2010 Ohio Third Frontier Annual Report by JumpStart Inc.

hi 2010 Annual Report

Ted Strickland, Governor Lee Fisher, Lt. Governor

Lisa Patt-McDaniel, Director

Ted Strickland, Governor Lee Fisher, Lt. Governor

Lisa Patt-McDaniel, Director

December 1, 2010 The Honorable Ted Strickland Governor of Ohio Office of the Governor Statehouse Columbus, Ohio 43215 Dear Governor Strickland: I am pleased to share with you a copy of the Ohio Department of Development’s 2010 Annual Report, which outlines the programs, incentives, and initiatives that our Department administers throughout the State of Ohio. Our Annual Report showcases how our Department is working every day to create opportunity in Ohio and outlines the responsibilities of each division/office, as well as the success of our programs. We are committed to making our incentives and programs serve both public interest and keep Ohio competitive with other states. Focusing our investments into projects that help foster near- and long-term prosperity, the 14 divisions and offices highlighted within this report work directly with state, regional, and local partners to support businesses and deliver resources to Ohio’s communities and citizens in need. During State Fiscal Year 2010, private investments of more than $3.8 billion were supported with Department incentives, including more than $1.02 billion in loans and grants and tax credits with an estimated value of $260.5 million. Our investments throughout Ohio allowed us to assist more than 2.2 million households and train nearly 4,250 new and incumbent workers. These projects have the potential to create 21,650 jobs for Ohioans, while retaining more than 100,700 positions in our state. While we feel we are making progress toward our goal of bringing prosperity to all Ohioans, we continue to measure ourselves against the five goals of our Strategic Plan for Economic Development. Crafted with input from many sectors, our Strategic Plan has set in place a framework to share the Ohio story, capitalize on Ohio’s strengths, cultivate top talent, invest in our regional assets, and focus on our customers. The Ohio Department of Development works continuously to create opportunity in Ohio through directed investments in areas of future economic growth, positioning our state to take advantage of the opportunities ahead. Should you have any questions regarding the report, please feel free to contact me. Thank you. Sincerely,

Lisa Patt-McDaniel Director

77 South High Street P.O. Box 1001 Columbus, Ohio 43216-1001 U.S.A.

614 | 466 2480 800 | 848 1300 www.development.ohio.gov

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

hi 2010 Ohio Department of Development Annual Report

Executive Summary

Our progress achieving our goals: • The Department successfully launched a one-of-a-kind initiative during the last year that is building upon leading assets in our urban centers to propel innovation, create and retain jobs, and catalyze the formation of new companies in each region of our state. Seven Ohio Hubs of Innovation and Opportunity have been created around the state and are currently working to attract clusters of connected businesses, encourage new investments and an influx of talented workers, and create new opportunities to grow jobs and develop Ohio’s key industries.

Here at the Ohio Department of Development, our talented and dedicated professionals are hard at work every day helping to lay a foundation for Ohio’s future economic prosperity and build a more competitive business environment to strengthen and expand Ohio’s economy. From January 2007 to June 30, 2010, our Department has committed $4.47 billion in funding to projects that are leveraging $21.18 billion for the State of Ohio. These investments are creating 80,479 jobs, retaining 309,104 positions, and training 104,073 people. In addition, 8.3 million households are being helped through our Department’s housing and community assistance programs.

• In the midst of a global recession, Ohio voters overwhelmingly approved a $700 million, bi-partisan extension of the state’s successful Ohio Third Frontier in May. This technology-based economic development initiative is successfully changing the trajectory of Ohio’s economy by supporting existing industries and fostering the formation and attraction of new companies in emerging industry sectors. More than 60,000 jobs and 590 companies have been created or attracted to our state, leveraging an additional $5.2 billion in investments in Ohio.

In carrying out our work, we have been extremely mindful of the global recession and its effects on Ohio, as well as the need to use our scarce resources carefully, wisely, and strategically. Through our collaborative work with other state agencies, businesses, Ohio’s workforce, and local communities, we are helping to position Ohio as our nation rebounds from its worst economic recession in 70 years.

• The Department continued to find success in strengthening our communities. More than $360 million in Clean Ohio grants have helped communities clean up and ready sites for redevelopment, leveraging more than $2 billion in private and public sector investment and providing more than 15,000 jobs. The Department also supports restoring Ohio’s historic structures through the Ohio Historic Preservation Tax Credit Program. To date, $246 million in tax credits have helped rehabilitate historic buildings – ultimately creating jobs and attracting emerging businesses to our communities.

Our Vision is that Ohio is The State of Perfect Balance® – a place where every individual can achieve a balance between growing economic prosperity and a fulfilling quality of life.

• The Department and the State of Ohio were recognized by the U.S. Department of Energy this year as the number one state in the nation for weatherizing homes through the Home Weatherization Assistance Program (HWAP). Ohio led the nation in implementing American Recovery and Reinvestment Act funds, completing more than one in five of all projects reported nationwide. To date, 20,046 housing units have been weatherized and 1,453 Ohio jobs have been created and retained.

Our Mission is to change the trajectory of Ohio’s economy by purposefully redesigning the business climate to increase the global competitiveness of Ohio’s businesses, resulting in prosperity for all Ohioans.

Our Goals:

• Our Workforce and Talent Division, in close collaboration with the Ohio Department of Job and Family Services and Board of Regents, leads the state’s efforts to create a workforce system that meets the needs of Ohio’s businesses. With Development focused on workforce development related to business; the Board of Regents focused on workforce development related to skill development and job training; and Job and Family Services focused on workforce development for the individual, our collaborative work is resulting in continuous improvement in the state’s ability to serve both businesses and Ohio workers.

• Share the Ohio Story – excite the world about Ohio • Strengthen our Strengths – link and leverage our inventive past with our innovative future • Cultivate Top Talent – retain, advance, and attract the best workforce and talent in the world • Invest in our Regional Assets – invigorate our cities and regions as centers of commerce and community • Focus on our Customers – operate government at the speed of business

hi 2010 Ohio Department of Development Annual Report

• Investments made through the Ohio Bipartisan Job Stimulus Plan continue to create jobs for Ohioans while laying the foundation for future economic prosperity. More than $130 million in loans and grants have been awarded for logistics and advanced energy projects across the state, which are projected to create and retain 3,600 jobs.

• To support the work of the Governor’s Office of Appalachia to promote opportunities for the people of the Appalachian Region of Ohio we launched a small business attraction campaign, Enterprise Appalachia, to stimulate economic activity in the region.

• For the fourth year in a row, more companies have made a capital investment to expand or locate in Ohio than in any other state in the country. Additionally, 12 cities around our state – including all top metropolitan areas – were ranked in the top 10 of various Site Selection magazine metropolitan rankings. This is a strong testament to the partnership among the State of Ohio and local governments, businesses, and communities across the state. • Tourism visitor spending generated $36 billion in total sales across Ohio and generated $2.5 billion in total taxes ($1.5 billion state and $1 billion local taxes) in 2009. More than 437,000 full-time jobs are supported by tourism in Ohio (8.6 percent of all jobs), with a total income of $10 billion. For every $1 invested by the state in tourism marketing, there was a return of $13 in total taxes. Additionally, the Division won its first-ever Mercury Award from the U.S. Travel Association for the best media/public relations program in the country and Tourism Director Amir Eylon was honored with the 2010 Paul Sherlock Award by the Ohio Travel Association for tirelessly championing Ohio’s tourism industry.

• Through the implementation of the State Energy Plan with funds from the American Recovery and Reinvestment Act, our Ohio Energy Resources Division enabled Ohio to stimulate the creation and retention of jobs, save energy, increase energy generation from renewable energy, and reduce greenhouse gas emissions through several programs including Targeting Industrial Efficiency, Making Efficiency Work, Ohio Energy Efficiency Appliance Rebate, and Deploying Renewable Energy programs.

• To better provide access to loans for Ohio’s small businesses, the Department launched the Ohio Business Lending Clearinghouse, a not-for-profit public-private partnership that helps connect small businesses looking for capital with Ohio financial institutions interested in making loans to qualified businesses. Through our proprietary online software engine, we match businesses to lenders based on the criteria provided by the business. This innovative solution bridges the divide between lenders and businesses, expediting their search for one another during the lending process.

• The Ohio Energy Gateway Fund is investing $80 million in advanced energy projects and companies located in Ohio to spur company development and job creation while increasing growth in the primary and supplier

• We successfully realigned our Technology and Innovation Division’s Edison Centers with our state’s industry strengths and the technology thrusts of the Ohio Third Frontier; and expanded the 13 Edison Technology Incubators to better connect early-stage companies to business assistance, mentoring, investment capital, and physical space.

network of Ohio’s advanced energy sector. This publicprivate partnership expands access to capital to sustain and grow the advanced energy field in Ohio, including: wind; solar; geothermal; solid waste; energy efficiency; hydroelectric; electric batteries and fuel cells; energy storage; advanced solid waste; and generation III nuclear.

• Our Energizing Careers Program is awarding $6 million in grants for an incumbent worker training program for Ohio workers in Ohio’s emerging wind, solar, and biomass manufacturing industries. We have also created an “Early Warning Network” to support regionally-based layoff aversion/business retention activities.

More information and details on our Department’s initiatives and programs can be found in this 2010 Annual Report. Thank you.

Strengthen our Strengths

2010 Ohio Department of Development Annual Report

E.I. DuPont de Nemours and Company – Circleville, Ohio

Strategic Business Investment Division

E.I. DuPont de Nemours and Company

The Strategic Business Investment Division offers Ohio’s new and expanding businesses a comprehensive package of financial and technical resources to support job creation and retention through site location, infrastructure development, and capital investment. The Division supports regional collaboration to increase prosperity and provide a higher quality of life through the creation, expansion, retention, and attraction of business – because growing Ohio businesses contribute to job growth and in turn, healthier, more vibrant communities.

With operations in 70 countries, E. I. DuPont de Nemours and Company’s leadership literally had hundreds of options when deciding where to place a new production line. Due to the longstanding quality of workforce at the plant, and with assistance from the State of Ohio, the company chose the 450-acre Circleville DuPont site for expansion.

The Strategic Business Investment Division is responsible for constructing economic incentive packages that utilize loan, grant, bond, and tax incentive programs to better assist companies taking advantage of the lowest capital investment tax rate in the Midwest, including the 27 Fortune 500 companies that are headquartered in Ohio. The Division is committed to making our programs more responsive to business needs, more transparent to Ohio citizens, more cost-effective to administer, and more competitive with other states and nations.

“In a competitive environment with global options for site locations, the State of Ohio’s offer of financial incentives helped make the difference in our selection of Circleville for our expansion,” said Tony Eichstadt, Plant Manager of the Circleville facility.

For four years in a row, Site Selection magazine ranked Ohio first in the United States in the number of major private investments. The Strategic Business Investment Division is on the front line of economic development, utilizing the state’s outstanding economic development resources. The Division supports the well-being of Ohio’s citizens by providing business owners and communities with the information and support they need to make informed, critical decisions that directly impact Ohio’s economy and environment for business growth.

Existing, out-of-date film manufacturing lines are being converted to a new technology for producing Tedlar® film. Tedlar is a plastic-like film that is attached to the back of solar panels. The film is engineered to last 25 years, significantly longer than current materials. The $175 million project will create 70 new jobs in Circleville and will help maintain 500 additional jobs at the site.

In Fiscal Year 2010, the Division was part of 297 projects, which are expected to create more than 20,700 jobs and retain 44,146. In addition, more than $286 million was awarded for Business Development/Financial Incentives during that period. While the Strategic Business Investment Division is broad in scope, its mission is succinct: to stimulate the state’s economy by creating high-quality jobs and a better quality of life for all Ohioans. The Division plays a key role in establishing a targeted industry approach to economic development. Our Targeted Industry

2010 Ohio Department of Development Annual Report

Development Teams craft specific retention, expansion, and attraction strategies for each target industry. Job Creation Tax Credit

The Strategic Business Investment Division has played an active role in furthering the aerospace and aviation industries, supporting the Ohio Aerospace and Business Aviation Advisory Council as part of our targeted industry strategy. TechSolve, the Edison Center assigned to the aerospace targeted industry, plays an important support role to the Council and works closely with the Strategic Business Investment Division on a weekly basis. In May 2010, Ohio entered into a Memorandum of Understanding with the NASA Glenn Research Center, working in collaboration to benefit these organizations, the industry, and Ohioans.

151

Estimated value of $74.9 million Job Retention Tax Credit

Estimated value of $157 million Ohio Job Ready Sites Program

The Division hosted the Business Aviation Collaborative of Ohio in February 2010 to align academia and the aviation industry in developing curriculum to meet the business aviation community needs. It has been assisting on industry initiatives such the Airbus Supplier Summits and Aviation Industry Awareness Day. The Strategic Business Investment Division serves as an interface with key industry stakeholders, which has resulted in enhanced awareness and increased economic development opportunities.

Awarded $30 million (Fiscal Year 2010-2011)

Business Incentive Programs

Awarded $11.9 million

Rapid Outreach

Awarded $11.1 million Roadwork Development Funds

• The Ohio Job Ready Sites Program bolsters our state’s inventory of available facility locations served by utility and transportation infrastructure. Sites improved under the program are kept ready for future business prospects seeking locations for new or expanded operations. The State of Ohio awarded more than $138.4 million in the first three funding rounds during Fiscal Years 2006-2011, with more than $29.9 million being awarded during Fiscal Years 2010 - 2011. The grants may be used to offset costs traditionally incurred in industrial and commercial site development, from acquisition of real property to utility upgrades to construction build-out of speculative facilities.

Research & Development Investment Loan Fund

Awarded $10.32 million Ohio Enterprise Bond Fund

Awarded $78.9 million 166 Direct Loan

Two projects have received Ohio Job Ready Sites Certification. The Smart Offices at East Pointe Center in the City of Middletown and Nextedge Applied Research and Technology Park (Nextedge ARTP) in the City of Springfield have become the first two Ohio Job Ready Sites to receive certification. These two projects combined have developed a total of 24.37 acres of readily available commercial real estate and created 105,572 square feet of building space, with the possibility of an additional 291,444 square feet on the Job Ready Sites properties. To date, 176 jobs have been created or retained due to development on these sites.

Awarded $47.3 million Innovation Ohio Loan Fund

Awarded $18.4 million Contingency

Awarded $6.6 million

• The Job Creation Tax Credit is a refundable tax credit given to companies creating at least 25 full-time jobs (within three years) in Ohio. The credit may also be available for certain high-wage industries creating 10 or more full-time jobs within three years. The tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s Commercial Activity Tax liability. Should the amount of the credit exceed the company’s Commercial Activity Tax liability for any given year, the difference is refunded. The tax credit rates for approved projects generally range between 25 and 55 percent for a period of five to seven years. The Division awarded tax credits estimated to be valued at $74.9 million for 151 projects in Fiscal Year 2010.

Logistics & Distribution

Awarded $49.3 million Urban Redevelopment Loan Awarded $8 million

** Rule Change: A study was conducted on many of the Department’s efforts to attract and retain businesses, including specific business incentives. As a result of the study, the requirement for the Job Creation Tax Credit Program was moved from an individual employee commitment system to a payroll-based commitment system effective October 1, 2009 altering eligibility requirements to allow companies generating $660,000 in new payroll and hiring at least 10 employees to qualify.

2010 Ohio Department of Development Annual Report

ConAgra ConAgra Foods, LLC’s products are found in 97 percent of U.S. households. The company is responsible for making many leading brands, including Healthy Choice, Chef Boyardee, Egg Beaters, Hebrew National, Hunt’s, Orville Redenbacher’s, PAM, and Banquet. ConAgra Foods also has a very significant presence in commercial food products and is one of the nation’s leading specialty potato providers to restaurants and other foodservice establishments.

• The Job Retention Tax Credit is a non-refundable tax credit given to companies retaining at least 1,000 full-time jobs in Ohio. Companies must also commit to new fixed-asset investments of either $100 million if the average wages of the retained jobs exceed 400 percent of the federal minimum wage (equal to $29.00 per hour), or $200 million if the average wage amount of the retained jobs does not exceed 400 percent of the federal minimum wage. The credit is measured as a percentage of the state income tax withholdings for all employees retained under the program. The tax credit rates for approved projects range up to 75 percent for 10 years. The Division awarded tax credits with an estimated value of $157 million for five projects in Fiscal Year 2010. ** Rule Change: A study was conducted on many of the Department’s efforts to attract and retain businesses, including specific business incentives. As a result of the study, the requirements for the Job Retention Tax Credit were reduced to a minimum of 500 full-time employees for investments as small as $50 million for manufacturing projects and $20 million for projects involved in significant corporate administrative functions (effective October 1, 2009). This change allows more businesses to apply for the tax credits, giving the Department more opportunities to help more businesses operate in Ohio. • The Research and Development Investment Tax Credit provides a non-refundable tax credit up to 7 percent for qualified research and development expenses. Qualifying expenses fit into two categories: in-house research expenses and contracted research expenses. Any unused portion of a tax credit may be carried forward for up to seven years. • Enterprise Zones provide real and personal property tax incentives for nonretail businesses that expand or relocate in Ohio. To establish an Enterprise Zone, a municipality or county must apply to the Director of Development for certification. To secure benefits, eligible businesses must apply to the local community for local property tax exemptions.

Over the last few years, ConAgra completed a long-term strategy to source its Slim Jim products. Ohio was one of three states being considered for the permanent home for producing Slim Jim snacks. As a result of working with the Ohio Department of Development and other state/local partners, the company chose to expand its operations in Ohio. ConAgra’s $59 million capital investment has retained 391 jobs and created 191 positions, and helped make Troy, Ohio the Slim Jim capital of the world.

• Community Reinvestment Areas provide a mechanism for local jurisdictions to offer local real property tax incentives for residents and businesses that invest in designated areas of Ohio. To establish a Community Reinvestment Area, the municipality or county must apply to the Director of Development for confirmation. Investors meeting the local criteria must then apply to the municipality or county for the real property tax exemption. • Rapid Outreach funds are used for the acquisition and installation of machinery and equipment, and on- or off-site infrastructure improvements, including water, sewer, road, and rail improvements. These funds are awarded to companies primarily engaged in manufacturing, research and development, high technology, corporate headquarters, and distribution. Given the demand for limited grant funds, qualified projects must involve substantial job creation or retention, and all other public and private sources of financing must be considered before a commitment of Rapid Outreach funding is made. • Roadwork Development (629) Funds are available for public roadway improvements, including engineering and design costs. Funds are available for projects primarily involving manufacturing, research and development, high technology, corporate headquarters, and distribution activity. Projects must typically create or retain jobs. Grants are usually provided to the local jurisdiction and require local participation.

At the groundbreaking ceremony in May, ConAgra’s Executive Vice President of Supply Chain Greg Smith noted that the Troy location stood out from the other competition because it “consistently outperforms other facilities” in the company.

• The Research and Development Investment Loan Fund provides loan financing between $1 million and $5 million for projects primarily engaging in research and development activity. Rates are fixed (at or below market rates) with terms similar to those of commercial bank financing. Companies receive a dollar-fordollar, non-refundable Ohio Commercial Activity Tax credit for up to $150,000 of principal and interest payments during the year.

2010 Ohio Department of Development Annual Report

• The Ohio Enterprise Bond Fund provides revenue bond financing through this S&P rated fund (currently AA-, “double A-minus”), whereby proceeds from the sale of bonds are loaned to companies for fixed rate, long-term capital asset financing. Rates are fixed prior to funding, depending on the type of bond issued, with terms up to 10 years for equipment and up to 15 years for real estate. Up to $10 million in financing is available through the program.

Targeted Industries • Advanced Energy and Environmental Technologies • Aerospace and Aviation • Agriculture and Food Processing • Bioscience and Bioproducts • Corporate and Professional Services • Distribution and Logistics • Instruments, Controls, and Electronics • Motor Vehicle and Parts Manufacturing • Polymers and Advanced Materials

General Motors – Toledo, Ohio

• The 166 Direct Loan provides direct loan financing to help finance manufacturing and other eligible facilities. Eligible uses for funding include new building construction, building acquisition, and acquisition of machinery and equipment. Amounts of financing are usually set at 30 percent of the project cost (with a minimum loan amount of $350,000 to a maximum of $1 million), subject to an increase by the Director of Development. The rate is fixed (at or below market rates) with terms similar to those of commercial bank financing. Eligible projects must involve significant job creation or retention. • The Regional 166 Direct Loan promotes economic development, business expansion, and job creation by providing financial assistance for eligible projects in the State of Ohio. It provides low-interest loans up to $350,000 for land and building acquisition, construction, expansion or renovation, and equipment purchases for eligible businesses. Twelve local economic development agencies administer the program. • The Innovation Ohio Loan Fund provides loans for acquisition, construction, and related costs of technology, facilities, and equipment purchase. The Fund assists existing Ohio companies in developing next-generation products and services within Targeted Industry Sectors. The Fund provides competitive financing terms on loans to finance projects that will positively impact Ohio by creating high-value jobs, increasing tax revenues, and improving the economic welfare of Ohio. • The Rural Industrial Park Loan provides direct loans to rural, distressed local communities, and applicants committed to creating well-planned industrial parks. • The Urban Development Loan provides direct loans to municipalities or designated nonprofit economic development organizations to acquire real estate and remediate brownfield contamination for private business investments in distressed urban locations.

2010 Ohio Department of Development Annual Report

Local Property Tax Incentives Reform Working Group: To help ensure that we are providing businesses with the resources they need to succeed, the Ohio Department of Development engaged TechSolve, an Ohio-based consulting firm, to examine all of Ohio’s incentives, including the menu of local property tax incentives. Following TechSolve’s examination, it produced a series of recommendations that sought to simplify Ohio’s local incentives. In Spring 2010, leaders from both chambers of the Ohio General Assembly convened a working group with the Ohio Departments of Development and Taxation, as well as leaders representing cities, counties, township, auditors, and industry, to consider the TechSolve recommendations and propose changes to the current property tax exemption laws. This group is presently continuing its work with the goal of reaching some consensus by the end of calendar year 2010. This effort is in direct response to a requirement in House Bill 119 (2007). Alternative Energy Tax Exemption: Consistent with Governor Strickland’s promise in the 2010 State of the State address, Amended Substitute Senate Bill 232 created a new alternative energy project tax exemption against the public utility tangible personal property tax. This tax exemption applies to renewable energy resources (i.e. solar, wind, biomass), as well as clean coal technology, advanced nuclear technologies, and cogeneration energy facilities. This tax exemption will apply for the life of the facility, but can be revoked if the project owner fails to comply with programmatic requirements. Boards of County Commissioners are granted the authority to approve or reject projects that generate more than 5 megawatts. Recovery Zone Bonds: In cooperation with multiple state agencies and 94 jurisdictions, the Department assumed responsibility for monitoring, tracking, and reviewing the Federal Recovery Zone Bond program for the State of Ohio until its expiration on December 31, 2010. The Federal American Recovery and Reinvestment Act included $25 billion nationally for two new types of Recovery Zone Bonds. Ohio received $422.6 million of the total $10 billion Recovery Zone Economic Bonds and $634 million of the total $15 billion Recovery Zone Facility Bonds. The Recovery Zone Bonds are intended to provide a lower cost method of financing to public and private economic development projects in areas of high unemployment and economically distressed areas. The American Recovery and Reinvestment Act includes new and expanded bonding authority for states and local governments targeted towards primary and secondary education and alternative energy in economically distressed communities.

Annual Reports The following Annual Reports are available at www.reports.development.ohio.gov: • Job Creation Tax Credit Report • Job Retention Tax Credit Report • Job Ready Sites Report • Ohio Steel Council Annual Report

2010 Ohio Department of Development Annual Report

Toledo, Ohio

Ohio Energy Resources Division

Alternative Energy Portfolio Standard

Ohio is one of the top states in the nation for renewable and advanced energy. Given the priority on putting advanced energy to work, the Ohio Energy Resources Division was established as a division in 2009. The Division provides technical assistance and administers federal and state funds to projects for the deployment of renewable energy technologies including wind, solar photovoltaic, solar thermal, and biomass, as well as energy efficiency measures for industrial, commercial, and some consumer classes of residential. The Division also administers energy programs, which are funded through the American Recovery and Reinvestment Act, to stabilize energy prices, modernize Ohio’s energy infrastructure, and attract the jobs of the future to Ohio through the growth of environmentally friendly industries.

Registered Ohio Solar Installers Pre Portfolio Standard

Post Portfolio Standard

Total

Increase of 136%

Ohio has been identified as an “impact state” for job creation potential and a major competitor in the growth of the new energy economy based on our manufacturing strengths, easy access to research and development services, logistics capabilities, skilled workforce, and competitive business environment. The Ohio Energy Resources Division supports that vision by helping to make the new energy economy a reality in Ohio.

Ohio Wind Supply Chain

The Division’s programs complement Ohio’s strong commitment to advanced energy, including the enactment of the Advanced Energy Portfolio Standard requiring 25 percent of Ohio’s electricity to come from advanced energy sources by 2025, with at least 12.5 percent from renewable energy. This policy builds upon the state’s long history of manufacturing excellence to create a new energy economy and is the third-most aggressive standard of its kind in the nation. As a result of the Division’s work, Ohio has one of the top wind supply chains, is a leader in solar innovation, and has a growing market for advanced energy businesses.

Pre Portfolio Standard

Post Portfolio Standard

684

Total

776

Increase of 643% Source: http://www.epa.gov/cleanenergy/energyresources/calculator.html#results

In Fiscal Year 2010, the Division administered more than $145.5 million for projects through a number of programs, including the Advanced Energy Fund, Alternative Fuel Transportation Grants, American Recovery and Reinvestment Act, Diesel Emissions Reduction Grants, and the State Energy Program. In addition, the Division conducts special projects to promote awareness, develop capacity, deploy projects, and provide technical assistance, training, and outreach for renewable energy technologies, alternative fuels infrastructure, energy efficient buildings, fuel cells, and industrial process efficiency.

885% Increase in Solar

100% Increase in Biomass

Post Portfolio Standard

5% Increase in Wind

2010 Ohio Department of Development Annual Report

Ohio Advanced Energy Fund Since its inception in 1999, the Advanced Energy Fund has invested more than $33 million in more than 560 advanced energy projects. These projects account for more than 138,850 megawatt-hours of electricity generated annually, equivalent to powering more than 12,360 Ohio homes, as well as an annual energy savings of more than 496 billion British thermal units (BTUs) – equivalent to heating more than 7,089 homes in Ohio during the winter. The energy efficiency projects alone reduced carbon dioxide emissions by more than 104.450 metric tons, which is the equivalent of taking 19,973 cars off of the road for a year.

To date, the Ohio Energy Resources Division has been awarded more than $138.3 million in funding from the U.S. Department of Energy through the American Recovery and Reinvestment Act. The Division has been involved in supporting energy-related components of the American Recovery and Reinvestment Act, including the State Energy Program, the Energy Efficiency and Conservation Block Grant Program, and the Energy Efficient Appliance Rebate Program.

Programs • The Ohio Advanced Energy Fund is an economic driver, growing Ohio’s economy by connecting companies and communities to financial and technical resources to deploy advanced energy technologies and energy efficiency. It supports investments in renewable energy and energy efficiency projects in the industrial, agricultural, public, and residential sectors. Qualified projects must be located in Ohio and in the service territories of one of the four participating electricity distribution companies: American Electric Power-Ohio, Dayton Power & Light, Duke Energy, or FirstEnergy. In Fiscal Year 2010, the Division secured $12.1 million for 163 projects through seven programs offered to residential, commercial, and industrial customers. The Advanced Energy Fund has made clean energy generation and energy efficiency possible for Ohioans in every region of the state. Advanced energy projects help to diversify Ohio’s energy portfolio, make businesses and industry more efficient, and create jobs. Retrofitting manufacturing facilities for energy efficiency and installing photovoltaic panels and wind turbines to generate electricity at homes, farms, and businesses throughout Ohio are examples of the forward-looking projects that the Advanced Energy Fund has made possible. • The American Recovery and Reinvestment Act of 2009 strengthens Ohio’s economy by building upon its strategic investments in the advanced energy industries. As Ohio’s designated State Energy Office, the Ohio Energy Resources Division was the prime recipient of formula-based funding for several programs: • The State Energy Plan is formula-based grant funding provided by the U.S. Department of Energy to states for the purpose of addressing energy priorities and adopting renewable energy and energy efficiency technologies. Ohio’s State Energy Plan supports building and industrial efficiency improvements and the rapidly growing renewable energy industries such as fuel cells, solar, wind, and biomass. In Fiscal Year 2010, the Ohio Energy Resources Division was allocated $1.1 million to implement six statewide programs, including Energy Efficiency Program for Manufacturers, Energy Education Outreach Program, Small Business Technical Assistance, and Outreach Program. • The American Recovery and Reinvestment Act State Energy Plan enables Ohio to stimulate the creation and retention of jobs, save energy, increase energy generation from renewable energy, and reduce greenhouse gas emissions. In Fiscal Year 2010, the Ohio Energy Resources Division was allocated $96,083,000 for the State Energy Plan. Funding has been divided among five programs, which include Deploying Renewable Energy, Targeting Industrial Efficiency, Making Efficiency Work, Carbon Management Strategy, and the Ohio Energy Gateway Fund. – Deploying Renewable Energy: Wind and Solar funds installation projects for qualified solar electric, solar thermal, and wind technologies. Awards range between $250,000 and $1 million and are selected through a competitive process. In Fiscal Year 2010, more than $11.5 million in grant awards were announced for 20 projects, leveraging more than $20.5 million. – Deploying Renewable Energy: Transforming Waste to Value and Advancing Biofuels Beyond the Basics funds installation projects for biomass and biofuels technologies. Awards ranging from $250,000 to $1 million will be selected through a competitive process and will be announced in Fiscal Year 2011.

2010 Ohio Department of Development Annual Report

– Targeting Industrial Efficiency funds energy efficiency improvements in Ohio’s targeted industries such as advanced energy; aerospace and aviation; agriculture and food processing; bioscience and bio-products; instruments, controls, and electronics; motor vehicles and parts manufacturing; and polymers and advanced materials. Awards range between $250,000 and $1 million and are selected through a competitive process. In Fiscal Year 2010, more than $10.4 million in grant awards were announced for 15 projects, with more than $14.6 million leveraged.

New Horizons Baking Company New Horizons Baking Company in Norwalk had a 42-year-old oven that was not working efficiently and needed to be replaced. As a company that provides buns and muffins for more than 1,300 restaurants in a seven state area, New Horizons was able to make a system upgrade due to $1 million awarded from the State Energy Program’s Targeting Industry Efficiency, funded through the American Recovery and Reinvestment Act.

– Carbon Management Strategy funds the Greenhouse Gas Emissions Inventory and Climate Change Impact Analysis to develop a climate change plan and impact analysis to prepare Ohio communities and businesses for the opportunities and risks associated with federal climate change regulation. In Fiscal Year 2010, a $500,000 project was awarded to a collaboration between Ohio University and The Ohio State University for an inventory of greenhouse gas emissions. – Making Efficiency Work funds energy efficiency improvements in multi-family, commercial, and institutional buildings located in Ohio. Funding is also available for energy audits and commissioning projects that result in energy efficiency upgrades within 12 months and exceed energy code pilot projects within existing buildings. Awards range between $125,000 and $1 million, will be selected through a competitive process, and be announced in Fiscal Year 2011.

“Despite the economic downturn, we looked for an opportunity to grow,” said Trina Bediako, Executive Vice President of New Horizons. With the new oven, the company’s capacity has grown from 4,000 to 5,000 dozen buns per hour.

– Ohio Energy Gateway Fund is funded from both the Advanced Energy Stimulus Program from the Ohio Bipartisan Job Stimulus Plan and the American Recovery and Reinvestment Act. By supporting transformational projects that will create jobs, the Ohio Energy Gateway Fund will accelerate projects in a range of areas, including wind, solar, geothermal, solid waste, energy efficiency, hydroelectric, electric batteries and fuel cells, energy storage, advanced solid waste, and generation III nuclear. Projects will involve already commercialized technology that can be moved quickly to production or utilization with an emphasis on the development of the advanced energy supply chain and the manufacturing sectors.

Beyond the capacity improvement, waste heat from the new energy efficient BakeTech Oven is used to provide significant savings in natural gas (2.4 billion btus yr.) The system heats the proofer and tray wash system, and eliminates the use of an existing boiler in the bakery.

• The Energy Efficiency and Conservation Block Grant Program is funded from the American Recovery and Reinvestment Act. A total of $84 million in Energy Efficiency and Conservation Block Grant funds were made available to Ohio and are divided into two parts, with $59 million as a direct allocation to Ohio’s 10 largest counties and 33 largest cities, and the remaining $24,979,600 going directly to the State of Ohio. That portion provides support for local governments and institutions of higher education in counties that did not receive a direct allocation. In Fiscal Year 2010, nearly $25 million in grant awards were announced for 41 projects. • The Ohio Energy Efficient Appliance Rebate Program is funded with $11 million from the American Recovery and Reinvestment Act. The program provided more than 89,000 rebates to Ohioans purchasing select Energy Star® appliances at participating Ohio retailers and recycling their old appliances, beginning in March 2010. Mail-in rebates between $100-250 were provided on a first-come, first-served basis. Through June 30, 2010, more than $6.2 million for 51,512 rebates had been mailed to Ohio consumers – benefiting Ohio consumers, retailers, and Ohio appliance manufacturers such as Whirlpool.

“This project stimulated a lot of activity in the area as local suppliers and contractors were engaged in this project and most were from Huron County. Using local companies in this project was a top priority of New Horizons,” said Ellen Heinz, Norwalk Economic Development Director.

• The Alternative Fuel Transportation Grant improves air quality through grants to businesses, nonprofit organizations, school systems, or local governments for the purchase and installation of alternative fuel refueling, blending, or distribution facilities and terminals. Current incentives are focused on retail fuel distributors and school systems. In Fiscal Year 2010, more than $300,000 in grant awards were announced for four projects.

2010 Ohio Department of Development Annual Report

American Recovery and Reinvestment Act As of June 30, 2010, nearly 10,000 jobs have been created or retained as a result of investments made by the Department through the American Recovery and Reinvestment Act.

With the creation of the American Recovery and Reinvestment Act of 2009, the Ohio Department of Development has received nearly $517 million to-date to provide financial assistance and services within Ohio to jumpstart the economy, while contributing to the economic growth of Ohio over the long term. In February 2009, President Barack Obama signed the Recovery Act in direct response to the economic crisis, aiming to create and retain jobs, spur economic activity, and make investments for the long-term growth of our local and state communities. The Department’s Community Development, Ohio Energy Resources, Urban Development, and Workforce and Talent Divisions administer a total of 13 grants with federal stimulus funding. Ohio was recognized by the U.S. Department of Energy in March 2010 as the number one state in the nation for weatherizing homes through the Home Weatherization Assistance Program (HWAP). Ohio led the nation in implementing American Recovery and Reinvestment Act funds, completing more than one in five of all projects reported nationwide. To date, more than 16,000 housing units have been weatherized and more than 1,300 jobs have been created and retained within the state through HWAP. It is estimated that more than 32,000 homes will be weatherized in Ohio by March 2012, reducing energy costs for Ohio’s families by an average of 24 percent, making their homes more comfortable, and lowering their utility bills. In addition to ramping up activity for existing community development programs such as the Community Services Block Grant Program and Brownfield Revitalization, the Department has also successfully launched new initiatives with the help of federal stimulus funding. Several programs to encourage the production and use of renewable energy and energy efficiency technologies were announced during Fiscal Year 2010, including the State Energy Plan, a $96 million initiative designed to support rapidly growing renewable energy industries such as fuel cells, solar, wind, and biomass. Two workforce initiatives were also unveiled – the Energizing Careers Program and Project Hometown Investment in Regional Economies (HIRE) – which are training Ohio workers in green technologies and connecting job seekers and employers through events and incentives. Both initiatives were created through partnerships with the Ohio Department of Jobs and Family Services, the Ohio Board of Regents, and local workforce agencies.

Ohio Governor Ted Strickland and Vice President Joe Biden during a town hall meeting – Perrysburg, Ohio

2010 Ohio Department of Development Annual Report

The Ohio Bipartisan Job Stimulus Plan The Ohio Bipartisan Job Stimulus Plan makes major investments in workforce, infrastructure, and new and emerging industries that spur job creation in Ohio. Designed to create jobs for Ohioans while laying the foundation for future economic prosperity, the Ohio Bipartisan Job Stimulus Plan was developed in 2008 to create rapid and long-lasting stimulus for Ohio’s economy. The Ohio Department of Development administers the Logistics and Distribution, Clean Ohio, and Historic Preservation Stimulus components of the plan, in addition to working with the Ohio Air Quality Development Authority on the Advanced Energy Stimulus.

Logistics & Distribution Stimulus With the signing of the Ohio Bipartisan Job Stimulus Plan by Governor Ted Strickland and the Ohio Legislature, the Ohio Department of Development began to deploy the $100 million Logistics and Distribution Stimulus component of the plan. The Logistics and Distribution Stimulus was designed to stimulate a high-impact industry sector in Ohio, with $50 million dedicated to Fiscal Year 2009, and $25 million dedicated to each of the following two fiscal years, respectively. Projects have an array of multimodal and transload capabilities, and were awarded based on their ability to enhance Ohio’s leading logistics networks and provide maximum economic impact. In total, Logistics and Distribution Stimulus has awarded 18 projects with $96.9 million in forgivable loans to date, and is expected to assist in the creation of more than 751 jobs and retention of 1,380 positions.** • American Rail Center, Inc. (Hardin County) – $4.7 million for the purchase of land, site preparation, infrastructure improvements, and rail construction for a rail logistics center, which will provide valuable resources to wind projects in Central and Northwest Ohio. Expected to create 25 jobs. • CSX Transportation, Inc. – $15.2 million for the replacement of two bridges, the removal of two adjacent bridges, and related roadwork to allow for doublestack intermodal container clearance on the rail network in the Townships of Sullivan (Ashland County) and Homer (Medina County). Expected to create 53 construction jobs.

CSX Transportation, Inc.

• Columbus-Franklin County Finance Authority – $11 million for the improvement and expansion of roads and intersections, realizing further logistics capabilities in the Rickenbacker Airport area. Expected to create 14 jobs. • The Great Lakes Towing Company (Cuyahoga County) – $8.2 million for the acquisition, assembly, and installation of a 700-ton Travelift crane. Expected to create 25 jobs. • The City of Grove City (Franklin County) – $34 million for the construction of an improved interchange at I-71 and SR 665 in Grove City. Expected to create 84 jobs. • Intelligrated, Inc. – $8 million for capitalizable costs including: property improvements, machinery and equipment, IT investments, professional fees, and other costs associated with the company’s expansion in West Chester Township (Butler County), the City of Mason (Warren County), and the City of London (Madison County). Expected to create 267 jobs and retain 595 positions. • Lawrence Economic Development Corporation (Lawrence County) – $14.5 million for the development of a River Port Facility at The South Point Industrial Park in the Village of South Point. A multi-faceted project, the port will accommodate multiple transport modes, including rail, road, and water. Expected to create 10 construction jobs and 75 permanent positions.

2010 Ohio Department of Development Annual Report

• Lucas County Improvement Corporation – nearly $7 million for the expansion of the Toledo Express Airport intermodal cargo hub in the Village of Swanton (Lucas County). The loan will allow the hub to compete regionally and globally as a leading intermodal site. Expected to create 17 jobs in the construction phase of the project and retain 800 jobs.

Intelligrated, Inc. Intelligrated, Inc., which designs, manufactures, installs, and supports specialized material handling systems, has won numerous awards for its innovative work, including the Northrop Grumman Supplier of the Year and Ernst & Young Entrepreneur of the Year. However, when an acquisition led to redundancies in its facilities and workforce across two states, company leadership was faced with difficult consolidation decisions.

• Marion Industrial Center – $3 million to support the expansion of rail infrastructure and intermodal operation at the distribution and manufacturing facility in the City of Marion (Marion County). Expected to create five jobs in the construction phase of the project, as well as create 12 permanent positions and retain 12 jobs after the construction phase is complete. • Wye Transportation Corporation (Franklin County) – $2.7 million for the development of a transload facility, expanding Wye’s role to serve outside customers in the delivery of flammable liquids. Expected to create two construction jobs and 11 permanent positions.

“Intelligrated deeply appreciates Ohio’s generous commitment to our company, our employees and our industry,” said Chris Cole, CEO of Intelligrated.

**Total numbers do not reflect a voluntarily withdrawn project.

Clean Ohio Fund Stimulus

The State of Ohio stepped up to offer the company business incentives of more than $17 million in assistance to help the company remain and expand at all three of its Ohio locations: London, Mason, and West Chester. The assistance included $6 million in state stimulus Logistics & Distribution loan funds. With the three sites, Intelligrated will create at least 267 jobs and will retain 537 existing jobs.

Intelligrated, Inc. – London, Ohio

The Clean Ohio Fund restores, protects, and connects Ohio’s important natural and urban places by preserving green space and farmland, improving outdoor recreation, and cleaning up brownfields to encourage redevelopment and revitalize communities. In 2008, the Clean Ohio Fund was strongly supported in its successful bid for renewal and extension by a large majority of voters in all 88 Ohio counties. The reauthorization allocated $400 million to continue the important work of the Clean Ohio Fund and significantly enhance our ability to renew Ohio’s infrastructure and grow our economy. This has brought total funding to $800 million. The Clean Ohio Revitalization Fund, a program of the Clean Ohio Fund administered by the Department’s Urban Development Division, provides grants to acquire property, demolish structures, conduct environmental cleanup, and improve infrastructure on or serving a brownfield property. Since its inception, 271 Clean Ohio Fund brownfield projects have been awarded more than $355 million, leveraging more than $2 billion in private and public sector investment, and creating and/or retaining more than 15,000 jobs. In addition, $62.1 million has been awarded to 65 projects through Clean Ohio Fund Brownfields Stimulus Funds.

2010 Ohio Department of Development Annual Report

Fostered by strong partnerships and new resources, Clean Ohio projects are outstanding demonstrations of innovation, creativity, and diversity. A few examples of how the Clean Ohio Revitalization Fund is working include: • The City of Cincinnati received a $3 million Clean Ohio Revitalization Fund grant for the Providence North Redevelopment project. With Clean Ohio Funding, the City of Cincinnati and Samuel Adams Brewery Company will remediate contaminants from past uses and redevelop the site for the expansion of Sam Adams operations. The expansion will result in the retention of 100 employees and allow Sam Adams to relocate off-site storage to the project property. • The City of Huron received a $2 million Clean Ohio Revitalization Fund grant for the ConAgra Redevelopment project. Upon completion of remediation, the City will market the site to be redeveloped into a mixed use development including residential, retail, and green space along the Huron River near Lake Erie. The site is adjacent to the Ohio Department of Natural Resources’ four-lane boat ramp, which will help the City market the site for future investment. • Franklin County received a $3 million Clean Ohio Revitalization Fund grant for the North Gowdy redevelopment project. Clean Ohio funding, Franklin County, and Gowdy Partners have remediated contaminants from past uses and redeveloped the site into a medical office park. The Ohio State University JamesCare Ambulatory Women’s Oncology Center occupies 103,500 square feet and employs 160 in the new three-story office building.

Ohio Historic Preservation Tax Credit Stimulus The Ohio Historic Preservation Tax Credit program provides recipients tax credits equal to 25 percent of qualified rehabilitation expenditures. In the Job Stimulus Plan, $120 million was set aside for Ohio Historic Preservation Tax Credits. In October 2008, 46 applicants were approved totaling more than $74 million in tax credits, leveraging $415 million in private funds. Round Three tax credits, totaling approximately $23.7 million, were awarded in December 2009 to 12 applicants. Round Four tax credits, totaling approximately $28.3 million, were awarded in June 2010 to 13 applicants. In total, the Ohio Historic Preservation Tax Credit program has awarded $246 million to 111 projects – leveraging more than $1.3 billion in expected total project investments. Currently, 29 projects are under construction and an additional 21 projects have been completed, housing more than 600 residential units and creating more than 1,200 permanent jobs and more than 1,500 construction postitions. A few examples include: Projects: • Complementing the emerging Gordon Square Arts District on Cleveland’s west side, the Capitol Theatre has been reborn after being shuttered for more than 20 years. Leveraging the Ohio Historic Preservation Tax Credit, the $7 million restoration converted the 1921 movie house to a modern, three-screen cinema that has generated an estimated 369 total jobs, according to a study by the Council on Urban Economic Development. • Restoring a long-vacant building, the Seneca Hotel project was a $16 million rehabilitation that utilized Ohio Historic Preservation Tax Credits to transform the former hotel into market-rate student apartments. Located within blocks of four college campuses in Downtown Columbus, the building was a perfect fit for those attracted to walkable urban environments. The rehabilitation demonstrates how Ohio is strengthening its historic urban assets to create communities with unique character and appeal to the new creative class of young and talented professionals who will help Ohio thrive in the 21st century economy.

Seneca Hotel – Columbus, Ohio

2010 Ohio Department of Development Annual Report

Advanced Energy Stimulus The Ohio Department of Development also works with other state agencies on projects related to the $1.57 billion Bipartisan Job Stimulus Plan. The state Advanced Energy Stimulus is a 3-year, $150 million program designed to create new jobs and boost Ohio’s energy industry. The program awards loans and/or forgivable loans to a portfolio of advanced energy projects that serve to attract new investment to Ohio, build upon Ohio’s manufacturing strength, advance energy technology development toward commercialization, and prepare Ohio’s workforce for the future. The Advanced Energy Stimulus dedicated $84 million to non-coal-related projects and $66 million for clean coal technologies. Both are administered by the Ohio Air Quality Development Authority (OAQDA). Non-coal-related projects are reviewed by OAQDA staff and outside reviewers, recommended by the Development Finance Advisory Council, approved by OAQDA, and brought before the State Controlling Board for final approval. Coal projects are reviewed by staff and the Technical Advisory Committee, and approved by OAQDA. In total, the program has assisted more than 15 projects to date with grants and low-interest loans totaling more than $35 million. These projects will assist in the creation of more than 1,500 jobs for Ohioans.

Wayne Trail Technologies – Fort Loramie, Ohio

Committed Funds – Coal • InSet Systems – Inertial Sensor Tracking System • The Ohio State University – Coal Combustion Products Extension Program • The Ohio State University – Reclamation of Ohio Coal Mine Sites using FGD Byproducts: Phase II Demonstration Projects • The Ohio State University – Pilot Scale Testing of Carbon Negative, Product Flexible Syngas Chemical Looping Process • Touchstone Research Laboratory – Re-utilization of Industrial CO2 for Algae Production Using a Phase Change Material (PHASE I) • The Ohio State University – Commercialization of the CCR Process for Greenhouse Gas Control • Battelle Memorial Institute – Simulation Framework for Regional Geologic CO2 Storage • Touchstone Research Laboratory – Re-utilization of Industrial CO2 for Algae Production Using a Phase Change Material (PHASE II) • Battelle Memorial Institute – Conducting Research to better define the Sequestration Options in eastern Ohio and the Appalachian Basin • The Ohio Department of Natural Resources – Conducting Research to better define the Sequestration Options in eastern Ohio and the Appalachian Basin Committed Funds – Non-Coal • Wayne Trail Technologies – Lithium Ion Battery Stacking and Welding • Ohio Cooperative Solar – Solar Panel Installation and Weatherization Training • Westerman Nuclear – Manufacturing Component Facility • Technology Management, Inc. (TMI) – Fuel Cell • Xunlight – Amorphous Silicon Thin Film PV Solar Modules Production • quasar energy group – Anaerobic Digester • Willard and Kelsey – Solar Manufacturing Plant • Farrar Scientific/Cool Containers – Proof of Concept 3 • Sphere Renewable/Buckeye Silicon – BESI Toledo Project

2010 Ohio Department of Development Annual Report

Entrepreneurship and Small Business Division

Mt. Carmel Brewing Company

Small businesses play a vital role in strengthening Ohio’s economy, with more than 1 million currently operating in the state. The Entrepreneurship and Small Business Division, which works in partnership with a broad network of public and private partners across the state, understands the need to support these small businesses and encourage an entrepreneurial spirit throughout Ohio. As a result of Division and external resources for Ohio small businesses, Ohio was named the best place in the Midwest and 11th nationwide for entrepreneurs by the Small Business Council in 2009.

Inspired by a passion for good beer, Cincinnati natives Mike and Kathleen Dewey founded the Mt. Carmel Brewing Company in May 2005. The founders, who work to provide exceptional beers in the tri-state area, created a distinct niche market. When Kathleen met with Small Business Development Center Counselor John Melvin, the Deweys were working long hours and struggling to survive. Melvin showed the Deweys how to use cash flow projections, and the owners quickly realized they were under-pricing their product. Additional counseling sessions helped the Deweys explore issues with capacity, zoning, managing employees, marketing, opening a retail store, and more.

To help meet the needs of small business, the Entrepreneurship and Small Business Division provided assistance, information, and advocacy to foster small business growth and development (businesses up to 500 employees) while expanding financial literacy and access to capital, entrepreneurial skills, and coaching. The Division utilizes a variety of methods to reach entrepreneurs including a small business hotline, website resources, seminars, DVDs, webinars, and networking events. Funded by the state and the Small Business Administration, the Entrepreneurship and Small Business Division is also home to the Small Business Development Centers of Ohio, the state’s premier technical and management assistance program for small business owners. Throughout its 25th anniversary year, the network of 39 centers across the state counseled and trained 22,275 clients. During the past year, 2,788 jobs were created and 48,864 were retained through more than $120 million of loan assistance provided to small businesses by Small Business Development Centers in Ohio.

Since meeting with Melvin, the company has grown from a twoperson operation with $125,000 in annual revenues (2006), to a fiveperson business with $900,000 in projected sales annually. They expanded capacity from seven barrels to 30 barrels, added a bottling line, and acquired Kroger as a major retail distributor.

Entrepreneurship and Small Business Division Programs • The Women’s Business Resource Program provides valuable resources to women entrepreneurs, addressing unique obstacles to success and sustainability. These resources include training, procurement, marketing, networking, and counseling through our Small Business Development Center network. • The Directory of Women-Owned Businesses is a directory of women-owned businesses in the State of Ohio and includes demographic information, business category, and contact information for use by other women-owned businesses and for corporate procurement use. The Directory boasts a membership of approximately 1,270 women-owned businesses. • The 1st Stop Business Connection offers entrepreneurs one resource for all state and federal registration requirements to start a new business. Providing free, comprehensive business start-up kits to guide people through registering a business in Ohio, the 1st Stop is made possible through a partnership between the Small Business Development Center network and the U.S. Small Business Administration. • The Micro Enterprise Support Program provides outreach and training to unique market sub-segments in the small business community, including senior citizens, baby boomers, veterans, displaced workers, the physically challenged, minorities, and youth and faith-based organizations which employ one to five people. • The Small Business Hotline provides answers to business-related questions and information to businesses affected by the decline in the automotive and manufacturing industries, with referrals to local, state, and federal programs. Third- and fourth-tier automotive suppliers can also receive assistance. Hotline number: (877) 25SMBIZ or (877) 257-6249.

2010 Ohio Department of Development Annual Report

Abstract Displays In December 2000, Carla Eng chose to start her own company, Abstract Displays, to design and produce dimensional solutions for trade shows, face-to-face sales, and marketing and corporate events. Carla and her husband, Michael, turned to the Clermont Chamber Small Business Development Center (SBDC) for loan assistance to purchase a facility and maintain an ample cash flow for dayto-day business. Ten years later, Abstract Displays has grown from an initial one-person start up to an award-winning small business with a staff of more than 20 employees. The company is housed in a 39,000-square-foot corporate facility, and it acquired 15 new clients from the beginning of this year – an increase of more than 90 percent over 2009.

2010 Entrepreneurship Expo – Columbus, Ohio

2010 Entrepreneurship and Small Business Division Events • Grow It, Make It, Sell It – The Ohio Micro Business Exchange, a day-long event to assist the growth of Ohio’s micro businesses, was sponsored by the Division and the Ohio Small Business Development Centers. The workshop helped Ohio micro businesses (those employing 1 to 5 people) learn the skills needed to compete in a 21st century economy. • Restaurants, which help fuel Ohio’s travel and tourism industries, can now receive multi-lingual, on-site food-safety training through the “Food…Handle with Care” DVD. Thanks to a collaboration among the Division, the Small Business Development Centers, the Columbus Public Health Department, and the Ohio Chinese Restaurant and Business Association (OCRBA), the DVD was made available to all Ohio food processing establishments and restaurants as a means to train employees in English, Mandarin Chinese, and Spanish. • The Ohio Social Entrepreneur Award recognized eight social entrepreneurs who helped create Ohio jobs for individuals who face significant barriers to regular employment. In conjunction with National Entrepreneurship Week, winners were chosen based on criteria that included adopting a mission that creates and sustains private and social value, and conceptualizing a solution that creates or promotes the earning potential and/or alleviates the economic suffering of the socially and economically disadvantaged population. • The 2010 Entrepreneurship Expo provided an opportunity for entrepreneurs and small business owners to learn, network, and discover the benefits offered by the State of Ohio. The day-long conference, titled “Enhancing Ohio’s Economy through Entrepreneurial Thinking,” gave entrepreneurs and business owners a chance to network with Ohio associations and government agencies, while discovering resources to succeed in today’s economy. Workshop topics ranged from starting a business to opportunities in green technology. • An automotive supplier workshop series in three cities empowered small businesses to redesign their companies by incorporating new technology improvements and processes into their business model. The Division collaborated with the Department’s Technology and Innovation Division to hold these events. • The Ohio Business Matchmaker, co-sponsored with the Small Business Administration, provided potential contracting opportunities with 260 government agencies and prime contractors for more than 1,400 small business participants. This event also gave State of Ohio agencies an opportunity to meet face-to-face with potential supply sources from minority- and women-owned businesses.

2010 Ohio Department of Development Annual Report

Minority Business Enterprise Division

Cougar Outdoor Power Products

Leading Ohio’s efforts in raising awareness and increasing minority business growth, the Minority Business Enterprise Division assists in the creation, growth, and development of minority business enterprises throughout the state. Focusing on increasing statewide service levels that support socially and economically disadvantaged businesses and emerging entrepreneurs in the urban core, the Division develops new initiatives targeting urban entrepreneurship to provide business assistance to minority-owned businesses. The services provided by the Minority Business Enterprise Division are creating wealth and expanding economic opportunities for Ohio’s minority business community.

The Minority Business Assistance Center located in Columbus assisted Cougar Outdoor Power Products with relocating its manufacturing facility and corporate home offices from Tennessee to Columbus, Ohio. The company is the only minorityowned manufacturer and distributor of Consumer Durable Products in the country supplying the Outdoor Power Equipment Industry. Owners have strived to become one of the premier manufacturers and distributors of outdoor power products for the residential and commercial markets.

The JumpStart Launch 100 initiative was launched on March 25, 2010 in Northeast Ohio to provide intensive business assistance and access to growth capital to selected minority-owned firms with high growth potential. Selected companies receive specialized technical assistance from seasoned advisors with specific experience in growing large-scale firms, and assisting in accelerated job creation and wealth for minority populations and ultimately, all Ohio citizens. This new initiative will identify early-stage companies and assist in the development of business plans and strategies, as well as cover a broad array of industries. With the knowledge and resources available, JumpStart Launch 100 is working to create larger, more competitive minority-owned and -operated businesses in Ohio’s emerging industries and technologies that are able to do business across the country and internationally. This will position Ohio as a national leader in growing larger, more diverse businesses, and attracting federal, corporate, and human capital resources.

In 2009, Cougar made significant progress toward its goal by launching a new line of power generators and snow throwers; obtained its Minority Business Enterprise (MBE) Certification; obtained its government certification, which paved the way to Cougar winning a 3-year Contract for Portable Power Generators from the State of Louisiana; entered into a relationship with Wichita Habitat for Humanity to supply lawn care products to new home owners; and entered into a contract manufacturing relationship with a major commercial lawn mower manufacturer. In 2010, the company opened a new Cougar home office, showroom, and manufacturing/distribution facility in Columbus, Ohio.

The Division also established Minority Business Development Organizations in Akron and Cincinnati, which facilitate training, strategic management, networking, and mentoring opportunities with major corporations to ensure minority businesses in Ohio have access to the assistance they need to be productive and profitable. During Fiscal Year 2010, the Minority Business Development Organizations have counseled 346 clients and provided 2,804 counseling hours during 1,472 counseling sessions. These counseling activities resulted in clients receiving contract awards totaling $3,896,475, bond awards totaling $10,000, and loans in the amount of $105,000. These businesses have also created and retained more than 60 jobs, with an additional 72 clients receiving MBE/EDGE Certification. The Minority Business Development Organizations conducted 46 training sessions, which drew more than 680 entrepreneurs.

“The new facility gives Cougar the capability and capacity to continue its growth and pursuit of becoming a premier outdoor power equipment manufacturer,” said Mike Watkins, Founder and President/CEO.

The Minority Business Enterprise Division assembled the Minority Business Advisory Council to recommend new policies and programming ideas to improve the conditions for minority business growth. The Minority Business Advisory Council was established by an executive order from Governor Strickland to develop new tools for strengthening the opportunities available to minority businesses, and continues to meet on a regular basis. Management, technical, and procurement assistance services are available at seven regional Minority Business Assistance Centers around the state. During Fiscal Year 2010, these Centers provided counseling in business operations, bidding and estimating, accessing capital, and certification to 1,658 business owners during 5,296 counseling sessions, with a total of 10,140 counseling hours. As a result of these individual counseling sessions, the Centers were able to assist minority businesses in receiving 233 MBE/EDGE certifications, contracts totaling $28,556,410, bonding assistance totaling $1,585,000, and loans in the amount of $3,667,000. This focus on increasing access to capital resulted in more business activity, the creation of 1,204 jobs, and retention of 651 positions. Additionally, the Centers conducted 196 training sessions with 2,576 attendees.

2010 Ohio Department of Development Annual Report

The Minority Business Enterprise Division administers the Ohio Procurement Technical Assistance Centers, which train businesses to sell goods and services to local, state, and federal governmental agencies by providing marketing, technical, and quality assurance counseling. There are seven Procurement Technical Assistance Centers, which were created by a partnership among the Department of Development, U.S. Department of Defense - Defense Logistics Agency, and local entities. The staff at the Procurement Technical Assistance Centers provide assistance to small businesses throughout Ohio, including Small Disadvantaged Businesses (SDB), Women-Owned Small Businesses (WOSB), Minority Business Enterprises (MBE), and businesses located in Historically Underutilized Business Zones (HUBZone). In Fiscal Year 2010, the Centers counseled 2,480 small business owners, attracted 654 new small businesses, provided 4,084 follow-up counseling sessions, and helped small businesses in acquiring more than $207.2 million in prime and subcontract awards.

Diamond Logistics, Inc. Diamond Logistics, Inc. was founded in Columbus, Ohio in 1996 to take advantage of transportation opportunities created by businesses locating and expanding in this region. The company remains headquartered in Ohio, but has also expanded to 10 facilities in seven states. The company is characterized as a dedicated truckload carrier committed to servicing customers’ distinct needs in a safe, cost-effective manner, while providing the highest quality of transportation service that exceeds customers’ expectations.

The Minority Business Enterprise Division’s loan and bond programs provide access to capital and surety bonds for firms that may not qualify for traditional lending or bonding. • The Ohio Capital Access Program encourages lending institutions to make loans to small businesses for growth and expansion by establishing a unique credit enhancement reserve account at a Capital Access Program lending institution. The program is similar to a loan guarantee program and is available to any Ohio small business or nonprofit with less than $10 million in sales. In Fiscal Year 2010, the Ohio Capital Access Program provided 54 loan reserve deposits totaling $1,135,340, leveraging an additional $3.8 million. These loans created 123 jobs and retained 271.

In working with the Minority Business Enterprise Division, the company was able to secure a working line of credit through the Ohio Capital Access Program and Heartland Bank. The Division also worked closely with the company to accomplish certification as a Minority Business Enterprise. Without the assistance from the Minority Business Enterprise Division, Diamond Logistics could have been forced to close its doors. However, the company to date has created five additional jobs, retained its workforce of 102 employees, and is looking forward to a prosperous future.

• The Ohio Minority Business Direct Loan Program provides fixed, low-interest rate loans to certified minority-owned businesses that are purchasing or improving fixed assets and creating or retaining jobs. The Minority Business Direct Loan Program provided loans totaling $4,221,076, leveraging an additional $29.05 million during Fiscal Year 2010. These loans created 129 positions. • The Minority Business Bonding Program provides bid, performance, and payment surety bonds to state certified minority-owned businesses that are unable to obtain bonding through standard surety companies. The Minority Business Bonding Program provided $845,000 in bonding capacity to three companies during Fiscal Year 2010, which are expected to create 23 jobs. • As part of the Minority Business Initiative, the Division is working to increase participation in the EDGE (Encouraging Diversity, Growth, and Equity) program and Minority Business Enterprise (MBE) program. More than 300 companies received EDGE or MBE certification during Fiscal Year 2010 with assistance from the Division. Additionally, the Division helps facilitate access to state government contracts and business services for EDGE and MBE certified businesses by working with state agencies to identify EDGE and MBE certified vendors.

Changes in Rules for the Minority Business Bonding Program Amendment of Rule Numbers 127-1-03 – 127-1-04 The purpose of the revised rules is to clarify the process for Minority Development Financing Advisory Board meeting notices (127-1-03) and to remove the requirement that applicants to the Minority Business Bonding Program provide denials from two surety companies when applying for bonding assistance (127-1-04). The rule change will improve the application process and save time and expense for the minority business applicants.

2010 Ohio Department of Development Annual Report

The Office of Insurance and Financial Development Ohio is a leading insurance state. Nearly 1,700 insurance companies have operations in the state, ranging from small, entrepreneurial firms to many of the largest insurance companies in the world. The insurance industry is a powerful economic driver for the state, employing more than 100,000 Ohioans, whose wages total nearly $6 billion – ranking Ohio seventh in the country in total insurance industry employment. The financial services industry provides hundreds of thousands of well-paid jobs for Ohioans. The state is home to more than 240 banks and more than 360 credit unions. Combined, the insurance and financial industries comprise approximately 19 percent of Ohio’s Gross State Product. The Office of Insurance and Financial Development is the state’s lead unit for the development and implementation of strategies, initiatives, and programs designed to retain and create insurance and financial services jobs in Ohio. The Office cultivates cooperative relationships among businesses, educators, and the state to collaborate on tactics aimed at improving the business climate for both the insurance and financial services industry. Since unveiling its comprehensive strategic plan to enhance the business climate for Ohio’s insurance industry in December 2009, the Office has quickly become known as an advocate and change-maker for the insurance and financial industries in Ohio. Working in cooperation with industry, details are being finalizing for a similar collaborative strategic plan for Ohio’s financial industry. The Office of Insurance and Financial Development is using these plans as a roadmap to guide its work to support and improve these industries. Ohio Huntington Business Loan Program – Toledo, Ohio

2010 Ohio Department of Development Annual Report

The Office participated in numerous outreach and engagement visits to Ohio insurance companies and agencies, banks, thrifts, and credit unions to introduce the Office and to assist companies with their plans for growth and job creation in Ohio. An Insurance Education Summit was also conducted in cooperation with the University of Cincinnati College of Business, bringing together industry leaders and academics to examine the current insurance education and workforce environment to help develop innovative ways to retain and develop insurance industry talent, and to promote employment opportunities in Ohio’s insurance industry. These issues are critical to the success of the insurance industry in the state today and will help cultivate the best insurance workforce for tomorrow. The Office of Insurance and Financial Development has scheduled a second Insurance Education Summit in Northern Ohio, in cooperation with Kent State University, and plans to conduct a third summit in Central Ohio, in cooperation with The Ohio State University. Office of Insurance and Financial Development Successes: • Created the Ohio Means Insurance Jobs website, which was designed to promote career opportunities in Ohio’s insurance industry. Job seekers can search for job opportunities, while employers can look for Ohio-based talent, post job opportunities, and integrate employment and internship events into a single, cost-free point of contact. This new website builds upon the State of Ohio’s OhioMeansJobs.com website, which is the state’s most comprehensive listing of job opportunities available in a variety of industries across Ohio, including insurance. • Leveraged regional assets and catalyzed regional collaboration to support growth in their industries by establishing a Know Your Customer program with the Regional Economic Development Directors, aiming to support outreach efforts with the insurance industry and financial institutions across all 12 Economic Development Regions in the state. • Implemented a marketing program to promote Ohio as THE insurance state and a great place to do business, and initiated an outreach program to insurance companies in neighboring states, encouraging them to expand or relocate to Ohio. A focus of these efforts has been to market Ohio as an attractive location for call centers, data centers, and service centers. • Created several task forces for both the insurance and financial industries. The Tax Incentive / Business Climate Task Forces examine the current business climate and explore opportunities to improve that climate so that Ohio remains competitive with other states. The Workforce Task Force and a Career Marketing Task Force examine the current and future workforce conditions, explore opportunities to improve that environment so Ohio remains competitive with other states, and produce the well-trained workforce required for a robust insurance and financial industry. These efforts include fostering a collaborative approach between industry, academia, and the state to create demand-based curriculum and career marketing solutions. • Acted as a conduit of information between the state and both industries as the federal government crafted new regulatory reform legislation for the health care and financial industries. • Created a one-stop-shop approach in the Office of Insurance and Financial Development to foster ease of use for both industries, and encourage company expansion and job creation. • Currently working with Ohio’s financial institutions and the Ohio Treasurer’s Office to create an innovative program to help address access to capital issues for Ohio’s small businesses.

2010 Ohio Department of Development Annual Report

Quality Electrodynamics (QED) – Mayfield Village, Ohio

Technology and Innovation Division One of the most valuable aspects to the future of Ohio’s economy is investing in new technologies and providing support to companies, research institutions, and others that work every day to improve our lives with cutting-edge ideas. The Technology and Innovation Division is a key partner in their success by providing incentives that fuel Ohio’s growing technology business clusters and sustain Ohio’s global competitiveness in several targeted technology sectors – leading to high-paying jobs and wealth creation for the people of our state. The Division administers four primary programs designed to build research capacity in targeted technology areas, support the development of new technology-based commercial products, foster the growth of early-stage Ohio technology companies, and attract new technology companies to the state: • The Ohio Third Frontier was renewed by Ohio voters in May, extending the program through Fiscal Year 2015. Ohio Third Frontier works to expand Ohio’s technology-based research capabilities and promote innovation and new company formation to create and retain high-wage jobs for future generations. Since its inception, more than 375 awards have been distributed throughout the state. During Fiscal Year 2010, the total investments made in Ohio Third Frontier program activities totaled more than $93 million. The latest round of performance metrics were also released, showing more than 55,000 jobs have been created or retained; more than 630 companies have been created, attracted, or capitalized; and Ohio Third Frontier leveraged more than $4.7 billion dollars for the State of Ohio through targeted investments. An independent study by SRI International found that Ohio has garnered a nearly $10 return on every dollar of the state’s investment.

2010 Ohio Department of Development Annual Report

• The Thomas Edison Program promotes technological innovation within Ohio’s existing industrial base by providing access to critical technology expertise within Ohio’s emerging technology industries through supporting new technology company formation. The seven Edison Technology Centers, located throughout the state, provide a variety of product and process innovation services, and commercialization services to Ohio companies in key industry verticals. The 13 Edison Technology Incubators connect early-stage companies to business assistance, mentoring, investment capital, and physical space, allowing entrepreneurs to concentrate their limited resources on the development of their core product/service. During Fiscal Year 2010, investments made in Edison Technology Centers, Edison Technology Incubators, and special sponsorships totalled more than $15.8 million.

Zyvex Performance Materials Founded in 1997, Zyvex Performance Materials (ZPM) is the leader in unlocking the power of the carbon nanotube, the strongest material in the world. Its technology enhances composite products, such as carbon fiber, and their engineering team designs the strongest, lightest, toughest, and stiffest products on the market that range from sporting goods to sophisticated military vehicles. Through funding from the Ohio Third Frontier, ZPM located from Texas to Columbus, Ohio, where it currently employs 16 people and is developing carbon nanotube materials products for applications in the marine, sporting goods, aerospace, defense, and highend automotive industries.

As a result of this funding, more than $508 million in new sales were generated by the 410 start-up companies housed in the Edison Incubators, leading to the creation of 524 jobs, 171 patents filed, 47 patents awarded, and private investors providing more than $200 million to these companies. Additionally, 510 Edison Center member companies completed a third-party independent survey reporting the creation of more than 500 jobs and $72 million in new sales as a result of the Centers’ technical assistance to existing technology-based businesses. Edison Center companies invested more than $100 million in new equipment, training, and IT infrastructure, and retained 3,690 employees. • The Ohio Technology Investment Tax Credit stimulates early-stage investments in technology-based start-ups by providing a tax credit for Ohio taxpayers that invest in small, Ohio-based technology companies. To date, private investors have invested approximately $131 million in 527 qualified Ohio technology companies. During Fiscal Year 2010, the Technology Investment Tax Credit program approved 440 investments totaling $27.15 million, and tax credits valued at $6.71 million. They also qualified 88 new firms as being eligible for Technology Investment Tax Credit backed investments, leveraging a 4:1 return on the Tax Credit in the form of small business investment, not counting followon investments.

Recently, ZPM introduced its Piranha unmanned surface vessel (USV), a boat which offers military and governmental agencies the most capable and costefficient vehicle for anti-piracy, harbor surveillance, search and rescue, and anti-submarine warfare missions. The Piranha is the largest boat ever built from carbon nanotube-enhanced materials. Utilizing ZPM’s Arovex™ material, the 54-foot Piranha is 30% lighter than other carbon fiber boats, which enables a 10-times increase in range, a 3-times increase in payload capacity, and a 40% reduction in fuel costs.

• The Ohio Capital Fund increases the availability of venture capital for Ohio technology companies by investing in private venture capital funds which, in turn, look to invest in Ohio-based seed or early-stage technology companies. The Fund’s activities are governed by an Investment Policy overseen by the Ohio Venture Capital Authority. As of June 30, 2010, the Ohio Capital Fund has made $111 million commitments to 21 venture funds, which in turn, have made investments in 46 Ohio companies. These Ohio companies have received an additional $150 million in follow-on investment funding. Table 1 provides detailed information regarding the efforts of each of the four programmatic areas.

2010 Ohio Department of Development Annual Report

Table 1. Ohio’s Major Technology-Based Economic Development Programs Ohio Third Frontier (2002)

Total Awards through 2010

Research and Commercialization Collaboration Ohio Research Scholars Program creates 26 endowed chairs at Ohio Universities Wright Centers of Innovation Program supports university-based Centers of Excellence in target technology platforms1

$146.5 million $295 million

Research Commercialization Program provides funds for applied research

$233.4 million

Wright Projects provides grants for capital equipment purchases

$96.6 million

Entrepreneurial Support Entrepreneurial Signature Program pairs high-growth-potential technology startups with experienced entrepreneurs, risk capital, network in six regions

$84.8 million

Pre-seed and Seed Funds award grants to pre-seed funds that invest in startups

$59.45 million

Product Development Assistance Third Frontier Action Fund awarded grants to pre-seed funds and to companies for applied R&D leading to near-term commercialization Ohio Research Commercialization Grant Program (SBIR III) awards grants to improve viability of technologies developed through Federal R&D projects

$18 million $13.3 million

Cluster Development Fuel Cell Program supports applied R&D to help commercialize fuel cell components produced in Ohio

$47.2 million

Photovoltaics Program supports applied R&D to commercialize photovoltaic components and systems produced in Ohio

$6.03 million

Advanced Energy Program supports applied R&D to commercialize advanced energy system components produced in Ohio

$28.4 million

Advanced Materials Program supports applied R&D to commercialize advanced material products produced in Ohio, with preference to polymer and carbon nanomaterials, liquid crystals, and bio-based materials

$7.65 million

Sensors Program supports applied R&D to commercialize sensor components and systems produced in Ohio

$4.97 million

Biomedical Program supports applied R&D to commercialize biomedical products produced in Ohio, with a preference to cardiovascular, regenerative medicine, and orthopedics

$4.98 million

Medical Imaging Program supports applied R&D to commercialize medical imaging components and systems produced in Ohio

$8.97 million

Ohio Innovation Loan Fund provides subsidized debt financing to established companies to develop next-generation products and services

$68 million

Targeted Industry Attraction Grants attract out-of-state companies in target industry sectors to locate new facilities in Ohio

$4.6 million

Workforce Development Third Frontier Internship Program places highly-trained students (up to the doctoral level) with Ohio tech-based industries

$19.5 million

Thomas Edison Program (1984) Edison Technology Centers (7) support the industrial competitiveness of Ohio companies in key industry verticals by providing access to technology and business expertise

Varies year-to year; currently $13 – $13.6 million/year

Edison Technology Incubators (13) assist technology-oriented startups during concept definition and development stages, allowing entrepreneurs to concentrate on development of their core product/service

Varies year-to-year; currently $4 – $4.5 million/year

The Ohio Capital Fund/Ohio Venture Capital Authority (2003) Ohio Capital Fund “Fund of funds” mechanism increases venture capital available for early-stage investment in Ohio companies

$111 million (of total $150 million)

Ohio Technology Investment Tax Credit (1996) Technology Investment Tax Credit provides tax credit to taxpayers who invest in small, Ohio-based technology companies

$32.8 million (of total $45 million available)

Note: The five technology platforms targeted by the Ohio Third Frontier are: Biosciences; Advanced Materials; Advanced/Alternative Energy; Instruments, Controls, and Electronics (ICE); and Advanced Propulsion.

2010 Ohio Department of Development Annual Report

Alignment of Technology-Based Economic Development Programs The Technology and Innovation Division is focused on supporting the innovation and growth of Ohio companies along the entire technology commercialization continuum. At the transition between each phase and the next is the need to mobilize resources. Collectively, Ohio’s four Technology-Based Economic Development programs support the advancement of entrepreneurs and companies across the technology commercialization continuum, as depicted in Figure 1. Figure 1. Location of Ohio Technology-Based Economic Development Programs along Technology Commercialization Framework

Imagining

Incubating

Demonstrating

Market Entry

the Commercial Opportunity

to Define Commercial Potential

Products & Processes in Commercial Context

to Prove Commercial Viability

Mobilizing Resources for Incubating

Mobilizing Resources for Demonstrating

Mobilizing Resources for Market Entry

Growth & Sustainability to Generate Financial Returns

Mobilizing Resources for Growth & Sustainability

Ohio Third Frontier Edison Technology Incubators Technology Investment Tax Credit

Edison Technology Centers

Ohio Venture Capital Authority

In the Imagining Phase of Commercialization, programs under the Ohio Third Frontier, such as the Ohio Research Scholars, the Wright Centers of Innovation, and the Wright Projects, are directed toward building world-class centers of excellence in targeted fields with strong commercial relevance to key industry sectors. The attraction of new talent to Ohio universities and increased university industry research collaboration resulting from these investments are expected to yield many new commercial opportunities. The Edison Technology Incubators, the Ohio Technology Investment Tax Credit, and the Ohio Capital Fund/Ohio Venture Capital Authority support and extend the entrepreneurial assistance of the Ohio Third Frontier’s Pre-Seed Funds and Entrepreneurial Signature Program in the Incubating Phase. The Ohio Third Frontier’s direct investments in Ohio companies, such as the Research Commercialization Program, Fuel Cell Program, and Advanced Energy Program, provide commercialization support to companies in the Demonstrating Phase. The Edison Technology Centers provide technical assistance to existing Ohio companies as they grow and diversify into new markets (Growth and Sustainability Phase). In addition, the state makes available loans for new equipment purchases and other investments through the Innovation Ohio Loan Fund, Job Creation Tax Credits for operation expansions, and our comprehensive suite of economic development programs. Innovation is important to Ohio’s long-term economic growth because new products, services, and production processes provide Ohio companies with opportunities to enter new markets and to gain greater market share. Innovation affords Ohio’s economy the opportunity to diversify into higher growth, higher value-added economic activities that can move Ohio to a better growth trajectory. Ultimately, this will generate higher quality jobs and higher incomes for current and future generations of Ohio citizens.

Cultivate Top Talent

2010 Ohio Department of Development Annual Report

Workforce and Talent Division Airborne Maintenance and Engineering Services Airborne Maintenance and Engineering Services in Wilmington combined Ohio Workforce Guarantee funds and National Emergency Grant funds to retrain employees in careers involving maintenance and repair of 767, 757, and 747 aircraft models. The AMES employees earned portable certifications. Administrative and supervising staff are currently receiving training in project management and leadership, which is supporting the growth of the company. Currently, the company employs more than 350 full-time workers, and is well on its way to its goal of 431 jobs.

Our Department’s work to cultivate top talent in Ohio is largely driven by the Workforce and Talent Division. Businesses succeed on the work ethic and talent of their people, and our partnership with the Ohio Board of Regents, the Ohio Department of Job and Family Services, as well as local workforce and economic development organizations, provides many opportunities for life-long learning and skill development to ensure that Ohio’s talent pool remains the best in the world. The Workforce and Talent Division implemented four new programs in Fiscal Year 2010: • The Energizing Careers Program, which utilizes dollars from the American Recovery and Reinvestment Act to train Ohio workers in new green industries; • Project HIRE, a collaboration of several state workforce agencies that connects job seekers and employers through hiring events and training grants; • The Manufacturing Certificate Program, a program developed in cooperation with the Governor’s Workforce Policy Advisory Board and the University System of Ohio to establish a statewide training certificate system for the manufacturing industry. This program will enable Ohio’s manufacturing workforce to demonstrate its high skill level in a way that will be reliable and understandable for manufacturing employers; and • The launch of Ohio Means Jobs as the overarching brand of the statewide workforce system.

Libby Glass Libby Glass trained 140 employees and retained all 1,405 employees in its World Headquarters in Toledo with the assistance of the Ohio Workforce Guarantee. The State of Ohio worked with the company on a grant that will help create 50 jobs and allow the company to invest $20-$30 million in new machinery and equipment during the next three years. The plant reinforces Ohio’s position as a manufacturing leader and Toledo as the “Glass City.”

Ohio boasts one of the largest labor pools in the country, with more than 5.9 million workers. Thanks to the more than 200 institutions of higher learning, thousands more are joining the workforce every year. Today, the Workforce and Talent Division connects Ohio’s economic development and workforce development resources at the state, regional, and local levels. The Division works on a regional level to meet the employment needs of Ohio, with assistance from 12 Regional Workforce Directors and 20 Business Service Representatives positioned around the state. The Division’s regional staff works closely with the Department’s Regional Economic Development Directors to provide comprehensive solutions for businesses through the many initiatives and programs outlined below. • The Ohio Workforce Guarantee Program is the state’s premier incumbent worker training program, helping Ohio businesses access the skilled workforce they need when they are making investments that result in the retention and creation of jobs for Ohioans. Through the program, the Division’s Regional Workforce Directors work directly with businesses, at no cost to the businesses, to develop customized training plans that will enable businesses to meet their workforce needs. Then the program provides those employers with direct financial support to enable them to complete their training plans. The Workforce and Talent Division works closely with the Strategic Business Investment Division and other offices within the Department to attract and retain businesses utilizing this program. Ohio Workforce Guarantee funded 90 new projects, training 3,682 new and 13,198 incumbent workers in Fiscal Year 2010. • The Energizing Careers Program, launched in June 2010, supports companies that are manufacturing components for Ohio’s expanding wind, solar, and biomass industries. The advanced energy manufacturing sector requires specialized skills, and the Energizing Careers Program assists businesses in developing and implementing customized training programs that will enable them to grow. The program is made possible through a $6 million grant from the American Recovery and Reinvestment Act, and gives preference to companies located within Ohio’s 44 auto-impacted counties, as designated by the United States Department of Labor.

2010 Ohio Department of Development Annual Report

• Project Hometown Investment in Regional Economies (HIRE), launched in 2009, connects job seekers and employers through job fairs and training resources. Job seekers are provided with Ohio Learning Accounts – flexible training accounts of up to $6,000 – to support their training in a new job. The program, which is made possible with $8 million in funds from the American Recovery and Reinvestment Act, is a collaboration among the Ohio Department of Development, the Ohio Department of Job and Family Services, the Ohio Board of Regents, and local workforce agencies. Since its launch, 34 job fairs were held involving 61 counties, and 1,339 job seekers have been provided with Ohio Learning Accounts.

Logan Clutch Corporation Logan Clutch Corporation of Cleveland purchased an underperforming clutch line, made necessary capital improvements for manufacturing, and created a larger global market for the company. The company was awarded two Ohio Workforce Guarantee grants to train 25 employees in quality, covering American Bureau of Shipping and International Marine Standards. Training on newly acquired machinery upgraded employees’ skill sets for products related to mining and marine industries. The company is planning to expand to accommodate the increases in exports and allow for clutch testing, which will include a new facility focused on analysis.

• The Ohio Third Frontier Internship Program links Ohio students with rewarding internship opportunities that provide hands-on experience within Ohio’s private sector business community. The goal is to build a talented workforce for the future and assist students in gaining valuable work experiences that can lead to permanent, full-time employment in Ohio after graduation. In Fiscal Year 2010, Ohio companies posted 1,779 internship opportunities. Through the Ohio Third Frontier Internship Program, the Division was able to secure internships for 1,561 students. The Program reimburses up to 50 percent of an intern’s wage, or no more than $3,000 for a 12-month period. Following an intern’s graduation, a firm will have the opportunity to offer full-time employment to an individual who is well-prepared for a future career with the organization. The Ohio Third Frontier Internship Program is available to businesses that can provide internships in one or more of the following industries: – Advanced manufacturing; – Advanced materials; – Bioscience; – Information technology; – Instruments, controls, and electronics; and – Power and propulsion.

Midmark Corporation Midmark Corporation, located in Versailles, has added more than 150 jobs in the last three years due to expanding its global distribution to Europe and beyond. The company makes medical equipment and cabinetry, and has also expanded into furnishing veterinary clinics. The company has invested nearly $1 million in training and has utilized a $135,000 Ohio Workforce Guarantee grant, along with Project HIRE funds, to offset training costs of current workers. This has increased quality standards, improved communication across product lines, and increased flexibility to use equipment in making more diversified products.

• The Ohio Labor Management Cooperation Program enhances the relationship between labor and management through worksite training programs, regular meetings, workshops, and conferences. It creates a stable and positive work environment by nurturing cooperative labor management relationships and by dispelling negative labor images. • The Division provides significant funding to the Ohio Employee Ownership Center at Kent State University. The Ohio Employee Ownership Center’s mission is to help businesses save jobs in Ohio by providing them with technical assistance, training, and outreach when they are experiencing a change in their business model. The Ohio Employee Ownership Center’s work rests on a simple philosophy: broader ownership of productive assets is a good thing for employees, communities, and Ohio. During Fiscal Year 2010, the Center provided services to the following groups: – Business owners looking to exit their business; – Owners interested in selling their business to their employees; – Employee groups, local governments, and community groups seeking to avoid business shutdowns and job loss in their communities; and – Existing employee-owned companies, helping them to become better employee-owned companies.

2010 Ohio Department of Development Annual Report

Summit Data Communications Last year, Summit Data Communications leveraged the Ohio Third Frontier Internship Program to underwrite, in part, the compensation for four interns in its engineering and technical services departments. As a young, growing technology manufacturer in Northeastern Ohio, they faced the twin challenges of managing expenses and attracting qualified employees. The Ohio Third Frontier Internship Program has been a great help to meet these challenges. This industry, and by extension, this company, requires a fairly specific set of employee skills. Finding people that already have these skills is a difficult and expensive process. Alternatively, one can bring in recent college graduates and provide them with specific career training. The Ohio Third Frontier Internship Program enabled the company to take the latter approach in that it defrays a substantial portion of these training costs. Out of four interns, two are fulltime employees and one is a part-time employee at the company today.

• The Division provides staffing assistance to the Governor’s Workforce Policy Advisory Board, which assists the Governor in developing workforce policy for the state to maximize the return on investment in the state workforce system. The Board regularly assesses Ohio’s employment needs, advises the Governor on setting performance goals and priorities, and helps leaders who shape workforce development policy at the local level. Guided by the Workforce Investment Act of 1998, Board members represent a range of groups including business and industry, organized labor, the General Assembly, education, social service agencies, and others who have a stake in employment and training issues. In Fiscal Year 2010, the Governor’s Workforce Policy Advisory Board focused on two initiatives: the Ohio Means Jobs branding initiative and the Manufacturing Certificate Program. • Building on the success of OhioMeansJobs.com, an employer-driven job matching system, the Governor’s Workforce Policy Advisory Board adopted a resolution in January 2010 to establish Ohio Means Jobs as the umbrella brand of the entire Ohio Workforce System. Employers and job seekers who see the Ohio Means Jobs logo on a workforce agency’s materials will understand that agency is part of a single, coordinated workforce system. Working together with the Department’s Communications staff and other state workforce agencies, the Workforce and Talent Division has developed a style book to guide the use of the Ohio Means Jobs brand. State and local workforce agencies are already beginning to utilize the new logo in their outreach materials. In addition, the website OhioMeansJobs.com will be revised to serve as the single point of entry for employers and job seekers to Ohio’s workforce resources, both at the state and local levels. • At the direction of the Governor, the Governor’s Workforce Policy Advisory Board and its Credential Committee have worked over the past year to develop a statewide Manufacturing Certificate Program for individuals who wish to pursue a career in the manufacturing industry. The program will begin with a certificate aimed at the entry-level job seeker, but is planned to grow into a system of certificates that will help workers map a career in the manufacturing industry. The statewide Manufacturing Certificate Program will establish a standardized and reliable indicator of workplace skill levels that can be recognized and used by manufacturing employers throughout the state. The Division has been working together with the University System of Ohio to implement the vision of the Governor’s Workforce Policy Advisory Board, and a pilot program is expected to be launched in the fall of 2010. The Certificate Program will help workers and prospective workers achieve higher levels of skill, document the skills they have, and help business easily identify workers’ skills through consistent and portable/stackable assessments and certifications. The program will draw on nationally accepted certification systems, while also incorporating training specifically designed to meet the needs of Ohio’s manufacturing industry.

Annual Reports The following Annual Report is available at www.reports.development.ohio.gov: • Ohio Department of Job and Family Services and Ohio Department of Development Joint Plan to Use Workforce Investment Act Funds Report

Invest in our Regional Assets

2010 Ohio Department of Development Annual Report

Community Development Division The American Recovery and Reinvestment Act Home Weatherization Assistance Program funds are positively impacting Ohio’s low- and moderate-income homeowners, and stimulating Ohio’s economy. Applied Energy Products, located in Canton, reported a gross sales increase of 250 percent from 2009 to 2010 as a direct result of the passage of the American Recovery and Reinvestment Act. The company sells weatherization-related products and equipment, and services weatherization equipment. While not a direct recipient of American Recovery and Reinvestment Act funds, Applied Energy Products is providing weatherization products and services to installers in Ohio and four other states that are direct beneficiaries of the federal funds. By hiring 12 new employees, and purchasing six merchandise delivery vehicles and an 18,000-square-foot building to expand operations, the company is meeting the demands of its customers and helping to spur Ohio’s economy. Also, beginning in September 2010, for the first time, the company began offering health insurance to its employees, another positive impact of the American Recovery and Reinvestment Act funds. According to the company’s owner, David Hackel, “The stimulus program really has worked.”

Improving the communities in which we live is the foundation for future economic development and achieving a true work-life balance. The Community Development Division focuses on supporting infrastructure, improving housing conditions, creating jobs, addressing energy needs, and supporting local social service initiatives, making the state an even better place to work and live. In Fiscal Year 2010, the Community Development Division received American Recovery and Reinvestment Act funds to expand current programs, such as the Home Weatherization Assistance Program, Community Services Block Grant Program, Family Homelessness Prevention Pilot Project Program, and Water and Sanitary Sewer Program; and create the Homelessness Prevention and Rapid ReHousing Program and the Neighborhood Stabilization Program 2. The additional funds are helping low- and moderate-income households across the state. Ohio led the nation in 2010 in the number of homes weatherized, assisting more than 16,000 low- and moderate-income households. The Office of Community Services and Office of Housing and Community Partnerships work daily to help low- and moderate-income Ohioans obtain or maintain basic needs, including employment, education, and safe, affordable housing. The Division’s programs, award recipients, and beneficiaries consist of varied and diverse groups. The Division’s overarching goal is to help improve Ohio’s communities through infrastructure improvements (waterlines, sewer lines, roads, and sidewalks); job creation and retention; housing improvements (repair, rehabilitation, construction, down payment assistance, and weatherization); housing with supportive services (case management, budgeting, life skills, and substance abuse counseling); and homelessness prevention (short-term rental assistance, utility assistance, mortgage assistance, and foreclosure prevention). The Office of Community Services works to eliminate poverty by providing funds for employment, education, emergency housing assistance, and nutrition services to 52 local nonprofit organizations designated as community action agencies located throughout Ohio. In addition, the Office helps Ohio’s low- and moderateincome residents reduce energy costs, while improving comfort and addressing energy-related health and safety issues; and helps Ohioans understand that energy efficiency and the use of advanced energy options are beneficial to both economic development and the environment. The Office of Community Services accomplishes its many goals through the following programs: • The Home Weatherization Assistance Program provides grants to communitybased, nonprofit organizations, and local governments to help households with incomes at or below 200 percent of the federal poverty level save energy, while increasing safety and comfort within their homes. The Home Weatherization Assistance Program services may include a safety inspection and tune-up of the household’s heating unit; reduction of major air leakages; insulation of hot water heaters, heating ducts, attics, walls, and floors; and client education. In Program Year 2010, more than $212 million of American Recovery and Reinvestment Act Home Weatherization Assistance Program funds were awarded to 58 Ohio nonprofit organizations and local governments to assist more than 13,000 households. HWAP has also helped create and retain more 1,380 Ohio jobs. • The Community Services Block Grant Program provides funds to 52 community action agencies throughout Ohio to reduce the causes and conditions of poverty by supporting job training, economic development, transportation, housing, emergency food, shelter, and health care service programs. The funding assists families and individuals whose annual household income is at or below

2010 Ohio Department of Development Annual Report

200 percent of the federal poverty guidelines. The funds are critical to help reduce poverty, revitalize low-income communities, and empower low-income families and individuals to be self-sufficient. In Program Year 2010, the Office of Community Services received American Recovery and Reinvestment Act funds to supplement the annually awarded Community Services Block Grant Program funds. As a result, Ohio’s community action agencies were awarded more than $65.1 million, $27.1 million of annual Community Services Block Grant Program, and $38 million of American Recovery and Reinvestment Act funds to assist approximately 720,000 households. • The Home Energy Assistance Program helps households with incomes at or below 200 percent of the federal poverty guidelines to heat and cool their residences. The Regular Heating Assistance Program, which operates September through May, pays a portion of household winter heating bills. The Winter Crisis Assistance Program, which operates November through March, provides a one-time payment to restore or retain residential heating services. The Summer Crisis Program, which operates in July and August, provides a one-time payment of up to $175 and/or an air conditioner or fan to low-income households with a 60-year-old member or older; or documentation from a physician indicating that cooling is needed for a household member. In Program Year 2010, more than $228.8 million of Home Energy Assistance Program funds were expended to assist 425,230 households through the Regular Heating Assistance Program, 187,374 households through the Winter Crisis Assistance Program, and 42,021 households through the Summer Crisis Program.

LEADS Community Action of Licking County – Newark, Ohio

• The Percentage of Income Payment Plan Program requires gas and electric companies to accept payments based on a percentage of a household’s income. To be eligible to participate, the company providing the household’s primary heating source must be regulated by the Public Utilities Commission of Ohio, the household’s income must be at or below 150 percent of the federal poverty level, and the household must apply for energy assistance programs, if eligible. During Program Year 2010, more than $132 million of Universal Service Fund funding was expended to assist approximately 273,000 households eligible to participate in the Percentage of Income Payment Plan Program for electric service.

• The Electric Partnership Program provides funds to nonprofit and/or forprofit organizations to perform in-home audits and install appropriate electric base load and thermal energy efficiency measures for Percentage of Income Payment Plan Program eligible households. During Program Year 2010, a total of 10 Electric Partnership Program recipients were awarded approximately $15 million to assist 15,000 low-income households.

2010 Ohio Department of Development Annual Report

Mt. Victory, Ohio

The Office of Housing and Community Partnerships accomplishes its many goals through the following programs: • The Office awarded Neighborhood Stabilization Program 2 grants, totaling more than $13.5 million, to seven nonprofit organizations to improve neighborhoods by purchasing and redeveloping abandoned and foreclosed properties, and demolishing blighted structures. The funds were awarded based on foreclosures, delinquencies, and vacancy rates, with the areas of greatest need receiving funding. As a result of the grants, approximately 109 homes will be constructed or rehabilitated, two households will be provided with down payment assistance, and 80 structures will be demolished. • The Community Development Program provides both formula and competitive funds to local governments to address eligible Community Development Block Grant Program activities. The Formula Allocation grant amounts are determined by the number of low- and moderate-income persons residing in Ohio’s nonurban counties and small cities. The Neighborhood Revitalization grants provide funds, through a competitive process, to local governments for public facility improvements in targeted areas of distress. The Microenterprise Business Development Program grants provide funds through a competitive process to eligible local governments to assist in the development of local microenterprise businesses. Microenterprises are commonly defined as for-profit entities with five or fewer employees, one of whom owns the business. In Program Year 2009, the Office of Housing and Community Partnerships awarded Formula Allocation grants totaling more than $20.3 million to the 124 eligible communities to complete Community Development Block Grant Program-eligible activities; nine Neighborhood Revitalization grants totaling more than $2.4 million to improve 34,000 linear feet of curbs and sidewalks, 6,000 linear feet of streets, 9,000 linear feet of storm sewer lines, 4,000 linear feet of sanitary sewer lines, and other Community Development Block Grant Program-eligible activities; as well as five Microenterprise Business Development Program grants totaling $241,300 to assist seven businesses/ organizations and provide training and technical assistance to 146 persons. In total, the Community Development Program will leverage approximately $34.7 million of other public and private funds. • The Water and Sanitary Sewer Program helps eligible local governments maintain, improve, and expand water and sanitary sewer systems. The grants, funded through the Community Development Block Grant Program, are targeted to small, needy communities in rural areas of Ohio as they work to comply

2010 Ohio Department of Development Annual Report

with Environmental Protection Agency mandates and provide safe and reliable drinking water and proper disposal of sanitary waste. Applications are accepted on a continual basis. In Program Year 2009, the Office awarded 22 small cities Community Development Block Grant Program-funded Water and Sanitary Sewer Program grants, totaling more than $9.9 million. The eligible applicants installed 127,032 linear feet of water lines, 187,029 linear feet of sewer lines, 5,100 linear feet of flood and drainage infrastructure, and 476 water and sewer taps; constructed six sewage treatment facilities; and leveraged more than $43.5 million of other public and private funds. Also in Program Year 2009, the Office awarded 24 American Recovery and Reinvestment Act-funded Water and Sanitary Sewer Program grants, totaling more than $12.1 million, to eligible applicants to install 47,845 linear feet of water lines, 227,384 linear feet of sewer lines, 2,763 linear feet of flood and drainage infrastructure, and 407 water and sewer taps; construct one water treatment facility and five sewage treatment facilities; and leverage more than $43.8 million of other public and private funds. • The Economic Development Program provides grants to eligible local governments for economic development projects that create and/or retain permanent, private-sector job opportunities. Applications are accepted on a continual basis and are evaluated, in part, based on community distress, unemployment rate, and low- and moderate-income population. Other considerations include program effectiveness, job quality, and leveraging ratio of Community Development Block Grant Program funds; and overall community impact. The grants enable local governments to make public improvements directly related to business development and provide financial assistance to private entities for economic development projects. Loan repayments from private entities may be retained at the local level to capitalize Revolving Loan Funds for additional business assistance activities. In Program Year 2009, the Office awarded nine grants totaling more than $2.6 million to create 251 jobs, retain 57 positions, and leverage more than $31.7 million of other public and private funds. • The Housing Opportunities for Persons with AIDS Program provides funds to eligible nonprofit organizations or local governments, on a competitive basis, to meet the housing and supportive service needs of persons suffering from AIDS or HIV-related diseases. In Program Year 2009, the Office awarded six grants totaling more than $1.1 million to assist 1,788 households consisting of 3,941 persons, and leveraging more than $1.7 million of other public and private funds. • The Homeless Assistance Grant Program provides funds for a continuum of housing/services to prevent persons from becoming homeless by providing homelessness prevention services and assistance; moving persons from homelessness to permanent housing through the provision of emergency shelter, direct housing, and transitional housing; and providing long-term permanent supportive housing to homeless persons with disabilities. Grants are funded with federal Emergency Shelter Grant Program and/or Ohio Housing Trust Fund dollars and awarded competitively to eligible nonprofit organizations, local governments, public housing authorities, and more. In Program Year 2009, the Office awarded 82 grants totaling more than $17 million to assist 63,957 low-income people and leverage more than $70.2 million of other public and private funds. • The Housing Assistance Grant Program provides funds to eligible nonprofit organizations to assist low- and moderate-income persons with emergency home repair/accessibility modifications, down payment assistance, and homebuyer counseling. Grants are funded with Ohio Housing Trust Fund dollars

2010 Ohio Department of Development Annual Report

and awarded competitively. In Program Year 2009, the Office awarded 26 grants totaling $4 million to repair 1,402 homes, provide 60 households with down payment assistance, provide homebuyer counseling to 332 households, and leverage more than $4.2 million of other public and private funds.

In Spring 2010, Alliance for Children & Families, Inc., a nonprofit organization, announced the construction of 10 townhomes to provide permanent supportive housing for homeless families consisting of approximately 45 individuals. The approximately $2.6 million project is funded, in part, with funds from the City of Alliance – which received a $922,584 Ohio Neighborhood Stabilization Program award to address the city’s abandoned and foreclosed homes crisis.

• The Family Homelessness Prevention Pilot Project Program provides intensive homelessness prevention assistance to families in subsidized housing, or in need of subsidized housing, who are at the greatest risk of becoming homeless. The targeted families included one or more dependent children, had incomes at or below 200 percent of the poverty level, were imminently at risk of becoming homeless, needed access to supportive services to prevent homelessness and develop long-term housing stabilization, required intensive, home-based case management for up to six months, including supportive services, housing referrals, and advocacy services, based on a comprehensive family needs assessment; and required financial assistance for housing-related expenses to help families to maintain or obtain housing. In Program Year 2009, the Office awarded $1 million of American Recovery and Reinvestment Act Homelessness Prevention and Rapid Re-Housing Program funds to five nonprofit organizations to continue the Family Homelessness Prevention Pilot Program. As a result, approximately 459 families consisting of approximately 1,148 persons will receive intensive homelessness prevention assistance.

The project will result in the acquisition and redevelopment of two vacant lots, a vacated alley, a foreclosed home, and four additional blighted residential structures in Alliance. Upon completion, the project will include two three-bedroom and eight twobedroom townhomes, administrative space for case management and security, a computer lab, a playground area, and laundry facilities. In addition, Alliance for Children and Families, Inc. will hire approximately five new employees to help administer the project. The assisted families will reside in the townhomes for up to 36 months, while receiving referrals to medical services, legal aid, tutorial and education instruction for adults and children, clinical counseling, chemical dependency counseling, and early childhood development assessments; and becoming stable and independent people. According to the Alliance and Children Families, Inc.’s Executive Director, Shirene Starn-Tapyrik, “Although a 2007 study of Stark County’s needs determined a strong need for permanent supportive housing for families, currently, the county cannot meet those needs, as there is no permanent supportive housing available for families. This important project will address that need.”

• The Homelessness Prevention and Rapid Re-Housing Program, funded with American Recovery and Reinvestment Act funds, provides financial assistance and services to either prevent individuals and families from becoming homeless or help those who are experiencing homelessness to be quickly re-housed and stabilized. In Program Year 2009, the Office awarded more than $24.5 million in grants to 49 eligible agencies to provide rental housing assistance to 15,298 households and supportive services with housing to 1,109 households; and leverage more than $21.4 million of other public and private funds. • The Community Housing Improvement Program provides funds for a flexible, community-wide approach to the improvement and provision of affordable housing for low- and moderate-income persons, and to help develop local capacity to administer housing programs. Grants are awarded competitively and eligible communities can undertake a broad range of housing-related activities, including necessary infrastructure improvements. Based on the types of activities proposed, award recipients may receive Community Development Block Grant Program and/or HOME Investment Partnerships Program funds. In Program Year 2009, the Office awarded 66 grants totaling more than $32.4 million to assist approximately 2,531 low- and moderate-income households, consisting of approximately 5,315 people, and leveraging more than $21 million of other public and private funds.

Annual Reports The following Annual Reports are available at www.reports.development.ohio.gov: • Biennial Report to House and Senate Public Utility Committees on Universal Service Fund and Advanced Energy Fund • Interagency Council on Homelessness and Affordable Housing Annual Report • Ohio Housing Trust Fund Annual Report

No Change Filing of Rule Numbers 122:6-1-01 – 122:6-1-06 Ohio Low- and Moderate-Income Housing Trust Fund In 2009, the Ohio Low- and Moderate-Income Housing Trust Fund rules were reviewed, in cooperation with the Ohio Housing Trust Fund Advisory Committee, and it was determined that no substantial changes were needed. The rules will be reviewed again in August 2014.

2010 Ohio Department of Development Annual Report

Home Energy Assistance Program Expended more than $228.8 million to assist: • 425,230 households through the Regular Heating Assistance Program • 187,374 households through the Winter Crisis Assistance Program • 42,021 households through the Summer Crisis Program Percentage of Income Payment Plan Expended more than $132 million to assist approximately 273,000 households. Home Weatherization Assistance Program Awarded more than $212 million to 58 nonprofit organizations to assist more than 13,000 households. Community Services Block Grant Program Expended more than $65.1 million to assist 720,000 households. Electric Partnership Program Awarded 10 electric service providers more than $15 million to assist 15,000 households.

American Recovery and Reinvestment Act Community Development Block Grant – Marietta, Ohio

Community Development Program Awarded grants, totaling more than $22.9 million, to the 124 eligible communities to complete Community Development Block Grant Program-eligible activities. Water and Sanitary Sewer Program Awarded 46 grants, totaling more than $22 million, to install 174,877 linear feet of water lines, 414,333 linear feet of sewer lines, 7,863 linear feet of flood and drainage infrastructure, and 883 water and sewer taps; and construct 11 sewage treatment facilities and 1 water treatment facility. Leveraged more than $87.3 million of other public and private funds. Economic Development Program Awarded nine grants, totaling more than $2.6 million, to create 251 jobs and retain 57 jobs. Leveraged more than $31.7 million of other public and private funds. Housing Opportunities for Persons with AIDS Program Awarded six grants, totaling more than $1.1 million, to assist 1,788 households. Leveraged more than $1.7 million of other public and private funds. Homeless Assistance Grant Program 82 awards, totaling more than $17 million, to assist approximately 63,957 low-income people. Leveraged more than $70.2 million of other public and private funds. Housing Assistance Grant Program 26 awards, totaling $4 million, to repair 1,402 homes, provide 60 households with down payment assistance, and provide homebuyer counseling to 332 households. Leveraged more than $4.2 million of other public and private funds. Community Housing Improvement Program 66 awards, totaling more than $32.4 million, to assist approximately 2,531 low- and moderate-income households (consisting of approximately 5,315 people). Leveraged more than $21 million of other public and private funds. Neighborhood Stabilization Program 2 Awarded grants, totaling more than $13.5 million, to seven nonprofit organizations. Approximately 109 homes will be constructed or rehabilitated, two households will be provided with down payment assistance, and 80 structures will be demolished. Family Homelessness Prevention Pilot Project Program Awarded five grants, totaling $1 million, to provide intensive homelessness prevention assistance to 459 families. Homelessness Prevention and Rapid Re-Housing Program Awarded 49 grants, totaling $24.5 million, to provide rental housing assistance to 15,298 households and supportive services with housing to 1,109 households. Leveraged more than $21.4 million of other public and private funds.

2010 Ohio Department of Development Annual Report

Governor’s Office of Appalachia Turning Technologies in Youngstown, Ohio (which is in Appalachian Ohio’s EastGate region) is a great example of successful start-ups in Ohio’s Appalachian region. Launched by three entrepreneurs in 2002, Turning Technologies develops audience response systems that are used by more than half of the universities in the U.S.

The Governor’s Office of Appalachia works to improve the lives of citizens living in Appalachian Ohio by serving as an advocate for Ohio’s 32 Appalachian counties. The Office assists Ohio’s Appalachian communities with important infrastructure, health care, worker training, and educational projects to improve living conditions and spur economic development. Due to its ability to deliver an ideal location and entrepreneur-friendly environment, Ohio’s Appalachian region is seen by entrepreneurs as the ideal location choice for start-up opportunities. In April 2010, Governor’s Office of Appalachia, in partnership with the Ohio Business Development Coalition, launched Ohio’s Enterprise Appalachia program and website. Enterprise Appalachia demonstrates why Ohio’s Appalachian region is the perfect place for businesses of all sizes to find success, offering a balance of critical resources and low overhead cost structure – without sacrificing access to everything needed for commercial success. Through Enterprise Appalachia, entrepreneurs are realizing that in Ohio’s Appalachian region they can benefit from access to venture capital, knowledge and labor, and supply chains and markets. Appalachian Ohio is buzzing with entrepreneurial activity and a growing list of major corporations are realizing the benefits of Appalachian Ohio, including Boeing, Dow Chemical, Colgate-Palmolive, Dow Chemical, General Electric, TaTa, and Turning Technologies. In fact, Youngstown was featured in Inc. Magazine and Entrepreneur Magazine as one of the best places in America to start a business.

Turning Technologies was recently named the fastest growing privately held software company in the country by Inc. Magazine, and the 18th fastest growing of all companies.

Through its many grant funded programs, the Governor’s Office of Appalachia successfully leverages assets on behalf of Appalachian Ohioans. These programs provide value to Appalachian communities and improve the lives of its citizens. The Office sets the direction of Appalachian Regional Commission funding within Ohio in conjunction with four local development districts: Buckeye Hills-Hocking Valley Regional Development District, EastGate Regional Council of Governments, Ohio Mid-Eastern Governments Association, and Ohio Valley Regional Development Commission. Last year, the Office coordinated nearly 100 grants to local and regional communities. These grants and associated projects leveraged $71.9 million in investments in Appalachian Ohio.

“The strong academic community in Appalachia Ohio delivers relevant knowledge through research and development and a skilled labor pool, all of which has helped Turning Technologies grow into a global company,” said Mike Broderick, president and chief executive officer of Turning Technologies.

Grassroots proposals originating from within the region drive partnerships between the Governor’s Office of Appalachia and communities. These partnerships promote economic progress while maintaining the traditions and values that make Appalachia unique. The traditional assets that have been the foundation of the Appalachian region’s economy for centuries are now supporting new and emerging opportunities in the region. Committed to advancing broadband to Ohio’s Appalachian Region, the Governor’s Office of Appalachia, in coordination with the Appalachian Regional Commission, awarded $91,318 to City of Youngstown to install high capacity broadband internet access to two industrial parks in 2010. The Riverbend Industrial Park and the Ohio Works Industrial Park together hold the most economic development potential in the City of Youngstown. Both Industrial Parks have adjacent highway and rail access. Both are located along the Mahoning River corridor, close to neighborhoods with a standing workforce and readily accessible public transportation access. Both parks have more than 100 acres of development property. Both industrial parks have current employers who carry great potential for expansion. Thirty-two companies will benefit from broadband access, with development potential to double the number of industries in the service area. This project will help retain more than 735 jobs and help create 94 jobs.

2010 Ohio Department of Development Annual Report

Below is an overview of the types of funding offered by the Governor’s Office of Appalachia:

The Environmental Protection Agency (EPA) conducted a survey to study the water in Scioto County in 2005, which found that the County, particularly an area known as Eden Park, was plagued by either improperly functioning or nonexistent sewer systems. The EPA survey reported that streams in Eden Park were polluted and recommended that a newly designed system be installed.

• The Rapid Response Fund consists of state dollars set aside by the Governor’s Office of Appalachia to be made available for projects that have required immediate action or have a significant job creation component. This Fund permits the Director to respond quickly to projects that will have a significant impact in a short period of time. Eligible applicants are community improvement corporations, port authorities, units of local government, and nonprofit organizations. Rapid Response grants follow the same guidelines as Appalachia Regional Commission area development, and job creation is strongly emphasized when committing Rapid Response Funds. The Governor’s Office of Appalachia awarded $1,556,839 in Rapid Response Funds in Fiscal Year 2010. • The Community Investment Funds consist of state planning grants and contingency grants for communities that demonstrate an opportunity to develop assets or create jobs. Eligible applicants, including units of local government, nonprofit organizations, community improvement corporations, port authorities, and community action corporations, invest in our Regional Assets and can apply for up to $10,000 in funds. Community Investment grants require a 50 percent cash match by the grantee and all funds are provided on a reimbursement basis only. Funds can be used to purchase sustainable assets that can be utilized for at least five years. The Governor’s Office of Appalachia awarded $187,414 in Community Investment Funds in Fiscal Year 2010.

As a result, Scioto County devised the Eden Park Area Sanitary Sewer Extension Project. This more than $2.9 million project provides new septic systems to replace the inadequate tanks, which were leaching sewage into Eden Park and its surrounding streams. The project includes the installation of 17,000 feet of new pipeline, 245 connections, 65 manholes, and one pump station.

• The Community Facility Initiative provides funds to communities to ensure that facilities used by the community, such as courthouses, village/town halls, theatres, developmental disabilities facilities, and community centers, are safe and ready for use. Funding levels are set between $15,000 and $30,000, with dollar-for-dollar matching funds from the applicant. Projects approved included energy efficient windows and doors, new roof installation, upgrading electric wiring, installing new heating and cooling units, meeting ADA regulations, and eliminating safety issues. In Fiscal Year 2010, the Community Facilities Initiative funded 19 projects for a total of $192,842.

The Governor’s Office of Appalachia, recognizing the infrastructure developments and improvements the project would offer Scioto County, pledged $250,000 in funds to the project. Together with this funding, Scioto County installed the new sewers to alleviate the polluting of Eden Park and improve the standard of living for area residents. The completed project resulted in sanitary service to three businesses and 245 residences and a cleaner Eden Park.

• Through the Regional Initiative Program, the Appalachian Regional Commission provides funding that is dedicated to alternative and advanced energy development, telecommunications, entrepreneurship, and asset-based development. Projects that fall under any of these four categories are eligible for funding under the program. The Regional Initiative Program funded five projects in Fiscal Year 2010 for a total of $330,383. • The Distressed County Program provides funds to counties identified as distressed. Distressed status qualification is based on low per capita income, high rates of poverty, and unemployment. In the past, the distressed county program focused mainly on providing public facilities, clean drinking water, sanitary waste disposal, and human resource projects such as literacy training. In 2000, the Commission created a capacity-building effort and a telecommunications/information technology initiative. Only applicants in distressed counties are eligible for these projects with funding requests up to 80 percent of the project cost. The Distressed County Program funded five projects in Fiscal Year 2010 for $1,217,522.

Federal area development funding

• The Appalachian Regional Commission’s Federal Access Road Program better links the region’s businesses, communities, and residents to the Appalachian Development Highway System and to other key parts of the region’s transportation network. The program offers a flexible approach designed to meet local needs, and provides financing mechanisms to support a variety of economic development opportunities throughout the region. Four projects were funded by the Federal Access Road Program in Fiscal Year 2010 for a total of $1,250,000.

$3,188,649 State area development funding $2,045,259

2010 Ohio Department of Development Annual Report

Cleveland Health and Technology Corridor Ohio Hub Announcement – Cleveland, Ohio

Urban Development Division If a site needs cleaned up or a historic building needs saved, the Urban Development Division, working collaboratively with local communities, is the one that steps up to the plate. The Division ensures that Ohio’s communities remain vibrant urban centers, cultivating a successful business climate. The Division accomplishes this goal by helping to revitalize downtowns, reclaim historic buildings, and reclaim brownfields and other damaged lands. The Urban Development Division is committed to preserving, sustaining, and transforming Ohio’s communities – revitalizing and investing in the heart of Ohio’s regional assets. In Fiscal Year 2010, the Urban Development Division introduced three new major initiatives: Ohio New Markets Tax Credit, the American Recovery and Reinvestment Act funded Brownfield Revolving Loan Fund, and the Ohio Hubs of Innovation and Opportunity – all of which focus on improving Ohio’s communities and bringing future economic development and opportunities to the state. The Division also engaged in several key interagency collaborations on the Federal Livable Communities effort, revitalization of Ohio’s closed auto facilities, and integration of economic development and revitalization into the state’s major transportation projects and systems. Key programs led by the Division include: • The Ohio Hubs of Innovation and Opportunity work to leverage a region’s resources and investment to attract clusters of connected businesses, encourage new investments, bring an influx of talented workers, and create new opportunities to grow jobs and develop Ohio’s key industries. To date, seven Ohio Hubs that have been announced around the state: – The Ohio Aerospace Hub brings together the City of Dayton, the University of Dayton, CityWide Development Corporation, Montgomery County, and the Dayton Development Coalition. An urban center was identified stretching from the University of Dayton to the Tech Town complex encompassing the Oregon District and Miami Valley Hospital. The hub focuses on the Dayton region’s

2010 Ohio Department of Development Annual Report

strong history in sensors and advanced materials related to the aerospace industry, motivating talented people to move to the Dayton region, including top scientists and research specialists, further enhancing Ohio’s leadership in the Aerospace Industry. – The Cleveland Health and Technology Corridor brings together the Cleveland Clinic, University Hospitals, Case Western Reserve University, Cleveland State University, the Greater Cleveland Partnership, the Cleveland-Cuyahoga County Port Authority, the Cleveland Foundation, the Cuyahoga County Department of Development, the City of Cleveland, MidTown Cleveland, Inc., and BioEnterprise. The hub focuses on promoting entrepreneurship, economic development, and commercialization in the bioscience field, focusing on the development of medical devices for cardiovascular, imaging, and neurostimulation applications. – The Northwest Ohio Solar Energy Innovation Hub in Toledo brings together the University of Toledo, Bowling Green State University, Owens Community College, Penta Career Center, Terra Community College, and Northwest State Community College as a hub of educational institutions dedicated to helping the solar industry of Ohio continue to grow and prosper. The hub focuses on promoting entrepreneurship, economic development, and commercialization in the Solar Industry by providing assets such as top solar researchers, entrepreneurs, manufacturers, education institutions, trade associations, and training providers. – The Consumer Marketing Hub, located in Cincinnati, brings together consumer marketing powerhouses P&G, The Kroger Co., and Macy’s, which are all headquartered in the region, as well as international brand-building organizations such as Landor, Bridge Worldwide, and LPK; consumer marketknowledge generators such as dunnhumby and Nielsen/BuzzMetrics; and the University of Cincinnati. The hub leverages the region’s assets in consumer marketing. It will further strengthen the existing industry cluster, enable attraction and creation of new businesses, attract and retain creative and highly-skilled talent, build Cincinnati’s international reputation as the leading center for consumer marketing, and drive economic growth in the region and throughout the State of Ohio. – The Biomaterials Commercialization Hub, located in Akron, brings together the Austen BioInnovation Institute, the University of Akron, Summa Health Systems, Akron General Medical Center, Akron Children’s Hospital, the Akron Global Business Accelerator, Summit County, and the City of Akron. The Biomaterials Commercialization Hub focuses on biomaterials for orthopedics and wound healing applications, and is established in the Akron Biomedical Corridor. The hub assists the city with becoming a globally recognized leader in the commercialization of innovative biomaterial technologies, products, and services, building off Akron’s long history of innovation in the rubber, tire, toy, and food industries. – The Youngstown Entrepreneurial Hub of Advanced Materials Commercialization and Software Development brings together the City of Youngstown, Youngstown State University, the City of Warren, the Youngstown Business Incubator, the EastGate Regional Council of Governments, the Youngstown-Warren Regional Chamber of Commerce, Kent State University Trumbull Campus, and the Raymond John Wean Foundation to develop, manufacture, market, and apply next-generation materials. The hub assists Youngstown’s fertile entrepreneurial environment and builds upon the region’s emerging strength in advanced materials commercialization. With the supportive environment of the Youngstown Business Incubator and Youngstown State University, the region is a great place to move products to market and build a company. The Hub is a collaboration bringing educational advancements, researchers, and entrepreneurs together to assist in the development of business clusters in the Youngstown region related to the Advanced Materials Industry.

2010 Ohio Department of Development Annual Report

The Clean Ohio brownfield programs play an integral part in the revitalization process. In 2009, the Franklin County Board of Commissioners was awarded a $3 million grant for the North Gowdy Project. This site, located across State Route 315 from The Ohio State University Medical Center and directly north of the new OSU Eye and Ear Institute, will be the location of a new OSU James Cancer Center facility. OSU has committed that 160 jobs will be created and retained. The cost of the new facility is an estimated $25 million.

– The Central Ohio Hub of Advanced Energy Manufacturing and Energy Storage, located in Columbus, brings together TechColumbus, The Ohio State University, Battelle Memorial Institute, Edison Welding Institute, the Columbus Partnership, and the City of Columbus. These partners aim to position Columbus and Central Ohio as a global leader in advanced energy storage research, commercialization, and manufacturing by building upon existing institutional, commercial, and industrial resources to further develop expertise and competencies, build companies, and create high-wage job opportunities. This collaboration will leverage Central Ohio’s resources to position the region as the best place in the world to do energy storage research and advanced energy manufacturing. • Last August, the State of Ohio received $1.8 million in funding through the American Recovery and Reinvestment Act from the U.S. Environmental Protection Agency for Brownfield Revitalization efforts. Up to $200,000 in funding is available to eligible nonprofit and local government entities for remediating asbestos in historic buildings, which contributes to the economic revitalization of communities, vibrant neighborhood centers, and the health and safety for occupants and visitors of these buildings. The Brownfield Revolving Loan Fund offers below-market rate loans and sub-grants to assist with the remediation of a brownfield property to return it to a productive economic use in the community. Properties receiving assistance from the Brownfield Revolving Loan Fund must have been contaminated by hazardous substances. In Fiscal Year 2010, the Brownfield Revolving Loan Fund awarded $950,000, leveraging $8 million. • The Ohio New Markets Tax Credit is designed to attract additional federal tax credits, encourage private investment funding to Ohio businesses, and spark revitalization in Ohio’s low-income communities. This program will help finance business or real estate investments in low-income communities by providing investors with state tax credits in exchange for delivering below market rate investment options to Ohio businesses. While Ohio has already attracted more than $1.1 billion in Federal New Markets Tax Credits, this program will give Ohio a significant competitive advantage nationally because only a handful of states have a companion program to leverage and attract Federal New Markets investments. • By collaborating with local communities and the Ohio Environmental Protection Agency, the Urban Development Division coordinates Ohio’s brownfield revitalization efforts. At the center of these efforts is the Clean Ohio Fund. Passed by Ohio voters in 2000 and renewed in 2008 to turn blighted properties into productive use, the Clean Ohio Fund is transformative in assisting communities and local governments to realize their brownfield revitalization goals. The Clean Ohio Revitalization Fund is a key financial component to help a community build economic capacity by providing funding for brownfield redevelopment, which allows a community to reclaim and improve its lands, making property viable for new development. During Fiscal Year 2010, awards totaling more than $62 million were granted through the Clean Ohio Assistance Fund and the Clean Ohio Revitalization Fund, leveraging a total of $364 million.

2010 Ohio Department of Development Annual Report

Fort Piqua Hotel Ballroom – Piqua, Ohio

• The Ohio Historic Preservation Tax Credit Program provides a tax credit for the rehabilitation expenses to owners of historically significant buildings. The tax credit subsidy is 25 percent of qualified rehabilitation expenditures, not to exceed the cap of $5 million. Qualified rehabilitation expenditures are hard construction costs that meet the requirements of the U.S. Secretary of Interior’s Standards for Rehabilitation of Historic properties. The tax credit can be applied to an applicable dealer in tangible, corporate franchise, or state income taxes.

Capitol Theatre, Cleveland Shuttered for more than two decades, the restored Capitol Theatre is the newest highlight of the Gordon Square Arts District in Cleveland’s Detroit-Shoreway Neighborhood. The community utilized $1.4 million in Ohio Historic Preservation Tax Credits to leverage the $7 million transformation of the historic theatre from a 1921 movie house to a modern, three-screen cinema. The only urban neighborhood theater on Cleveland’s Westside, the complex features independent and specialty films to complement the emerging arts and theater district.

To date, four rounds of applicants have been approved for tax credits valued at $246 million for 111 projects in 27 different cities. In total, the program is projected to leverage $1.3 billion in private redevelopment funding and federal tax credits. The program has seen 20 projects completed to date representing $149 million in total project investments and $30 million in Ohio Historic Preservation Tax Credits. These completed projects have created more than 1,500 full-time construction jobs, house more than 1,100 permanent jobs, and provided more than 600 residential units.

Annual Reports The following Annual Reports are available at www.reports.development.ohio.gov: • Clean Ohio Annual Report • Ohio Historic Preservation Tax Credit Annual Report • Ohio Brownfield VAP Tax Abatement Report

Clean Ohio Fund

Amendment of Rule Numbers 122:19-1-01 through 122:19-1-07

The Revitalization Fund awarded more than $51.6 million in rounds seven and eight.

The purpose of the revised rules is to address changes in the legislation of the Ohio Historic Preservation Tax Credit Program; the revised rules will ensure consistent administration of the program with the revised legislation and create a predictable environment for applicants and program users. The rules address eligibility and competitive selection of applicants to receive the tax credit. The rules also cover any amendments to approved applications and the certification of projects once they are completed.

The Assistance Fund awarded $10.4 million. The combined total for Clean Ohio money was more than $62 million.

Changes in Rule for the Ohio Historic Preservation Tax Credit Program

Brownfield Revolving Loan Fund Awarded $950,000, leveraging $8 million.

hi Share the Ohio Story

2010 Ohio Department of Development Annual Report

Global Markets Division “Milo’s has used the services of the Global Markets Division several times to research potential distributors for our Vino de Milo line of pasta sauces, salad dressings, and bruschettas. The international trade offices that Ohio has around the world have produced amazing, in-depth, and incredibly useful reports for us. They’ve even contacted specific companies to establish initial interest before passing the lead on to us.

As the world continues to become a smaller place and businesses have the need to build relationships and take advantage of global opportunities, the Global Markets Division is ready to assist Ohio’s businesses. The Division’s trade managers and its network of international offices promote the export of Ohio goods and services, and work to solidify Ohio’s position as the premier location for investment and business growth. Ohio continues to be in a powerful position nationally when it comes to exports. The state has been nationally ranked as a top 10 exporting state for more than 15 years. The Global Markets Division continues to play a vital role in building on this tradition of excellence. The Global Markets team focuses on increasing exports from small- and mediumsized enterprises through counseling sessions and customized export projects. Whether the team is working with potential sales channels in India or meeting with a company in Cleveland, the end goal is to strengthen Ohio’s economy through exports. A number of Ohio’s most important business partnerships were initiated by a phone call or meeting through the Global Markets Division. In Fiscal Year 2010, the Global Markets team counseled more than 575 clients and organizations in the State of Ohio and completed more than 390 export projects.

In Japan, this has resulted in a key customer that is now ordering container loads of product from us on a regular basis. I can’t speak highly enough about the division … and the staff. They are persistent, thorough, and incredibly helpful, and provide a critical service for companies in Ohio.”

Ohio is the seventh-largest exporting state in the United States, exporting more than $34 billion in 2009. More than one-quarter (25.9 percent) of all manufacturing workers in Ohio depend on exports for their jobs – making the role of the Global Markets Division to promote our state’s diverse regions as ideal locations for capital investment from foreign entities increasingly important. Our efforts have helped make the State of Ohio the seventh-largest state for foreign direct investment.

Jonathan Leal, Founder Milo’s (Athens, Athens County)

Milo’s – Athens, Ohio

2010 Ohio Department of Development Annual Report

hi “As a small domestic producer of pipe support products (mostly for fire protection), I was looking to expand our reach beyond the USA. … (The Department) provided a list of the various contacts that were made in the search for distribution. I followed up on the reports and was successful in establishing new distribution for Globe Pipe Hanger Products in each of the three regions. As a result: • Export sales have increased from 4.7 percent to 9.3 percent of our sales volume.

30th anniversary of Sister-State, China’s Hubei Province – Columbus, Ohio

• This increase has helped to offset sales losses that we experienced in our domestic business due to the downturn in our economy.

Over the years, the Division has helped bring in significant investment for Ohioans. More than 3,363 international establishments from 41 countries are operating in the state, employing between 190,000 and 230,000 people in Ohio. From 2007 to 2009, the Global Markets Division assisted in initiating additional foreign-owned investment projects in Ohio totaling $2.75 billion, which are projected to create more than 8,400 jobs.

• International sales revenues have helped to keep Globe associates employed. • Globe Pipe Hanger Products is now a truly ‘global’ company.

Targeted Industries • • • • • • • • •

The full impact of our distribution arrangements with these new customers will be felt in the months and years ahead as they ramp up our product line with their customers.”

Advanced Energy and Environmental Technologies Aerospace and Aviation Agriculture and Food Processing Bioscience and Bioproducts Corporate and Professional Services Distribution and Logistics Instruments, Controls, and Electronics Motor Vehicle and Parts Manufacturing Polymers and Advanced Materials

Dan Collins, Vice President Sales & Marketing Globe Pipe Hanger Products, Inc. (Cleveland, Cuyahoga County)

The Targeted Global Markets Strategy continues to be a driving force in foreign direct investment attraction, where the Global Markets Division has developed country-specific targets focusing on key opportunities for our state’s targeted industries. Through this initiative, we will continue to look for prospects that benefit the citizens of the State of Ohio through employment and growth opportunities through foreign direct investments.

Annual Reports The following Annual Reports are available at www.reports.development.ohio.gov: • Ohio Exports 2009 • International Operations in Ohio

2010 Ohio Department of Development Annual Report

Ohio Tourism Division Key Marketing Successes

The business of tourism is a vital component of Ohio’s economic health and overall prosperity, providing a significant impact on our local and statewide economy and contributing to quality of life. In fact, overnight leisure trips in Ohio increased 6 percent during 2009 and visitor spending totaled $36 billion. The Ohio Tourism Division is a destination-marketing organization working with Ohio’s travel industry – including convention and visitors bureaus, attractions, restaurants, accommodations, state parks, arts and cultural institutions, and festivals – to effectively promote Ohio’s quality tourism experiences. Initiatives such as Ohio’s Tourism Campaign and our Multi-Cultural Tourism Initiative are designed to strengthen Ohio’s overall image as The State of Perfect Balance®.

2009 Economic Impact of Tourism: • Visitor Spending: Generated $36 billion in total sales across Ohio in 2009 • Taxes Generated: $2.5 billion in total taxes ($1.5 billion state and $1 billion local taxes) were generated by tourism in 2009. • Jobs: 437,000 full-time equivalent jobs are supported by tourism in Ohio (8.6 percent of all jobs), with a total income of $10 billion. • Visits to Ohio: 171.2 million trips were taken to and within Ohio during 2009. While overall, visitation was down across the country and Ohio last year, Ohio actually grew its number of overnight leisure trips by 6 percent over 2008. Leisure travel is where the Division focuses 95 percent of its resources.

The Ohio Tourism Campaign bolsters tourism in our state by providing cost-effective partnerships through advertising, public relations, online resources, social media channels, telemarketing and information fulfillment, and research. We provide travel industry and consumer trends to the Ohio Tourism Industry, information critical to formulating successful marketing programs and initiatives. In addition, we provide technical assistance in all areas of destination marketing to our partners on an ongoing basis. During Fiscal Year 2010, the Ohio Tourism Division introduced a number of new, innovative marketing initiatives designed to deliver a message of exciting, valueoriented travel opportunities close to home for budget conscious consumers. Programs included the Ohio “Too Much Fun” Mobile tour, Twitter flash sales, myOhio contest, a media blitz, and creation of a mobile version of DiscoverOhio. com. To increase the breadth and depth of Ohio’s tourism marketing messages, the Division created partnerships with new, nontraditional partners within Ohio’s Tourism Industry for each of these programs. These partnerships created costeffective ways for Ohio’s Tourism Industry members to use the Division’s programs, helping the Division more effectively tell the Ohio Story and allowing our partners to better execute their marketing programs by utilizing tactics they could not have afforded on their own. In addition, the Ohio Tourism Division’s Multi-cultural Tourism marketing effort utilizes a combination of aggressive public relations and promotional strategies targeting African-American consumers in our primary markets. By leveraging our resources with key multicultural media outlets and targeted special events, the Division was able to connect industry’s experiences with an important audience in a welcoming and enticing manner to generate exposure and publicity that will drive additional visitor spending.

2010 Ohio Department of Development Annual Report

New Partnerships and Program Successes Key Marketing Successes

In addition to our ongoing slate of marketing activities and programs, we added the following innovative items:

2009 “Too Much Fun for Just One Day” Advertising Campaign Return on Investment:

• Ohio “Too Much Fun” Mobile Tour: In a non-traditional partnership involving Ohio-based companies including Honda Manufacturing of North America, Speedway, Elmer’s Glue, and 15 destination/attraction partners from across Ohio, the Ohio Tourism Division successfully launched and completed its first-ever mobile tour with more than a dozen stops at major festivals and events in both in-state and out-of-state markets. This partnership included a tourism branded Honda Element, trailer, and a mobile tent with a prize wheel and activities. This stimulated consumer interest and generated more than 315,000 on-site interactions, and thousands of leads for our partners, while giving out valuable travel discounts and package offerings to help drive additional visitor spending to and within Ohio and strengthen the awareness and brands of our non-tourism partners and their products.

• Launched in May 2009, the campaign generated an estimated $360 million in visitor spending.

• For every $1 invested by the state in tourism marketing, there was a return of $13 in total taxes. In 2008, the return on investment was $12 for every $1 invested.

• Media Blitz: A public relations media blitz shared Ohio’s tourism story with 3,283,803 people in Ohio and surrounding states. • DiscoverOhio.com Mobile website: To keep Ohio tourism opportunities in tune with the rising number of consumers using web-enabled mobile devices, the Division launched a mobile version of DiscoverOhio.com. This version is formatted to fit on smaller hand-held devices and offers users critical tourism information on the go. The program was structured to help industry members increase their mobile presence, as well with a cooperative opportunity ranging from purchasing an enhanced presence on the mobile version of DiscoverOhio. com to creating their own mobile site. • myOhio Contest: Consumers were invited to share their Ohio getaway pictures via myOhio on DiscoverOhio.com and compete for a different Ohio travel getaway (valued at $500 or more) each week in May. With great interest from the Ohio Tourism Industry, this program was extended for two additional weeks in June and resulted in the addition of more than 100 photos and videos. • Twitter Flash Sales: Each day in May, the Tourism Division tweeted about a different discounted Ohio Tourism travel deal available from the Tourism Industry. As a result of the program, the Division increased Ohio’s Twitter followers by nearly 500 (for a total of more than 3,000) and increased Facebook fans by more than 200 (for a total of more than 2,500). Through Division promotions, this program was highlighted nationally on the CBS Morning Show by travel editor Peter Greenberg and on the CBS website. • Multi-cultural Day at the Columbus Zoo: To promote Ohio tourism experiences directly to African-American consumers, the Division held a day at the zoo in partnership with 19 industry partners. The zoo provided discounted tickets, while our multicultural agency worked with radio stations to inform consumers of the event which featured an upcoming Ohio R&B artist, marching bands, and informational conversations and materials from our industry partners.

2010 Ohio Department of Development Annual Report

2009 Media Relations Return on Investment “Thank you for allowing me to participate in the Meredith Publications media mission to Des Moines. The tourism staff did a terrific job setting everything up, the culinary theme went over well with the media, and honestly, this was probably the best trip we have done. We could never execute these types of trips on our own.”

• The overall earned media program achieved 404,490,103 impressions, an increase of 39 percent over last year. Simply stated, more than 400 million people were exposed to print, broadcast, and web-based stories about Ohio tourism experiences or the business of tourism produced by non-paid media. • It would have cost nearly $7 million (advertising equivalency) if the Division had to purchase this amount of media coverage, an increase of 8.5 percent over 2008. (Figures are based solely on media results directly linked to the Division’s media relations efforts.)

Dee Grossman, Executive Director Tuscarawas County Convention and Visitors Bureau (New Philadelphia, Tuscarawas County)

Additional Quick Facts • $25 million in new tax revenue is estimated to have come to Ohio as a result of the state’s campaign. • As a result of Division marketing and promotional efforts, DiscoverOhio.com received 1,263,827 visits and 6,163,186 page views in 2009.

“(We have) sincere appreciation of the fun new marketing effort made this summer. These mobile tours to family events in our targeted markets provided extraordinary exposure. The popping visuals were a real draw generating lots of visitation and generated tons of quality leads from folks genuinely interested in traveling to Ohio.”

Annual Reports The following Annual Report is available at www.reports.development.ohio.gov: • 2009 Ohio Tourism Division Return on Investment

Joan Van Offeren, Executive Director Lake Erie Shores & Islands (Erie County)

2010 Ohio Department of Development Annual Report

Communications and Marketing Office The Communications and Marketing Office strives to Share the Ohio Story while addressing the Department’s diverse marketing and public relations needs. The Office provides marketing support for the Department’s projects, events, and programs, in addition to public relations support for each Division and serving as a news and information resource. Communications and Marketing implements a comprehensive Ohio branding strategy that is used throughout state departments, shaping Ohio’s overall image in the eyes of Ohio’s residents, businesses, and other stakeholders to promote Ohio as a great place to build your business and love your life. The Communications and Marketing Office’s efforts help position Ohio as an ideal location for capital investment. The Office works to excite the world about Ohio by promoting the state’s robust pool of talent; a highly competitive business climate; our central location supported by a world-class logistics infrastructure; and Ohio’s strong heritage of research, innovation, and commercialization. Two new programs were launched by the Office during State Fiscal Year 2010: the Ohio Ambassador Program and the Motion Picture Tax Credit program. • The Ohio Ambassador Program was launched in late June 2009 to encourage all Ohioans to understand the benefits of living and working in Ohio while sharing the Ohio story with others. A diverse state with varied regional economies and assets, Ohio offers a perfect balance between the ideal business climate for the 21st century and a more affordable, quality of life experience. The Ohio Ambassador Program encourages people with an affinity for our state to become Ohio Ambassadors and help gain recognition as the ideal state to achieve a perfect balance in life, allowing for both professional and personal success without sacrificing one for the other. A new website was launched with helpful facts and history about Ohio, and new marketing materials were created to support Ohio Ambassadors. In the first year of the program, more than 1,600 people became Ohio Ambassadors. Those Ambassadors include people all across Ohio and as far away as China, Germany, India, Japan, and Singapore. The Ohio Film Office promotes our state as an ideal location for all forms of visual production. The Office leads the state’s efforts to provide a film-friendly environment in which we work with customers every step of the way through the production process. It is aligned with three regional film commissions and other partners around the state to meet the needs of the production industry. In addition to tax incentives, the Office has made significant progress during Fiscal Year 2010 to make Ohio one of the premier locations for production. Rules Report for the Ohio Motion Picture Tax Credit

• Ohio has enacted a Motion Picture Tax Credit to enhance our production climate. The program provides for a refundable credit against the corporation franchise or income tax for motions pictures produced in Ohio. The term “motion picture,” is broadly defined and includes a lengthy list of entertainment content from feature-length films and documentaries to videos, digital media, commercials, and videogames. In its first year, tax credits valued at more than $9.18 million were awarded to nine projects, which are expected to create 3,785 jobs in Ohio. Those projects are estimated to spur $24.3 million in additional economic activity for Ohio communities.

Filing of Rule Numbers 122:21-1-01 – 122:21-1-05 Ohio Motion Picture Tax Credit The rules for the Ohio Motion Picture Tax Credit program became effective April 5, 2010, and set the criteria for program definitions, issuing application fees, reporting requirements, and issuing credit certificates as it relates to productions in Ohio.

• The Film Office created several new online resources to make filming in Ohio more attractive. A new system has been created at OhioFilmOffice.com to highlight new vendors, crew, and locations throughout Ohio. An easily accessible digital library gives visitors the opportunity to explore hundreds of location descriptions and photos, while also providing an in-depth database of production and support services such as experienced crew, equipment vendors, and art directors.

Focus on our Customers

2010 Ohio Department of Development Annual Report

Policy, Research, & Strategic Planning Publications and Reports Available Online: • Population Series – Annual – County Estimates – Place Estimates – Demographic Components of Change – American Community Survey Highlights

In a dynamic, rapidly changing world, the Ohio Department of Development remains committed to operating government at the speed of business and maintaining a customer focused culture. Ohio is focused on meeting the needs of citizens, community leaders, and elected officials by quickly and responsibly responding to their public policy concerns. The Office of Policy, Research, and Strategic Planning provides data and analysis about the economic, industrial, demographic, and program trends of the state of Ohio, its businesses, and its people. The Office is the designated liaison of the State of Ohio with the U.S. Bureau of the Census, and works in coordination with the U.S. Bureau of Economic Analysis and the U.S. Department of Commerce. Publications cover a wide range of topics and are released on the Office website throughout the year.

• Population Series – Special Reports – Decennial Census Data – County Population Projections for 30 Years •

A major thrust of education and promotion for the Office in the past year was the preparation and implementation of the 2010 Decennial Census. Outreach activities began in early 2009 as Governor Strickland established the Ohio Complete Count Committee. State Treasurer Kevin L. Boyce served as the Committee Chair and Development Director Lisa PattMcDaniel served as Vice Chair. The Office provided staff and the website to inform local officials about the once-a-decade effort, and how to empower the general population to respond. More than 200 local complete count committees were formed across the state to inform the general population. For the first time, mail-back response rates were updated daily by the U.S. Census Bureau, which the Office posted to the web. The response rate for Ohio was four percentage points above the national rate, suggesting that the households across the state responded favorably to the message and education campaign.

Economy Series – Annual – Gross State Product – Annual Exports – Major Employers – Private Investment Survey – Poverty Report – Economy Overview – Monthly

• Business & Industry Series – Annual – Industry Reports (Motor Vehicle & Polymers) – Industry Snapshots (four-page highlights of clusters)

Another successful but behind the scenes effort was seen in the preparation of the federal Neighborhood Stabilization Fund formula. Staff worked closely with U.S. Congressional staff to review proposed criteria and how the values impacted funding allocation. When the bill was passed by the U.S. Congress, the formula had been crafted to maximize funding available to Ohio.

• Business & Industry Series – Special Reports – International Corporations in Ohio (2010 edition) – Ohio Made Products

Ohio Administrative Code 122-6-01

• County Data – County Profiles – every two years by geography – County Indicators – annual by topic

Access to Confidential Personal Information The purpose of the rule is to ensure compliance with Ohio Revised Code §1347.15(B) that requires state agencies to adopt as a rule: “Criteria for determining which employees of the state agency may access, and which supervisory employees of the state agency may authorize those employees to access, confidential personal information.”

2010 Ohio Department of Development Annual Report

Boards and Commissions for which Development Provides Administrative Support • Clean Ohio Council • Development Financing Advisory Council • Governor’s Workforce Policy Advisory Board • Housing Trust Fund Advisory Board • Industrial Technology and Enterprise Advisory Council • Interagency Council on Homelessness and Affordable Housing • Minority Business Advisory Council • Minority Development Financing Advisory Board • Public Benefits Advisory Board • Ohio Auto Industry Support Council • Ohio Economic Growth Cabinet • Ohio Steel Council • Ohio Tax Credit Authority • Ohio Third Frontier Advisory Board • Ohio Third Frontier Commission • Joint Select Committee on Volume Cap • Ohio Venture Capital Authority • Water and Sewer Commission

Ted Strickland, Governor Lee Fisher, Lt. Governor

Lisa Patt-McDaniel, Director

800 | 848 1300