“Warren County stepped during a difficult time for the port when we were without a dedicated executive director,” McNamara said. “They fulfilled a necessary role in bringing some experience to table… Now that I’ve been here a year, I’m at a point where we’re comfortable moving forward without the assistance.”
Under Ohio law, port authorities can own, finance, construct and lease real estate including land, building and equipment. A port authority that buys or owns property for an expanding business, construction materials and other construction costs are tax-exempt. Also, ports can issue taxable and tax-exempt bonds, offering borrowers longer-term, fixed-rate financing than the terms of a commercial loan.
Port authorities are funded by fees for services and therefore, are dependent on a steady flow of transactions for funds.
The counties approved a pact in December 2014 whereby Warren County's Executive Director Martin Russell would offer technical and other assistance in bringing new development deals and other projects. In exchange, Warren County was paid a monthly $750 stipend and additional compensation on a per-transaction basis.
Russell said he was happy to help out.
“I am glad we were able to provide them service and help them this past year in learning some of the ins and outs of port authorities,” he said. “We hope they are extremely successful and if they need any assistance moving forward we’ll be more than happy to provide that.”
The port had a rocky couple years when former Executive Director Mike Campbell was at the helm, juggling both the port and the interim county administrator position. The port faced a deficit of about $10,000 when Campbell left in April 2014 and had borrowed $55,000 from the county commissioners.
The combination of a down economy and Campbell’s 16-month stint as interim county administrator — County Administrator Charlie Young was hired in June 2012 — didn’t help matters for the port authority. Development Director David Fehr added the port to his plate of responsibilities after Campbell left.
The port bank balance as of Feb. 29 was $92,306, and Fehr said the $9,000-plus annual consulting fee is best kept in their own coffers, but said that doesn’t mean they might not seek Russell’s help again.
“I think between Mike and I, I think we’ve learned how to run the port authority enough where we don’t need to have the same level of assistance,” Fehr said. “But there very well may be a project in the future that we’re going to cooperate on.”
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