Renovation of building can spur growth

Renovating the Broadway Building is one of the important pieces of the puzzle needed to spur economic growth in downtown Lorain.

Ariel on Broadway LLC, a development company owned by Cleveland businesswoman Radhika Reddy, is going to bring the historic building constructed nearly a century ago back to life.

Reddy and Lorain Port Authority Executive Director Tom Brown attended the Ohio Development Services Agency’s announcement ceremony June 20 in Akron where state tax credits were awarded.

Those credits will help pay for the renovation of the Broadway Building, which is one of 31 historic buildings that will benefit from more than $30.22 million in state tax credits.

The Broadway Building is the first project in the city to receive the historic tax credits.

A jubilant Reddy is excited by the tax credits because they are a critical factor in bridging some of the financing gaps.

Reddy said her company could not begin construction until the state made a ruling on the historic tax credits.

Remodeling and repairs would have disqualified the project from consideration.

And now that the state historic tax credits have been approved, construction can begin in the near future.

That’s because the Lorain City Schools Board of Education approved a financial incentive package for the project and Lorain City Council will consider it soon.

There’s a lot of intrigue with the building and possible tenants.

Reddy is working to find a restaurant to locate on the first floor of the Broadway Building, which will have 55 hotel rooms and event space.

The resurrected building will complement the city’s efforts at redeveloping the lakefront area for entertainment and recreation.

So far, businesses, community groups and foundations across Lorain have been unanimous in their support because it’s such a catalytic project.

Reddy said she is getting great vibes from Lorain residents for the project.

That’s probably because after more than a dozen years, Lorain now will have a hotel.

The total project is estimated to cost $9.12 million and the tax credit will be worth $1.75 million.

Mayor Chase Ritenauer offered his congratulations saying this is great and exciting news for the city.

Ritenauer said this is a critical step toward a rehabilitated Broadway Building and downtown Lorain.

Around Ohio, the Development Services Agency said the projects that received the tax credits are expected to leverage about $348 million in private investment in 13 communities.

David Goodman, director of the Ohio Development Services Agency, said an old building can be a blemish or a promise for the future.

Goodman said these communities have been chosen to receive an economic boost for the future.

That’s just what Lorain officials are hoping for.

The Broadway Building is going to be the anchor tenant and businesses will sprout up around it.

With downtown’s entertainment district and the Black River Landing just a stone’s throw away, it makes sense for Lorain to have a thriving hotel.

Rockin’ on the River summer weekly concert series and the Lorain Palace Theater can have their guests stay right downtown instead of at other locations miles away.

Couples can have wedding receptions, companies can book conventions and families can host reunions at Ariel on Broadway overlooking, not only the Black River, but Lake Erie as well.

Brown said work could start as soon as next week.

But the first order of business is repairing the roof, which has led to some water damage in the building.

Obviously, as a historic building — constructed in 1925 — some things will remain like the archways near the north side door and the marble staircase and ornamentals that decorate the roof.

But Brown deserves credit for working on this project.

He approached Reddy at a meeting last year in Cleveland and told her of this wonderful building right on the banks of the Black River in Lorain.

She looked at it and was sold.

Just as she has done in Cleveland, Reddy will find ways to keep the place filled during the winter months.

Brown said that could mean partnering with local businesses and showcasing all of the great activities Lorain has year-round.

Reddy has a proven track record for success with the Ariel International Center, a historic 68,000-square-foot building, located on three acres, overseeing Lake Erie and the Cleveland skyline; and the Ariel Pearl Center, considered a hidden jewel in the heart of Old Brooklyn and located in a historic 1923 bank building,

This is good news for the city of Lorain.

And it should only get better.