Ohio-based developer Make Build Ship, LLC has broken ground on a new 48,000 SF speculative industrial building in the Logan-Hocking Commerce Park in Hocking County. In partnership with the Hocking County CIC, Make Build Ship’s new, flexible speculative building brings turn-key industrial space to prospects needing anywhere from 6,000 SF to the full 48,000 SF to locate and grow their operations.
Make Build Ship’s speculative building used a creative capital stack approach of federal and state programs to bring the project to fruition. Most notably, the Ohio Department of Development’s Rural Industrial Park Loan Program (RIPL) provided $2.5 million in financing towards the more than $4.9 million total project cost, with half of the RIPL loan to be forgiven upon successful completion of the speculative building project.
The Rural Industrial Park Loan Program (RIPL) promotes economic development in eligible rural areas and promotes the economic welfare of the State by providing low-interest direct loans to assist eligible applicants in financing the development and improvement of industrial parks and related off-site public infrastructure improvements. Perhaps the most attractive component of the RIPL program is the forgiveness of at least 50% of the outstanding loan balance upon successful completion of the project.
Counties, municipalities, townships, non-profit organizations, port authorities, community improvement corporations, private developers, and others are eligible to apply for and receive RIPL funds for projects that improve the economic welfare of the people of the State of Ohio. Eligible RIPL projects include the development and improvement of industrial parks in rural areas designed to attract and retain businesses related to manufacturing, distribution and warehousing, research and development, high technology, industry and commerce. Development defines an industrial park as a site of 25 acres or more, zoned for or containing commercial or industrial users that is or will be adequately served by utilities and infrastructure.
Eligible project costs include multiple activities, including:
- Land and/or building purchase
- Machinery & equipment purchase
- Building construction and/or renovation costs
- Long-term leasehold improvements
- Infrastructure and site preparation
- Retention ponds and/or flood and drainage improvements
- Street, road and bridge construction and traffic control device installation
- Water, sewer line, and wastewater treatment plant installation
- Gas, electric, and telecommunication hook-up installation
- Waterway and railway access improvements
- Limited soft costs directly related to fixed asset expenditures
The RIPL program is “take-out” financing and may finance up to 75% of allowable project costs with loans ranging in size from $500,000 to $2,500,000 and a minimum of 10% equity contribution. Loans range from 10- to 20-year terms with the possibility of payment of loan principal and interest being deferred up to five years to allow the applicant to market the property.
For more information on the Ohio Rural Industrial Park Loan Program, and other state of Ohio financing and incentives programs, contact Jamie Beier Grant, Manager of Economic & Workforce Development at (419) 707-0164 or [email protected].