The Huddle Up connects you with our community of partners, investors, public leaders, and visionaries. In each edition, Finance Authority President Patty Huddle offers a behind-the-scenes look at how our organization works and adapts to meet regional needs.
We admit it: our name can be a little confusing.
We get calls inquiring about services for trash and utilities – services provided by the City of Columbus. We also get calls with questions about real property taxes or property ownership – services provided by the Franklin County Auditor. On occasion I am asked who our organization reports to, the City of Columbus or Franklin County.
So is the Columbus-Franklin County Finance Authority a City of Columbus entity or a Franklin County entity? Or both?
None of the above. Let me explain.
While our organization (often known simply as “the Finance Authority”) was formed in 2006 through a cooperative agreement between the City of Columbus and Franklin County, we are, in fact, an Ohio port authority, specifically serving as a development finance agency. We provide financing that supports desired economic and community development in Columbus and Franklin County. Hence, the Columbus-Franklin County in our name.
As such, we’re an independent, stand-alone entity – an economic and community development resource to the city and county, but not a part of them.
In spite of the autonomy provided by our legal structure, we are vigilant about remaining closely aligned with our partners at the City of Columbus and Franklin County. We’re proud that our monthly meetings with city and county staff result in not only trusting relationships, but efficiency as well. Programmatically, the frequent communication allows us to design and adjust our programs to better serve economic development and community needs. Deals often happen faster and more smoothly.
We report to our Board of Directors. Columbus and Franklin County each appoint four members of our Board, plus one joint appointment. Members include a cross-section of community leaders, including experts in law, banking, development, and management. Ours is a highly active board, supporting our small (but mighty!) staff with hands-on due diligence, deal analysis review, and approval of what we finance. They assure that our strategy and project selection result in solutions that improve the community to better serve our constituents. Each Board member serves as the eyes, ears, and voice of his or her appointing agency.
Power of the Port
Ohio port authorities have incredibly diverse and flexible powers, which gives the Finance Authority a wide range of capabilities, including but not limited to:
- Acquiring, developing, owning, leasing, and managing land and facilities. We own more than 20 public parking facilities throughout Columbus.
- Financing infrastructure projects (such as roads, utilities, public garages). We’ve financed a significant amount of public infrastructure in Central Ohio. In fact, nearly 70% of the Central Ohio Regional Bond Fund portfolio is infrastructure projects.
- Issuing conduit bonds (taxable and tax-exempt) for capital investment. When applicable, tax-exempt bonds provide a lower cost of borrowing, thereby lowering the overall project cost. There are a limited number of entities that issue bonds, and we are one of them! We are currently working with a number of affordable housing developers to serve as the conduit issuer for their affordable housing projects.
- Lending to small businesses. We don’t just finance the big projects. We are incredibly proud of working with small businesses such as Distinctive Surfaces, who we assisted with financing for a large crane used in their production/warehouse facility.
- Financing affordable energy-efficiency improvements via the powerful Property Assessed Clean Energy (PACE) program. Our clients include small woman-owned businesses like Artisan Dance Studio in Columbus and large non-profits such as Alvis, which perform important social work in the community.
When the Finance Authority was formed, another economic and community development tool was added to the Columbus Region’s toolkit. As time passes and we respond to changing challenges and opportunities that come with rapid development (such as affordable housing and infrastructure demands), I feel confident about our region’s future knowing we are working in sync with the local governments (and residents) we serve. Here’s to what we’ve built together, and all that’s yet to come.