The CIC part 2 – the IDB years (1972-1985)

Klosterman Bakery - Springfield, OH

This is the second in a series of posts on what the Community Improvement Corporation of Springfield and Clark County (CIC) is.  A lot of the info was gathered during the process of responding to IRS follow-up as we seek 501 (c) (3) status. 

The CIC’s origins date back to 1950, when the Springfield Development Council was formed as a 501 (c) (4) non-profit corporation.  When Community Improvement Corporations were created (Ohio Revised Code Chapter 1724) as a special version of those in the early 1960s, the CIC was reincorporated using this form.  The most important power that the legislation (Ohio Revised Code Chapter 165) gave to CICs was the ability to approve tax-exempt government bonds for small issue (under $10 million) industrial projects.  These Industrial Development Bonds (IDBs) allowed companies to issue their debt (like a loan but purchased by firms like insurance and pension funds, specialty firms, etc.) as municipal (city) or county bonds, but the CICs had to approve them.  The BIG benefit of this was that the people loaning the money (buying the bonds) did not have to pay state or federal income tax on the interest they were paid.  This allowed them to provide a lower rate (because they were saving money on the tax).  Much of the recorded CIC activity (in board minutes) for the first 15 years of existence as a CIC or so were IDB deals.  It was still marketing, working projects, etc., but usually it was in connection with this financing tool (at least recorded). 

Here are brief details on 55 of the projects the CIC was involved with from 1972 to 1985.  The CIC did about 50 bond deals totalling almost $100 million and involving over 3,500 new and retained jobs:

International Harvester (IH) sales center (1973): $1.2M (million investment),  200 retained jobs.
IH truck processing center (1973): $1M expansion
D&H Manufacturers (1973): $750,000 equipment
Cascade Corporation (1974): $3.5M expansion, 280 retained, 30 new jobs
Moyno Pump Division (1974): $1.5M expansion, 510 retained, 130 new jobs
SPECO/Kelsey-Hayes (1975): $3.5M expansion, 715 retained, 65 new jobs
Olan Mills (1976): $1.5M new plant, 250 jobs
C.E. Bauer Company/Combustion Engineering (1976) – $1.1M new facility, 145 jobs retained
Cooper Energy Services (1977) – $3M, 800 retained jobs.
BOMAG USA (1978) – $1M expansion, 333 retained jobs.
• Hope Manor (1978) – $1.1M new facility, 90 new jobs.
• Wolf Industries (1978) – $1.2M new facility.
James Leffel & Company (1980) – $7M expansion, 69 retained, 51 new jobs.
Parsons Company (1980) – expansion.
I-Supply (1980) – $400K expansion, 30 retained, 20 new jobs.
Kissell Company (1980) – $2.75M expansion, 150 new jobs.
Bobby Fischer (1980) – $500K purchase of Spec Building, 28 retained, 7 new jobs.
Riverbend (1980) – $500K office purchase & improve, 6 new jobs.
• Middletown CPA Associates (1980) – $325K.
Ohio Stamping & Machine (1980) – $1.1M expansion, 27-37 new jobs.
Link-Hellmuth (1981) – $320K expansion, 20 retained, 7 new.
• O’Briens – $240K, 63 retained jobs.
Winters Bank (1981) – $600K new facility, 12 new jobs.
American States Insurance (1981) – $2M new, 125 new jobs.
Carmichael Machine (1981) – $250K expansion, 2-8 new jobs.
Bosart Company (1981) – $3.5M expansion, 75 retained jobs.
Rawac Plating (1981) – $750K expansion, 30 retained, 30 new jobs.
Corrotec (1981) – attracted to Springfield
Brown Drug Company (1981) – $500K rehab, 20 retained jobs.
Park Layne Shopping Center (1981) – $6.7M new, 225-300 new jobs
Stockdale’s Restaurant (1981) – $200K new, 10-25 new jobs.
Rittal (1982) – new German company, $55K land  sold for new facility.
Central Printing (1982) – $1M new, 66 jobs.
International Steel Wool (1982) – $950K expansion, 955 jobs retained, 12 new jobs.
Consolidated Foods (1982) – $3M new, 65 new jobs.
Showbiz Pizza (1982) – $1.35M new, 80-90 new jobs.
• Payless (1983) – $2.6M new facility, 70-75 new jobs.
Klosterman’s Bakery (1983) – $2.5M acquistion, 40-60 new jobs.
Kone Materials Handling (1983) – $3.25M acquisition, 125 jobs retained.
Villa Springfield (1984) – $3M, 231 new jobs betw. this and Tom Thumb.
Tom Thumb Glove Co. (1984) – $1.6M.
Heat Treating, Inc. (1984) – $500K expansion, 38 retained, 7-10 new jobs.
Holiday Inn – South (1984) – $2.5M expansion, 25-35 jobs.
Valco (1984) – $150K, 11-16 new jobs.
Combustion Engineering (1984) – $1.8M expansion.
Fontaine Truck Company (1984) – locates in new KTK Industrial Park.
Findlay Industries (1985) – $550K, locates in new KTK Industrial Park, 30-50 new jobs.
Vining Broom (1985) – $1M renovation, 35 retained, 20 new jobs.
Park Shopping Center (1985) – $5M renovation, hundreds of jobs retained.
OSMI (1985) – $750K expansion, 30 retained, 6-10 new jobs.
Reiter Dairy (1985) – $1M expansion, 107 retained, 19 new jobs.
Woodland Manor (1985) – $1.425M new facility, 35 new jobs.
International Steel Wool (1985) – $725K expansion, 10 new jobs.
Eagle Tool (1985) – $1.2M expansion, 11 new jobs.
Rittal (1985) – $6M new manufacturing facility, 85 new jobs.

>> CCAO article about CICs and IDBs

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