Legislative Update - June

Cleveland Mayor Bibb continues to identify spending priorities for the City of Cleveland announcing his plan for the second half of funding under the of American Rescue Plan & Recovery Act Funds, and the Ohio General Assembly ended their spring session with a flurry of activity, most importantly passing the Capital Appropriations budget.  

Bibb Names Four More to Leadership Team

Mayor Justin Bibb named new leaders to oversee community relations, public works, capital projects and the city’s approach to transportation.

The hires are:

• Frank Williams was named director of public works.  This is a return to Cleveland for Mr. Williams after serving in a management role with the city of Columbus. Prior to that, he spent more than eight years in Cleveland's division of street construction, maintenance and repair.
• Angela Shute-Woodson will serve as director of community relations and senior adviser on community and government affairs for the mayor. She will oversee the city's Office of Community Relations and the Community Relations Board.
• James DeRosa will transition from interim to permanent director of the Mayor's Office of Capital Projects (MOCAP) after serving for more than a decade as Cleveland's commissioner of the division of real estate.
• Calley Mersmann, as senior strategist of transit and mobility, is responsible for the development of a transportation policy platform and advance priority initiatives, along with transportation planning and safety initiatives and the city's public transit and mobility programs. She most recently served for four years as the bicycle and pedestrian coordinator with the Cleveland City Planning Commission.

Mayor Bibb Announces Priorities To Maximize American Rescue Plan & Recovery Act Funds

Mayor Bibb announced his spending priorities for millions of federal stimulus dollars awarded to the city through the American Recovery Plan Act. These funds are the second half of Cleveland’s roughly $512 million in federal ARPA money.  These dollars will hit the city’s account later this month.

Included in the Mayor’s list is affordable housing, violence prevention, internet access, education for all ages, lead removal, along with arts and neighborhood amenities, which includes parks, recreation and cultural offerings. The proposal also focuses on efforts to modernize and bring transparency to City Hall through technology upgrades and other investments, and filling holes in the city budget caused by revenue lost to the pandemic’s dampening effect on the economy. 

Whichever proposals Mayor Bibb ultimately wants to pursue are subject to approval by City Council, and it is more than likely that Council will likely have its own spending priorities for the money.

State Capital Bill Appropriates Billions In Construction For Ohio Passes The Ohio General Assembly

The Ohio General Assembly passed a $3.5 billion capital budget (HB 687) with appropriations for the renovation and construction of capital assets of state agencies, colleges, universities, and school districts. The bill also funds a program of grants and loans to local governments for infrastructure projects throughout the state. A portion of the money will provide funds to support targeted community projects of local or regional importance.  HB 687 now goes to Governor DeWine for his signature. 

Local and state appropriations of interest include:

• $1.7 million for Cleveland Metroparks Zoo’s planned primate rainforest
• $1 million for Phase III of the Euclid waterfront improvement plan
• $1 million for Playhouse Square
• $1 million for the Rock and Roll Hall of Fame expansion
• $1 million for the Eric Mendelsohn Park Synagogue campus restoration
• $1 million for Bellefaire Jewish Children’s Bureau Child and Youth Service Center
• $900,000 for 2nd phase renovation of the Cleveland Museum of Art Horace Kelley Art Foundation lobby
• $900,000 for the Cleveland Museum of Natural History
• $850,000 for improvements to Irishtown Bend and Canal Basin Park
• $750,000 for preservation of the James A. Garfield Memorial
• $750,000 for Greater Cleveland Foodbank
• $550,000 for the Cleveland Institute of Art
• $450,000 for MetroHealth’s Senior Health and Wellness Center
• $150,000 for MAGNET’s Manufacturing Innovation, Technology and Job Center park
• $600 million for the Ohio Facilities Construction Commission 
• $400 million for the Public Works Commission
• $400 million Higher Education Institutions and Statewide Higher Education Projects

A complete list of community projects by county can be found here. 

Prompt Pay For Private Owners Continues To Be Heard In the Ohio Senate

HB 68, sponsored by Reps. Jon Cross and Bride Rose Sweeney, received its fourth hearing before the Senate Workforce and Higher Education Committee recently.  The bill, which passed the Ohio House by a vote of 86-10, requires owners of private construction projects to pay contractors in a timely manner. At a prior committee hearing, CEA’s Chief Executive Officer, Tim Linville provided testimony stating, “Contractors and their employees should not have to wait weeks or even months to be paid for installed material and labor as this can impede pursuit of new business, decrease company efficiency and place small businesses at risk of default with their suppliers and employees.”  CEA and our industry trade association partners are hopeful that HB 68 will pass the Senate when the legislature returns to Columbus after their summer recess. 

Modification Of Historical Tax Credits Advances To The Governor for Signature 

A bill (SB 225) that will enhance Ohio’s Historic Preservation Tax Credit Program passed both the Ohio House and Senate this week and will now go to the Governor for his signature.  

Highlights of the bill include;

• Increases, from $60 million to $120 million, the amount of historic building rehabilitation tax credits that may be awarded by the Director of Development in each of FY 2023 and 2024.
• Allows several credit enhancements for rehabilitation projects approved by the Director on or after the bill’s 90-day effective date and before July 1, 2024.
• Expands eligibility to receive an Ohio opportunity zone investment tax credit allocation to investors in Ohio opportunity zones that are not subject to the personal income tax.
• Increases the cap for the FY 2022-2023 biennium from $50 million to $75 million and sets caps of $50 million for FY 2024, and $25 million for FY 2025.
• Requires the Director to conduct two annual application periods, each covering qualifying investments made during the preceding six months.

As always, if you have any questions regarding the topics below or other construction related public policy issues please contact Tim Linville, CEO at CEA at [email protected] or Glen Shumate, Executive Vice President at CEA at [email protected].