The Morning Journal (Lorain, OH)
Broadway Building to get state historic tax credit
“These projects transform vacant and under utilized properties into viable places for business and living ” David Goodman, director Ohio Development Services agency
A historic tax credit will help finance renovation of the Broadway Building, Ohio’s state development agency said.
On Dec. 18, the Ohio Development Services Agency awarded a tax credit worth $404,203 to finance renovations at 301 Broadway, which also was known as the Spitzer Plaza Hotel and Lorain Renaissance Inn. The project has an estimated cost of more than $10.04 million.
“This project becomes a catalyst in so many ways for the city of Lorain,” said codeveloper James Louthen, founder of Town Builder Studios of Riverside, Ill. “It’s an economic development catalyst, however it’s a historic redevelopment of a building that’s part of the foundation of downtown Lorain.
“The most crucial aspect of the historic tax credits and the successful redevelopment of the Broadway Building is the city of Lorain and we’re honored to be part of that redevelopment team,” he said.
In September, Lorain architect Gary Fischer of Arkinetics Inc. announced redevelopment plans for developer Lorain Hotel Investors LLC, a partnership with the Chicago-area based T2 Capital Management and Louthen, who designed the Lorain Port Authority’s Black River Landing waterfront festival site.
The project also is eligible for additional tax credits up to the requested $1.98 million as the credits become available through withdrawn applications or project cost savings, according to the state agency.
The tax credits are vital to the redevelopment of the building, Louthen said.
Prior to being a hotel, the Broadway Building was built in 1925 as an office complex.
Plans for the building call for 55 new market-rate apartments, including a roof-top deck for residents. Upgrades also will be made to the adjacent parking garage, according to development plans.
In the next six months, the development team will finalize plans and obtain the needed permits for the construction, Louthen said.
The interior remodeling should take at least a year, so city residents should expect to see the building open for occupancy in early 2017, Louthen said.
The developers intend to recruit local contractors and will provide a forecast of the construction jobs and permanent jobs that the project will create, he said.
“The redevelopment of the Broadway Building into this mixed-use civic icon is going to result in a significant investment in downtown Lorain, including development-specific jobs,” Louthen said. “But in our experience, there are additional jobs that are created as ancillary investment on additional development occurs in the area.”
Once construction starts, the developers aim to post updates on www.t2investments.com.
The award for the Lorain project was part of $41.8 million in tax credits granted for 31 applicants to rehabilitate 35 historic Ohio buildings, according to the Ohio Development Services Agency. The projects are expected to leverage about $600 million in private investments in 12 communities.
“These projects transform vacant and under utilized properties into viable places for business and living,” said David Goodman, director of the Ohio Development Services Agency. “This program has been a valuable tool for community revitalization.”
The awards will assist private developers in rehabilitating historic buildings in downtowns and neighborhoods. Many of the buildings sit vacant today and may be a drain on the local community, according to the state agency.
The awards include projects that will create new office, hotel, retail and event spaces.
Once rehabilitated, the developments will drive further investment in their surrounding neighborhoods. Developers are not issued the tax credit until project construction is complete and all program requirements are verified, according to the Development Services Agency.
Residential projects will create 792 new market-rate housing units, including 287 apartments adjacent to Cleveland Public Square in the Standard Building and 18 apartments in Downtown Youngstown’s Gallagher Building. Additionally, 279 affordable housing units will be preserved or newly built, including 91 expanded apartments in the Griswold Memo- rial YWCA in Columbus.
The biggest winner was the Cincinnati Music Hall, which was awarded a $25 million tax credit to help finance a $127.5 million rehabilitation led by the Music Hall Revitalization Corporation and Cincinnati Center City Development Corporation. The hall was built in 1878.
The renovation is considered a catalytic project and the Development Services Agency is permitted to award one catalytic project during each two-year state budget biennium.