State development officials announced $14 million in Ohio historic preservation tax credits this morning, during a news conference in downtown Akron
View full sizeThe Victory Building, pictured in 2007, in Cleveland's Midtown neighborhood. The Euclid Avenue building was one of several Northeast Ohio projects to win state tax credits aimed at rehabilitation of historic properties.State development officials announced $14.9 million in Ohio historic preservation tax credits this morning, during a news conference in downtown Akron. The tax credit program helps developers cut the cost of remaking historic properties.
Since 2006, the state has awarded $279.3 million in credits, which offset liabilities such as state income taxes or corporate franchise taxes. In a challenging economy, state and federal credits aimed at historic preservation have kept projects alive in Cleveland and across the state - despite a nationwide financing crunch.
"Historic preservation projects strengthen local communities by spurring private investments and creating jobs through construction and reoccupation of vacant and underutilized buildings," Christiane Schmenk, director of the Ohio Department of Development, said in a written statement.
Northeast Ohio projects won $11.4 million - roughly 77 percent - of the awards announced today. The largest winner is the long-dormant Victory Building in Cleveland's Midtown neighborhood, where real estate broker Scott Garson plans to turn dark space into a home for high-tech companies.
The building, at 7012 Euclid Ave., was slated for redevelopment as apartments before the financial crisis. Now Garson aims to capture some of the health and technology companies eyeing space near the Cleveland Clinic, University Hospitals and University Circle.
The Victory Building sits in the middle of Cleveland's Health-Tech Corridor, a swath of Midtown being remade with research labs and offices.
The city of Cleveland has pledged a $720,000 loan to the project, through a program focused on vacant or under-used properties, and a tax-increment financing agreement worth $2.5 million over 30 years. City officials also have asked the state to consider the project for a $3 million grant, as part of a program aimed at creating jobs-ready sites.
The $26.9 million project is eligible for nearly $4.4 million in state tax credits.
Other Northeast Ohio winning projects include:
The Park Building and Southworth Building, Cleveland: Nearly $2 million in tax credits will help developer Matt Howells convert a portion of the Park Building and the adjacent Southworth Building, on Ontario Street, into 34 apartments. Most of the Park Building, at 140 Public Sq., has been converted into condominiums. A jump in downtown apartment occupancy has developers and public officials searching for new rental projects to meet growing demand.
Civic Theatre Block, Akron: An $11.8 million redevelopment of six buildings surrounding the Civic Theatre in downtown Akron. One of the buildings, at 172 S. Main St., received state tax credits in a previous round. The new award - $2.4 million - will cover the other five buildings. The project will include first-floor retail and restaurant space and upper-level apartments.
Cascade Lofts, Akron: The redevelopment of the former Swinehart Tire and Rubber Co. factory at 21 W. North St. The $4.2 million project will include new residential space, plus retail tenants catering to pedestrians and cyclists traveling the Ohio and Erie Canal Towpath Trail. Cascade Lofts will receive $908,705 in state tax credits.
Gifford House and carriage house, Cleveland: A redevelopment of a historic home, and former fraternity house, at 3047 Prospect Ave. for offices and one apartment. Ziska Architecture will renovate the property and move its studios there. The project, with an estimated cost of $804,915, will receive $108,914 in tax credits.
Highland and Crescent apartments, Akron: A nearly $1.4 million overhaul of garden-style apartment buildings on West Market Street. The state awarded $134,314 in tax credits to the project.
Hotel Ashtabula, Ashtabula: The first project in Ashtabula to win credits, this historic former hotel will become offices for Signature Health. The building, at 4726 Main Ave., has been closed since 1985. The project will cost $3.5 million and will receive $639,350 in tax credits.
Rialto Theater, Cleveland: The redevelopment of the former Moda nightclub space - and a onetime theater - in Ohio City as a production facility and offices for Mitchell's Ice Cream. The $3.9 million project, on West 25th Street, will receive $484,108 in tax credits.
Steele Mansion, Painesville: The first Painesville project to receive credits, this $2 million redevelopment will turn a former mansion into a small hotel. Located at 348 Mentor Ave., the building has been empty since a fire damaged it in 2001. The project is eligible for $371,500 in credits.
Developers only receive credits if their project is finished. A Cleveland State University study released in May said that $1 million in state historic preservation tax credits helps fuel $8 million in construction spending, $40 million in economic activity and nearly 400 jobs, during construction and after the rehabbed buildings open.