&
Teamwork
Collaboration
Achieve Big Results in 2014
2014
annual report
LETTER FROM
THE PRESIDENT
From groundbreaking projects to inspiring entrepreneurial successes, 2014 was a year that
proved teamwork and collaboration achieve big results.
HCDC’s Business Center ended FY 2014 on a high note with the 25th Anniversary
Celebration of the Business Center, the top-rated incubator in Ohio. Of equal note,
occupancy levels at the Business Center rebounded after graduating one of its largest
resident companies, Etegent Technologies, that moved its headquarters to the American
Laundry Building in Norwood. Meanwhile, existing Business Center resident Get Noticed
Get Found tripled in size and space, co-works companies increased and new companies
came on board as overall startup activity reached impressive levels.
In FY 2014, HCDC Business Lending countered the 25% national decline in SBA 504 loans
by increasing its loan volume 33% with 40 loans approved compared with 30 approvals
in FY 2013. In addition, HCDC successfully launched the SBA sponsored ILP loan program
and worked to reinvigorate the Ohio Regional 166 loan program. As such, HCDC reclaimed
the number one CDC spot in the Columbus SBA District and was the highest loan dollar
volume CDC for the State of Ohio.
| HCDC 2014 ANNUAL REPORT
Finally, HCDC Economic Development teamed with the City of Cincinnati and Hamilton
County to attract a once in a lifetime economic development project, the GE Global
Operations Center to The Banks development. Other noteworthy economic development
projects included the expansion of Usui in Sharonville, continued revitalization of
Northgate Mall, and expansion by Horter Financial in Symmes Township.
2
With over 31 years of business lending experience, 25 years as a business incubator, and 22
years as the official economic development office for Hamilton County, HCDC continues
as a major contributor in growing the local economy due to the talented and hardworking
staff and judicious guidance from the Board of Directors and Committees.
All the best in 2015,
David. K. Main, President
HCDC BUSINESS LENDING
Your SBA Loan Resource
2014
RESULTS
Since 1983, HCDC has helped finance over $1 billion in approved
loan projects for small businesses to grow, add jobs, and revitalize
communities. As one of the most active SBA lenders in the Tri-State, HCDC
partners with commercial lenders to offer business owners long-term, fixedrate loans with low down payments. HCDC is a mission-based nonprofit
that finances projects that demonstrate a community benefit such as job
creation, business district revitalization, and the diversification of the local
economy. We are proud to be ‘Your SBA Loan Resource.’
FY 2014 Results
• HCDC’s entire portfolio stood at 363
loans with an outstanding balance of
over $121 million.
• The SBA 504 loan program continued
to be the major source of fixed-rate,
long-term financing for owneroccupied real estate. 36 SBA 504
loans were approved for $20.6
million in financing and a total project
investment of $52 million.
• In addition to the 36 SBA 504 Loans,
HCDC funded one Ohio 166 Loan, and
three Intermediary Lending Program
(ILP) loans that are SBA backed but
approved in house.
40
LOANS APPROVED
• HCDC partnered with 23 different
lending institutions to provide
financing in 40 local projects, including
15 approved projects in Hamilton
County alone which accounted for over
$13.2 million in new investment.
• HCDC had the privilege of helping
so many incredible projects move
forward including The Woodward
Theater, Sterling Cut Glass, Listermann
Brewing’s expansion, and Kids ‘R’ Kids
Learning Academies to name a few.
Thank you for a memorable 2014!
“Both the Woodward’s non-profit lenders (Cincinnati Development
Fund & HCDC) were quick to recognize and partner in support of our
vision. This new partnership will put the Woodward Theater back to
work as a catalyst for Main Street, the regional gateway to Cincinnati’s
historic Over-the-Rhine.”
- Dan McCabe, Co-owner of the Woodward Theater
363
JOBS CREATED
RETAINED
$
21+
MILLION DOLLARS
INVESTED
3
HCDC BUSINESS INCUBATION
An Entrepreneurial Assistance Hub
2014
RESULTS
HCDC and its resident companies inside the Business Center celebrated 2014 with
some big headlines and a blowout party. Here are some of our favorite moments:
founder Grant Schaffner of resident company Protostar Engineering traveled to
the Sochi Olympics to watch the sled he designed win a medal in the Skeleton
competition. The Cincinnati Enquirer highlighted the Business Center as being the #1
ranked incubator in the State of Ohio. And graduates of the program collided with
current resident companies to help us celebrate 25 years of incubation, innovation
and achievement in Southwest Ohio.
FY 2014 Results
| HCDC 2014 ANNUAL REPORT
• Six startups graduated from the
Business Center and all landed in
Southwest Ohio: Cogito Business
Solutions, Inc (Norwood), Cybervise,
LLC (Northside), emersion DESIGN
(Norwood), Pangea Productions (Hyde
Park), PCS Technologies (Hamilton,
Ohio), and Search Engine Experts
(Wyoming, Ohio).
4
62
RESIDENT COMPANIES
• At year-end, the Business Center
housed 62 tenant companies that
employed 185 individuals with a
total annual payroll of $9.2 Million.
Aggregate tenant revenues exceeded
$19 million.
• 11 companies that worked with the
Business Center secured earlystage capital from seed funds, angel
investors, banks or government
entities totaling $18.25 million.
• The Business Center welcomed 12
new clients including Acta Research,
CRäKN, GeckoTek 3D, Johnny Box
Manufacturing Company, Kapture,
PlusBlue Solutions, Resolution Air,
RNN Group, Sense Diagnostics,
UCrush, UltraFlo Systems, and
Zooted Delivery.
47
JOBS CREATED
$
19+
MILLION DOLLARS
TENANT REVENUE
$
resident
jobs
25 year
300
500 million
companies
served
results
economic impact 2,300
HCDC ECONOMIC DEVELOPMENT
Building Hamilton County
2014
RESULTS
HCDC Economic Development strengthens communities by retaining,
expanding and attracting businesses to Hamilton County, Ohio. Through
coordination of resources, financing, and incentives, we provide expert
technical assistance to those seeking to invest or grow in the area. HCDC is
the official Economic Development Office for Hamilton County, Ohio. To grow
its economic base, Hamilton County contracts with HCDC to promote its probusiness climate, diverse economy, strong workforce and strategic location.
FY 2014 Results
• Reviewed 45 agreements with the Tax
Incentive Review Council resulting in
over $352 million of investment and
6,695 jobs created or retained.
• Staffed the Hamilton County
Community Improvement Corporation
(CIC), facilitating development through
the sale of surplus, County-owned land.
• Utilized incentives and other programs
to catalyze projects resulting in new
investments of nearly $130 million and
the creation or retention of 2,310 jobs.
• Funded projects via the Urban Land
Assistance Program in the City of
Reading, City of Norwood, and Village
of Golf Manor. These projects helped
remove blight, thereby creating sites for
future development. Since the inception
of the program, HCDC has approved
more than $976,000 in grants.
• Visited 163 companies via the Business
Retention and Expansion program.
• Worked with the Uptown Consortium
to provide technical assistance, business
coaching and business retention in the
Uptown service area.
• Thanks to a generous investment by
Duke Energy, HCDC has partnered
with six communities: College Hill, East
Walnut Hills, Northside, North College
Hill, Pleasant Ridge, and Price Hill to
provide technical assistance, business
coaching and business retention.
• HCDC partnered with the elected state,
county, and city leaders and economic
development agencies including
Cincinnati’s Trade & Development
Department, the Port of Greater
Cincinnati Development Authority, REDI
Cincinnati, and Jobs Ohio to help land
GE Aviation’s $90 million U.S. Global
Operations Center that will add 1,800
jobs along the riverfront.
163
COMPANIES VISITED
IN HAMILTON COUNTY
2,310
JOBS CREATED/
RETAINED
$
130
MILLION DOLLARS
INVESTED
created/ $
22 year
45,250 jobs
3.165 billion
retained
results
invested
5
COMBINED COMPANY
FINANCIAL STATEMENTS
October 1, 2013 – September 30, 2014
1%
1%
36%
12%
32%
37%
28%
31%
23%
FUNDING SOURCES
BY DEPARTMENT
FUNDING USES
BY DEPARTMENT
Department
Lending
Economic Development
Business Assistance/Incubation
Administration/Other
Total
COMBINED STATEMENTS OF FINANCIAL POSITION
COMBINED STATEMENT OF ACTIVITIES
Current assets
Total
Cash and cash equivalents
2,490,841
Accounts receivable, general
142,823
Borrower notes receivable, current portion
21,425
Hamilton County contract receivable
21,584
Prepaid expense and deposit
53,957
Total current assets
2,730,630
Support and Revenues
SBA 504 program fees
Other Lending program fees
Hamilton County contract
Local community contracts
Enterprise zone fees/IDB revenue
Third Frontier contract
HCBC rental and service income
Business assistance service income
Interest and other income
Donation income
Gain (loss) on investment
Loss on disposal of asset
Total support and revenues
| HCDC 2014 ANNUAL REPORT
Property and equipment:
Land, building, furniture and equipment
Less accumulated depreciation
Net property and equipment
6
Income
Expense
Net Income
914,516875,588 38,928
895,541713,443 182,098
1,044,0441,163,972 (119,927)
32,787374,328 (341,542)
2,886,8883,127,331(240,443)
6,740,135
(4,653,943)
2,086,192
Other assets
Investments99,298
Borrower notes receivable,
net of current portion
259,388
Total other assets
358,686
Total other assets
5,175,508
Current liabilities
Accounts payable - trade
79,800
Unearned revenue
29,783
Accrued expenses: salaries, vacation, taxes
275,925
Customer deposits: borrowers, banks, tenants 137,162
Total current liabilities
522,670
Net assets
Unrestricted, including board
designated funds of $1,080,000
Temporarily restricted
Total net assets
4,072,624
80,215
4,152,839
Total liabilities and net assets
5,175,508
Expenses
Personnel compensation/benefits/taxes
Professional expense
Office/administrative expense
Travel/training/staff development
Building operations expense
Building depreciation expense
Promotions/marketing expense
Program admin expense
Board expense: meetings/insurance
Bad debts/other expense
Total Expense
Increase (decrease) in net assets
Total
880,249
35,909
703,000
181,158
32,675
512,197
506,823
1,785
11,289
29,357
(702)
(6,851)
2,886,888
2,152,294
71,546
145,530
23,663
414,502
220,927
45,083
10,321
21,198
22,267
3,127,331
(240,443)
HCDC STAFF, BOARD OF
DIRECTORS & MEMBERS
STAFF
David K. Main, President
HCDC – Business Lending
Dianna Geiser, Office Administrator
Andrew Young, Vice President & Senior Loan Officer
Chris Wagner, Vice President & Comptroller
Angela Howard, Loan Officer
Jim DeBruler, Staff Accountant
Michael Crowe, Loan Officer
Bridget M. Doherty, Marketing/Communications Director
Lou Ann Walden, Loan Operations Manager
Darlene Herald, Loan Servicing Agent
HCDC – Economic Development
Casey Brown, Loan Administrator
Harry Blanton, Vice President & Manager
Jon Main, Lending Specialist
Catherine Fitzgerald, Contract Manager
Barry Strum, Senior Development Specialist
HCDC – Business Incubation
Daniel Ferguson, Senior Development Specialist
Patrick Longo, Vice President & Business Center Director
Dustin Montgomery, Economic Development Specialist
Mary Myers, Program Manager
Robert Pickford, Business Coach
Brenda Holloway, Administrative Assistant
BOARD OF DIRECTORS
Brent Messmer, Chair
Paul Brehm
David Lingler, CPA/ABV, CVA, Vice Chair
Jim Cunningham
Jeffrey Bender, Secretary
Jennifer Ekey
Daniel Heyd, Treasurer
Joe Huber
President, The Matrix Companies
Economic Development Director, City of Forest Park
Cassady Schiller & Associates
Triannic
Executive Managing Director & Principal, Cassidy Turley
Partner, Graydon Head
Economic Development Director, City of Harrison
Chief Operating Office/Chief Loan Officer, Cincinnati
Development Fund
Dorothy Air, PhD, Community Liaison Officer
Associate Vice President for Entrepreneurial Affairs &
Technology Commercialization, University of Cincinnati
David A. Jackson
National Director, SBA Lending, Fifth Third Bank
James Rolfes, CPA, Immediate Past Chair
John Rost
Frank Birkenhauer
Matthew Van Sant
Partner, Plante & Moran
Vice President, LCNB National Bank
Assistant Township Administrator, Colerain Township
President & CEO, Clermont Chamber of Commerce
Timothy L. Blankenhorn
Senior Vice President, Huntington National Bank
GENERAL MEMBERS
Jeff Aluotto
Andy Bucher
W. Randal Carter
(Randy)
Andrew Collins
Brent L. Collins
Bill Cunningham
Adam Davey
Crystal Faulkner
Ken Feldmann
William Fischer
Vanessa Freytag
Jeanne Golliher
Dr. Melvin Gravely
Martha Goldbeck
Tom Green
Dan Groneck
William Hagerty II
Erick Harback
James Harrison
Neil Hensley
Bob Herman
Chip Hitte
Ray Hodges
Laurence Jones III
Larry Kavanagh
Tim Kemper
Rob Kranz
Robert LaMothe
Michael Lemon
Chris Xeil Lyons
Charles Matthews
John Melvin
Jay Melzer
Eric Miller
Brad Mitchell
Sheila Mixon
Thomas Moeller
Jim Neyer
Gregory Niesen
Mark Palazzo
Alan M. Piker
Thomas Powers
Joe Rickard
Reid Schlotterbeck
Mark Sims
Steve Sievers
David Smith
Gary Thompson
Jay Treft
Jeff Tulloch
Michael Vank
Richard Vaughan
John Vissman
George Vredeveld, Jr.
Ken Warden
Josh Wice
Randy Wilhelm
Edward Wood
Mike Ziegler
Robert Zumbiel
7
1776 Mentor Avenue, Cincinnati, Ohio 45212
HCDC.com | phone 513.631.8292