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Rail Spur/Siding Program Summary

OVERVIEW

The Ohio Rail Development Commission (ORDC) provides assistance to companies for new rail and rail-related infrastructure. The goal of this program is to promote the retention and development of Ohio companies through the use of effective rail transportation. Additionally, companies who are considering adding rail to existing operations in the state are also eligible under this program. ORDC works closely with Ohio Development Services Agency, JobsOhio, and other public and private development related organizations to provide assistance to companies. For funding consideration, an applicant may need to provide some or all of the information below:

Grant funding is generally limited to projects where significant job creation or retention is involved (25 or more jobs). Applicants must commit to job creation/retention numbers subject to contractual clawbacks. Further, applicants are required to commit to rail usage, also subject to clawbacks.

ORDC loan financing is available to qualified applicants even when jobs are NOT being created or retained. ORDC's standard loan package is a five year loan term and an interest rate which equals 2/3 of prime at the time of the loan closing. Collateral or a letter of credit is required.

ORDC-assisted rail projects on publicly-owned infrastructure are generally subject to Ohio’s prevailing wage requirements.  Please consult with ORDC staff for further guidance, including a determination of prevailing wage applicability, as projects are being developed..

 INFORMATION REQUIREMENTS FOR RAIL SPUR/SIDING PROJECTS

  1. Briefly describe overall company, including parent organization if applicable. Include products made, locations of plants, markets served, overall size in terms of sales volumes and employees, and other relevant data.
  2. Provide detailed description of the project including:
    • Description as to how new plant or expansion fits into the company’s operations;
    • Investment broken down by building, land, equipment and machinery, and inventory; 
    • Descriptions of building (sq. ft.), land (acreage),  & equipment and machinery;
    • Products to be produced, services rendered, markets served, and major competitors; 
    • Map, diagram, building layout plan or other graphic showing the location of the new plant or plant expansion including the existing and proposed rail infrastructure as well as serving railroad line; 
    • Description of rail construction including the length of new track, new turnouts, description of related track rehabilitation and related information; 
    • Detailed cost estimate of all new rail infrastructure and any track rehabilitation work; and
    • Projected time frame for new plant construction/expansion. 
  3. Describe benefits resulting from new plant or expansion, including: 
    • Number of jobs company will commit to create within three years; 
    • Number of jobs company will commit to retain; 
    • Average hourly wages for jobs created or retained;
    • Number of new rail carloads company will commit to generate within three years as well as major origins and destinations of the rail traffic; and
    • Additional benefits to Ohio. 
  4. For the projected rail carloads, provide an estimate of the costs of moving the freight via rail as compared to moving it by truck or other transportation options (e.g. transload).
  5. Provide a statement regarding whether any of the jobs created will result from displacing jobs at any other Ohio facility.
  6. Provide a list of incentives and their value to the company or project provided by: local sources; other state agencies; federal agencies; and the serving railroad company.

ORDC Grant and Loan Application