Rocket Ventures and the LCIC

Recently, the township was approached about investing in Rocket Ventures, a venture capital group, via our membership in the Lucas County Improvement Corporation (LCIC). County Commissioner Pete Gerken encouraged the member entities of the LCIC to invest with the prospect of great returns. I have looked into the possibility of Sylvania Township 'investing' in Rocket Ventures via the LCIC and what I have found out concerns me greatly when it comes to the role of the LCIC and its member entities.

Point blank, townships are not allowed to make an investment in a venture capital fund. We are restricted to 'safe' investments, so that the taxpayers' money is not put at risk. Further review of the rules regarding townships and Community Improvement Corpoations (CICs) indicate that townships are allowed to make financial contributions to CICs to help defray administrative expenses, but we are not allowed to give additional monies.

Basically, the suggestion that the township's use the LCIC to side-step our restrictions on 'safe' investments is not allowed under the Ohio Revised Code (ORC). This attempt to invest in a venture capital fund by way of the LCIC is illegal and something that I will not support.

I have also talked to several people regarding the county's ability to make such an investment. Per my conversations, the county is under similar restrictions regarding their investments and therefore a direct investment in Rocket Ventures would not be allowed under the ORC. Sidestepping those laws by using the LCIC is, in my opinion, highly suspect as well.

It is my opinion that the LCIC should not be used to by-pass the laws established for the safekeeping of taxpayer funds. If our member entities cannot directly make this investment, we should not allow the LCIC to be used as a middleman. I am opposed to the LCIC making an investment in Rocket Ventures on behalf of member entities. If member entities have the ability to make the investment (or believe they have the ability to make the investment) they should do so directly and not drag the LCIC into this issue.