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Sports Facility Projects Guide

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INTRODUCTION FROM THE EXECUTIVE DIRECTOR

This Project Sponsor Resource Guide is designed to assist you, as the project sponsor, through the typical process to release and reimburse to you the state-appropriated funds for your capital improvement project. Since the state is investing money in your project, the Commission becomes a partner in your project. Our goal is to provide expertise and oversight to help you produce a top-quality professional sports facility that will benefit the people in your community and in the state. We will review your project's plans and funding to understand your project's path to success.

This guide explains the state's standards for your project and, with the guidance and expertise of the Commission's project managers, leads you through the project assessment and funds reimbursement process. Complying with the state's standards identified in this guide – some statutory, some procedural from the state's bond issuer and from the Commission – will help ensure a timely "green light" from the Commission for the reimbursement of state funds on your project's construction costs.

Ohio is fortunate to be home to a number of world-class professional sports facilities. Public investment in such community projects is important because they help to bolster community development. Professional sports facilities can provide economic stimulus by:

  • creating jobs;
  • encouraging consumer spending;
  • serving as tourist attractions;
  • contributing to a higher quality of life for Ohioans; and
  • serving as a catalyst for surrounding development, such as mixed-use retail, residential and commercial development.

In 1995, the Governor's Sports Facilities Task Force determined that long-term economic benefits stem from sports facilities that are part of a well-conceived economic development plan, particularly from the new economic activity that occurs in close proximity to those sports facilities. Such facilities have become a major component of urban revitalization efforts in Ohio and across the country. Not only do they enhance a community's image as a dynamic, vibrant city, they can also help efforts to attract and retain a vibrant workforce by contributing to a community's quality of life and by fostering civic pride.

Each of the Commission's projects is unique. If you have specific questions that are not answered in this guide, they can be answered by calling your Commission project manager. Welcome to the Commission's project family.

Sincerely,

Kathleen M. Fox, FASLA
Executive Director

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Section I: About the Commission
The Ohio Cultural Facilities Commission
Partnership with the State
Standards for Bond-Funded Sports Facilities

THE OHIO CULTURAL FACILITIES COMMISSION

Overview

As the state's agent for overseeing capital funds for cultural, sports and historical facilities projects, the Commission plays two roles. One is to protect the state's financial investment, and the other is to provide expertise to help your project succeed. A Commission project manager will be assigned to your project to provide assistance and answer questions throughout the project assessment and funds reimbursement process. For general information about the Commission and its projects, processes and administration, please visit www.culture.ohio.gov.

Roles

The Commission does not have a pool of funds from which to award grants. Instead, all the Commission's projects are assigned by the Governor and Legislature in the biennial capital improvements budget bill, with a specific funding amount designated for each assigned project. The Commission's role is to establish and implement operational policies and oversight mechanisms to ensure that public funds entrusted in our care are spent properly. We confirm project eligibility, ensure compliance with applicable laws and/or standards, and verify that each project has significant community support and a solid management plan, reviewing plans and financial materials to ensure that adequate support is in place to cover both construction and operating costs. Careful planning and supervision by the Commission will maximize the impact of the state's investment over time and help ensure that projects, once completed, will operate successfully.

Commission Members

The Commission consists of 12 members, nine voting and three non-voting. The Governor appoints the nine voting members and, in accordance with statute, these members are selected from various geographic areas of the state. The Commission also includes three non-voting, ex-officio members, including the director of the Ohio Arts Council plus two legislative members, one each appointed by the Senate President and House Speaker.

Commission Staff

The Commission operates with a small team of specialists that provide the most efficient oversight possible for the diverse and complex project assignments. The staff includes professionals trained in architecture, landscape architecture, construction and engineering, as well as in the fields of finance, communications and administration.

Commission Meeting Schedule

The Commission meets quarterly. An updated list of meeting dates and submission deadlines can be found at www.culture.ohio.gov.

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PARTNERSHIP WITH THE STATE

Overview

The Commission partners with local governments on sports facility projects that are located throughout Ohio. All of the projects undertaken through the Commission are assigned in legislation, chosen by the General Assembly and Governor due to their ability to strengthen the state's economy over the short and long terms and to contribute a local community's development and/or revitalization efforts. The Commission's oversight objective in all of its projects is to strike the appropriate balance between (a) accountability for proper use of public funds; and (b) support for local efforts to achieve quality results so that projects are successful. From the beginning of the partnership you will need to keep your Commission project manager fully informed of funding, construction progress and other issues, including any changes in project budget. The Commission continues to have a relationship with you beyond the construction phase, because the state's funding is financed by long-term bonds.

Typical Process for Funding Bond-Funded Sports Facilities

Although each project is unique, Commission bond-funded projects for sports facilities follow this general process:

  • A local governmental entity (usually a city or county government) decides it needs to expand or improve its facilities, or build a new facility.
  • The governmental entity approaches its legislators to request funding for the project in the biennial capital improvements bill.
  • The General Assembly and Governor appropriate funding for the project in the biennial capital improvements bill and assign it to the Commission for funding administration.
  • A Commission project manager contacts the project sponsor's staff and works with them to complete an on-line Project Registration Form, which provides the Commission with basic information about the project. Subsequently, the Commission project manager may schedule a site visit with the organization to tour the facility and to discuss key aspects of the project with the project sponsor.
  • When the project sponsor is ready to move forward with the project, an on-line Project Detail Form is completed and other pertinent information listed in the Roadmap Checklist in Appendix A is submitted, including detailed information about the project, the organization's financial statements and business plan, and property deed and title information.
  • Commission staff analyzes submittals on a quarterly basis. This entails preparatory work with the project sponsor representatives and staff analyses to ensure the project meets standards set forth by the Ohio Revised Code, the capital bill, the Commission, and the bond issuer, as well as to determine how the state can best help in contributing to a successful project. Feedback from these analyses are sent to the project sponsor in the form of a "punch list" of items that need to be completed prior to an appearance before the Commission.
  • The Commission meets on a quarterly basis to review and approve projects. Those projects that have successfully completed their punch-list items eight weeks prior to the meeting will be considered for placement on an upcoming Commission meeting agenda.
  • In parallel, the project sponsor works with the Commission project manager to prepare the necessary legal agreements. These agreements are outlined in the Legal Agreements section of this guide.
  • Once all the standards are met, Commission approvals have been obtained, and Commission documents are executed, funds are reimbursed directly to project sponsors on a pro-rated basis. The Commission's reimbursement is based on the amount of state funds divided by the total construction cost times the dollar amount of completed construction being invoiced.
  • The state continues to monitor the facility and the project sponsor's overall financial situation for at least the length of the long-term lease with the sports presenter, typically a period of 20 years. This entails providing information to the Commission on an annual basis as required in the legal agreements, or as needed to keep the Commission informed about any changes that may occur.

State Recognition Program

The Commission has a program for state recognition that includes mention of the state contribution to your project through appropriate means throughout the project, from before the groundbreaking through project completion. All project sponsors that receive funding through the Commission are asked to join the Commission's efforts to enhance public awareness. This is because too few people understand the state's involvement in enriching Ohio's communities. By helping to recognize the state's contribution to sports facilities, sponsor organizations and their facilities will be promoted, a "thank you" will be delivered to the local members of the General Assembly and the Governor who approved the state funding, and the state's important contribution to the betterment of Ohio communities will be recognized. Project sponsors will be asked to comply with the following state recognition program standards:

  • Provide recognition of the State's contribution on construction site signage, if signage is placed at the site (see recommended copy "A" of Appendix G);
  • Invite appropriate members of the Legislature, the Governor or his representative, and executive director of the Ohio Cultural Facilities Commission to your groundbreaking, if an event is planned (see recommended copy "B" of Appendix G);
  • Provide verbal recognition of the State's contribution at your groundbreaking, if an event is planned;
  • Invite appropriate members of the Legislature, the Governor or his representative, and the executive director of the Ohio Cultural Facilities Commission, to grand opening or re-opening events if such events are planned, and in coordination with the Commission, offer a speaking opportunity at such events. (see recommended copy "C" of Appendix G);
  • Provide verbal recognition of the State's contribution at your grand opening or re-opening event, if such an event is planned;
  • Provide recognition of the State's contribution on any planned printed materials for fundraising announcements, groundbreaking, milestone, and/or opening events, including programs, banners and easels, if materials will be printed (see recommended copy "D" of Appendix G). The content of such recognition must be approved in advance by the executive director of the Commission; and
  • Provide permanent recognition of the state's contribution on a plaque on the facility or within a "donor wall" (see recommended copy "E" of Appendix G). The form of such recognition must be approved in advance by the executive director of the Commission.

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STANDARDS FOR BOND-FUNDED SPORTS FACILITIES

Overview

Your organization has to meet certain criteria to be eligible for state funding through the Commission. One of our responsibilities is to work with you and see that these criteria are met.

This section includes a summary of the standards for Commission projects. Subsequent sections of this guide will cover the process to work with the state prior to, during, and after construction. Specific information regarding your project will be captured in document form and formalized in signed legal agreements between your organization and the Commission.

Summary of Standards

By statute, "Ohio sports facilities" are defined as all or a portion of a stadium, arena, tennis facility, motorsports complex, or other facility in Ohio that serves as a venue for motorsports events, professional tennis tournaments, or events of one or more major or minor league professional sports teams.

After local project sponsors receive appropriations through the biennial capital improvements bill, projects that are assigned to the Commission must satisfy a series of standards set forth by the Ohio Revised Code, the capital bill, the Commission, and the state bond issuer's policy and procedures before the appropriated funds can be released. This guide covers only bond-funded sports facilities. Contact the Commission staff for information on other project and funding types.

While this is not a complete list, the standards for bond-funded sports facilities projects include the following:

  • The project site must be owned by an Ohio governmental entity;
  • A major or minor league professional team, a national or international professional tennis organization, or a major motorsports events producer must serve as the facility's primary presenter;
  • The project sponsor must have a long-term lease or contractual commitments with the sports team, motorsports events producer or professional tennis organization, typically for a period of 20 years. Refer to the Eligibility section for further detail on long-term lease requirements;
  • The sports facility must be at least 85% locally funded. The state's funding contribution is as a junior partner and is capped at a maximum of 15% of the initial estimated cost of construction, as determined by the Commission, not including the cost of land acquisition. Please note that projects are not guaranteed a 15% share from the state; rather, 15% is a maximum amount. In no event will sports facilities projects receive more funds than are appropriated by the Legislature and the Governor. Refer to the section titled Financial Information for information on what qualifies as local matching funds;
  • The owner of the property may not enter into any mortgages or allow any liens to be placed on the property without the Commission's concurrence;
  • The project sponsor with which the Commission will enter into legal agreements must be an Ohio governmental entity (usually a city or county government). Please contact the Commission project manager assigned to your project if your sports facility is not owned by a local government;
  • The project sponsor is subject to the public bidding requirements of Chapters 123 and 153 of the Ohio Revised Code for all construction services and general building services contracts, unless the Department of Administrative Services determines that local ordinances or regulations are substantially similar;
  • The project sponsor must demonstrate, through a project financial review, that it possesses adequate resources to fund the project (or phase of the project, if applicable) in its entirety. A project is "fully funded" when the project sponsor can demonstrate that the funds to pay for all hard and soft costs of a project have been raised. Refer to the section titled The Concept of a Fully Funded Project for more information on what constitutes a project funded in its entirety and what qualifies as "raised" funds. Refer to the section titled Project Costs and Funding for descriptions and lists of project costs;
  • The project sponsor must demonstrate that it will have an open and operable facility for the duration of the Commission agreements. To do so, a representative of the project will be asked to certify – as accurate to the best of his or her knowledge – a financial and development plan that includes an operating pro forma or equivalent, that projects revenues, expenses and debt service (if applicable) and detailed written explanations of the assumptions used to determine the dollar figures. Refer to the Financial Information section of this guide for further details; and
  • The project sponsor will enter into legal agreements as outlined in the Legal Agreements section of this guide.

A complete list of materials required by the Commission is included in Appendix A, the Roadmap Checklist. If you have questions about the eligibility standards stated here, please contact your Commission project manager for a discussion of your specific project.

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Section II: Assessing Your Project
Submitting Materials for Review
Eligibility
Organizational Sustainability
Capital Project Planning
Property Information
Insurance

SUBMITTING MATERIALS FOR REVIEW

Overview

During the course of your project there are a number of standards mandated by state law or state policy. The standards fall into the following general categories: (1) state mandated standards, including eligibility, long-term project viability, property information, and insurance (2), capital project planning including standards related to construction administration for the project, and (3) standards relating to the construction phase. They are listed together here to give you an overview of the information and decisions you will have to make to include the state as a partner to your project.

This section covers in detail the assessment of your organization's ability to meet these standards and the materials needed from you in order to complete that assessment. This assessment must be completed prior to having state funds released in order to reimburse you for construction costs on your project.

Although the list of required information may seem lengthy, many items are simply verification of information you should have readily available. Some, though, will entail work by your staff or by your consultants. As always, your Commission project manager will be your best resource to answer your questions or resolve any issues along the way.

Potential Costs

Typically, information and materials that you have already prepared for other funding organizations, or plan to prepare, are sufficient for the Commission's review. Some costs, however, may be incurred and are not reimbursable. These may include:

  • Land acquisition costs;
  • Attorney fees to coordinate title work and to review the legal documents we will be entering into with you;
  • Fees for any environmental reports, boundary and easement surveys, and/or title work and commitment or policy;
  • Policy premiums on insurance required by the Commission's legal documents, such as property/casualty insurance, commercial general liability insurance, builder's risk insurance (during construction) and professional liability insurance;
  • Fundraising costs;
  • Project sponsor employee time

Please refer to the list of project costs found in Appendix D for additional reimbursable and non-reimbursable costs.

Project Registration and Detail Forms

One of the initial sources of information about your project is the information you provide on the Project Registration Form. As you move farther along in your project planning, you will provide additional information regarding your project on the Project Detail Form. These on-line electronic forms are available through the Local Sponsor Extranet section of the Commission's website: www.culture.ohio.gov. These forms are used by the Commission members and staff to understand your project prior to approval. Your Project Registration and Detail Form will consolidate the information the Commission will need into a single source; however, it is important that you provide additional supporting information in a timely manner as it is requested.

Project Registration Form

All project sponsors must complete and submit a Project Registration Form electronically and provide supporting documentation prior to the start of any evaluation of your project. Your Commission project manager will provide instructions on how to complete this form electronically. Our goal is to obtain basic information about your organization as soon as possible. Early completion of this form is strongly recommended, as it will help us understand your organization, and your current situation. We also request a current photograph of your facility for our web site and publications. (See Appendix A for a list of additional materials to be submitted with this form).

Project Detail Form

After we have received a completed Project Registration Form, we will need you to complete a Project Detail Form. The Project Detail Form is required in order for our Commission members and staff to fully understand the scope of your project. It also provides essential information for the financial and project reviews conducted by Commission staff. The Commission staff will review the detail form and supporting materials, complete an analysis, and make recommendations. This review will result in a "punch list" of items that need to be resolved prior to your appearance before the Commission. Your ability to resolve "punch list" issues will determine the date your project is recommended for a Commission meeting agenda. Typically, we must have all necessary materials, and all "punch list" issues completed, six to eight weeks prior to a Commission meeting in order to consider placement of your project on the meeting agenda.

Your Commission project manager will assist you with instructions on how to complete the online Project Registration and Detail Forms. Since these forms cover a range of specific information about your project, they can take some time to prepare.

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ELIGIBILITY

Overview

The owner of an Ohio sports facility financed in part by state bond funding must be an Ohio governmental entity. To confirm the local government's eligibility to receive state bond funds for the facility, the Commission will need to verify certain information about the governmental entity acting as the local project sponsor, the status of the property, and the status of the lease or contractual agreement with the sports presenting organization. Should any issues about your eligibility arise, you will need to work with your Commission project manager to resolve them.

The Status of the Project Site

The state is required to verify that the facility or real property is owned by an Ohio governmental entity and to ensure that the facility can be constructed on the project site. Supporting documentation you will be asked to submit may include, but is not limited to:

  • An accurate description of the site identifying all restrictions or encumbrances affecting the site; and
  • Proof of ownership by an Ohio governmental entity.

Long-Term Lease or Contractual Agreement with Sports Presenter or Team

Because the state will use tax-exempt bond funds to fund its portion of your facility construction or improvements, the state has a long-term (typically 20 years) interest in the facility's use for presenting sports to the public. The state is required to verify that a long-term lease or contractual agreement exists between the project sponsor and an entity capable of presenting professional sports events. The Commission will verify the following:

  • In the case of a major or minor league sports facility, a lease of not less than 20 years exists between the project sponsor and a major or minor league professional team. Specifically, the majority of the team's home games must be held in the facility unless the owner either:
    • Enters into an agreement with the governmental entity permitting the team to play most of its home games elsewhere; or
    • Gives the governmental entity at least six months' advance notice of the owner's intention to cease playing most of its home games at the facility and, during the six months after such notice, gives the governmental entity or any individual or group of individuals who reside in the area the opportunity to purchase the team.
  • In the case of a motorsports complex, a lease of not less than 20 years exists between the project sponsor and a major motorsports organization. Specifically, any motorsports organization that commits to using the facility for an established period of time shall give the governmental entity not less than six months' advance notice if the organization intends to cease utilizing the facility prior to the expiration of that established period. Such a motorsports organization shall be liable to the state for any state funds used on the construction costs of the facility.
  • In the case of a tennis facility, contractual commitments must exist, in a form acceptable to the Commission, between the project sponsor and a national or international professional tennis organization that assure that one or more sanctioned professional tennis events will be presented at the facility during each year that the bonds remain outstanding.

Findings for Recovery

The State Auditor's database contains the following statement:

"Ohio law (ORC General Provisions Section 9.24) prohibits any state agency or political subdivision from awarding a contract for goods, services, or construction to any person against whom a finding for recovery has been issued by the auditor of state, if that finding is unresolved."

Your Commission project manager will have to verify that you do not have an unresolved finding of recovery (for example, money due to the state) against your organization, and you will need to certify this in the legal documents you execute.

Declaration of Material Assistance / Nonassistance

Senate Bill 9 of the 126th General Assembly, Ohio's homeland security and anti-terrorism legislation, is designed to help deter and prosecute acts of terrorism within Ohio. It requires applicants seeking certain state issued licenses, public employment or business contracts and funding to fill out forms indicating that they have not provided financial assistance or support to a terrorist organization.

A representative from your organization, as the sponsor of a project that falls within the "business contracts and funding" application of the law, will be required to complete a "Declaration Regarding Material Assistance / Nonassistance to a Terrorist Organization" (DMA) form. It certifies that your organization has not provided material assistance to any terrorist organization listed on the Terrorist Exclusion List (TEL) that can be reviewed at http://www.homelandsecurity.ohio.gov/dma.asp. The DMA is included with this guide in Appendix C.

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LONG-TERM PROJECT VIABILITY

Overview

The Commission will determine the need for your project in the community, as required by law, and verify that you have the community support necessary in order to sustain your facility over the long term. The Commission staff will ascertain your facility's long-term operational viability, including the impact of your proposed capital project on your organization's bottom line. This may require several discussions with your treasurer or financial officer and submission of past and current financial statements and documentation, as well as financial projections included in your financial and development plan.

In order to ensure that the state's money will result in an operable sports facility, the Commission also requires that state bond money not be paid out until your project is fully funded. This means, among other items, that all associated project costs (including hard and soft construction costs, land acquisition costs, start-up and ongoing revenue needs) have been identified and verified against confirmed income sources or assets. For more information regarding the full funding of your project, see The Concept of a Fully Funded Project. You must identify all project costs and funding sources and share this information with the Commission.

Financial Information

The state will need information on your financial situation for two reasons. First, to verify the support of your community through the "local match" required by law and, second, to determine that your organization is in sound financial condition so that it will be able to complete the project and operate it as an Ohio sports facility for the foreseeable future.

Among other financial materials, your organization will be required to submit a financial and development plan for the facility, an essential piece of information that demonstrates to Commission staff how your organization is planning for the future and how your project will remain a viable, sustainable sports facility for the state of Ohio.

Once all the required materials are received, they will be reviewed and analyzed by Commission staff. Your Commission project manager will advise you of any questions or issues that arise during this analysis, and you may be asked to provide clarification or additional information as part of a "punch list." Your project cannot be presented to the Commission members before the long-term viability of your facility has been assessed by Commission staff. Incomplete financial information can delay your project's placement on a Commission meeting agenda.

It is important to note that the state's funding contribution to Ohio sports facilities is as a junior partner and is capped at a maximum of 15% of the initial estimated cost of construction, not including the cost of land acquisition. Therefore, the "local match" is an amount equal to at least 85% of the total project costs. Using materials you submit relating to the project scope of work and related costs, the Commission will determine the initial estimated cost of construction and calculate the maximum state share. It should be noted that the 15% state contribution is a maximum, and is not guaranteed; if the appropriated funds are less than 15% of the initial estimated cost of construction, then the ratio of appropriated funds to the initial estimated cost of construction is used to calculate the local match requirement.

Although specific financial information required by the Commission may vary project by project, the Commission will normally need:

  • Information to verify that you have obtained sufficient non-state resources equal to at least the local match requirement. The match must represent funds that will be used for the current construction/improvement project, and depending on the project circumstances, may be satisfied by the following:
    • Written fundraising pledge letters, pledge cards, sponsorship agreements, personal seat license agreements, naming rights, suite leases, or other written commitments signed by donors or sponsors to the capital campaign;
    • Documentation that local or federal funding has been fully approved for the project, and is not subject to other, still unmet, qualifications;
    • Certification of cash on hand or in a capital fund account; and
    • Certification of the availability of funds from a city or county auditor, based upon the local government's valid taxing authority.
  • Information to allow the Commission to understand your operating budget and constraints. This may include audited financial statements for the current fiscal year plus two or more immediately prior fiscal years. The Commission will also need to confirm any funds on hand, including investments, with information on any restrictions on how those funds can be used.
  • Information to allow the Commission to understand the long-term viability of your project and how it impacts your current and future financial condition, as outlined in a financial and development plan. The plan should include an operating pro forma that projects a minimum of five years of revenues and expenses, and includes detailed written descriptions of the assumptions used to derive the projected financial figures. The plan should include the impact of the proposed project on the organization (increases in operating costs, reduced utility costs, more visitors, etc.) as well as a cash flow plan that demonstrates your organization's ability to manage the cash flow requirements of the capital project.
  • A capital project financial plan that demonstrates full funding for your proposed project will also need to be submitted, as outlined in the next section.

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CAPITAL PROJECT PLANNING

Overview

In a similar manner to the assessment of your project's long-term viability and impact on your financial condition, Commission staff will review your capital project plans. The staff will need background on how you established the scope of your project and its costs. They will need to ascertain if your proposed project is feasible and makes sense within the context of your organization's and community's goals.

Following the assessment, items relating to project planning will be included in your "punch list." All items on the "punch list" will need to be completed prior to your project being placed on a Commission meeting agenda. This assessment process also allows the Commission staff to contribute advice and expertise toward helping to make your project a success.

The Concept of a Fully Funded Project

The Commission requires that each project be fully funded before state funds are spent on construction. As previously mentioned, it is important that the bond-funded investments the state makes are secure.

Your project is "fully funded" when you can demonstrate that the funds to pay for all hard and soft costs of your project have been "raised." "Raised" means written pledges from credit-worthy entities, written funding commitments from governmental entities and/or written guarantees and/or cash receipts, or a combination of these supported by evidence to the Commission's satisfaction.

Your capital project financial plan needs to account for all of the costs involved in the planning, design, construction and start-up phases of the project. Typically, the Commission will help reimburse "bricks and mortar" construction costs, and, in many cases, can help reimburse for design and construction management costs. Please refer to Appendix D for a list of potential project costs.

Any lines of credit, loans, local bonding, bridge financing and/or other cash flow mechanisms must be secured by acceptable written agreements. These agreements include written pledges or written guarantees from credit-worthy entities, written funding commitments from governmental entities, and/or a combination of these. These written agreements are the only instruments acceptable as security for such financing.

Adequate funding is additionally based on the idea that the project sponsor can:

  • show a positive cash flow during the construction period;
  • demonstrate that capital project debt is not financed by projected revenues from future operations unless the local government owns the team franchise and unless such revenue streams do not violate IRS regulations;
  • verify that any loans, lines of credit, or local bond issuances are backed up by written pledges, legally binding written guarantees, or governmental revenue sources that are certified to be available to cover the full amount of the debt service for any financing; and
  • provide certification of availability of funds from the local government for the full amount of the project, certified by the appropriate government official.

Project Phasing

It may be beneficial to break your project into distinct phases of work. If this approach is used, each phase will need to be fully funded (as described previously) before state bond funds are spent on the phase, and each phase will need to result in an open and operable facility. Additionally, the Commission will need to review each phase and approve expenditure of state bond funds as if it were an independent project. Consult with your Commission project manager regarding phasing strategies.

Project Costs and Funding

There are two key financial elements the Commission will need to know about your project. The first is your estimate of all the costs involved, and the second is the source of the funds that will cover those costs. These project costs and funding sources will need to be included in your Project Detail Form.

Funding Sources

All the project costs must be covered by funds already received, or pledged and confirmed in writing, and/or certified by the local government. These sources must be documented and reviewed by the Commission staff, as applicable:

  • State funding other than funds administered by the Commission
  • Federal, county or city government contributions to the project
  • Written pledges, sponsorship agreements, personal seat license agreements, naming rights, or suite leases
  • Projections of all anticipated future funding, identified by source
  • Any proposed bridge financing, loan, line of credit, any existing or planned local bond issuances, letters of credit or written guarantees
  • Certification of cash-on-hand if utilized for the project sponsor's available matching funds and/or the source for construction project costs

Project Costs

The Commission most frequently reimburses for the state share (up to 15%) of "hard" construction costs. These "hard" construction costs include: construction labor and material costs, site improvements, fixtures, furnishings, and equipment, if applicable. If the Commission agrees to fund fixtures, furnishings and equipment, sponsors must maintain and/or replace in kind those items throughout the term of your agreements with the Commission (see Entering into Legal Agreements). All items and replacement items must be tagged and an inventory must be kept.

In many cases, the Commission can also reimburse for the state share (up to 15%) of design and construction management fees, provided the selection of these consultants is made through an open qualifications-based process, and the fees charges are consistent with the fees charged for similar work by the State Architect's Office.

Project costs which are typically ineligible for reimbursement by the Commission include, but are not limited to: land acquisition costs, permits, surveys, title work, testing, bonding, insurance, utilities, and general administrative support.

Appendix D includes a list of the categories of likely costs to build and open your project. You should include all applicable items in the cost estimate you provide to the Commission. Smaller projects may not involve all the following cost categories; very complex projects may involve some additional cost categories not included on the list in Appendix D.

Construction Administration

In accordance with the Commission's governing statute (Ohio Revised Code, Chapter 3383), construction services for Ohio sports facilities are provided by or at the direction of the governmental entity that owns the facility or property. The Commission requires project sponsors to demonstrate that the team that has been assembled is capable of locally administering the construction project. The Commission has adopted guidelines that spell out the criteria that the Commission uses in making this determination, and project sponsors must submit information that documents their qualifications along with the Commission Project Detail Form. The requested information is listed in the Roadmap Checklist in Appendix A.

Following is a brief overview of how local construction administration works:

  • Contracting: The project sponsor oversees open qualifications-based competitive selection of design professionals and construction managers, completion of all of the construction documents and bid packages, advertises for bids, awards all of the contracts and oversees the project. The project sponsor is required to use a public, competitive bidding process in the selection of construction contractors, as detailed in Chapters 123 and 153 of the Ohio Revised Code, unless the Director of the Department of Administrative Services determines that local ordinances are "substantially similar," in which case local regulations can be utilized. The construction contracts must comply with the requirements contained in the Construction Administration and Funding Agreement. For more information regarding contracts, see Construction Contract Standards.
  • Funding: The project sponsor/construction administrator holds all non-state funds for the project. The project sponsor/construction administrator will pay for all invoices associated with the contracts for the project. No state funds will be paid until the project sponsor provides evidence, acceptable to the Commission, that the project sponsor has written commitments for the total costs of the project. See The Concept of a Fully Funded Project.
  • Timing of Payments: State reimbursement of funds may commence when all Commission requirements are met, legal documents executed, a determination is made by the Commission that the project is fully funded, and invoices are approved by the Commission staff. The Commission will reimburse its share of the costs associated with each paid invoice that the project sponsor submits. The state funds are disbursed on a pro-rated reimbursement basis over the duration of construction.
  • Legal Documents Required: At least two standard documents are required:

Project Construction Standards

You will need to follow all Commission standards, all applicable federal, state and local laws, including, but not limited to, the areas that follow in this section and the Construction Contract Standards section of this guide. The Commission will need to have copies of your project schedule, bid packages and insurance certificates that reflect the underlying insurance agreed to in your executed legal documents.

Prior to construction, the Commission will need to know several things about your project. In addition to the items previously mentioned, the Commission requires:

  • Project Schedule:
    • A detailed project schedule, including the projected project opening or re-opening, if applicable. Your Commission project manager needs to be kept apprised of any schedule changes that occur during the course of the project.
  • Construction Related Insurance:
    • See the Insurance section of this guide for information on builder's risk insurance, installation floater and design professional liability insurance.
  • Copies of all bid tabulations, construction documents and contractor contracts.

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PROPERTY INFORMATION

Overview

Because the state's capital appropriations are financed through long-term tax-exempt bonds, the Commission must maintain a long-term relationship with the project sponsor to provide for the continuing use of the facility to present professional sports to the public. The Commission will need to enter into a Cooperative Use Agreement for the facility and site for period of time equal to the length of the long-term lease with the sports presenter, typically 20 years. To do so, you will have to provide complete documentation that you own the site, and that nothing will prevent the operation of an Ohio sports facility there. Typically, this is the step that takes the longest to evaluate because the Commission must review title information.

We need to see all previous environmental assessments that have been done on the property. If there is no complete, current environmental report on the property, you will need to inspect your site (or have it inspected) and fill out and certify an environmental screening sheet. If items are identified that need more investigation, a formal Environmental Phase I site assessment may have to be conducted.

In its project application, the Commission asks if the property has a Current Agricultural Use Value (CAUV) designation. If the land to be developed is farmland, the Commission is required by a Governor's Executive Order to investigate and determine if the proposed site is appropriate.

Determining the State's Ability to Enter into a Cooperative Use Agreement

In determining if the Commission can enter into a Cooperative Use Agreement, several factors must be determined through supporting documentation:

  • Proof of ownership of the project site by a governmental entity
  • Are there any easements or restrictions on the property that would prevent the facility from operating as an Ohio sports facility?
  • Are there any liens or mortgages on the property? This would be determined through an examination of current a title commitment or title policy.

To determine that the citizens of Ohio will be served by the cooperative use of the property, the Commission reviews all relevant information about the property. Examination of the deeds and title material and subsequent discussions about rights and easements can affect the timely preparation of legal documents. You should provide up-to-date title work to the Commission well in advance of your desired Commission meeting date to ensure the legal documents can be executed immediately after the meeting.

Required Documentation

To verify ownership of the property, the Commission requires a copy of your deed(s) and/or a recent title insurance policy or commitment, with all the attachments describing the property restrictions. Title policies that are over six months old should be replaced with a current title policy or commitment. A legal opinion of title, in the form of a letter, may be used if the property is owned and operated by the same entity. Your Commission project manager has a sample of an acceptable opinion letter. The Commission also requires a diagram, survey or site plan that graphically represents the property.

A review of the title policy and associated paperwork must show that there are no property rights (e.g., mineral rights), easements (e.g., right of way), deed restrictions or reverters (e.g., clauses that return ownership of the property to its previous owner if certain conditions are or are not met) that would interfere with the operation of a complete sports facility.

Liens and Mortgages

The owner of the property must also agree not to enter into any mortgages or allow any liens to be placed on the property without the Commission's written concurrence.

Environmental Information

To protect the public's investment, the state must evaluate information on any potential environmental hazards on the property.

The sponsor must provide copies of any environmental reports and/or other data as necessary for the state to understand the environmental conditions of the property and surrounding properties. For most projects, an Environmental Site Assessment Phase I Report, consistent with current American Society of Testing and Materials (ASTM) standards shall be provided (Phase I). If a complete and current Phase I Report is not available and the sponsor believes that such report is not necessary, the site construction manager or other official with appropriate knowledge must complete an Environmental Site Assessment Transaction Screening Form (ESA-TS). The ESA-TS is included in Appendix E of this guide.

The ESA-TS provides a checklist of potential hazard indications for the project evaluator to complete. The evaluator should be familiar with the project, buildings, site, construction and basic environmental issues (i.e., lead paint, asbestos, radon, etc.) but does not need to be an environmental professional. The evaluation should be based on a physical inspection of the site and property. Photos can be useful in communicating the nature and extent of any potential hazard indications. If the evaluator has indicated "yes" to any questions more investigation is necessary and a written explanation of the "yes" answers should be submitted with the ESA-TS. You must provide a detailed explanation as to why a Phase 1 Environmental Site Assessment (Phase 1 ESA) should or should not be completed, specifically addressing the issues and/or questions which indicate the presence of a potential hazard. The ESA-TS requires the evaluator to certify that the information provided to the Commission is accurate.

Once completed the ESA-TS should be forwarded to the Commission, along with any explanation of answers required by that form, photographs, and copies of any previously completed environmental surveys/site assessments that have been done on any part of the contiguous property. The Commission staff may ask for additional reports or investigations as necessary to assess the risks of loss to the state due to conditions at or near the property. The decision of whether additional information on environmental conditions at or near the property will be necessary is the sole discretion of the executive director of the Commission, based upon advice from the Attorney General or other counsel.

Although not an exhaustive list, following are some common ESA-TS items that may point to situations where more scrutiny is necessary.

  • Electrical utilities or transmission lines
    • Old transformers or electrical apparatus may contain polychlorinated biphenyl (PCBs). If you are not sure that you have only the new "dry type" transformer, additional investigation may be required.
  • Sumps or floor drains
    • Sumps or floor drains may drain directly into the ground or stream, drain to a septic system, or connect to the area's storm water or sewage drains. Each situation imposes some environmental risk, either with harmful substances potentially entering the water system, or with risk to your building from water backing up. You should be prepared to determine and report where the water from your sump and floor drains goes.
  • Radon testing
    • If your basement houses offices, or other places where employees or guests will gather, you should conduct a radon test.
  • Mold
    • It is important to report the location and extent of any mold within the facility, and how you plan to eliminate it.
  • Asbestos and Lead
    • The location of any lead or asbestos containing materials should be documented and proper remediation procedures should be followed in the removal of such materials.

After reviewing the ESA-TS, the Commission may require that you undertake further investigation of the property. Any environmental assessments or Phase 1 ESAs must be completed prior to the state entering into a cooperative use agreement.

Farmland Use Determination

In accordance with Executive Order 98-03V, Ohio Farmland Protection Policy, the Commission must evaluate construction of a sports facility in the context of its impact, if any, on Ohio farmlands.

If the area to be developed is farmland, a significant factor is whether the property is registered for Current Agricultural Use Value (CAUV). This Program was implemented by the state of Ohio to permit the valuing of farmland on its ability to produce income rather than on its market value. Information about this program is available at: www.seorf.ohiou.edu.

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INSURANCE

Overview

The state will require evidence of several types of insurance with certain minimum coverages in order to protect the state's investment.

Your organization needs to carry certain types and amounts of insurance. The insurance policies must name the Commission, the bond issuer (currently the Treasurer of the State of Ohio), the Ohio Public Facilities Commission and the state as additional insureds, as well as include a waiver of subrogation. Certificates of insurance must be provided to the Commission to verify the coverages. Although each project is unique, the Commission generally requires the following types of insurance.

Commercial General Liability Insurance

This insurance protects against claims for personal injury and property damage to others in and around the facility. The Commission has standard minimum coverage requirements based on the cost of the project being undertaken and the nature of the facility. After discussion of your particular project, your Commission project manager will identify the insurance coverages required for your project. Consult your Commission project manager for information regarding the Commission's minimum insurance coverage levels.

Special Form Property Insurance

This insurance protects against damage to the facility, and normally the state requires full replacement cost insurance. For older facilities, full replacement cost would cover the amount necessary to rebuild a similar facility (i.e., same seating capacity, square footage) with current construction materials and workmanship. Property insurance should include the special perils of earthquake and flood. If earthquake and flood insurance are not appropriate based on the facility's location, the Commission will require a statement from your insurance carrier as to why such coverages are not needed. Again, specific circumstances and minimum coverages will have to be determined in consultation with your Commission project manager.

Workers' Compensation Insurance

Your organization must comply with state law concerning workers' compensation insurance.

Employer's Liability Insurance

Your organization will be required to carry employer's liability insurance for each employee for bodily injury.

Automobile Liability Insurance

Depending on the project, the Commission may require you to carry automobile liability insurance, in an amount determined after discussion with your Commission project manager. Normally, required coverage is for one million dollars.

Project-Related Insurance

Builder's Risk Insurance or Installation Floater

The minimum coverage for this policy is normally the completed value of the cultural project. This policy will have to name the Commission, the Treasurer of State, the Ohio Public Facilities Commission, and the state as additional insureds, as well as include a waiver of subrogation in favor of the same. Certificates of insurance must be provided to the Commission to verify the coverages.

Typically this insurance is carried by the contractor, but the project sponsor is responsible to ensure the requirement is fulfilled.

Design Professional Liability Insurance

This insurance covers acts, errors or omissions arising out of "professional services" provided for the project. This insurance must cover the design period through five years after completion of construction. The Commission has a list of standard minimum coverages based on the cost and nature of the project being undertaken. After discussion of your particular project, your Commission project manager will identify the insurance amounts required for your project.

Typically this insurance cost is shared between the design professional and the contractors, but the project sponsor is responsible to ensure the requirement is fulfilled.

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Section III: Preparing to Commence Work
Construction Contract Standards

CONSTRUCTION CONTRACT STANDARDS

Overview

Each project must comply with all Commission standards and all applicable federal, state and local laws, as well as with the requirements of the legal documents entered into with the Commission. The items listed below are not a complete list of contract-related requirements, but merely describe some of the topics that are commonly the subject of project sponsor questions. Of special note, the Commission strongly supports the efforts of the project sponsor, general contractor, and others to ensure a safe, accident-free job site during construction. You are responsible for compliance with and documentation of each of the items outlined in this section.

Public Bidding Procedures

Construction services and general building services contracts for Ohio sports facilities are subject to the competitive bidding procedures and requirements detailed in Chapters 123 and 153 of the Ohio Revised Code, unless the Department of Administrative Services determines that local ordinances or rules are substantially similar to the above-mentioned competitive bidding procedures, in which case, local ordinances or rules are utilized. If the project sponsor submits its documentation to the Commission detailing that local ordinances or rules should prevail, the Commission will initiate a review and approval process through the Department of Administrative Services. [The Ohio Revised Code can be accessed at: http://codes.ohio.gov. It can also be found by doing an online search for Ohio Revised Code.]

Prevailing Wage

As required in the state capital improvements bill, which included the appropriation of funds for your project, all contracts must meet the state's prevailing wage requirements as outlined in Ohio Revised Code, Chapter 4115.

If you have questions concerning the prevailing wage requirements, please access the Ohio Department of Commerce web-site at http://www.com.state.oh.us. You can also submit a request for prevailing wage rates on that same website. Alternately, the Labor & Worker Safety, Wage & Hour Bureau can be contacted at 614-644-2239.

Additional information is also available at the state architect web site, under frequently asked questions, http://www.das.ohio.gov/gsd/SAO/sao.html.

Domestic Steel

All contracts must meet the state's domestic steel requirements as outlined in Ohio Revised Code Section 153.011. Information on this requirement can be found in the Ohio Department of Administrative Services, Directive number 04-30 effective date 07-01-03, Policies Regarding the Required Use of Domestic Steel: http://www.das.ohio.gov/Directives/direct_03-04/04-30.pdf.

Mechanics Liens

The Commission requires that you put in place a system to prevent mechanics liens from being placed against the project. The construction administration and funding agreement states:

"The construction administrator will establish a retainage/escrow system for all contracts to ensure that no mechanics liens can be placed on the real property or the construction project. All prime contracts and subcontracts must include language in which the prime and subcontractors acknowledge and agree that liens can be made against the retainage/escrow and not the project or the property."

Equal Opportunity

The construction administration and funding agreement states in part:

"No contractor shall, by reason of race, color, religion, creed, sex, sexual orientation, handicap or national origin discriminate against any person who is qualified and able to perform the work....no contractor shall discriminate against or intimidate any employee hired..."
"The construction administrator shall use its best efforts to cooperate with the state's equal opportunity coordinator, with any other official or agency of the state or federal government, which seeks to eliminate unlawful employment discrimination, and with all other state and federal efforts to assure equal employment practices..."

Americans with Disabilities Act

All contracts entered into and all work resulting from those contracts (i.e., the design of the facility) shall comply fully with all applicable requirements of the Americans with Disabilities Act.

Standardized Forms

The construction administration and funding agreement states:

"The construction administrator will organize the project employing standardized forms for use by all consultants and contractors, including but not limited to, requests for information (RFI's), professional services and contractor pay requests."

Contracts, Change Orders, Invoices, and Construction Project Meetings

The project sponsor must provide copies of all contracts to the Commission within 15 days of the contracts being awarded. The Commission must be notified and given the opportunity to review, comment and consult on change orders that exceed a certain minimum (normally the lesser of 10% of the project cost or $50,000). The state will only reimburse for approved, written change orders that pertain to the project as described in the project-specific legal documents, and copies of all approved change orders must be submitted with the corresponding invoice(s). Additional details on invoice submittals are included in the Construction Administration and Funding Agreement. The Commission also requires a schedule of project meetings, with no less than 15 days notification prior to such meeting. The section of the Construction Administration and Funding Agreement "Reporting and Inspections" gives further information about reporting, inspections, and meeting requirements during construction of your project.

Not Acting On Behalf Of the State

The construction administrator must add a statement substantially similar to the following to all project contracts:

"Each party hereto recognizes and agrees that the Ohio Cultural Facilities Commission, the Ohio Public Facilities Commission, the Treasurer of State of the State of Ohio, and the state of Ohio are not bound or liable under this contract or license, as applicable, and are not responsible for the acts and omissions of the construction administrator, which is acting solely as an independent contractor."

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Section IV: Commission Meeting and Legal Agreements
A Successful Commission Meeting

A SUCCESSFUL COMMISSION MEETING

Overview

The most important preparation for the Commission meeting is working with your Commission project manager to make sure the Commission staff has, in advance, reviewed all the information needed for the Commission members to understand your project's long-term viability and its impact on your financial condition, your capital project's financial plan and the project's funding sources.

Presenting Project Results

A major milestone to a successful project is the presentation about your organization and your project to the Commission, and receiving its approval to commit state funds to the project.

In conjunction with working with you to resolve your punch list, your Commission project manager will prepare a package of information to be mailed in advance to the Commission members once your project is placed on a Commission agenda. Typically, the Commission's approval is given contingent upon certain items, such as the execution of legal documents, being completed following the meeting. These conditions will need to be met before any funds can flow to your project.

Placing Your Project on A Commission Meeting Agenda

The Commission meets quarterly and dates are scheduled a year in advance of meetings. For an updated list of meeting dates, please visit our website, www.culture.ohio.gov.

Your Commission project manager will review and analyze the information you provided as part of the assessment process. Once the Commission staff has verified that your organization and your project appear to have met the necessary requirements, a recommendation for inclusion on a Commission meeting agenda will be made. Your Commission project manager will compile the necessary information for presenting your project to the Commission. Your timeliness in submitting requested information and in responding to questions during the assessment process is critical in making a recommendation for inclusion on a Commission meeting agenda.

Meeting Deliberations

What Needs to Be Determined at the Meeting?

Although the state Legislature has appropriated funds for your project, the Commission's statutory obligation is to review your project and determine that it is well planned and likely to be successful. In accordance with statute, the Commission takes action on resolutions that:

  • Determine that there is a need for the project;
  • Determine the initial estimated cost of construction and the maximum state share, and verify that the project is "fully funded." Refer to the Concept of a Fully Funded Project section for more information;
  • Authorize the execution of appropriate legal agreements;
  • Approve local construction administration and determine local provisions of general building services; and
  • Authorize the expenditure of funds for the project.

In making its determinations, the Commission confirms that:

  • Your organization is in sound financial condition and is projected to remain so during the foreseeable future;
  • Your project has the necessary local support;
  • You have an accurate idea of how you will utilize the state funds. This means that you know the project scope, the project costs, and, if other funding will be used for the project, what costs will be covered by the state appropriation;
  • You can demonstrate the likely positive impact of the project as part of a larger economic development and urban revitalization plan for the surrounding community, and the likely long-term benefits to the surrounding community;
  • You can demonstrate the soundness of the project both architecturally and functionally (location, pedestrian and transit access, parking, ADA requirements, energy efficiency, life safety and historic preservation requirements, etc.);
  • You understand and agree to enter into the legal documents that must be signed prior to the expenditure of state funds. Refer to the Entering into Legal Agreements section of this guide for descriptions of the legal agreements. Refer to Appendix H of this guide for a sample resolution authorizing your organization to enter into legal agreements with the state;
  • You have assembled a team with sufficient expertise to properly manage the construction process and deal with all the issues that may arise during construction; and
  • You have sufficient expertise to properly manage the facility and provide general building services.

Presenting Your Information

Project sponsors will be asked to attend a quarterly Commission meeting. Commission members may ask questions which require project sponsors and Commission project managers to have a clear understanding of the project's costs, sufficient project funding, the facility's role in economic development for the surrounding community, the qualifications of the team proposed for local construction administration, and the status of local fundraising. Questions about the accuracy of projected operating revenues and expenses may also be raised.

All official approvals, including expenditure of funds for any given project, must be approved by a majority of the voting members of the Commission – at least five affirmative votes.

After Commission approval, you can move on to the next milestone, executing the required legal documents, followed by project construction and invoice payments.

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ENTERING INTO LEGAL AGREEMENTS

Overview

Legal documents explain in detail the responsibilities of all parties – the state, the project sponsor, and the construction administrator. In most cases, you, as project sponsor, will take on the roles and responsibilities of facility owner, manager, and construction administrator.

Legal Agreements

The legal agreements you will enter into typically include:

  • Cooperative Use Agreement – The project sponsor maintains control over the facility's operations. For this reason, a Cooperative Use Agreement is entered into. The purpose of the Cooperative Use Agreement is to ensure that professional sports will be presented to the public for at least the length of the bond term and the long-term lease with the sports presenter (typically 20 years), in exchange for the state providing capital improvements funding (click here for details on the required long-term leases). The Commission does not involve itself in the day-to-day operations of the facility, but instead relies upon the project sponsor to manage the facility and present sporting events. The Commission's interest is in ensuring that professional sports are presented to the public and that the state-funded facility or improvements are properly built and maintained.
  • Construction Administration and Funding Agreement – Project sponsors must successfully demonstrate their capabilities to oversee construction projects, and upon Commission approval, will enter into a Construction Administration and Funding Agreement with the Commission. The agreement includes details regarding construction administration services, the project sponsor's responsibilities, and conditions for payment by the Commission. It details state requirements such as payment of prevailing wage and use of domestic steel. It also outlines the invoicing process for the state funds. These funds are normally distributed on a reimbursement basis to the project sponsor once copies of paid invoices, including all backup documentation, have been reviewed by Commission staff.

Depending on your situation, additional legal documents may be required such as:

  • Non-Disturbance and Estoppel Agreements (if the sponsor leases the facility from a separate governmental entity);
  • Consents or Subordination Agreements (if there is special financing for the project such as local bonds, letters of credit or outstanding mortgages).

Process for Executing Legal Agreements

Sample Agreements

Your Commission project manager will make available a sample set of documents which will allow you and your legal counsel to review the Commission's standard language and requirements. Any issues from review of these documents that you or your counsel believe do not reflect your project's situation should be communicated to your Commission project manager as soon as they are identified.

Resolution or Ordinance

The local governmental authority will need to pass a resolution or ordinance authorizing it to enter into legal agreements with the Commission. The resolution or ordinance must indicate who will sign the agreements. The Commission has a sample resolution drafted for this purpose, included in Appendix H.

Project-Specific Information

Once the Commission has an understanding of your project's scope and costs, your Commission project manager will begin a dialogue on what information is needed to draft the legal documents specific to your project. Final documents are prepared and forwarded for signature. The authorized representative of the project sponsor signs the documents first, and then sends them to the Commission for the signatures and approval by the Attorney General and the Commission.

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Section V: Construction and Reimbursement
Managing the Construction Phase
Getting Your First Invoice Paid

MANAGING THE CONSTRUCTION PHASE

Overview

During the Construction Phase, the Commission needs to be kept informed of any changes in project scope, resources, funding and schedule. The Commission's legal documents outline standards related to the use of the facility, construction oversight, state recognition, and other matters for projects funded with state bond funds. Adherence to these standards must begin before contracts are executed, in order to ensure state reimbursement.

Management Considerations

How you manage the day-to-day details of your project is something that will vary with the size of your project, your staff, and your in-house expertise. No matter your particular arrangement, clear communication and documentation must be provided to the Commission on the project progress and any changes to project scope, resources, available funding, or schedule. Of special note, active involvement by all parties to ensure an accident-free worksite should be a central management goal.

Review of Requirements

The Commission's legal documents, particularly the Construction Administration and Funding Agreement, lay out requirements for projects funded with state dollars. Careful monitoring is required in order to ensure full compliance, and adherence to these standards is necessary in order to ensure reimbursement of your project costs.

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GETTING YOUR FIRST INVOICE PAID

Overview

The steps to obtain state reimbursement begin early in the construction process, well before signed and certified invoices are submitted with supporting documentation.

Electronic Funds Transfer

Processing of state payments is accomplished through an electronic funds transfer (direct deposit) into the project sponsor's bank account. By utilizing the electronic funds transfer system, your payment is deposited directly into your account, reducing the chance of error and eliminating the time to receive the payment via mail.

The Authorization Agreement for Automatic Deposit of State Warrants (along with instructions) is included in Appendix I, and should be completed as soon as you sign legal documents with the Commission. Please provide a copy of the form with an original signature of an authorized representative to your Commission project manager.

State Accounting System

If your organization has never received state funding or has not received state funds recently, your organization will need to be entered into the state's accounting system through submission of an IRS W-9 form, included as Appendix B of this guide.

Reimbursement Guidelines

Projects are eligible for reimbursement of hard construction costs upon the execution of legal agreements and completion of all Commission requirements. It is important to note that typically only "hard" construction costs are eligible for reimbursement by the Commission. Please refer to the section in this guide titled Project Costs and Funding for a list of the categories of likely costs to build and open your project.

Requirements

The Construction Administration and Funding Agreement contains specific requirements that must be fulfilled by the project sponsor for the bidding, award and execution of construction contracts, as well as the submittal of invoices for reimbursement of construction costs.

Prior to Submission of Invoices

The Commission must receive copies of bid documents, bid tabulation sheets and copies of construction contracts for all contractors that will be reimbursed with state funds. The Commission retains the right to review, comment and consult on the content of bid documents, prior to distribution to the public. The bid tabulation sheets should identify all bidders and clearly identify which bids and which alternates (if any) were accepted.

All executed construction contracts must be submitted to the Commission. Contracts must comply with requirements previously described in the section on Construction Contract Standards. Your Commission project manager will be unable to approve reimbursement of any costs for a project unless the requirements are specifically addressed and implemented on all contracts.

Before reimbursing your first invoice, the Commission will need to determine that all outstanding conditions from the Commission resolution and all requirements in the Construction Administration and Funding Agreement have been completed.

With All Invoice Submissions

The project sponsor should utilize standard forms similar to the AIA application and certificate for payment forms to review and approve construction invoices, as confirmed by the sponsor's design or construction management representative. The forms used must clearly identify original contract values, changes in scope and cost, work completed in the field, retainage withheld, current payment due and the balance of work yet to be completed. Please see your specific Construction Administration and Funding Agreement for details.

Your request for reimbursement will include a signed certification found in your Construction Administration and Funding Agreement which states:

"By signing below, I certify that the charges being invoiced for have been paid and are for actual work completed on the Sports Project for the period from _______ to _______, and the charges are true, accurate and appropriate and that no liens have been filed on the Sports Project or the Facility. I further certify that all work has been done in compliance with all applicable laws, including but not limited to prevailing wage law."

See the section on Mechanics Liens and your specific Construction Administration and Funding Agreement for details.

Invoice submittals should include copies of the contractor invoices, copies of the checks or vouchers used to pay the contractors, a summary of the request (a sample of which is included with the Construction Administration and Funding Agreement), and a signed certification (see above). Invoice submittals should also include reports and documentation specified by the agreements between the project sponsor and the Commission. For example, monthly progress reports, construction coordination meeting minutes, change orders, schedule updates, and progress photos should be included with invoice submittals, if required by your specific agreements.

Reimbursement

Your Commission project manager will review the reimbursement request and contact you if any additional documentation is required. The typical turnaround time from submittal of a complete and accurate invoice to reimbursement is 30 days or less.

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Section VI: Ongoing Partnership
Project Completion
Long Term Obligations

PROJECT COMPLETION

Overview

After the project is completed, you will continue to have a relationship with the state and will be required to provide periodic reports and updates to the Commission. The Commission's cooperative use interest continues for a period of time after the project is completed, typically 20 years, or the length of the long-term lease with the sports presenter. Project completion is typically documented by a copy of the certificate of use and occupancy.

Cooperative Use Interest

The Commission's cooperative use interest begins upon the execution of the Cooperative Use Agreement and expires on the later of: a) 15 years from the project completion date; or b) the date upon which all state bonds issued to finance or refinance the project have been paid in full. Project completion is determined by the date of a final certificate of use and occupancy, or the date as determined by the Commission as the project completion. If the Commission determines the project completion date, the sponsor is notified by a letter from the Commission's executive director. (The letter from the Commission would follow receipt of a notification letter from the project sponsor provided to the executive director when a certificate of use and occupancy is not required.)

Lessons Learned

After your project is complete, your Commission project manager will ask you to fill out a questionnaire, and do a follow-up interview with key members of your organization. The questionnaire and interview have two basic goals. The first is to capture how the Commission can improve the services it offers to project sponsors. What did we do well, and where do we need to improve? The second goal is to capture knowledge about sports facility projects in Ohio. What happened on your project that would be useful for other project sponsors, legislators, and community leaders to know about building first-class sports facilities? What did you learn during the process that you wished you had known at the beginning? Were the goals you set for this project realized? Why or why not? Only by critically assessing how the project went, can improvements be made that benefit future Ohio sports facility projects and, in a broader sense, other Ohio citizens.

Being a Sponsor Mentor

Since the Commission is assigned new projects with each biennial capital bill, there will continue to be organizations that are new to working with the Commission. The Commission maintains a list of project sponsors who are willing to mentor these new organizations on the ins and outs of completing a successful project. After your project is complete, please consider becoming a sponsor mentor and talk it over with your Commission project manager.

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LONG TERM OBLIGATIONS

Overview

During the term of the Cooperative Use Agreement, the Commission will need to see annual reports and other documentation about your organization and the facility. These are normally due shortly after the end of your fiscal year.

Annual Reports

The Commission requires several reports on a periodic basis once the legal agreements have been signed. These reports provide information to the Commission that your organization is in good financial health and that you are presenting professional sports to the public at your facility. On a yearly basis, normally within four months of the end of your fiscal year, the Commission must receive:

  • Certification that you have taken all actions so that the state bonds remain tax-exempt. The Commission's standard language is included as Appendix J of this guide;
  • A written report of the uses made of the facility during the previous fiscal year to illustrate that you have been presenting sports events to the public;
  • A projected schedule of events for the current fiscal year to illustrate your plans to present sports events to the public in the future;
  • Financial information, including an audited financial report;
  • Copies of all insurance certificates for all the types of insurance agreed upon in the legal documents;
  • Any other documentation which may be required by the Commission, depending on the special conditions or situation of your organization or facility.

Triennial Reports and Evaluations

Every three years the Commission requires the submission of your Emergency Procedures Manual. Also, insurance coverages are normally re-evaluated every three years to ensure adequate coverage.

Continued Sharing Of Information and Commission Visits

In addition to the annual reports, please keep the Commission apprised of any significant changes in your operation or financial situation. Should such changes occur, it is important to share them with the Commission as soon as possible. This will allow the Commission to assist and advise you, as well as protect the state's investment. Your Commission project manager will make periodic visits to your facility to see how the project is faring over time.

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