Opposition to county monies going into Rocket Ventures?

The Lucas County Commissioners voted yesterday to give $125,000 to the Lucas County Improvement Corporation. The LCIC is supposed to then give the money to Rocket Ventures, a venture capital fund. Commissioner Ben Konop abstained, saying he didn't have enough information. (background here)

But this may not be the final word on the issue. Sylvania Township Trustee DeeDee Liedel has raised legal questions about the transaction. Here is her email to Rob Robinson, the chairman of the LCIC:

Rob – I have looked into the possibility of Sylvania Township ‘investing’ in Rocket Ventures via the LCIC as was brought up by Pete Gerken at the board meeting earlier this week. What I have found out concerns me greatly when it comes to the role of the LCIC and its member entities.

Point blank, townships are not allowed to make an investment in a venture capital fund. We are restricted to ‘safe’ investments, so that the taxpayers’ money is not put at risk. Further review of the rules regarding townships and CICs indicate that townships are allowed to make financial contributions to CICs to help defray administrative expenses, but we are not allowed to give additional monies.

Basically, Pete’s suggestion that the township’s use the LCIC to side-step our restrictions on ‘safe’ investments is not allowed under the Ohio Revised Code. This attempt to invest in a venture capital fund by way of the LCIC is illegal and will not be supported by me.

I have also talked to several people regarding the county’s ability to make such an investment. Per my conversations, the county is under similar restrictions regarding their investments and therefore a direct investment in Rocket Ventures would not be allowed under the ORC. Sidestepping those laws by using the LCIC is, in my opinion, highly suspect as well.

It is my opinion that the LCIC should not be used to by-pass the laws established for the safekeeping of taxpayer funds. If our member entities cannot directly make this investment, we should not allow the LCIC to be used as a middleman. In basic criminal law, the middleman is often just as guilty of a crime as the primary characters.

We have enough bad press and people questioning our activities and productivity. We certainly don’t need to bring in to question whether or not we are acting with regard to the law. I am opposed to the LCIC making an investment in Rocket Ventures on behalf of member entities. If member entities have the ability to make the investment (or believe they have the ability to make the investment) they should do so directly and not drag the LCIC into this issue.

DeeDee Liedel

Sylvania Township Trustee

The LCIC executive committee (which meets July 15) can refuse to accept the funds if the contribution and pass-through are not in compliance with the law. I think Trustee Liedel makes a good point: if the county can legally make such an investment, let them do so directly.

Lucas County buying into a venture fund?

Lucas County Commissioners have an expenditure on their agenda today to take $125,000 out of the Economic Development Fund and give it to the Lucas County Improvement Corporation so they can give it to Rocket Ventures, a venture capital fund run by the Regional Growth Partnership.

Venture capital funds are not considered 'safe' investments for public funds and are not one of the authorized vehicles for county investments. Perhaps that's why they want to funnel the money through the LCIC. But, according to news coverage of the proposal, it appears that the Commissioners, not the LCIC, will be getting the vote in the venture capital fund and will be getting any profits from the investments.

So, whether they funnel the money through the LCIC or not, this is a county investment and is intended as such.

So how can they do this when it's not authorized by the Ohio Revised Code?

And why would the RGP want to interject politics into their venture capital fund? Because that's exactly what will happen if you let local politicians participate in the funding decisions. Already Comm. Tina Skeldon-Wozniak is asking how companies are selected for funding. Knowing local politicians, they will insist upon all kinds of irrelevant criteria (green policies, living wages, etc...) when it comes to disbursing funds, as they've done in the past. And other members of the group may be intimidated by the appearance of power such politicians possess. It's happened before, so I see no reason to expect anything different with this decision-making group.

I'm a big fan of Rocket Ventures, as I believe it's a needed and well-managed fund that is contributing to the success of local entrepreneurs. I do not want it 'tainted' by local politicians who are too used to providing funds as a means of controlling decisions. And our local politicians have certainly not demonstrated any level of expertise when it comes to economic development, so I do not trust their 'decisions' when it comes to allocating any of the venture capital.

The RGP is at it again!

There they go again! The Regional Growth Partnership, as part of their national editorial marketing program, has another success to add to their list of accomplishments.

I was reading my Wall Street Journal during lunch and found this story on the front page of the second section, Marketplace.

In October, the RGP hosted Jim Carlton, for a two-day visit, setting appointments with appropriate businesses and entities and accompanying him throughout his trip. This story is the result of that visit.

The article takes an objective look at the area from our 'Glass City' reputation, tough economic times and our potential with new companies like Solar Fields, Xunlight Corp. and First Solar.

"But clean tech isn't necessarily a panacea. Only about 5,000 solar jobs have been created in the last five years in Toledo. Meanwhile, the number of manufacturing jobs lost since the 1980s is in the tens of thousands.

Cities like Toledo may also have trouble competing with domestic clean-tech hot spots like Silicon Valley, which are in closer proximity to venture capital sources. In addition, Toledo is competing against cheaper overseas locales. First Solar, for instance, is building four manufacturing plants in Malaysia. Company officials say the Perrysburg plant remains "critical" to the firm's future success.

Still, Toledo has come a long way. Stricken by manufacturing declines in the automotive and other big glass-consuming sectors, the city has been in an economic malaise for much of two decades. Its population loss in the 1990s was one of the fastest in the U.S.

Toledo acquired its Glass City moniker because of a long history of innovation in all aspects of the glass business. Owens-Illinois, Owens Corning, Glasstech and Tempglass have extensive ties here. As the traditional glass industry slowed, executives explored other uses for the material."

Kudos to the RGP for the great work the private sector is doing in promoting this region!

RGP gets $139,500 grant

I received the following press release from the Regional Growth Partnership:

TOLEDO, Ohio – For the second time since the program began, the Regional Growth Partnership (RGP) has received grant approval to help in promoting a statewide marketing campaign aimed at attracting new jobs, business and capital investment to Ohio.

Through the Ohio Business Development Coalition’s (OBDC) state matching grant program, the RGP was awarded $139,500 to support its business development and marketing initiatives. Some specific programs under the grant include the outreach to site consultants, print advertising and direct mail.

“The RGP has implemented an aggressive marketing campaign designed to promote the successes, resources and assets of our region as an ideal location for new business,” said Steve Weathers, president and CEO of the RGP. “The OBDC has done an outstanding job creating and selling the Ohio brand, and we are eager to continue our efforts on behalf of northwest Ohio to complement that state message.”

In September 2006, OBDC unveiled a new Ohio brand, summed up for the business community in the brandline, “Build Your Business. Love Your Life.” The new brandline communicates that Ohio offers balance without compromise; everything businesses need to thrive and provides ample opportunity for executives and employees to achieve their personal aspirations as well. As part of its proposal, the RGP will promote how the Toledo region uniquely delivers the Ohio promise.

Assets such as an educated and trained workforce, logistics, infrastructure and transportation capabilities, and expertise in alternative energies, all exemplify the region’s ability to deliver on the needs of businesses. In addition, cultural recognitions in northwest Ohio, including the city of Toledo’s Liv Com award, a nationally acclaimed zoo, museum and library, all demonstrate the opportunities being promoted through the Ohio brand, “Love Your Life.”

“Northwest Ohio possesses many of the resources businesses need to be successful, as well as the cultural amenities that enhance quality of life,” said Jim Hoffman, president of KeyBank and a member of the RGP Board of Directors. “This grant will help our region tell that story on a national level to site consultants and targeted industries.”

The Ohio Business Development Coalition (OBDC) is a nonprofit organization that is responsible for creating and sustaining a strong Ohio brand capable of attracting, retaining or expanding capital investment. The work of the OBDC supports the Ohio Department of Development, Ohio economic development community and Team Ohio. For more information on the Ohio Business Development Coalition visit www.ohiomeansbusiness.com.

The Regional Growth Partnership is a private nonprofit development corporation dedicated to fostering local, national and international economic growth opportunities for Northwest Ohio.

Why Ohio ad campaign

As I was reading the Wall Street Journal last Friday, an advertisement caught my eye...I'd flipped past the 3/4 page, 5 (of 6) column ad and then came back to it when I realized it was about Ohio. It's titled "Why Ohio - A Series" and it starts with this quote from Nancy Kelly, Executive Vice President of Huntington National Bank:

"Business is great in Ohio. And so is my life."

It continues with her photo and her story, concluding with this:

"For Nancy Kelly, balance is the key to success in the office and at home. Find your balance at OhioMeansBusiness.com or call 1-877-466-4551."

This ad is part of the "Build Your Business. Love Your Life." campaign sponsored by the Ohio Business Development Coalition, a non-profit group charged with developing a sales and marketing strategy for the state.

Why is this important to Northwest Ohio? Because yesterday I received the following press release from the Regional Growth Partnership:

Regional Growth Partnership Joins Forces with OBDC To Promote Northwest Ohio

TOLEDO, Ohio – Promoting a statewide marketing campaign to attract new jobs, business and capital investment to Ohio, the Regional Growth Partnership has received approval for a $54,000 matching grant.

The state grant will support the RGP’s editorial marketing initiative, which is designed to draw national and international media coverage to northwest Ohio’s strengths, resources and assets.

In putting forth its proposal to the Ohio Business Development Coalition (OBDC), the Regional Growth Partnership became the first regional economic development entity in the state to apply for and receive funding under the matching grant program.(emphasis added)

“We are excited the OBDC saw the value of our editorial marketing program, and through this grant, we can now promote both northwest Ohio and the state as an ideal location for new business,” said Steve Weathers, president and CEO of the RGP. “The Ohio brand is already recognized by investors nationwide, and we’re now building on that same message to convey all of the wonderful opportunities in northwest Ohio.”

In September 2006, OBDC unveiled a new Ohio brand, summed up for the business community in the brandline, “Build Your Business. Love Your Life.” The new brandline communicates that Ohio offers balance without compromise; everything businesses need to thrive and provides ample opportunity for executives and employees to achieve their personal aspirations as well. As part of its editorial marketing program, the RGP will promote how the Toledo region uniquely delivers the Ohio promise.

The RGP already has some successes to point to when it comes to national articles highlighting businesses in our area. Congratulations to them for being the first in the state to qualify for the matching grant!