Director shares more concerns for Broadway building

In an interview this week, Lorain Building, Housing and Planning Director Leon Mason explained a number of concerns he has about a financial plan for the redevelopment of the Broadway Building, 301 Broadway.

Some of the issues referred to the Aug. 18 project pro forma plan that developer James Louthen submitted to the city. Among the concerns: • There are conflicting reports about conversations in at least two conference calls with the developers, city officials and staff of the federal Department of Housing and Urban Development officials about whether Lorain can use the Community Development Block Grant and HOME money for the Broadway Building, Mason said.

• Based on federal and local regulations, if the project uses the federal money available through Lorain, it should create the equivalent of 31 to 71 new full time jobs, depending on what criteria are used, he said.

The apartments would not create that number of jobs, Mason said. The city and federal officials do not count the construction jobs created when contractors are renovating the building, he said.

•The project may use Ohio historic tax credits for financing. But the developers’ proposal did not say they could lose those tax credits Dec. 31 if they do not secure financing, Mason said.

• The developers incorporated the business 301 Broadway Partners LLC on Sept. 2, according to records from the Ohio Secretary of State’s Office.

That was after they submitted the financial request to the city of Lorain, Mason said. The project outline noted proof of the business formation “is forthcoming as our development entity is being formed in the state of Ohio in the month of August 2016.”

• Retown, Louthen’s development company, is not incorporated in Illinois or Ohio, Mason said. Louthen noted Retown is an umbrella brand that “we ‘do business as,’ which is a very common business practice,” according to an Aug. 24 email to Mason.

Town Build Construction LLC is a parent company that was incorporated May 12, 2011, said Louthen. That record was verified in the Illinois Secretary of State’s Office online database as of Sept. 28.

• Lorain City Council’s 2014 resolution of support for the project refers to the developer “Lorain Building Investors LLC.” Mason said that business does not exist in Ohio, according to records from the Ohio Secretary of State’s Office.

• The pro forma plan mentions the possibility of using a Greater Cincinnati Energy Star PACE loan to finance the project.

“This is a newly identified source of funds that facilitates energy efficiency,” the developers’ outline said. However, the Broadway Building would not qualify for that money, Mason said.

“That’s 100 percent untrue,” he said. “PACE financing, not even a possibility.”

• In the pro forma, Lorain developer Victor Nardini is listed as a potential partner. However, as of Sept. 21, Nardini was not involved at all in the project, Mason said.