Professional Documents
Culture Documents
R-11-06
OHIO CULTURAL FACILITIES COMMISSION
FEBRUARY 8, 2011
WHEREAS, the Ohio General Assembly (the “General Assembly”) established the Ohio
Cultural Facilities Commission (the “Commission”) under Chapter 3383 of the Ohio
Revised Code (the “Act”) to engage in and provide for the development, performance,
and presentation or making available of culture to the public, including the provision,
operation and management of Ohio cultural facilities, as defined in the Act;
WHEREAS, pursuant to Section 3383.07(D) of the Act, the General Assembly required
that state funds, including the proceeds of state bonds, not be spent on the construction
of any Ohio cultural facility until (i) the Commission has determined that there is a need
for the cultural project and the Ohio cultural facility related to the project in the region of
the state for which the Ohio cultural facility is proposed to be located, and (ii) provision
has been made, by agreement or otherwise, satisfactory to the Commission, as an
indication of substantial regional support for that Ohio cultural facility, for local
contributions amounting to not less than fifty (50) percent of the total state funding for the
cultural project and the Commission has established guidelines for such evaluation and
determinations;
WHEREAS, the 127th General Assembly in H.B. 562 appropriated bond funds in the
amount of $850,000 in ALI C371H2 for National Underground Railroad Freedom Center,
owned and operated by National Underground Railroad Freedom Center (the “Project
Sponsor”). The Project Sponsor proposes to utilize the appropriation for construction
expenses previously incurred (the “Project”) at the National Underground Railroad
Freedom Center (the “Facility”);
WHEREAS, the Project Sponsor came before the Commission on February 11, 2010
and received approval for a Memorandum of Understanding (MOU) spelling out the
conditions under which full approval could be granted to the Freedom Center for the
most recent appropriation of $850,000.;
WHEREAS, the Project Sponsor has eliminated its debt, developed alternate plans for
continuing its operations, and has provided a guaranty to secure the $850,000
appropriation;
WHEREAS, in accordance with requirements of prior Commission approvals, the Project
Sponsor previously provided to the Commission funds for an escrow account, and
Project Sponsor has now requested return of said escrow funds in exchange for Project
Sponsor providing a guaranty of an equal amount;
WHEREAS, the Ohio General Assembly has authorized the Treasurer of State to issue
bonds for the purpose of funding Ohio Cultural and Sports Facility projects, including the
Project, which issuance the Treasurer of State has or will undertake;
WHEREAS, the Commission has reviewed the Project Sponsor’s financial statements,
revised business plans proposed guaranty, and the Commission staff recommendation,
and has also heard and considered oral presentations made at the Commission meeting
held on the date of this resolution.
(i) the Project Sponsor provides the Commission staff with evidence
of its real property interest in the site (for a period of at least fifteen
[15] years), free of any mortgages, liens or other encumbrances
unacceptable to the Executive Director of the Commission in her
sole discretion;
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(ii) the Project Sponsor provides the Commission staff with a
certification that information contained in documents submitted to
Commission staff is true and accurate to the best of the Project
Sponsor’s knowledge and belief, that this certification extends to
future submissions, and acknowledging the receipt of this
resolution and the conditions set forth herein;
(vii) the Project Sponsor provides the Commission staff with copies of
the construction bids, consultants’ contracts and construction
contracts;
(viii) the Project is Fully Funded. “Fully Funded” means that funds have
been raised for the total costs of the Project including all hard
costs, soft costs and start-up costs and any operating endowment
for the Project. “Raised” means receipt of written pledges from
creditworthy entities, written funding commitments from
governmental entities, written guarantees from creditworthy
entities (in a form approved by the Ohio Attorney General’s
Office), cash receipts or any combination of the foregoing, all as
determined in the sole discretion of the Executive Director of the
Commission;
(ix) the Project Sponsor provides the Commission staff with complete,
accurate and updated documentation of material changes in
project costs, project scope or other relevant information affecting
the organization or the Project;
(xi) the Project Sponsor has provided the Commission staff with a
copy of its resolution or ordinance authorizing its execution of a
Capital Expenditure Reimbursement Agreement, amendments to
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the Cooperative Use Agreement, Management Agreement and
Base Lease, and any other required documents;
(xii) the Attorney General has reviewed and approved the document(s)
as to form, as appropriate;
(xiii) the Controlling Board or the Director of the Office of Budget and
Management, as required by law, approves and certifies the
release and availability of funds;
(xix) the Project sponsor provides a business plan and budget for FYE
2011 and FYE 2012, approved by the Freedom Center board of
directors, addressing the necessary steps the Freedom Center will
take in the event federalization legislation does not take place;
(xx) the legal agreements for the Project are amended to require that
prior to federalization should federalization be pursued, an opinion
of nationally recognized bond counsel, acceptable to the Ohio
Public Facilities Commission (the “OPFC”), the Treasurer of State
and the Commission, and addressed to the OPFC, the Treasurer
of State and the Commission, stating that the financing structure,
ownership and/or operational/management structure will not a)
adversely affect the validity of the state-issued tax-exempt bonds;
and b) will not adversely affect the exclusion of the interest on the
state-issued tax-exempt bonds from the gross income of the
holders of the state-issued tax-exempt bonds for federal income
tax purposes;
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(xxi) the legal agreements for the Project are amended to require that
prior to federalization, the new financing structure, ownership
and/or operational/management structure for the project and
Sponsor organization is approved as acceptable to the
Commission Secretary-Treasurer, in his/her sole discretion; and
(xxii) the Project Sponsor provides evidence that the bank lien on the
Facility has been released.
Section 8. Other Matters. The Project Sponsor shall keep the Commission staff
informed in writing and by presentation at a future Commission meeting, if requested by
the Commission or its Executive Director, of any matters financial, organizational, or
otherwise that will have any impact on the construction of the Project and/or operation of
the cultural facility.
Section 9. Open Meeting. All formal actions of this Commission concerning and relating
to the adoption of this resolution were taken and adopted in an open meeting of this
Commission, and all deliberations of this Commission that resulted in those formal
actions were in meetings open to the public, and in compliance with all legal
requirements including Ohio Revised Code Section 121.22.
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IN WITNESS WHEREOF, the undersigned hereby certifies that the foregoing Resolution
was duly adopted at a meeting held on February 8, 2011 by the members of the Ohio
Cultural Facilities Commission.
______________________________
Craig A. Marshall, CPA, Secretary-Treasurer