Annual Report 2017
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State of Ohio Leadership Enabling Economic Development $ budget Financial Strength 2 Billion reserves as of 6/30/2017 $ Competitive 5 Billion tax cuts $ rebate to companies for Business Climate 5 Billion worker compensation premiums 2011-2017 $ transportation Infrastructure 14 Billion infrastructure investment 2011-2017 Investments State investments and policies have moved Ohio up significantly in key rankings: Most Improved State for Business Approaching 500,000 New Private Sector Jobs #2 State for Quality of Life Front Cover: 1) Transportation Research Center (TRC), East Liberty, Ohio 2) McLane, Findlay, Ohio 3) Hyland Software, Westlake, Ohio 4) Quality Electrodynamics, Mayfield, Ohio 2 JobsOhio Leadership Driving Economic Development new job $ new New Jobs 139,178 commitments 6.2 Billion payroll retained job $ retained Retained Jobs 416,066 commitments 24.3 Billion payroll Capital $ new capital Investments 38.2 Billion investment $ revitalization $ leveraged Revitalization 169 Million investment 2 Billion investment Feb. 2013 - Dec. 2017 Data represents projects from July 2011 - Dec. 2017 JobsOhio recognized as third best state economic development organization Dedicated to Improving Communities and the Lives of Ohioans. 3 Table of Contents A Message from Leadership. 5 JobsOhio Impact ..................................... 10 Key Economic Highlights .............................. 20 JobsOhio Strategy .................................... 24 JobsOhio Programs ................................... 32 Championing Ohio’s Business Brand ..................... 44 Corporate Governance ................................ 46 Financial Highlights .................................. 50 Regional Partner Highlights ............................ 52 4 A Message from JobsOhio Leadership We begin this letter with a sense of gratitude and pride capital. The job creation result represents an 11 percent about JobsOhio, which has grown only stronger over increase over 2016, and these new jobs will create a the last five years. It is an extraordinary company with JobsOhio record-tying $1.06 billion in new payroll in remarkable people, partners and a bright future. Ohio. The capital investment result is more than double 2017 was another strong year for JobsOhio as we posted the 2016 amount and sets a new record for JobsOhio. record results. The year also brought significant third- In 2017, JobsOhio also experienced a significant increase party recognition that independently validates our model in project funding activity. JobsOhio committed more than for success. Our vision always has been for JobsOhio $225 million(1) from our grant and financing programs to be the best economic development organization in for projects, many of which are currently in the project the U.S. and for Ohio to be a national leader in economic pipeline and could be completed in 2018. This total was development activity. In December, Ernst & Young 40 percent more than the funding amount committed in released its EY 2017 US Investment Monitor, ranking 2016. Also worth highlighting is the continued growth of Ohio as the No. 1 state for job creation in business JobsOhio’s financing programs, with 21 new executed investment projects. In September, Development loans in 2017 totaling $45 million, growing the total Counsellors International ranked JobsOhio as the third- portfolio to more than $113 million. best state economic development organization. Impact on Communities Our progress continues to be a function of making smart A recurring theme last year was community impact as investments to not only build our capabilities through our JobsOhio completed projects that will bring long-term, team and programs, but also to increase our potential positive changes to communities. JobsOhio’s ability to long-term impact on the state and its communities. make a difference for communities was evident through We remain clear in terms of our focus and our areas for our revitalization program, which helps redevelop growth – talent, sites, infrastructure and innovation. We brownfield properties to make them productive again. are prepared to invest the resources to accelerate growth Consider Huntington Bank, which rehabilitated an old, in these areas, helping to ensure that JobsOhio and Ohio run-down grocery store that had closed the previous remain leaders in economic development. year, turning it into a new operations center that will One reason for JobsOhio’s success is our board and its create more than 380 new jobs and help revitalize a strong leadership and corporate governance. Our board central Ohio community. Partnering with Huntington, has placed a clear importance on JobsOhio operating JobsOhio assisted this project that accommodates with a high degree of transparency and accountability. Huntington’s growth and invests in the community Given the many disclosures, reporting requirements, and surrounding neighborhoods. audits, reviews, approvals and policies that JobsOhio Another example of JobsOhio making a difference can must adhere to, we will continue to be one of the most be found in the energy sector. RH energytrans is a new transparent nonprofit organizations in the country. natural gas supplier that will serve Northeast Ohio’s 2017 Highlights Ashtabula County, where a lack of natural gas service has been a barrier to business growth. Building a 28-mile gas Last year, JobsOhio completed 272 projects with pipeline, the company faced a gap in the capital needed companies that committed to create 22,788 new jobs, to complete the project. JobsOhio provided a creative retain 67,849 existing jobs and invest $9.6 billion in new (1) Excludes outstanding offers for mega-projects. In December, Ernst & Young released its EY 2017 US Investment Monitor, ranking Ohio as the No. 1 state for job creation in business investment projects. In September, Development Counsellors International ranked JobsOhio as the third-best state economic development organization. 5 financing solution to close the gap, assisting Ashtabula regional and local partners. During this five-year period, County’s communities with infrastructure to help attract JobsOhio was the largest funder of each of our six business growth opportunities. regional partners and provided total funding support of more than $50 million. In addition to attracting JobsOhio recognizes that certain areas of the state face companies to the state, JobsOhio remains committed to business growth challenges. In 2018, we will continue to our retention and expansion efforts. Working closely with explore creative ways for JobsOhio to impact these areas regional and local development entities, we are focused through similar investments. on assisting Ohio companies to grow and expand here. Looking Back – Five-Year Highlights To that end, we recently added resources to increase From 2013-2017, JobsOhio completed 1,431 projects our collaboration with local development offices. Each with companies growing their businesses. These projects year, JobsOhio has strengthened these partnerships, and included a mix of small businesses, middle-market firms together we are well-positioned to deliver great service to and large corporations, with approximately 80 percent of our client companies for the future. projects focused on small and medium-sized enterprises. Over the last five years, we have seen the benefit of Over these five years, JobsOhio has attracted nearly 300 JobsOhio’s industry expertise and sector strategies. companies to Ohio that did not have a presence in the Our six sector managing directors, who collectively have state, helping to diversify the state’s industry base and more than 100 years of industry experience, have given business mix. Ohio a competitive advantage over other states and have Since privatizing JobsOhio’s funding through the provided value to companies here. Through the execution acquisition of the state’s liquor enterprise five years ago, of their sector strategies, JobsOhio has generated we have continued our responsible and smart investment growth opportunities in these evolving industries and has approach, ensuring positive returns on our funds. advanced Ohio’s position in them. For example, Ohio has Through the end of 2017, JobsOhio committed more been known for its strong automotive assets; now it is than $550(1) million for economic development projects seen as a center of smart mobility. Ohio has been known in Ohio. This capacity has given JobsOhio a funding for having the country’s top health care providers; now advantage and helped Ohio compete more effectively it is recognized for its leading biohealth innovation. for projects and accelerate business development And Ohio has been known for its strong financial and growth. institutions; now it is building an ecosystem of emerging fintech entrepreneurs. Included in this funding, JobsOhio spent considerable resources enhancing the supply of properties across Growth Areas – Looking Ahead the state and turning properties into productive sites In last year’s letter, we highlighted three new programs for business attraction and expansion opportunities. launched by JobsOhio. Today, we remain committed to In the revitalization and redevelopment programs, increasing our investment in these growth areas and JobsOhio provided more than $169 million of funding elevating JobsOhio’s impact on business development. commitments in both grants and loans. These funds served as a catalyst for an additional $2.0 billion Innovation and R&D of investment from other private and public funding