Frequently Asked Questions
Q. How can a facility receive funding from the Commission?
A. The General Assembly and Governor determine the Commission's agenda. All of the projects that are funded through the Commission are assigned to it in the state’s biennial capital budgets. The Commission does not have discretionary control over decisions regarding capital funds.
Q. What should project sponsors do to be considered for a capital appropriation from the State?
A. Community leaders and project sponsors are responsible for approaching their area's representatives in the General Assembly to request that particular projects be considered for state funding. There is no official application process. You should contact your State Senator and Representative and ask that the project be included in the biennial capital bill.
Q. When is the next capital bill?
A. Biennial capital budgets are generally adopted by the legislature in the spring or summer of even-numbered years. The next bill is expected to be introduced in 2006.
Q. Can a for-profit organization receive State funding via the Commission?
A. Only 501(c)(3) organizations incorporated in Ohio and local Ohio governments (usually a city or county government) may receive funding from the Commission.
Q. What types of facilities can be funded through the Commission?
A. By law, "Ohio cultural facilities” include facilities for the public presentation of visual and performing arts, museums for the presentation of science technology and transportation, local historical facilities, state historical facilities and facilities for education and training in the arts and design.
"Ohio sports facilities” include all or a portion of a publicly-owned stadium, arena, motorsports complex, or other facility in Ohio that serves as a venue for either motorsports events or events of one or more major or minor league professional sports teams.
Facilities that do not fit these definitions may not be eligible to receive funding through the Commission.
Q. What types of projects can be funded through the Commission?
A. Examples of eligible projects include new construction, renovations, restorations, expansions, exhibits and planning/feasibility studies.
The Commission cannot fund projects in phases unless the result at the end of each phase is an operable facility.
The Commission typically does not provide site acquisition costs for cultural facilities.
The Ohio Revised Code prohibits the Commission from paying for site acquisition for sports facilities.
Likewise, the statute prevents the Commission from paying for operating costs for cultural and sports facilities.
Q. Do other agencies offer grant opportunities for operating expenses?
A. Commission funds may only be used to pay for construction-related costs. The Ohio Arts Council, a separate state agency, does make grants for operational/programming purposes for arts organizations. You can contact OAC at 614-466-2613 or visit the agency web site at http://www.oac.state.oh.us.
Q. What is considered an appropriate "local match?"
A. For cultural facilities, the local match can include the value of the project site or facility, funds for construction or rehabilitation, and funds committed to an endowment for operation and maintenance of the facility.
For sports facilities, only funds for construction-related costs are eligible as a local match.
Q. What activities are included as "construction costs?"
A. "Construction" includes demolition, reconstruction, alteration, renovation, remodeling, enlargement, site improvements, exhibits, and related equipping and furnishing. Under certain circumstances, professional design fees for the project may also be eligible.
Q. What happens if a project receives a state appropriation through the Commission
but has not yet raised the required local match?
A. While the Commission encourages project sponsors to have local funding sources in place, it is not required prior to the appropriation. State law, however, does require the Commission to confirm community support in the form of a local match before it can expend state funds. In the meantime, while the local sponsor raises the local match, the state funds remain earmarked for the project for which they were appropriated. In some cases, the funds may be re-appropriated over future biennia.
Also, please keep in mind that prior to the expenditure of state funds, project sponsors must demonstrate that they possess adequate funding to fully fund project construction and have an open, operable facility.
Q.Is it true that the Commission requires that the state obtain a leasehold interest in projects that it funds?
A. As a condition of issuing bonds, the Ohio Building Authority (OBA) required the Commission to obtain a “sufficient real property interest” in bond-funded projects prior to expending bond proceeds. As a result, Commission cultural facilities projects receiving proceeds of bonds issued in 2004 or prior must be constructed on land owned by or leased to the state of Ohio. The length of this lease is typically 20 years.
For projects funded with bonds issued by the Treasurer of State (July 2005 or later), the facility must be used as a cultural facility available to the public for the term of the bonds issued to fund the improvements, normally 15 years. This is accomplished through a Cooperative Use Agreement;
Sports facilities that receive proceeds of bonds issued in 2004 or prior must be owned by a local government and must enter into an Assignment Agreement with the Commission to fulfill the OBA requirement of “sufficient real property interest.” For sports facilities projects receiving proceeds from bonds issued in July 2005 or later, the Commission will need to enter into a Cooperative Use Agreement for the facility and site for 15 years. Through the agreement, the state agrees that the local government entity will operate the facility, while the local government agrees to present professional sports to the public.
Neither cultural nor sports facilities projects that receive General Revenue Funds are subject to this requirement.
Q. If the state has a leasehold interest in the property, does that mean that it has control over the facility's operations?
A. A Management Agreement, which is entered into simultaneously with the lease for cultural facilities, ensures that the local sponsor maintains control over the facility's operations. The Commission does not involve itself in the day-to-day activities of the facilities. Rather the Commission's interest is in ensuring that culture or sports are presented to the public and that the state-funded facility or improvements are properly built and maintained.
Q. Does the State serve as construction administrator for Commission projects, or can the local project sponsor do so?
A. Prior to 2000, all cultural facilities construction projects funded through the Commission were required to utilize the Ohio Department of Administrative Services/State Architect's Office as the construction administrator.
Because many cultural facility project sponsors wanted to handle the construction administration locally, the Commission worked with the General Assembly to amend the statute. The Commission now can authorize local project sponsors to serve as construction administrator as long as they meet certain criteria that demonstrate their capabilities to successfully oversee the projects.
Projects that choose not to seek approval for local administration or are denied approval by the Commission will be administered by the State Architect's Office.
The Ohio Revised Code has allowed sports facilities projects funded through the Commission to be locally administered since 1996.
Q. If a project does receive funding in a capital bill line item through the Commission, how soon will the sponsor receive the funds from the state?
A. The timing of payments/reimbursements is contingent upon required Commission approvals and varies from project to project.
Prior to the expenditure of funds, the project sponsor must present the project to Commission members at a quarterly meeting. The members of the Commission then must vote upon resolutions that:
- Determine the need for the project and ensure that there is substantial regional support (in the form of matching dollars);
- Authorize the execution of appropriate legal agreements;
- Approve local construction administration (when applicable);
- Authorize the expenditure of funds for the project.
Often this involves a two-stage process. Need, regional support, and the authorization of legal documents are voted upon at one Commission meeting. The Commission members then approve expenditure of state funds at a later meeting, once the project is ready to proceed and pending demonstration by the project sponsor that the project is fully funded.
For projects that are administered locally (see above), the sponsor submits paid invoices to the Commission for review and approval. The Commission then processes payment of approved invoices on a reimbursement basis.
For projects that are administered by the State Architect's Office, the state makes payments to contractors directly.
Q. Can the Commission provide technical assistance to project sponsors even if the project hasn't yet officially received State funding?
A. The staff of the Commission is happy to provide assistance in reviewing projects for compatibility with this program. To arrange a meeting, please contact the Commission office (contact info below).
Ohio Cultural Facilities Commission, 20 East Broad St., Suite 200
Columbus, Ohio 43215-3416, tel: (614) 752-2770, fax: (614) 752-2775