Projects
Lockheed Martin Air Dock
Akron, Ohio
Lockheed Martin won the U.S. Department of Defense High Altitude Airship Program contract. To fulfill the contract, Lockheed Martin needed to remediate and improve its air dock facility. The company also required equipment for the manufacture of specialized material for the airships.
The Challenge:
The airdock site was a brownfield requiring environmental remediation. Lockheed Martin required off-balance sheet financing.
Benefits of Working with SCPA
SCPA partnered with state and local authorities to fund project.
SCPA’s experience enabled a creative financing solution.
SCPA has extensive experience in real estate and equipment leasing.
Project Cost: $12.2 million
Equipment: $5 million
Brownfield Cleanup: $5 million
Source Funds:
$2,215,000 - Summit County Port Authority Bond Fund
$5,000,000 - Ohio Enterprise Bond Fund
$4,952,000 - Ohio Department of Development 166 Direct Loan
$2,000,000 - Brownfield Cleanup Revolving Loan Fund
$3,000,000 - Clean Ohio Revitalization Fund Grant
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$17,167,000 - Total
$16,000,000 - Lockheed Environmental Private Investment
$43,000,000 - HAA program investment
Interest Rate:
SCPA Fixed Rate Bonds(for equipment) 5.55%
OEBF Bonds(for equipment) 5.35%
ODOD 166 Loan(for facilities) 1% in years 1-5, 3% in years 6-20
BCRLF .05%
Airdock Real Estate:
The City of Akron gifted the airdock to the Summit County Port Authority
The SCPA structured at 20-year operating lease with Lockheed Martin.
Lockheed Martin can renew the lease, return the asset, or purchase it for fair market value at the end of the lease.
Lockheed Martin will pay 85% of the lease payments.
15% of the lease payments are funded by City of Akron TIF.
The State of Ohio has a 1st mortgage on the airdock.
Manufacturing equipment:
The SCPA acquired machinery and equipment using state and port proceeds.
The SCPA leased the equipment to Lockheed for 7 years.
Lockheed Martin can renew the lease, return the assets, or purchase them for fair market value at the end of the lease.
Lockheed Martin will pay 85% of the lease payments.
15% of the lease payments are funded by City of Akron TIF.
The State of Ohio and the SCPA Bond Fund share a 1st lien on the equipment.
Brownfield Remediation;
The cleanup was funded by the U.S. Environmental Protection Agency and the State of Ohio.
The SCPA arranged funding for the cleanup.
