Tag: Ohio Historic Preservation Tax Credits

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Christmas Came Early for Southwest Ohio Developers, Historic Preservationists

Rendering of $25M Freeport Row Development [Provided]

The Ohio Development Services Agency provided developers and historic preservationists around the state with an early Christmas present when they announced 18 projects that would receive Ohio Historic Preservation Tax Credits.

In total, the tax credits are worth $22.8 million and are expected to spur $225.6 million in private investment.

“A community’s historic buildings make it unique,” said David Goodman, director of the ODSA. “Giving a building new life honors the history of the building, while creating construction jobs in the short-term and opportunity for economic activity in the future.”

In recent years southwest Ohio had fared extremely well in the competitive bid process for the funds, and this round proved to be much of the same. This group of winning applicants includes five from Cincinnati, one from Hamilton, and two from the Dayton area.

One of the Dayton projects was the winner of one of the state’s two prestigious $5 million awards. That money will go toward the $46 million United Brethren Building project in downtown Dayton, which will transform the long-vacant, 112-year-old building into 164 apartments.

While the Cincinnati-region had the most number of awarded projects, most of the tax credits were small in size. Four projects, three located in Over-the-Rhine and one in Hamilton, received amounts ranging from $150,000 to $250,000. While small in scope, the projects will save numerous historic structures from demolition, while also creating dozens of residential units and commercial space.

The long-debated Freeport Row project, located at Liberty and Elm Streets, received a sizable $1,358,772 tax credit to help restore five historic structures as part of the overall $25 million development. Once complete, the project is expected to yield 110 apartments, 17,000 square feet of retail, and a total of 100,000 square feet of new construction on the vacant lots surrounding the historic structures.

Just blocks north of Freeport Row, along the Cincinnati Bell Connector, is another project that took home the largest tax credit in Cincinnati. Market Square III was awarded with $1,690,000 in tax credits and push forward the latest phase of Model Group’s massive redevelopment efforts surrounding Findlay Market.

Market Square III will renovate eight historic structures, most of which are currently vacant, to include street-level commercial space with 38 apartments in the upper floors.

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Development News

$11.2M Redevelopment of Historic Heberle School to Breathe New Life Into West End

Southwestern view of Heberle Lofts [Provided]

A team of New York-based developers have purchased a number of properties in the West End, and a recent tax credit from the State of Ohio may spark the first major redevelopment investment in the historic district in decades.

In 2012, Zada Development purchased two historic school buildings from Cincinnati Public Schools for $60,000 each at auction. The two schools sit within a block of one another in the Dayton Street Historic District, and have sat vacant for the better part of the last decade.

The development team told UrbanCincy that they intend to begin construction on the 86-year-old Heberle School in February, thanks to a $1.8 million Ohio Historic Preservation Tax Credit – the biggest award in the recent round of funding in Southwest Ohio aside from Music Hall’s $25 million catalytic project award. It is due to the neighborhood’s proud history that the developers decided to enter the Cincinnati market and take on their first project here.

“This area has been abandoned for some time, which prompted us to collaborate with the Dayton Street Neighborhood Association in order to revive a community rich in history and architecture,” explained Golan Marom from Zada Development Group.

The group’s previous experience is largely comprised of high-rise residential rehabilitations in the New York area.

The $11.2 million Heberle Lofts project, meanwhile, is seen as phase one of the team’s efforts. The second phase will focus on the 100-year-old Lafayette Bloom Middle School on Baymiller Street. There, developers anticipate a project similar in scope to what will be done at Heberle, which is planned to include 59 market-rate apartments and 5,000 to 6,000 square feet of street-level commercial space.

A striking similarity at both school properties is the large open space in front of their main entrances. In both cases, Marom says that the plan is to maintain some of it as parking for the development, while also creating new public and green space for the community.

While redevelopment has been moving northward from Over-the-Rhine’s Gateway Quarter, all the way up to the Brewery District surrounding Findlay Market, it has yet to spread west into the West End or its Brighton District. An injection of activity like this, however, could improve the neighborhood’s ability to support service retail and restaurants, which so far have proved difficult to attract within the Brighton District or along Linn Street at the nearby City West development.

The development team says they are still working to secure some additional financing, but are optimistic they will be able to get started in the coming months. Should everything go according to plan, the Heberle Lofts project is expected to be completed approximately two years after construction work begins.

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Over-the-Rhine Wins Big in Latest Round of Ohio Historic Tax Credits

1317 Republic Street [Provided]

The Ohio Development Services Agency divvied up its thirteenth round of historic tax credits yesterday. As has been the case in the past, Over-the-Rhine, one of the nation’s largest historic districts, was a big winner.

In addition to the mega tax credit awarded to Music Hall, five other projects in the neighborhood received tax credits through the program.

Urban Sites received two tax credits totaling $500,000 that will enable the Over-the-Rhine-based developer to restore three historic structures on Main Street and Clay Street; and create 23 apartments along with street-level retail.

Another project at 51 E. Clifton Avenue received a $147,000 tax credit that will go to help cover the costs of the $750,000 project, and ultimately create seven market-rate apartments in the 124-year-old structure.

Another big winner, in addition to Music Hall and Urban Sites, was Grandin Properties – a company that has taken an increasing interest in the neighborhood and even relocated their office to the Washington Park district in recent months.

Through the historic tax credit program, Grandin Properties will receive nearly $400,000 for their planned $1.5 million renovation of two 136-year-old buildings on Republic Street in between Thirteenth and Fourteenth. Once complete, developers say that the buildings will have 12 residential apartments.

“These projects transform vacant and underutilized properties into viable places for business and living,” said David Goodman, director of the Ohio Development Services Agency, in a prepared release. “This program has been a valuable tool for community revitalization.”

State officials say that the application deadline for the next round of the Ohio Historic Preservation Tax Credit Program is March 31, 2015, and that approved applicants will be announced at the end of June 2015.