Budgets & Financing: Bellingham, Cleveland, Lake Charles, Palm Beach, Plaquemines

The Port of Bellingham’s draft 2014 Strategic Budget proposes keeping property tax rates flat, completing major airport projects, repairing marine infrastructure and maintaining a strong focus on countywide job creation. The board of directors of the Port of Cleveland has approved financing to help redevelop a former mall in a Cuyahoga County community about eight miles from downtown Cleveland. The Louisiana State Bond Commission recently approved more than $100 million for port projects in Lake Charles and Plaquemines Parish. The Port of Palm Beach will save more than $1.9 million in interest cost from the refinancing of its 1999A Revenue Bonds.

"This has been a huge construction year for the port with our airport and marina construction projects funneling more than $1 million a month into the local economy," said Port Executive Director Rob Fix. "Next year, we will be wrapping up the $38 million airport expansion and focusing more on repairing marine facilities and seeking development partners for the Waterfront District."

Leaving the property tax rate unchanged at just under 30 cents per $1,000 of property value means the owner of a $275,000 home will continue to pay about $82 in property taxes to the Port of Bellingham. Property taxes make up about one quarter of the port’s operating budget.

Completing the first development agreements for the Bellingham Waterfront District.
Moving ahead on environmental cleanup and habitat restoration projects.
Attracting and expanding marine trades businesses through marketing and site improvements.
Managing the growing Bellingham International Airport to gain additional revenue and completing the airport master plan.
Redeveloping the Bellingham Shipping Terminal and adjacent Log Pond Area to gain new activity and industry.
Stimulating economic development and job creation through countywide marketing and business outreach services.
Restoring and repairing aging marine infrastructure.

Environmental projects will be a big focus in 2014, with more than $33 million budgeted for cleanup work in a variety of ecology-designated state Model Toxic Control Act sites, including the Whatcom Waterway, the former Georgia Pacific site, the Central Waterfront, the Harris Avenue Shipyard, the Cornwall Avenue Landfill and two Blaine sites.

$2 million to construct more places for large commercial aircraft to park overnight.
About $1.8 million in Bellingham Shipping Terminal repairs and stormwater improvements.
$1 million to begin work on a multi-year project to replacing an aging portion of the Fairhaven Shipyard Pier.
About $1 million to install new fire sprinkler pressure lines and make float upgrades at Squalicum Harbor.

The board of directors of the Port of Cleveland has approved financing to help redevelop a former mall in a Cuyahoga County community about eight miles from downtown Cleveland. The port will provide up to $10 million in tax increment financing revenue bonds from its Common Bond Fund Program.

The action reflects a core mission of the port authority as a catalyst for economic development and job creation in the region, providing cost-effective access to capital for development, redevelopment and expansion of facilities. Since 1993, more than 70 companies, developers, local governments, and nonprofits have collectively secured nearly $2 billion through the port’s Development Finance program for projects that range from the Rock and Roll Hall of Fame and Museum to the Flats East Bank development.

Parmatown Mall is a retail shopping mall that opened 1956. In 2012, a Cincinnati-based company bought the 82.5-acre site including the mall, an adjacent strip center, a vacant Macy’s building, and two office buildings.

The redevelopment, to be called the Shoppes at Parma, will include a renovated and reconfigured enclosed mall, a renovated and re-merchandized strip center, new outparcel developments and renovations to the two office buildings. The Shoppes at Parma will be anchored by Dick’s Sporting Goods, JCPenney, Marc’s and Walmart.

"The Port of Cleveland knows what an important role this project plays in the economic redevelopment of the city of Parma, the second-largest community in Cuyahoga County," said Port CEO and President William Friedman. "This project is expected to create approximately 600 construction jobs, and upon completion, will provide 1,750 retail jobs and more than 100 jobs in the offices. The Port of Cleveland wanted to help make that happen."

The Louisiana State Bond Commission on October 17 approved nearly $160 million for projects, statewide, including more than $100 million for port projects. The Port of Lake Charles to issue up to $100 million in revenue bonds. The proceeds will be used by the port to build two new docks and to complete other revenue- and job-creating capital projects.

The commission also approved $9.5 million in revenue bonds for the Plaquemines Port, Harbor and Terminal District. According to Executive Director Maynard J."Sandy" Sanders, the bonds will finance the purchase and development of the port district’s first property, a 600 acre tract on the lower Mississippi.

The Port of Palm Beach has refinanced its 1999A Revenue Bonds. The refunding of $14.3 million in debt will save the port district more than $1.9 million in interest costs during the new bond’s 11-year term.

"I am routinely pressing my staff to cut expenses, and our chief financial officer and controller were able to realize true annual savings off of our bottom line," said Port Executive Director Manuel Almira.

The port, working with Spectrum Municipal Services, went out to bid for a refunding option. Branch Banking and Trust Company was able to provide what the port describes as "very favorable rates and terms."

The port is a special taxing district of the State of Florida, but currently operates entirely on its own revenue. Though it has the legal right to do so, the board of port commissioners has not approved tax levy since 1975.

"Smart business decisions such as this are how we keep our business strong and avoid the need to tax our citizens," said Board Chairman George E. Mastics.