HCR ManorCare Inc., which operates more than 500 nursing home and rehabilitation centers across the country, has been offered a $30 million state and local incentive package to remain in its downtown Toledo headquarters in the 16-story Summit Center office tower.
The Ohio Development Financing Advisory Council in Columbus yesterday approved a 20-year, $10 million, zero interest loan, and a 20-year, $11.64 million Ohio Enterprise Bond Fund loan at a rate to be determined at closing, to help secure the purchase of the Summit Center building. Both are subject to state controlling board approval.
Additionally, Toledo Mayor Carty Finkbeiner said yesterday the city had put together a $4 million incentive package to accompany the state loans. He urged Toledo City Council to approve the local package.
'When completed, this deal with HCR ManorCare will retain 684 Toledo jobs and create 52 more,' the mayor said. He added that retaining the company is vital to Toledo's downtown.
When HCR ManorCare was purchased in July, 2007, by Carlyle Group, a private equity firm in Washington, the company said it would not speculate on the future of its headquarters at 333 North Summit St.
Carlyle said that at the end of the lease period in January, HCR ManorCare must either buy the building or vacate it and pay the difference between fair market value at that time and the $22.8 million at which it was valued last year.
Mr. Finkbeiner said Kentucky, Indiana, and Tennessee had offered generous incentives to entice HCR ManorCare to leave Toledo when it was announced recently that the company's lease would expire in January, 2009.
Paul Toth, Toledo-Lucas County Port Authority acting president, said the state and city were 'up against a lot of competition' from the three states.
The state and city loans would allow the building to be acquired and leased back to HCR ManorCare for 20 years the length of the loan terms.
The state also is offering a $1.5 million economic development contingency grant and a $2.9 million job creation tax credit, also subject to controlling board approval, said Eileen Granata, the state's regional economic development director for the nine-county Toledo region.
The city incentive package is to be reviewed by council today and could be voted on at its Oct. 7 meeting.
Contact Ignazio Messina at: imessina@theblade.com or 419-724-6171.
First Published September 30, 2008, 11:18 a.m.
