FOR IMMEDIATE RELEASE
February 15, 2005

HEATH – Amended Substitute House Bill (HB) 431 was signed by Ohio Governor Bob Taft last week, signaling a change in state law that now allows port authorities to create linked deposit programs. The law change was successfully sought by Ohio Senator Jay Hottinger as an amendment to a finance agency bill. The State of Ohio has offered linked deposits since 1983 as a tool to help businesses in Ohio expand and create jobs.

“We are grateful to Senator Hottinger for his efforts in getting the law changed and giving us one more tool in our economic development tool box in Licking County,” said Rick Platt, Executive Director, Heath-Newark-Licking County Port Authority. “Economic development is a highly competitive arena. This gives us an added advantage in the quest to attract new, private capital investment and job creation.”

Linked deposits are a creative financing tool designed to provide incentives to businesses seeking expansion and relocation. Under the new law, a port authority will be able to invest in reduced-rate certificates of deposits at local lending institutions, which, in turn, lend the funds to qualifying businesses at below-market rates. The deposit is linked to the business expansion and job creation. The businesses get lower-cost financing and the port authority has no risk of loss as the deposits remain insured.

The Heath-Newark-Licking County Port Authority asked for the law to be changed and has plans to initiate Ohio’s first port authority-led linked deposit program once the law change takes effect later this year. The program will be available county-wide.