New option for Shelby economic growth through Richland port authority
By David Jacobs
While Shelby isn’t located on a port waterway, it now benefits from the same economic development tools available in Ohio’s port cities, thanks to the creation of the Richland County Port Authority.
The authority, officially established by the Richland County Board of Commissioners on June 10, provides communities like Shelby with access to specialized financing tools for business growth, including sales tax exemptions on construction materials and local control over project incentives.
“The port authority is a tool in our toolkit to assist businesses as they're looking to grow,” said Jessica Gribben, Shelby's economic development manager.
One of the main benefits of a port authority is that it can hold, buy, and sell property; however, this may not be a feature Shelby would utilize, as it already has the Shelby Community Improvement Corporation (CIC).
Ohio port authorities "have a very unique ability through what's called a capital lease to a company, which provides a sales tax exemption on building materials," Gribben detailed.
“If a company wanted to expand in Shelby, and they are going to grow their footprint and build another part of their building, the port has the ability to incentivize that project by helping to get a sales tax exemption through that capital lease project process,” Gribben said.
“That's just less money out of their expenses and back to their bottom line for the project," she added.
The Richland County Port Authority will operate under powers outlined in Ohio Revised Code Chapter 4582.21, which allow it to hold and lease property, issue bonds, and facilitate development efforts throughout the county.
Although longstanding Ohio port authorities are along waterways with ships, docks, and cargo, Richland County’s version is focused entirely on economic development, offering small cities like Shelby a way to compete for growth without leaving the county.
Gribben emphasized that, despite the name, most port authorities in Ohio are not tied to water infrastructure.
“There are some port authorities in the state of Ohio that still operate as an actual port authority that governs the comings and goings of freight and things on a waterway," said Gribben, who has been honored at the statewide level for her economic development efforts.
With the addition of Richland County, the number of port authorities in Ohio stands at 62.
"Most of those have nothing to do with any waterways," Gribben said. "They are granted -- through the Ohio Revised Code -- these authorities that help with economic development. That is how the majority of them are used."
Before forming its own authority, Richland County could use port authorities in cities like Toledo and Sandusky to assist with development efforts. But that meant less control over projects and less local benefit.
“We didn’t control those projects locally then,” Gribben said. “We don't know what kind of prioritization they got.”
Gribben added that fees associated with economic development project transactions "can now go back into our local economy."
“Instead of those fees going to a Toledo port or Sandusky port or a place like that, they stay right here in Richland County," Gribben said. "It can be used for economic development purposes, whether that's grants or lending out funds, once that pot of money builds up."
AT A GLANCE
Richland County Commissioner Cliff Mears introduced the resolution to create the port authority on June 10, with Commissioner Darrell Banks seconding the motion. The measure passed unanimously, with support from Mears, Banks, and Commissioner Tony Vero. The resolution took effect immediately.
A five-member board was appointed to oversee the authority:
-- Randa Payne, term ending May 31, 2026
-- Mark Masters, term ending May 31, 2027
-- DeLee Powell, term ending May 31, 2028
-- David Eichinger, term ending May 31, 2029
-- John Oliveri, term ending May 31, 2029
Source: Richland County government
