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Port Authority to build spec building in Leetonia

LISBON – After Columbiana Port Authority CEO and executive director Penny Traina said she and her team are seeing a soaring demand for speculative buildings, the board of directors voted Monday to move forward with a new building project in Leetonia. “We are seeing a soaring demand for spec [buildings]. We get calls all the time,” Traina said. “As the state of Ohio, when they send projects our way, maybe they are looking for a thousand square feet. This building will be 60,000 square feet and the good news is you can build onto that if you have a company that’s expanding. No matter where our team goes, people are looking for space, so we have the land and hopefully we are going to have a spec building there.”

Board members voted to authorize Traina to enter into contract negotiations and a contract with Howells and Baird Inc. as criteria engineer for a speculative building project in Leetonia. According to Traina’s May director’s report, the scope of the new building project is described as a 60,000 square foot metal/steel building with an eight inch reinforced concrete floor, at least two loading docks, crane access availability, a 30 to 32 foot ceiling height, a parking lot with about 90 spaces, and approximately 3,000 square feet of office space available.

The building will be located on Port Authority land at the Leetonia World Trade Park on Industry Street on two adjacent parcels (numbers 13 and 14) with approximately 15 acres to build on with another 30 contiguous acres to the east for possible future expansion. Traina’s report described the land as shovel-ready with utility access already in place and level land without much change in slope and drainage easement is already in place. The land is 3.5 miles from state Route 11, 68 miles from Pittsburgh, 85 miles from Cleveland and 30 miles from Wellsville Intermodal Facility.

Traina said this is her team’s first spec building project. She estimated the cost will be between $4.8 and $5 million and described the capital stack breakdown. “Equity from the Port Authority will be at $500,000 and then we are looking at a bank construction loan of $2.25 million,” Traina said and added that the Port Authority plans to apply to several programs for additional funds. She said the goal is to get approximately 80 percent of the project done with grants. “Hopefully, when it’s all said and done, we would have 20 percent out of pocket for this,” Traina said.

The Rural Industrial Park Loan (RIPL) grant is a grant through the state of Ohio, Traina said. “It’s a loan first and then once the building is built, it can become a grant,” she said. “We are talking to the state right now to hopefully file for those fundings and we’d like to combine the Ohio Site Inventory Program [OSIP] grant for $500,000.”

If they succeed at getting these grants, it will be the first time that has been done. In the state of Ohio, Traina said, no one has used RIPL and OSIP together yet. “We are pretty confident that this is a really good project,” she said.

She said the Port Authority will try to tap into multiple funding opportunities. “The ARC funding we are hoping that’s going to be increased from $250,000 to $500,000. We can pair that in the capital stack and my team is researching now for additional funding.”

Board chairman Charlie Presley commended Traina and her team for their efforts. “Great work on this, because moving this forward is what this port is all about. It’s a great project,” he said. “It’s good insight, the work that you’ve all done to look at making this possible in Columbiana County and financially feasible and strong. When you go to work on this, good job. We greatly appreciate it.”

After the measure passed, Traina told board members she would keep them updated as they move forward with the building. “As I’ve said, this is in the infancy stages, very early, and we will keep you apprised as we move forward,” she said. “But we are pretty excited about it.”

In other new business Monday the board passed seven resolutions, including:

– A lease agreement renewal with Columbiana County Department of Economic Development for approximately 750 square feet of office space in the upper level at 7860 Lincole Place in Lisbon. for the sum of $917 per month

– Accepting awarded funds for the quality liquid feeds project from ODOT in the total amount not to exceed $422,640

– A notice of award to Williams Toyota Lift Inc. for a articulating boom lift snorkel model AB60J purchased for the quality liquid feeds project costing $110,920

– A notice of award to APO Pumps and Compressors, LLC for a BSD 60 Model RS45i air compressor purchased for the quality liquid feeds project costing $30,972

– A notice of award to Boiler Specialists for a vapor circulating steam generator model TG-5907-SHK-235-OS purchased for the quality liquid feeds project costing $280,481

– A notice of award to AmeriCrane and Hoist Corp. for a H4 electric chain hoist NER2020SD Harrington two-ton purchased for the quality liquid feeds project costing $6,299

– A notice of award to Fallsway Equipment Company for a 8,000 pound capacity Mitsubishi forklift FGC40CN4 purchased for the quality liquid feeds project costing $47,213.27

The total cost of the quality liquid feeds project is $845,280 with an award of $422,640 from the state and QLF paying the other 50 percent.

llehman@mojonews.com

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