Glass City Jungle

The Ohio Controlling Board (link) approved funding for 180 projects listed on their agenda for July 19. Six of the funding approval requests list Toledo, one lists Lucas County. Since some of you like more details about these projects than is shared in some of the releases sent out by elected officials, below you will find the title of the local projects and what is listed as the project summary. The information for Buckeye Silicon is lengthier than the others, I’ve bolded each request to make it easier for those of you who want to skim.

32 UTO0100130-11 University of Toledo requests Controlling Board approval to release $467,805.31 for the Academic Renovations project in Toledo, Lucas County, which includes a waiver of competitive selection in the amount of $398,322.80 to purchase LED lighting fixtures from Graybar Electric Company Inc., Toledo, Lucas County.

This request is for the construction of enclosures for the new generators.

With project near completion, we have unused project funding, and would like to expand the project scope to include new parking garage lighting. Our current lighting fixtures are 20 years old and have required regular maintenance/repair approx. every 3-5 years, and have long exceeded their standard life expectancy. Since many are currently in need of repair, it would be more cost effective to replace them with more efficient LED lighting, which uses 50% less energy, and would provide a safer, more visible light. The new lighting fixtures are longer lasting, since life expectancy is 22.5 maintenance-free years, and includes a 5-yr. warranty. RFP was distributed and vendor with the lowest pricing was selected. RFP tabulation and vendor quote are attached for your review.

33 UTO0100133-11 University of Toledo requests Controlling Board approval to release $376,956.00 and to waive competitive selection to contract with Fosdick and Hilmer, Inc., Cincinnati, Hamilton County, to provide professional design services for the Campus Infrastructure Improvements project in Toledo, Lucas County.
After reviewing the physical and functional condition of various buildings (involving classrooms, laboratories, residence halls, and offices), and the condition of the infrastructure supporting those areas, it was determined that we must make campus infrastructure improvements a priority. Our chilled water and heating plants have exceeded their capacities, so we now need to upgrade the existing equipment (chillers/boilers) to increase capacity. This will result in a safer and more conducive environment for all occupants.

A chilled water plant design study at The Crossings Residence Hall, which included a capacity study, as well as lay-out and design, has been completed.

53 DEV0101170-11 Development requests Controlling Board approval to authorize the issuance of a Research and Development Investment Fund loan in the amount of $1,300,000.00 to be loaned to Buckeye Silicon, Inc., for costs associated with the acquisition of machinery and equipment in Toledo, Lucas County.
As a result of the project and State assistance provided, Buckeye has committed to create nine new, full-time jobs with average hourly wages of $12.00 in the City of Toledo, Lucas County.

Buckeye is an Ohio-based subsidiary of Sphere Renewable Energy Corporation (SREC). Buckeye is a licensee of SREC’s
Reductive Combustion Process (RCP) system that produces high purity (99.999 percent pure or better) polysilicon at significant capital and operating cost savings over traditional processes.

SREC is a start-up company based in the City of Los Angeles, California. SREC has developed a less expensive and more environmentally friendly production process for polysilicon. The process has been proven at a new plant built in Taiwan under a license agreement with SREC.

SREC is currently located in the City of Los Angeles, California, and is looking to locate its first United States production and testing facility. The company will produce polysilicon for the solar and semiconductor industry through a new production process that substantially reduces the cost and eliminates environmental issues with polysilicon production.

In October 2008, Buckeye was incorporated in the State of Ohio to operate as the manufacturer and producer of high purity Green Polysilicon to be sold to the solar cell manufacturing and the ingot-wafer industries. Buckeye will utilize and operate SREC’s proprietary RCP-50 production system. Since February 2009, Buckeye has operated its office in the University of Toledo’s (UT) Advanced Renewable Energy Technology Center. UT has offered Buckeye an attractive lease, and supports Buckeye and this project.

SREC, a renewable energy sciences company, has developed a revolutionary, patent-pending Polycrystalline Silicon c-Si manufacturing process, or RCP-50 System. SREC was founded in 2001 by Dr. Mark Wu in the State of California. Dr. Wu has 20 years’ of industry experience and is the inventor of the RCP System.

Buckeye will be the exclusive licensee for North America, which will be sold to the solar cell manufacturing, semiconductor and ingot-wafer industries.

Development’s financing assistance represents approximately 35 percent of the total investment of $3,728,000 at the project site. Based on the number of new, full-time jobs created, the average cost of the Development’s financing assistance is approximately $144,444 per job.

The project involves the initiation of a small-scale high-purity polysilicon manufacturing facility in the City of Toledo. The facility will produce a minimum of 50 tons per year utilizing SREC’s proprietary RCP System. This system is a closed-loop, environmentally friendly process with no harmful waste materials.

The total project is comprised of the following sources and uses:

Project Sources:
$1,300,000 R&D Investment Loan
$1,428,000 Ohio Air Quality Development Authority Loan
$ 400,000 University of Toledo Grant
$ 300,000 Borrower Equity
$ 300,000 Working Capital, Operating Deficit Reserve Fund
$3,728,000 Total

Project Sources:
$3,000,000 Machinery & Equipment
$ 677,000 Other Cost
$ 51,000 Professional Fees
$3,728,000 Total

The Research and Development (R&D) Investment Loan will bear interest at rate of three percent (plus a .25 percent servicing fee) per annum for a term of six years. Year one will be interest only (plus a .25 percent servicing fee). The R&D Investment Loan will be fully amortized over years two through six.

Development will require shared first security interest in the machinery and equipment included in the project, which will be located at the project site. Development will require the corporate guarantee of SREC. Development will also require the personal guarantees of Dr. Mark Wu and Harrison Choi (Chief Operating Officer). In addition, Development will require the assignment of the Exclusive License Agreement with SREC.

73 DEV0101192-11 Development requests Controlling Board approval of a Thomas Edison Program grant in the amount of $175,000.00 to the University of Toledo, in Toledo, Lucas County, to support the Edison Incubator Services.

PROJECT SUMMARY

This project will expand UT’s incubator program and add staff to two additional facilities, as well as increase UT’s capabilities to deliver training and outreach to technology-related entrepreneurial companies and individuals. The increase in staff will expand the level of services that each client receives, thus strengthening the clients in the incubation program. Additional staff will also afford the director time to work with communities in the region seeking to establish incubator facilities and assist communities in the development of their incubation companies. The outcome of this investment will be the growth of new technology-based companies in northwest Ohio that will create higher paying jobs.

78 DEV0101197-11 Development requests Controlling Board approval of a Thomas Edison Program grant in the amount of $175,000.00 to the Regional Growth Partnership and Launch Accelerating Technology in Toledo, Lucas County, to support the Edison Incubator Services.
PROJECT SUMMARY

RGP will use Thomas Edison Program funding to continue its role as northwest Ohio’s premier provider of commercialization assistance to technology-based start-up companies. It is more important than ever for northwest Ohio to develop a knowledge-based economy. RGP developed Launch for that purpose, a program to transform the economy by providing high-technology commercialization assistance. Launch is chartered to serve an 18-county area of northwest Ohio. RGP’s efforts will be concentrated in marketing of the program and promotion of its client companies, and in developing relationships with entrepreneurial resource organizations that are located in the southern end of its service area.

92 DEV0101211-11 Development requests Controlling Board approval of a Thomas Edison Program grant in the amount of $1,000,000.00 to EISC, Inc., in Toledo, Lucas County, to support the Edison Technology and Industry Center services.

SCOPE OF WORK

CIFT will provide technology advancement, vertical industry cluster outreach, networking, education, and manufacturing assistance services to one of Ohio’s targeted industry clusters: agriculture and food processing. By accomplishing the tasks and objectives discussed in the work plan, CIFT will complete the transition to the lead Edison Technology and Industry Center for this critical industrial sector.

CIFT will organize into three categoriesthe those services that it currently offers to industry. It will also provide new or expanded service offerings that will be developed to complete the transition to the model envisioned in Development’s statewide strategic plan for economic development, as well as Development’s model for technology-based economic development programs, Vision 2012.

CIFT is dedicated to the enhancement of the competitive position of the food processing industry through the development and deployment of appropriate technical solutions to problems that adversely affect food quality, food safety, and food processing cost. More specifically, CIFT seeks to develop and support projects that address problems or opportunities as defined by the industry.

As in the past, the goal of each CIFT project or activity is to generate economic benefits to the industry by achieving one or more of the following:
- To enhance the quality and consistency of value added food products, thereby increasing their value to consumers and benefits to producers,
- To increase the safety of a food processing technique, thereby improving the safety or security of value added food products, and
- To decrease the costs associated with the production of a value added food product, thereby increasing the economic performance of its producing sector. Particular focus is given to project opportunities that decrease costs involved with environmental or energy related areas.

COST SHARE

EISC will provide cost share for this project of at least $1,000,000.

137 DNR0100398-11 Natural Resources requests Controlling Board approval to release $50,000.00 for the Maumee Bay State Park Bike Trail Resurfacing, Phase I project in Lucas County.

This project consists of the completion of spot repairs and total resurfacing of approximately 50% of the existing asphalt pavement bike trail within Maumee Bay State Park. The work is necessary to restore a biking/walking surface to the trail, which was originally installed nearly 20 years ago, and to avoid the risk of more serious deterioration of the pavement and aggregate base materials (which could occur if not repaired in a timely manner). All work is to be completed by October 2010.

The legal notice for advertising this project was published in the Columbus Dispatch and Toledo Blade newspapers on March 6, 13, 20 and 27, 2010. A total of ten (10) contractors, plan rooms and material suppliers purchased the plans and specifications bidding package for the single unit price and lump sum General contract, and a total of seven (7) bids were received and opened on April 6, 2010. The lowest responsive and responsible bidder was Geddis Paving & Excavating Incorporated of Toledo, Ohio. A complete tabulation of all bids received is attached to this request.

The contractor has committed to a 5% EDGE participation level on this project.

In addition to this request, a total of $123,100.00 will be provided for the construction contract and contingency from the Division of Parks and Recreation operating budget (Fund 5120), which reflects a Recreational Trail Program grant received for this project. Operating funds used for this work are designated as “Local Funds” on the attached project budget table.