CLEVELAND, Ohio — The developer behind a planned transformation of the former 1.4 million square foot Huntington Building in downtown Cleveland has secured a $40 million tax credit under of a new program designed to help projects that could become major economic drivers.
Owners The Millennia Cos. plan to transform the 98-year-old building at East Ninth Street and Euclid Avenue into 864 affordable apartments, a 61-room boutique hotel, as well as an upscale restaurant, offices, storefronts and event space. The Ohio Tax Credit Authority awarded the project the state’s largest incentive.
Millennia said in a press release that it had secured $476 million in local, state and federal loans and incentives. A spokeswoman said the company will begin renovations this year and it will take up to 40 months to complete.
The award, along with 12 others across the state, is from the new “Mixed-Use Transformational Development” program, administered by the state’s Department of Development. It is intended for projects that “have an influence on both economic and social well-being, which will produce a long-term change for the use of the site and will bring about an increase in economic activity in the surrounding area”, according to a document. for candidates.
The state tax board approved the prices at its meeting on Wednesday.
Under the program, the state provides up to $100 million in tax credits each year for fiscal years 2022 through 2025. Of that amount, no more than $80 million can go to projects in large cities, and the largest tax credit a single project can receive is $40 million. The tax credit program is designed to cover 10% of the total cost of a project.
To be eligible, the project must meet the size requirements. It must also include at least two uses, such as residential and retail, or three if one of the uses is a parking garage. Projects in major cities must cost at least $50 million and the tax credit must be a “major factor” to ensure they are completed.
Statewide, 42 developers claimed a total of $417.7 million in tax credits.
In Cleveland, several major projects that did not make the cut include the planned renovation of Erieview Tower, the construction of new apartments and a hotel on West 25th Street near the Detroit-Superior Bridge (Veterans Memorial), and the redevelopment in progress at The Phantasy nightclub. in Lakewood.
The development surrounding the Professional Football Hall of Fame in Guangzhou has also been losing out.
Projects receiving the tax credit in Northeast Ohio include:
* A plan by lender CrossCounty Mortgage to renovate six buildings between Superior Avenue and Payne Avenue, and near East 21st Street, in downtown Cleveland. The area, known as the Higher Arts District, will be the new headquarters for the company, currently based in Brecksville. The plan also includes apartments and a restaurant.
The project is estimated at over $100 million. The state provided a tax credit of $8.56 million.
* Developer Kevin Flanigan plans to turn the vacant Dixon and Robinson buildings in downtown Elyria into an arena and game room for Lorain County Community College’s eSports team, with dining options on the first floor. Other parts of the building will include classrooms used by the community college, as well as offices. It will also have a media production facility for the building’s events.
It also plans to build a six-story, 51-apartment building that will include storefront space, a wine bar and underground parking. The project is estimated at $35.73 million. The state granted a tax credit of $3.41 million.
* The developers plan to clean up 4 acres on Mentor Avenue in downtown Mentor and replace it with a 43,000 square foot building with offices and storefronts, a restaurant and recreation space.
The building will house an unspecified medical service provider. Its construction is estimated at 13.96 million dollars. The state provided a tax credit of $1.16 million.
* In Wooster, developers plan to construct a two-story, 16,000-foot building with a storefront and restaurant, as well as eight apartments. The $5.81 million project received a tax credit of $527,429.
* In downtown Guangzhou, owners of the 133,502-square-foot Renkert building plan to turn it into an extended-stay hotel with a restaurant on the first floor. They also plan to build a three-story building on nearby land with more hotel, restaurant, event and storefront space and public parking.
The $42.09 million project received a tax credit of $4.21 million.