Redevelopment plans for the Tower at Erieview, a half-empty 40-story workplace constructing in downtown Cleveland, gained traction this week with a $5 million state tax credit score award.
The 1960s tower was the most important winner in a fierce statewide contest for $31.2 million in historic tax credit awarded Wednesday, Aug. 5, by the Ohio Improvement Companies Company. The credits, introduced twice a 12 months, do not truly circulation to a venture till development is full.
Northeast Ohio candidates notched vital victories — with some notable misses — within the present spherical of awards, which was delayed by greater than a month as a result of coronavirus pandemic and its disruptive impact on state authorities. Six Cleveland initiatives made the record. So did a former grocery retailer property in Lakewood and a four-building advanced in Ashtabula.
However nothing in Akron made the lower. Neither did a potential corporate headquarters deal on Superior Avenue in Cleveland’s Campus District, the place CrossCountry Mortgage of Brecksville has been eyeing the redevelopment of a vacant constructing as workplaces for 600-plus staff. And a lodge plan for the Baker Constructing, on East Sixth Avenue in downtown Cleveland, failed in its quest for extra tax credit on the heels of an ownership change.
The Tower at Erieview landed its award on the second try. The Kassouf household, which acquired the property two years in the past, is planning a roughly $80 million makeover of the workplace constructing that might begin early subsequent 12 months. The tax credit score would assist finance the conversion of 20 flooring into roughly 220 residences and 210 lodge rooms.
A venture consultant mentioned these plans have not modified, regardless of the physique blow the pandemic is dealing to lodges.
“Now, given COVID’s affect on the capital markets, it’ll current some extra hurdles,” mentioned Anthony Delfre, a managing director and principal at funding financial institution Brown Gibbons Lang & Co. in Cleveland. “However I do not suppose any of it will be insurmountable.”
The renovations may very well be full in 2022. Citing confidentiality restrictions, Delfre would not establish the lodge model that is in line to occupy eight flooring. Flats would take over 12 flooring, with about 320,000 sq. toes of workplace house remaining.
Along with the state credit, the Kassoufs plan to make use of federal historic tax credit. They usually’re exploring different potential funding instruments, together with a program targeted on financing energy-efficiency upgrades. In an emailed assertion, the household expressed appreciation for the state, together with metropolis and county officers who submitted letters of help for the applying.
“Their imaginative and prescient of a cohesive, high-end, mixed-use venture has taken one other step ahead with this award,” the assertion learn.
The opposite native winners have been as follows:
12501 Madison Ave., Lakewood: This former grocery-store property in Lakewood’s Birdtown neighborhood will develop into 18 residences, with a espresso store and workplace house on the bottom ground. The developer is Lakewood resident Jim Miketo, who owns Forest Metropolis Shuffleboard on Cleveland’s west aspect.
The residences will embody 4 models in a restored Tudor Revival home that is related to the again of the three-story business constructing, mentioned Heather Rudge, a venture advisor and the proprietor of Historic Preservation Group of Cleveland. The $four million venture received a $657,101 credit score.
2110-2130 Superior Ave., Cleveland: This former industrial constructing within the Campus District is earmarked for 47 residences. It was the topic of one among three interconnected functions filed by firms tied to native legal professional Jon Pinney and CrossCountry CEO Ron Leonhardt Jr.
The $11.7 million condo conversion received a $1.65 million credit score. However the traders narrowly missed out on a much bigger prize — a $three.9 million credit score they have been searching for for the potential headquarters transfer to 2152-60 Superior Ave. Additionally they did not obtain credit for a 3rd constructing, at 2104 Superior Ave., that is slated to develop into a restaurant and extra housing.
CrossCountry has been weighing a relocation to Cleveland in opposition to staying put within the suburbs.
Throughout a cellphone dialog, Leonhardt confirmed that he plans to reapply for credit within the subsequent spherical, which shall be introduced in December. A scoring sheet from the event companies company exhibits that the Erieview and CrossCountry initiatives have been neck and neck, with the tower gaining an edge as a repeat applicant.
Leonhardt mentioned he is leaning towards the Cleveland headquarters website, however his determination hinges on the tax credit. “We’re not continuing till we all know if we have received or not,” he mentioned.
American Financial savings Financial institution, Cleveland: This three-story constructing, at 828 Huron Highway in downtown’s Gateway District, shall be revamped with a restaurant on the decrease flooring and short-term lodging upstairs. The $1.5 million venture, being shepherded by Paul Shaia, received a $168,000 credit score.
The Carlisle-Allen Co. and Masonic Temple, Ashtabula: A former department-store advanced and onetime temple in downtown Ashtabula shall be redeveloped into inexpensive senior housing and a restaurant. The $20.four million venture landed $2 million in credit.
First Methodist Church, Cleveland: An possession group led by businessman Tony George received this Midtown church advanced, at 3000 Euclid Ave., at an auction in early 2018. They plan to revive the church as an occasion house and to renovate the 1965 addition as workplaces. The venture, with a $2.5 million price ticket, received a $250,000 credit score.
Switzer Constructing, Cleveland: This 12-unit condo constructing within the Glenville neighborhood, on East 101st Avenue, has been vacant for greater than a decade. Will probably be revived as two- and three-bedroom residences. The state awarded a $100,000 credit score to the $1 million venture.
West Aspect YWCA, Cleveland: Independence-based Dalad Group plans to overtake this vacant mansion and former dormitory as 37 residences. The venture additionally will embody a brand new, 30-unit condo growth on adjoining land.
The property, initially a YMCA, most recently functioned as an assisted-living facility for mentally unwell residents. It has been vacant since 2018 and landed almost $2 million in credit.
Rudge, a advisor on the $19.9 million venture, mentioned Dalad will tear off a contemporary connector that hyperlinks, and mars, the historic buildings.
“It may be a transformative rehab, for positive,” she mentioned.