The Regional Chamber has the ability to structure deals in which local port authorities can own and leaseback new facilities to firms that are expanding or locating in the Youngstown-Warren metropolitan area. "Synthetic Leases" enable qualifying companies/lessees to hold real estate off-balance sheet while enjoying benefits associated with ownership. For financial statement purposes, the company/lessee can reflect on its profit and loss statements rental expense equal to the debt service associated with project financing, but not depreciation expense related to the leased facility. In addition, the firm’s balance sheet will not be burdened with the cost of the real estate assets or the related mortgage debt. For taxes, the company/lessee will retain the benefits of real estate ownership, including depreciation for tax purposes.

Overall project costs are driven down by the port authority/lessor having access to low interest rate financing that is typically not available to private sector entities. In addition, port authority projects are not subject to sales tax levied on construction materials.

For detailed information, contact the Youngstown/Warren Regional Chamber.

The Regional Chamber
NE Ohio’s Source for Economic Development Information and Assistance
Metropolitan Tower · 11 Federal Plaza Central · Suite 1600 · Youngstown, OH 44503-1592
Phone: 330-744-2131 – Fax 330.746.0330
197 West Market Street · Warren, OH 44481-1024
Phone: 330-392-6140 – Fax 330.746.0330
Development@RegionalChamber.com · www.RegionalChamber.com