Port History

The first Port Authority created in Ohio in 1955 was the Toledo-Lucas County Port Authority.  Its mission was to develop the Port of Toledo in anticipation of the opening of the St. Lawrence Seaway in 1959.  Toledo soon was joined by numerous other Port Authorities along the southern coast of Lake Erie as the Seaway opened the Great Lakes to the World.  Other Port Authorities followed along the Ohio River to assist in maritime cargo.  While transportation and water craft trade are still an important aspect of port authorities our roles have expanded to be more involved in economic development programs and now port authorities are not required to be next to a body of water.  In fact, most of our members are not bordered by navigable bodies of water at all!

Due to its broad powers and activities which may not be associated with a water port, some Port Authorities have elected to use names such as Finance Authority, Development Authority, Re-Development Authority, Airport Authority, Economic Development and Finance Authority, and Port and Economic Development Authority.  All are considered Port Authorities and authorized under the same section of the Ohio Revised Code.

Powers of a Port Authority

As with other Ohio governmental units, Port Authorities may do only what is permitted under Ohio law.  Port Authorities are governed by provisions of the Port Authority Act, Section 4582 of the Ohio Revised Code.  Ohio Port Authorities have created a strong legacy of being “value added” participants in economic development projects.  Port Authorities may exercise its powers to:

• Issue revenue bonds which may be privately placed or sold on the open market to help finance new construction and equipment;

• Acquire and improve real estate and sell or lease the project to private companies or other governments;

• Own land either as separate parcels or as part of an industrial or commercial development;

• Provide financing leases where the Port Authority owns the project and leases it to a private company. Since a Port Authority is a government unit not subject to state income taxes, such ownership is likely to exempt construction materials from state sales taxes. Such leases typically are for a term of five years after which the company is required to purchase the project from the Port Authority;

• Ports are not obligated to require the payment of prevailing wage on construction projects;

• Assist in redeveloping environmentally challenged sites including brownfields;

• Operate a Land Bank to strengthen neighborhoods and preserve property values by strategically returning vacant, abandoned and tax delinquent properties to productive use;

• Receive federal, state, and local grants for projects. If the grants are intended for a specific private enterprise, flowing such grants through a Port Authority may result in federal and state income tax savings. A private company may be required to count such grants as revenue if the grants go directly to a company;

• Assist entities in making energy efficiency improvements like roofs, windows, HVAC, insulation, or LED lighting through Property Assessed Clean Energy (PACE). The property owner asks that a special assessment be levied against the specific property sufficient to make principal and interest payments on bonds issued by a Port Authority to finance 100% of the costs of the improvements, including closing costs. Energy savings should exceed the costs of the improvements and the term of the bonds could be up to 25 years based on the life expectancy of the improvements being financed;

• Operate transit systems, railroads, airports, parking garages and ferry services;

• Manage and operate Foreign Trade Zones under the U.S. Department of Commerce which can delay or reduce payments of duties until the product leaves the FTZ;

• Dredge navigable waterways, help restore local waterways and docks and wharves for maritime trade;

• Assist other units of government in the disposal of surplus property as an alternative to auctioning the property;

• Keep information confidential. Financial and proprietary information, including trade secrets, submitted on behalf of an employer to a Port Authority in connection with the relocation, location, expansion, improvement, or preservation of that business is not a public record. Any other information submitted by such an employer under those circumstances is not a public record until the employer commits in writing to proceed with the project;

• With the consent of voters within the jurisdiction of a Port Authority, levy a property tax of up to 1-mill for a 5-year period with the proceeds to be used for any authorized purpose;

• Employ its own police force for property owned by the Port Authority, such as an airport or maritime port;

• Unless limited by the entities which created it, a Port Authority may exercise the power of eminent domain