10
Prior Effective Dates: 9/10/96, 11/22/96, 5/20/02

5501:6-1-02 Administration of the state infrastructure bank.

The state infrastructure bank shall be administered by the director of transportation through the division of finance of the Ohio department of transportation.

The director shall administer the state infrastructure bank to provide financial assistance for qualified transportation projects in the state of Ohio, as prescribed in this chapter of the Administrative Code.

In authorizing financial assistance through the state infrastructure bank, the director shall use prudent financial guidelines related to the desirability, timing, and relative risk of the project. The director shall not undertake projects which, in the director's determination, are of limited public use or could be considered for full funding by private financial institutions without the financial assistance of the state infrastructure bank.

Effective: 12/06/2012
R.C. 119.032 review dates: 09/18/2012 and 11/01/2017
Promulgated Under: 111.15
Statutory Authority: 5531.09
Rule Amplifies: 5531.09 , 5531.10
Prior Effective Dates: 9/10/96 (Emer.), 11/22/96, 11/1/07

5501:6-1-03 Public sponsorship required for private projects.

A private project is eligible for financial assistance only if it is sponsored by one or more political subdivisions.

Effective: 12/06/2012
R.C. 119.032 review dates: 09/18/2012 and 11/01/2017
Promulgated Under: 111.15
Statutory Authority: 5531.09
Rule Amplifies: 5531.09 , 5531.10
Prior Effective Dates: 9/10/96 (Emer), 11/22/96

5501:6-1-04 Security for financial assistance.

The director may request any of the following as security for financial assistance:

(A) A pledge of identified tax revenues, fees, or other revenues derived directly or indirectly from the project;

(B) A guarantee from the borrower or another person;

(C) A mortgage or lien position on or security interest in the project or a portion of the project, or any other asset of the borrower;

(D) Other credit enhancement the director determines appropriate.

R.C. 119.032 review dates: 09/18/2012 and 09/18/2017
Promulgated Under: 111.15
Statutory Authority: 5531.09
Rule Amplifies: 5531.09 , 5531.10
Prior Effective Dates: 9/10/96, 11/22/96

5501:6-1-05 Fees.

The director shall establish and collect application and issuance fees for financial assistance and legal fees in amounts the director determines appropriate. The director shall make available a publication setting forth the fees, which may be updated whenever the director determines necessary.

R.C. 119.032 review dates: 09/18/2012 and 09/18/2017
Promulgated Under: 111.15
Statutory Authority: 5531.09
Rule Amplifies: 5531.09 , 5531.10
Prior Effective Dates: 9/10/96 (Emer.), 11/22/96

5501:6-1-06 Eligibility Criteria.

The director shall determine the eligibility of a project based on the following criteria:

(A) The status of environmental assessments and subsequent clearance processes are complete to the extent necessary to meet the funding source requirements;

(B) The status of preliminary engineering studies.

(C) Whether the borrower guarantees cost overruns;

(D) Whether the project will have an identifiable revenue source which, in the director's determination, likely will amortize the project debt;

(E) The borrower's ability to repay;

(F) The borrower's ability to manage the project;

(G) The borrower's working capital or operating funds;

(H) The public need or public benefit of the project;

(I) The borrower's available collateral; and

(J) The status of the project in relation to actual construction startup;

(K) Any other criteria the director determines appropriate.

R.C. 119.032 review dates: 09/18/2012 and 09/18/2017
Promulgated Under: 111.15
Statutory Authority: 5531.09
Rule Amplifies: 5531.09 , 5531.10
Prior Effective Dates: 9/10/96 (Emer.), 11/22/96

5501:6-1-07 Application procedure.

In order to be eligible for assistance through the state infrastructure bank, a borrower shall submit an application on a form prescribed by the director. The application shall include a complete description of the project, sources and use of funds, repayment sources, and financial justification for the assistance. The director shall determine the completeness of the application. The director may request the assistance of other state agencies to review the application and submit recommendations. The director may request additional information from the borrower as necessary.

The director shall approve or disapprove the application and shall notify the borrower of his determination. If an application is approved, the director shall deliver to the applicant a term sheet outlining the terms of the financial assistance. The director and borrower shall coordinate preparation of any documents needed to finalize the financial assistance.

R.C. 119.032 review dates: 09/18/2012 and 09/18/2017
Promulgated Under: 111.15
Statutory Authority: 5531.09
Rule Amplifies: 5531.09 , 5531.10
Prior Effective Dates: 9/10/96, 11/22/96