Label
Regional Combined Health Board Loan
Department of Economic Development
Brandon Sehlhorst (x1692) / Paul Syring (x1025) / Melanie Campbell (x1252)
Revised
Title
Authorizing the Mayor to enter into a Loan Agreement and other needed instruments with the Toledo-Lucas County Regional Board of Health to facilitate the acquisition, renovation, and relocation of its offices; authorizing the appropriation and expenditure of an amount not to exceed $5,000,000 from the General Fund; authorizing the Mayor to accept and deposit loan payments into the General Fund; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
The Toledo-Lucas County Regional Board of Health intends to relocate its operations from the Toledo City Building at 635 N. Erie Street, Toledo, Ohio 43604, to a commercial office building located at 1933 Spielbusch Avenue, Toledo, Ohio 43604. The total cost for acquisition, renovation, and relocation of operations to the new facility is estimated at $5,000,000.
The Regional Combined Health District is funded through annual contributions from jurisdictions within Lucas County, allocated based on population. The City of Toledo’s contribution represents approximately 62.81% of the total funding. Of the total $5,000,000 estimated project costs the City’s share is $3,140,500. The remaining $1,859,500 is the obligation of the other participating jurisdictions.
Given the City’s significant financial participation, it is in the City’s best interest to support the project by providing a $1,859,500 million loan to the Toledo-Lucas County Regional Board of Health. The loan will carry a 4.0% interest rate with a five-year term and will finance the other participating jurisdictions acquisition, renovation, and relocation cost share.
This financing model saves the City of Toledo approximately $461,000 in interest costs compared to financing terms available through a private bank while earning approximately $228,000 in interest proceeds over the five-year term. The loan will be secured by a Promissory Note and a first mortgage on the property located at 1933 Spielbusch Avenue, Toledo, Ohio 43604.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That the Mayor is authorized to enter into a Loan Agreement and other needed instruments with the Toledo-Lucas County Regional Board of Health in an amount not to exceed $1,859,500 that will be repaid at 4% interest over a five-year term, subject to other terms and conditions approved by the Mayor, the Director of Law and the Director of Finance.
SECTION 2. That the appropriation of $5,000,000 is authorized from the unappropriated balance of the General Fund to Account Code 1001-89800-6242001HEALTH and the expenditure of same is authorized for payment of the City’s project cost contribution of $3,140,500 and for the Toledo-Lucas County Regional Board of Health’s $1,859,500 loan from the City of Toledo.
SECTION 3. That the Director of Finance is authorized to draw a warrant or warrants in payment of the above-authorized obligations in an amount not to exceed $5,000,000 upon presentation of the proper voucher or vouchers.
SECTION 4. That the Mayor is authorized to accept and deposit principal and interest loan payments into General Fund Account Code 1001-89800-6242001HEALTH.
SECTION 5. That this Ordinance is declared to be an emergency measure and shall be in force and effect from and after its passage. The reason for the emergency lies in the fact that it is necessary for the immediate preservation of the public peace, health, safety, and property, and for the further reason that the loan is necessary for the timely acquisition and relocation of the regional combined health district’s operations.
Vote on emergency clause: yeas 10, nays 0.
Passed: October 28, 2025, as an emergency measure: yeas 10, nays 0.
Attest:
Julie A. Gibbons George Sarantou
Clerk of Council President of Council Pro Tem
Approved: October 28, 2025
Wade Kapszukiewicz
Mayor