Port authority to help finance AK Steel research center

The Warren County Port Authority at its Monday evening meeting approved financing and incentives for the development of the AK Steel Research and Innovation Center in Middletown.

West Chester Twp.-based steelmaker AK Steel is proposing to build a new $36 million research center near the intersection of Ohio 122 and Interstate 75. The new research center will replace the existing one on Curtis Street, also in Middletown.

The port authority’s board approved lease agreements with the city of Middletown and Fortress Credit Corp., a company that will manage building construction.

Plans are for Middletown to buy and own about 16 acres for the research center. The city will authorize the port authority to have an interest in the land contingent on city council’s vote, said the port’s Executive Director Martin Russell.

In a second related agreement, the port authority will own the building and lease the property to Fortress during construction and operations. Fortress will have its own lease agreement with AK Steel, Russell said.

The purpose of the Warren County Port Authority owning the building is to save the company costs of construction, Russell said. Port authorities under Ohio law are exempt from paying sales taxes on construction materials purchased in the state.

Today, Middletown City Council meets at 5:30 p.m. Council is scheduled to consider an incentive package for the project, including approving the lease agreement with Warren County and deciding whether or not to borrow approximately $2.1 million through a bond issue to pay for the cost to acquire the land.

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