Structured Lease
Private developers and companies can reduce project costs by leveraging the BCFA’s status as a political subdivision under Ohio law. Construction materials incorporated into a project may be exempted from sales tax if such project is constructed through a BCFA lease financing arrangement.
Typically the lease financing arrangement includes the conveyance to the BCFA of a property interest in the project site, construction of the project pursuant to an agreement with the BCFA, and a leaseback of the project site and project to the developer or company for operation. Ultimately, the arrangement is unwound in accordance with terms negotiated between the BCFA and the private developer or company, and the private party retains the federal tax benefits of ownership of the project throughout the term of the lease.
The structured lease arrangement is facilitated by the BCFA as an economic development incentive in its discretion and transaction and implementation details will vary from project to project.