Four Northeast Ohio Projects Get Historic Tax Credits
- Jul 03, 2015
By Adrian Maties, Associate Editor
As June ended, four more Northeast Ohio real estate projects received assistance from the state. This time, the funds were Ohio State Historic Preservation Tax Credits.
On June 30, the Ohio Development Services Agency (ODSA) awarded a total of $27.5 million in historic tax credits to 19 applicants looking to rehabilitate 33 historic buildings throughout the state. About $7.75 million went to the four Northeast Ohio projects, with three of the projects located in Cleveland. These are the $60 million conversion of the Leader Building, the $2.4 million conversion of the Gund Brewing/Scott Drug Building and the $16 million rehabilitation of the Stuvesant Motor Company Building. The fourth, in Akron, is the $12 million conversion of the United Building.
The Leader Building got the largest portion of the funds, with $5 million. The money will help the K&D Group transform the 15-story downtown Cleveland property into 234 apartments, with retail on the first floor and offices on the second and third.
The other two Cleveland projects will also bring apartments to the city. The Stuyvesant Motor Company Building will have 42 market-rate apartments, while the Gund Brewing/Scott Drug Building will only have five. The ODSA awarded $877,438 to the first project and $249,999 to the second.
The Akron project received $1.6 million in tax credits. It calls for the redevelopment of the United Building, which currently functions as office space, into a hotel with 65 rooms.
Developers are not issued the tax credits until they complete their projects and all program requirements are verified. According to the ODSA, the awards will not only help them rehabilitate historic buildings, many of which are currently vacant, but also generate economic activity. The agency expects the 19 projects to leverage almost $279.4 million in private investments.
So far this year, the Ohio Historic Preservation Tax Credit program has completed 100 projects in 28 Ohio communities. They rehabilitated 120 historic buildings, created 3,439 housing units and generated more than $1.4 billion in investment.