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State of Ohio - Controlling Board Request
STATE OF OHIO
CONTROLLING BOARD
30 East Broad Street, 34th Floor
Columbus, Ohio 43215-3457
(614) 466-5721 FAX:(614) 466-3813
OPERATING REQUEST Controlling Board No.
DEV0103241
Status:  Approved
Meeting Date:  12/4/2017

GENERAL INFORMATION
Agency
Development Services Agency


Division/Institution
Development Services Agency
Waiver of Competitive Selection  (Revised Code Section 127.16B)
      No Competitive Opportunity
      Agency Released Competitive Opportunity
Agency Released Competitive Opportunity (Revised Code Section 127.162)
Other Statutory Authority/Bill Section:166.06
Operating Transfer Request  (Revised Code Section 127.14)
      Appropriation
      Cash
      Other Statutory Authority/Bill Section:
Fiscal Year(s)
2018
Bill No.
HB 49
Eligible for OBM
Director Approval?
No

VENDOR INFORMATION
For FYAmountNameAddressCityStateCountyZip Code
   

FUNDING INFORMATION
Fund GroupFund CodeAppropriation Line ItemAppropriation Line Item NameFYAmountFYAmount
7037 195615 Facilities Establishment 2018 $250,000.00 $.00

SIGNATURES
     
David Goodman 12/04/2017
   
Agency Director or Authorized Agent On The Date Of
   
11/13/2017 Christine Morrison
   
Date Controlling Board President/OBM Director
   
AGENCY CONTACT
Name:  Rachel Near Title:  Director of Legislative Affairs
Phone:  (614) 644 - 8630 Fax:  (614) 728 - 4920 E-Mail:  Rachel.Near@development.ohio.gov
REQUIRED EXPLANATION OF REQUEST
  The Development Services Agency respectfully requests Controlling Board approval of a substantive change of the guarantor to this Regional 166 Loan which was previously approved by the Controlling Board on December 5, 2016, (DEV0103050) to provide a $250,000 Regional 166 Direct Loan to T & B Manufacturing Services, LLC for the purchase of equipment to be located at 375 Center Street, Miamiville, Ohio 45147 in Hamilton County (Project Site).  
  DSA required a 1st lien position on project equipment, the personal guarantee of Barry Bucher, and corporate guarantee from AIM MRO Holdings, Inc.

Since the loan was originally approved by Controlling Board, the personal guarantor Barry Bucher has sold his ownership in T & B Manufacturing Services, LLC to Scott Bucher (50%) and Scott Wandtke (50%). T & B Manufacturing Services, LLC has requested that Barry Bucher is removed as guarantor of this loan and replaced with Scott Bucher and Scott Wandtke.

Upon reviewing this proposed change, the Regional 166 Loan Program Administrator (HCDC, Inc.) and DSA approved the substantive modification. All other terms of the original Controlling Board request are the same as presented to the Controlling Board for approval.

The Regional 166 Direct Loan Program provides low interest loans for land and building acquisition, construction, expansion or renovation, and equipment purchases for eligible businesses. The program is administered by local economic development agencies. Eligible projects include those related to industry, commerce, and distribution or research activities. This item is not a new release of money but rather an approval of the project this program is funded through Facilities Establishment Fund dollars released prior to 1992 to Local Economic Development Agencies.

T&B Manufacturing Services, LLC was founded in 1998 to manufacture for AIM MRO, LLC, an affiliate business which distributes parts produced by T&B and other manufacturers. Their product lines include Braze Products made from metal powder, powders/pastes/tapes manufactured to customer requirement, machined parts, and pre-sintered preforms used to build up worn surfaces quickly and efficiently, as well as repairing deep and narrow cracks. Their products are used primarily in the aerospace maintenance, repair, and overhaul (MRO) industry. T&B currently manufactures products that are sold to AIM MRO as well as its list of 30 plus customers. AIM MRO's quality system is approved by major aerospace companies that include General Electric, Pratt & Whitney, and Allied Signal.

AIM-MRO Holdings, LLC is a controlled group owned by Scott Bucher and Scott Wandtke. AIM-MRO Holdings has subsidiaries that include a distribution company called AIM MRO LLC, the manufacturing company called T&B Manufacturing Services, LLC, and the
Singapore operation called AIM MRO Singapore PTE, Ltd.

Sources of Funds
$250,000 Regional 166 Direct Loan
$363,125 Northside Bank
$ 68,125 Company Contribution (Equity)
$681,250 Total

Uses of Funds
$681,250 Machinery & Equipment   
$681,250 Total

The financing project will involve the purchase of a new vacuum furnace to increase efficiency, support growth, and create jobs. DSA's financing assistance represents not more than 75% of the total financing project investment at the Project Site. As a result of this project and state assistance provided, T & B Manufacturing Services, LLC has committed to create 5 new jobs and retain 98 existing jobs at the project site. The loan will have a 3.00% interest rate and a term of 5 years.

DSA will require a 1st lien position on project equipment, the personal guarantees of Scott Bucher and Scott Wandtke, and corporate guarantee from AIM MRO Holdings, Inc.
 
  DEV0103050  
Attachments Controlling Board Request No.: DEV0103241
Attachment TypeAttachment Description
Other Substantive Modification Request