The Columbus-Franklin County Finance Authority partnered with the Ohio Department of Development (ODOD) with a purchase/lease-back incentive package that provides Kern, Inc. of Grove City with a $2 million Innovation Ohio Fund Loan.
The ODOD provided a $2 million loan to the Finance Authority for the purchase of intellectual property in the form of a patent. The Finance Authority, in turn, leases the intellectual property that is valued at $4 million back to Kern. At the end of the 6-year lease, Kern will purchase the intellectual property for $1. Kern will create 55 new full-time jobs within three years and retain 20 jobs.
“The financing provided by the State and the Finance Authority allows us to invest in next generation product development, providing the needed resources to support our strategic direction.” -Mark Johnson, Vice President of Engineering, Kern International
Kern has been in business for over 60 years and has grown into a worldwide mailing technology leader with the fastest and finest production equipment in the world. Kern’s U.S. headquarters is located in Grove City, Ohio, with a global distribution through 15 subsidiaries and over 60 distribution partners.
“Creatively customizing financial incentives while maximizing job creation is fundamental in spurring economic growth and further business expansion in Ohio,” said Nate Green, Director of the Strategic Business Investment Division at the Ohio Department of Development.
The Finance Authority has issued $298 million in financing, closing on 20 projects that will invest more than $359 million and create over 1,495 jobs in Central Ohio.