DEVELOPMENT FINANCING ADVISORY COUNCIL APPROVES ECONOMIC DEVELOPMENT PROJECTS TO CREATE 299 JOBS IN OHIO

FOR IMMEDIATE RELEASE
January 31, 2005

Columbus, OH -- Governor Bob Taft today announced that the Development Financing Advisory Council (DFAC) has approved loans totaling more than $16.8 million for five economic development projects. The loans, which are pending State Controlling Board approval, are expected to create 299 jobs and retain 3,417 positions.

Harrison Ethanol LLC, to be located in Cadiz (Harrison County), will receive a $600,000 Pioneer Rural loan at an interest rate of two percent for a 10-year term to construct and operate an ethanol facility. Harrison Ethanol is an agricultural and industrial development identified as a biorefinery, which will convert agricultural products (corn) into ethanol (alcohol), corn oil, methane and carbon dioxide. Ethanol is a clean burning, and low-emission, high-octane fuel additive for motor vehicles. This more than $68 million project is expected to create of 107 jobs in the first three years of operation.

Cardinal Commerce Corporation, located in Mentor (Lake County), will receive a $1,425,000 Innovation Ohio Fund loan at an interest rate of 6.5 percent for a six-year term to acquire new computer equipment and develop new software that will further enhance the company’s products and services. CardinalCommerce is a manufacturer of software authentication systems for the credit card industry. The software will allow users of mobile devices (i.e. cell phones) to perform a variety of financial transactions and services through the device. This more than $1.9 million project will create 127 jobs and retain 32 positions over a three-year period.

Famous Enterprises Inc., located in Sebring (Mahoning County), will receive a $1 million 166 Direct loan at an interest rate of three percent for a 15-year term to purchase an existing 350,000 square-foot building. The company is a wholesale distributor of HVAC and plumbing fixtures and plans to consolidate and expand operations and better serve its customers. This $3.4 million project is expected to create 30 jobs and retain 17 positions over a three-year period.

The Boeing Company, located in Heath (Licking County), will benefit from a $1.5 million Research and Development loan at an interest rate of two percent for a 10-year term. The loan will be made to the Heath-Newark-Licking County Port Authority to renovate a building and acquire machinery and equipment that it will lease to Boeing for expansion of the company's Guidance Repair Center. Boeing is a leading global provider of commercial aviation and military aerospace systems. The company is considering relocating the production and testing operations for antennae systems for the AWACS surveillance plane, which is currently performed near Dallas, Texas. The Texas facility could be sold, forcing Boeing to relocate this operation to another company operation. This $2.1 million project is expected to create 35 jobs and retain 568 positions over a three-year period.

The Goodyear Tire and Rubber Company, located in Akron (Summit County), will receive a $7.86 million Ohio Enterprise bond and a $4.5 million Research and Development loan, both over a nine-year term. The bond will bear interest at the rate established at the time the bond is sold and the loan will have an interest rate of two percent. The financing will be provided to the Summit County Port Authority, which will make improvements and acquire machinery and equipment that it will lease to Goodyear. Goodyear, one of the world's largest tire companies, plans to decentralize its aging, central powerhouse unit into several smaller, more efficient supply units. This decentralization will significantly lower overall operational costs. Goodyear Tire and Rubber manufactures and markets tires, belts, hoses and other rubber products. This more than $22.1 million project will retain 2,800 jobs over a three-year period.

The Pioneer Rural Loan program provides loans for land and building acquisition, expansion or renovation, and equipment purchase in designated areas. The Innovation Ohio Fund Loan (IOF) assists existing Ohio companies develop next generation products in industry sectors that include: advanced materials; instrument, controls and electronics; power and propulsion; biosciences; and information technology. The 166 Direct Loan program provides loans for land and building acquisition, expansion or renovation, and equipment purchase. The Research and Development Loan Fund (R&D) targets large investments from companies involved in research and development projects with significant assets and sales, and assists in financing the acquisition, construction and related costs of technology, facilities and equipment. The Ohio Enterprise Bond Fund (OEBF) provides funding for land and building acquisition, construction, expansion or renovation, and equipment purchases for commercial or industrial projects between $1.5 million and $10 million.