Merry Christmas, Historic Ohio - State Historic Rehabilitation Tax Credit Passes Ohio Senate and House

 

It will be a Merry Christmas indeed for advocates of Ohio preservation if the Governor signs into law the new Ohio Rehabilitation Tax Credit, which was passed by both houses of the Ohio General Assembly last week.

 

The proposed legislation creates a two-year trial program for the 25% tax credit, after which an analysis will be undertaken to ascertain its impact. Each year, 100 projects can be included in the program, and each will be subject to a cost-benefit analysis conducted by the Ohio Department of Development and the Tax Commissioner to verify that a given project will have a net revenue gain in state and local taxes once the building is placed into service. Property owners can submit projects on or after July 1, 2007. To be eligible, a building must be individually listed on the National Register of Historic Places, verified as contributing in a National Register Historic District, or individually listed as a historic landmark by a Certified Local Government.

 

This is wonderful news for Ohioans interested in re-investment in the state’s traditional city centers. States such as Missouri, which have had similar tax credits for many years, have seen increased investment as owners combine federal and state historic tax credits for much-needed capital.

 

Click http://www.legislature.state.oh.us/bills.cfm?ID=126_HB_149 to read Substitute House Bill Number 149, and stay tuned to MyHometownOhio, as we cover both this important development in more detail as well as provide practical advice for owners interested in taking advantage of the new credit.

 

http://myhometownohio.blogharbor.com/blog/_archives/2006/12/17/2579624.html

This sounds like great news!

It is just a two-year pilot program, after which there will be a lot of cost/benefit analysis, but similar tax credits have had a huge impact other places.

 

In Missouri, e.g., they have had a $1 billion annual positive impact on the state's economy, as their credit creates $1.78 in other taxes (income, payroll, corporate income taxes and other general revenue) for every $1.00 of the credit used.  And Ohio stands to benefit even more -- because of Ohio's unusually high number of properties listed in National Register Historic Districts, we have tens of thousands of eligible buildings.

 

I can tell you the preservation developers are circling already ... and that is a really good thing.

 

Thomas/presOhio

In my best Cartman . . "Awesome"

Maybe a dumb question, but if this has been so successful in other states, what was the legislature's hesitation in making this permenant from the get-go?

Maybe a dumb question, but if this has been so successful in other states, what was the legislature's hesitation in making this permenant from the get-go?

 

Probably one of the main reasons is that you are talking about a tax cut today that will bring in revenue over time… combined with the fact that Ohio isn’t necessarily flush with cash these days.  Some states have enacted programs that place caps on projects or the amount of credits any one program can receive.

 

In short, these programs have problems because they work too well, and because the benefits play out over a period of years, not instantly.

 

The statewide preservation/revitalization community in Ohio decided that it was better to get a foot in the door with a trial program than continue to be one of the few states without any financial incentives for historic rehab.  The final bill is actually better than one previous version, which limited the number of projects to 10 a year.

Thanks for the explaination, it makes sense.  And also, thanks for your efforts on this. 

Quick update... Governor Taft actually signed the bill on January 2 (he had threatened to veto any tax credit legislation) ... and Ohio will actually have its Historic Rehabilitation Tax Credit in place in 90 days.

 

Saints be praised!!!!

 

Thomas/presOhio

State offers tax credit on historic renovations

First 100 qualified applicants to get 25 percent credit

Tuesday,  July 3, 2007 3:22 AM

By Bryan Wroten

 

THE COLUMBUS DISPATCH

About 50 people who lined up with tents and sleeping bags at the Ohio Historical Center over the weekend weren't waiting for an iPhone.

 

They were attorneys, developers, property owners and preservation consultants hoping for a jump on a 25 percent tax credit on renovation projects. At 8 a.m. yesterday, the state began taking applications for the Historic Preservation Tax Credit Program. The first 100 applicants to meet the requirements will get the credits.

 

http://www.dispatch.com/dispatch/content/local_news/stories/2007/07/03/OLDBUILDING.ART_ART_07-03-07_B3_7L76JKV.html

I know a couple people from Cleveland who camped out for the tax credits.  Let's hope their popularity encourages more investment from both the private and public sectors along these lines!

 

New tax credit for historic renovations prompts camp-out

7/3/2007, 8:21 a.m. ET

The Associated Press   

 

COLUMBUS, Ohio (AP) — A new Ohio tax break has led historic preservationists to camp out and line up, iPhone style.

 

Some spent part of the weekend waiting outside the Ohio Historical Center in Columbus, where the state began taking applications yesterday morning for a 25 percent tax credit on renovation projects.

We had a table at the event (handing out Preservation Ohio stuff as well as coffee/donuts)...  here is a shot of applicants handing in their paperwork:

 

 

Talked to several people about projects, including the Terminal Tower, Higbees and umpteen other Cleveland projects, as well as submitted tax credit projects in Akron, Youngstown, Springfield, Marion, Lebanon, Canton, Adams County and elsewhere...

 

Thomas/presOhio

.........He said he's working on the renovation of the Terminal Tower and the Higby Building for Forest City Enterprises in Cleveland.

 

I'd certainly like to know where the Higby building is! :evil:

When will we hear which properties will get the tax credit?

^ I've been wondering the same thing. I couldn't find anything on the ODOD website or the Ohio Historical Society website, even in the original press releases that basically indicated "first come, first serve" but not how the credits would be announced.

Okay, I take that back. I did find some information on the Ohio Historical Society in the form of the credit's rules (the joys of reading administrative code, rather than a nice, concise Q&A section).

 

If I'm reading it correctly, there is a 45-day review period, after which point organizations are notified as to whether their application was complete or not. If it was not, they lose their place in line but are given an additional 45 days to complete the application. Organizations are notified by mail when they qualify for the tax credit; the credit certificate is issued only after the rehabilitation is complete, and rehabilitators are required to file annual progress reports for four years after the issuance of the certificate.

 

At any rate, it sounds like we'll hear about the first credits going through within 45 days of the first applications (around August 15th), assuming that these applications were complete.

I just posted this on MyHometownOhio -- thought you might find some of these interesting...

 

Tax Credit Applications Represent an Outstanding Slate of Projects

by Staff on Mon 30 Jul 2007 07:39 PM EDT

 

A look through applications for the new Ohio Historic Preservation Tax Credit reveals an amazing selection of potential projects. From the landmark Terminal Tower on Cleveland’s Public Square to the more modest John T. Wilson House in rural Adams County, they include a wide variety of project sizes and are located across the state – with a healthy dose from northeast Ohio and several from Cincinnati, Akron and Dayton.  The landmark Golden Lamb in Lebanon is also included.

 

http://myhometownohio.blogharbor.com/blog/_archives/2007/7/30/3129447.html

... with a healthy dose from northeast Ohio ...

 

I would say so! By my count, out of 68 total apps to date, there's 32 from Cleveland, with the city proper accounting for 47.1% of all applications ... or almost the same number is from all other communities in the state combined. This is followed by Cincinnati (6 apps, 8.8%), Dayton (5, 7.4%) Akron (4, 5.9%) and Hamilton and Youngstown (3 each, 4.4%).

 

Anyone have any thoughts on why there has been such a disparity in which communities apply for these credits? For instance, I know they're very different cities, but I was really surprised to see Columbus with only one application. So what's the reason? Different supply levels of historic buildings? Different sets of community priorities regarding preservation? Different levels of market demand for office and residential historic rehabs? Lack of awareness that the credits are available? Cleveland's strong CDC community?

 

I don't get it ... I (and I think a lot of people in Cleveland) thought the credits would be exhausted in a day or two, which they would have been if each of the 3 Cs had brought in 25 - 30 apps. But only one did 

:?

Cleveland has long been a national leader in historic preservation, including the use of Federal historic tax credits and low income housing credits.  My guess would be that means we have a leg up in expertise for applying for a similar product offered by the state level.

What kinds of benefits are offered to residents in Cleveland who buy an existing, older home and want to renovate it? I think it's great that new developments are happening, but what about the beautiful older houses that our city is losing to the bulldozer because of neglect? What can be done to save them?

^ There are a number of organizations working to preserve historic stock in the Cleveland market (residential, commercial and industrial). Check out the Cleveland Restoration Society (www.clevelandrestoration.org), which offers a variety of programs to educate individuals and organizations about preservation and to build their capacity to renovate buildings. The organization also centralizes information about easements and tax credits and provides low-interest loans in Cuyahoga and Summit County for restoration projects. There is also a cross-neighborhood community development corporation that works to preserve historic districts. Their staff members serve both the Historic Gateway District and the Historic Warehouse District, and I believe they are looking to expand their services to the warehouses along Superior between E. 18th and E. 30th. Many CDCs and private developers are in fact investing in rehab projects (search this site for info about Walker Weeks, Payne Avenue Lofts, Tower Press, Hyacinth Lofts, Gordon Square Lofts, the Park Building and Gospel Press for examples), but the lack of a state historic tax credit until recently, as well as escalating costs surrounding rehab projects, has led many organizations to shift their focus toward new construction. CDCs have also begun considering renovation of historically significant neighborhood amenities as anchors for larger redevelopment plans (Detroit-Shoreway, Buckeye and Westown are all planning to renovate historic theatres in their neighborhoods, and Buckeye is using the St. Luke's hospital campus as the anchor for a large in-fill housing development).

 

Unfortunately, due to the fact that the area that was built to support a population roughly twice as big as it now, is home to one of the highest foreclosure/property abandonment rates in the country and has a decades-old culture of migrating into the exurbs and building new, it is all to easy to let historic buildings go the way of the wrecking ball (sometimes even to be replaced by new construction). Cleveland leaders have been very active in articulating the foreclosure crisis on a national level - Tubbs Jones, Kucinich and Brown have all weighed in on the national debate about housing policy and have recommended curbing predatory lending through national legislation (Brown compared Cleveland to the "canary in the mine" ... indicating that Cleveland's current abandonment problems would soon be popping in cities across the country), and county treasurer Jim Rokakis has been one of the country's most prominent speakers about the foreclosure crisis. Many local leaders are involved in Rebuild Ohio, a statewide initiative to curb abandonment through a statewide public policy process, and organizations like the East Side Organizing Project are trying to increase visibility of the issue within the local community.

 

Meanwhile, the city of Cleveland does consider historic preservation in its planning efforts and offers a 12-year tax abatement against improvements from renovations of existing buildings (compared to a 15-year abatement for new construction). I believe (correct me if I'm wrong, guys) the rehab abatement only applies to the improvements on the property and taxpayers are billed for the assessment of the existing value of both the land and the building, while taxpayers in new construction pay only taxes on the land ... not quite as big an incentive as the new construction abatement. Meanwhile, I've heard that getting a rehab abatement is pretty cumbersome (thought I haven't had any experience applying for one myself), and I have yet to have anyone offer me an example of a project where they were used. The city will also be investing quite a substantial amount of money in bulldozing houses that are considered unsalvageable, which in my opinion is necessary but which will of course result in the destruction of some of the properties you were describing. The state offers some additional low-interest programs for home repairs (as do several banks and Cleveland Action to Support Housing, Inc.), but the state also has some departments (read: ODOT) that tend to discount the importance of historic structures (read: the many buildings they plan to tear down as part of the Trench realignment).

 

So there really is a lot of effort locally to preserve properties that are falling into disrepair, but I don't think we're as far as long as other communities in creating a master plan for preservation efforts citywide. When things are demolished, it's usually done pretty quietly with little opportunity for public discussion (or with discussion being offered but public leaders failing to acknowledge it or addressing citizen concerns). I think there's a lot of promise around these efforts, I think Cleveland's not doing as poorly as it could be by any means, but I do expect to see a lot of these buildings continue to come down (look for this issue to heat up even more as the Cleveland Municipal School District shutters additional schools and the Catholic Diocese unloads a number of area churches).

That was extremely informative! Thank you so much for that!

 

I would love to buy an old house in Cleveland one day .. perhaps. There are so many that are these old treasures. I really hate that so many of them are falling into disrepair, and it just seems like most people outside the city limits don't care. I wish more could/would be done to salvage them. Anyway, not to get too depressed. :) Thanks again!

... with a healthy dose from northeast Ohio ...

 

Anyone have any thoughts on why there has been such a disparity in which communities apply for these credits? For instance, I know they're very different cities, but I was really surprised to see Columbus with only one application. So what's the reason? Different supply levels of historic buildings? Different sets of community priorities regarding preservation? Different levels of market demand for office and residential historic rehabs? Lack of awareness that the credits are available? Cleveland's strong CDC community?

 

I don't get it ... I (and I think a lot of people in Cleveland) thought the credits would be exhausted in a day or two, which they would have been if each of the 3 Cs had brought in 25 - 30 apps. But only one did 

:?

 

From my perspective... the following dynamics are at play:

 

The planning and CDC community in Cleveland has been incredibly active in getting word out about the tax credit.  The only regional Ohio tax credit seminar I am aware of was presented in May by the Cuyahoga County Department of Development (and others), and attendees came across northeast Ohio.

 

You are also absolutely right about the federal credit – if one looks use of the Federal Rehabilitation Tax Credit in Ohio over the last several years (which, by the way, routinely ranks in the top 3 of all 50 states), you would find that the Cleveland/Northeast Ohio region routinely has this same level of participation compared to the rest of Ohio.  This means that there are preservation consultants, law firms and financial advisors in the Cleveland metro region that already have substantial practical experience in completing major renovation/tax credit projects.  As the application itself was released only a few weeks before the July 2 date, it would make sense that Clevelanders would have a leg up on everyone else.

 

I don’t know that any of the difference is attributable to the number of historic buildings, but it is interesting to note that Ohio communities and counties are in a widely divergent position in terms of eligible properties for the program.  Cuyahoga County, for instance, has substantially more eligible buildings than Hamilton County – although the latter certainly has just as many (if not more) period structures.  Marietta (population 15,000) has over 2,000 eligible buildings, whereas Springfield (65,000 population ), which has no large National Register Historic Districts and is not a Certified Local Government, has only 105 or so.

 

Thomas/presOhio

Here are the Cleveland applications, organized by neighborhood.

 

Downtown

   * Terminal Tower - 50 Public Square   

    * Higbee Building - 100 Public Square

    * William Taylor, Son & Co. Department Store--The 668 Euclid Building - 668 Euclid Avenue, 615-633       

       Prospect Avenue

    * Cleveland Trust Company - 900 Euclid Avenue

    * John Hartness Brown Building - 1000-1021 Euclid Avenue

    * The Swetland Building - 1010 Euclid Avenue

    * The Cleveland Athletic Club Building - 1118-1148 Euclid Avenue 

    * F.W. Woolworth Building (Haig-Avedesian Building) - 1317 Euclid Avenue

    * Hanna Building Complex - 1400-1438 Euclid Avenue

    * Liberty Building - 2010 Euclid Avenue 

    * Scott A. Rogers Company Building - 2020 Euclid Avenue

    * McCrory/Kresge/Petrie Plus Buildings - 2015 E. Fourth Street

    * East Ohio Gas Company Building - 1403-1405 E. Sixth Street

    * Allerton Hotel - 802 E. 13th Street

    * Sunshine Cloak Company Building - 2310 Superior Avenue

    * M.T. Silver Building - 2320 Superior Avenue

 

Tremont

    * Olney House and Gallery - 2241-2253 W. 14th Street

    * Higbee House - 2267 W. 14th Street 

    * Union Gospel Press - 710 Jefferson Avenue

 

Ohio City

    * Baehr Brewing Company & The Odd Fellows Hall - 1526 W. 25th Street

    * Central National Bank/United Office Building - 2012 W. 25th Street

    * YMCA - 3200 Franklin Boulevard

 

Detroit Shoreway

    * Neal Terrace Apartments - 8811 Detroit Road

    * Capitol Theatre - 1400 W. 65th Street 

    * Cogswell Hall - 7200 Franklin Boulevard

 

Cudell

    * Boulevard Terrace Apartments - 10119 Detroit Avenue 

 

Old Brooklyn

    * Krather Block - 4138-4146 Pearl Road

 

Buckeye/Shaker

    * St. Luke's Hospital - 11311 Shaker Boulevard

 

University Circle/Rockefeller Park

    * Cleveland Club/Tudor Arms - 10660 Carnegie Avenue

    * Ford Motor Company Cleveland Plant, CIA--McCullough Building - 11610 Euclid Avenue         

    * Amasa Stone Home for the Aged - 975 East Boulevard

    * University Tower Apartments (Sovereign Hotel) - 1575 East Boulevard

 

Edit: Cleaned up formatting a little

It is interesting to note that Ohio communities and counties are in a widely divergent position in terms of eligible properties for the program.  Cuyahoga County, for instance, has substantially more eligible buildings than Hamilton County although the latter certainly has just as many (if not more) period structures.  Marietta (population 15,000) has over 2,000 eligible buildings, whereas Springfield (65,000 population ), which has no large National Register Historic Districts and is not a Certified Local Government, has only 105 or so.

 

Thanks presOhio. That was really helpful. Can you explain what constitutes an "eligible" building? Why are Cuyahoga properties in a better position for the credit (state or national) than Hamilton counterparts? Thanks.

Successful applicants will have a project on the National Register of Historic Places and show that their renovation methods meet national standards. They also must explain how the renovation will bring in more tax dollars through job creation and other development than the tax credit.

 

Ooops. Should have thought to refresh myself with the opening article before asking the above. Still, presOhio, which of these criteria are holding back communities from being eligible? While I understand that Cleveland may have a support infrastructure that makes applications for the credits easier, none of these standards seems exclusionary by any means.

I wish more could/would be done to salvage them. Anyway, not to get too depressed.

 

This made me think of an additional resource. Chris Kious at St. Clair Superior CDC has started a deconstruction project, which reclaims materials from houses being demolished for other housing projects. I know some people who have used this service to incorporate historic doors, floorboards, etc. into their renovation projects. While this might not be the preferable form of preservation, it's nice to know that people in our city are thinking about sustainable reclamation when demolitions do have to occur. Find out more about the program at http://www.stclairsuperior.org/html/treasure_from_trash.html.

A quad post? Jeez. At any rate, another reclamation program in Cleveland, ReStore, an initiative run by our local chapter of Habitat for Humanity as an income generator ... win, win, win: http://www.gchfh.org/Restore/index.htm.

 

 

Thanks presOhio. That was really helpful. Can you explain what constitutes an "eligible" building? Why are Cuyahoga properties in a better position for the credit (state or national) than Hamilton counterparts? Thanks.

 

To be eligible, properties must be:

 

1.  Listed individually on the National Register of Historic Places, or

2.  Included in a National Register Historic District and certified as contributing to the district, or

3.  Included in a local historic district in a community which is a Certified Local Government, and certified as contributing...

 

In the 1970s and 1980s, back in the days when there were large sums of money coming from the Federal government for state historic preservation offices, most states spent their pot of gold on bricks and mortar rehab projects.  Ohio, on the other hand, concentrated on planning and inventory efforts... and as a result Ohio has more properties included on the National Register than any other state, with the majority of them in very large National Register Historic Districts.  The work was not uniform across the state, however.  Cuyahoga County has several gigantic National Register Districts -- including Brooklyn Center, Shaker Heights and Tremont -- that have over 1,000 eligible properties each.

 

Some of the biggest challenges for the tax credit are in communities that have no districts and are not Certified Local Governments.  Mansfield is good shape, as as it is a CLG, and it has several reasonably sized historic districts (with 300-400 tax credit eligible properties) -- Lima, a comparably-sized but non-CLG city, has only 35.

 

The other dynamic at play is that most of these large districts are composed solely, or primarily, of residential structures.  Several of Ohio's mid to large-sized downtowns are therefore at a disadvantage.  Canton, a non-CLG community, has only 13 eligible buildings in its central city area; of the 105 eligible structures in Springfield, only 7 are commercial buildings in its downtown area, and Marion has only 5 downtown buildings eligible.  I believe that not a single building in downtown Middletown qualifies.

 

Of course, the hope is that these communities realize this and work to create either NR Districts or to become a CLG.

 

Thomas/presOhio

Thanks presOhio ... fascinating stuff. One more question (please excuse my ignorance on this topic): What role does the fact that buildings are residential play in obtaining tax credits? Does property have to be zoned commercial to avail the resource? And if so, are industrial buildings eligible (I would assume so, since several of the Cleveland apps are for rehab of warehouse space)? Does end use affect eligibility ... e.g. industrial or commercial buildings that are being converted to residential use?

Thanks presOhio ... fascinating stuff. One more question (please excuse my ignorance on this topic): What role does the fact that buildings are residential play in obtaining tax credits? Does property have to be zoned commercial to avail the resource? And if so, are industrial buildings eligible (I would assume so, since several of the Cleveland apps are for rehab of warehouse space)? Does end use affect eligibility ... e.g. industrial or commercial buildings that are being converted to residential use?

 

Bottom line ... no, a property does not have to be zoned commercially, and it might be theoretically possible for individual residences to use the credit (unlike the Federal Rehab Tax Credit, which is clearly not available for non-income producing properties).  Two additional eligibility factors are at play, however.

 

First, an applicant must show that the Ohio tax credit is a major factor in the building rehab or increased investment, and

 

Second, the Ohio Department of Development and Ohio Tax Commissioners office will conduct a "cost benefit analysis" on each project to ensure that there is a "net revenue gain in state and local taxes" after completion of the project.  This is a somewhat mysterious calculation, although the Cuyahoga County Department of Development has developed a model to make this calculation.

 

This is a good overview chart from Squires, Sanders & Dempsey that compares the Ohio and Federal credits:

 

http://www.ssd.com/pdf/AffordableHousing/04262007/chart.pdf

 

Thomas/presOhio

Thanks again.

My updated account:

 

Of 71 total apps to date (11 new applications, 8 existing apps withdrawn), there's 34 from Cleveland (47.9%), followed by Akron (6 apps, 8.5%), Cincinnati (5, 7.0%) and Columbus, Dayton, Hamilton and Youngstown (3 each, 4.2%).

 

So Cleveland picked up a larger share of the apps, with 3 new proposals and 1 withdrawal, and Akron overtook Cincinnati by adding 2 new apps (while Cincinnati had 3 new apps but also had 4 withdrawn apps). Meanwhile, Columbus made it on the list finally by adding three new apps and withdrawing 1.

 

As of right now, Northeast Ohio accounts for 62% of total apps. I promise, I'm not trying to play "my region's better than your region" ... I'm just honestly a little surprised to see a) such a relatively small # of apps being submitted from outside NEO (although a number of posters have already explained well why this may be the case) and b) that the NEO "share" of apps is actually increasing, whereas I anticipated we'd see a larger # of projects from outside the region once we moved away from the initial filing date. I should note, however, that the 3 C's have each submitted 3 new apps since the previous update (although it looks like one of Columbus's apps is a duplicate). So this might just be a reflection that cities outside of Northeast Ohio have less prior experience with these types of tax credits and are therefore more likely to make mistakes/miscalculations that might cause their proposals to be withdrawn.

 

Any thoughts?

It looks like the 3 new proposals for Cleveland are a resubmit.  They are for the Kresge, McCrory, and Petrie Plus building, but they have their applications under Euclid Ave. addresses instead of East 4th St.  The original application was for all three combined.  This was the Cleveland application that was withdrawn.

Good catch, X.

Any news on this? The spreadsheet that presOhio provided a link to (http://net.odod.state.oh.us/ohptc/) shows that there are only a handful of applications still pending initial review, but it doesn't indicate that any of the projects have been approved to proceed. Is there any timeline for when projects will start receiving approval? Are they waiting until all of the current applications have undergone initial review?

I don't think the spreadsheet has been changed for at least two or three weeks, even though it shows it as updated.

I certainly hope they're not waiting to get 100 apps before doing anything. As of last count, even with a pretty substantial new project in Cincy taking up 10 spots, there are only 84 apps.

 

An article written by KJP noted that "The Capitol Theater renovation ranked 26th out of the first 100 projects statewide to be funded by the new program. But since it is a new program, it isn't yet known what the total amount of tax credits will be available. The two state agencies jointly administering the program, the Ohio Department of Development and State Historic Preservation Office, are working out the details, Ramsey said. Given those uncertainties, the Detroit Shoreway Community Development Organization could hear from the state between now and June 30 on whether it will be awarded the tax credits." (http://www.urbanohio.com/forum2/index.php?topic=2873.msg223136#msg223136).

 

I would take this to mean that no decision-making process has been publicly announced, and the only assurety we have is that the credits will be distributed by the close of fiscal year at the end of June 2008.

 

Several of the historic renovation applicants have received notices that their applications are deficient in some way. If they do not address these deficiencies within 45 days, they are subject to being denied the tax credit. Check out the link five posts up.

OHIO DEPARTMENT OF DEVELOPMENT ANNOUNCES HISTORIC PRESERVATION TAX CREDIT AWARDS

 

FOR IMMEDIATE RELEASE

November 15, 2007

 

Columbus, OH -- Lieutenant Governor Lee Fisher today announced 11 awards through the Ohio Historic Preservation Tax Credit program, which awards refundable tax credits to owners of historic buildings who renovate and rehabilitate the buildings in preparation for commercial or residential uses. The $120 million Ohio Historic Preservation Tax Credit program will provide recipients tax credits equal to 25% of qualified rehabilitation expenditures. Ohio's Historic Preservation Office must determine that rehabilitation plans comply with United States Interior Department Standards for Treatment of Historic Properties.

 

"Ohio's communities are full of unique historic buildings that are irreplaceable and vital to preserving the history and heritage of those communities. The re-development of these buildings not only preserves a community asset, but holds great potential for spurring economic development and creating jobs," said Lt. Governor Fisher, who also serves as Director of the Ohio Department of Development. "We are pleased that Ohio's historic building owners are finding new, creative 21st-century uses for historic properties, and embracing the Strickland-Fisher Administration's fix-it-first principles to revitalize and enhance existing places and infrastructure."

 

The 11 recipients announced today will invest more than $147 million combined in projects to rehabilitate historic buildings for re-development. 103 applications for the Ohio Historic Preservation Tax Credit program have been submitted to date, and review of the remaining applications by the Department and Ohio's Historic Preservation Office continues.

 

A list of the Ohio Historic Preservation Tax Credit recipients announced today follows:

 

    * Selle Gear Company (Akron, Summit County)

      Total project investment: $3.7 million

      Estimated qualified rehabilitation expenditures: $3,207,252

      Total estimated value of credit: $801,813

 

    * Sunshine Cloak Company Building (Cleveland, Cuyahoga County)

      Total project investment: $7.5 million

      Estimated qualified rehabilitation expenditures: $6,472,220

      Total estimated value of credit: $1,618,055

 

    * M.T. Silver Building (Cleveland, Cuyahoga County

      Total project investment: $9.6 million

      Estimated qualified rehabilitation expenditures: $9,005,000

      Total estimated value of credit: $2,251,250

 

    * William Taylor, Son & Co. Department Store - The 668 Euclid Building (Cleveland, Cuyahoga County)

      Total project investment: $55.9 million

      Estimated qualified rehabilitation expenditures: $65,617,753

      Total estimated value of credit: $16,404,438

 

    * John Hartness Brown Building (Cleveland, Cuyahoga County)

      Total project investment: $27.4 million

      Estimated qualified rehabilitation expenditures: $23,023,200

      Total estimated value of credit: $5,755,800

 

    * Cleveland Athletic Club Building (Cleveland, Cuyahoga County)

      Total project investment: $23.2 million

      Estimated qualified rehabilitation expenditures: 16,586,400

      Total estimated value of credit: $4,146,600

 

    * Second National Bank Building (Hamilton, Butler County)

      Total project investment: $972,608

      Estimated qualified rehabilitation expenditures:

      $937,888

      Total estimated value of credit: $234,472

 

    * Howell-Sohngen Building (Hamilton, Butler County)

      Total project investment: $3.2 million

      Estimated qualified rehabilitation expenditures: $3,106,754

      Total estimated value of credit: $776,689

 

    * Davis-McCrory Building (Hamilton, Butler County)

      Total project investment: $1.8 million

      Estimated qualified rehabilitation expenditures: $1,817,158

      Total estimated value of credit: $454,290

 

    * Hotel Onesto (Canton, Stark County)

      Total project investment: $6 million

      Estimated qualified rehabilitation expenditures: $5,803,200

      Total estimated value of credit: $1,450,800

 

    * The Hotel Reiger (Sandusky, Erie County)

      Total project investment: $7.2 million

      Estimated qualified rehabilitation expenditures: $7 million

      Total estimated value of credit: $1,750,000

 

The Ohio Historic Preservation Tax Credit program was authorized for a two-year period beginning July 1, 2007. The program is administered by the Ohio Department of Development with assistance provided by the Ohio Historic Preservation Office of the Ohio Historical Society and the Ohio Department of Taxation.

 

http://www.odod.state.oh.us/newsroom/releases/1833.asp

Great news! Good to see some big projects in Cleveland get some help.

 

Atrium Building--I wouldn't be surprised to see an announcement soon regarding this project. I've heard that KD wants to turn it into condos.

 

 

This is fantastic. It will be so heartening to see something finally happen with 668 (aka 666) Euclid!

So I guess they're announcing the winners in waves? I don't see the Capitol Theatre on there.

 

 

5 Cleveland projects get $30 million in preservation tax credits

$30 million via state tax breaks aids 5 projects in historic urban buildings

 

Friday, November 16, 2007

Shaheen Samavati

Plain Dealer Reporter

 

The state awarded more than $30 million in tax credits Thursday for five downtown Cleveland renovation projects.

 

Cleveland was the biggest benefactor during the first round of the state's new historic-preservation tax credit awards.

From the Journal-News:

 

Tax credits will spur Mercantile renovation

By Josh Sweigart

 

HAMILTON — City officials say a state tax credit will kick-start renovation of three buildings in the heart of downtown Hamilton known collectively as the Mercantile Block.

 

The Ohio Department of Development announced Thursday that the Second National Bank building, Howell-Sohngen building and Davis-McCrory building will receive tax credits worth a total of $1.46 million.

 

http://www.journal-news.com/n/content/oh/story/news/local/2007/11/17/hjn111707taxcredit.html

At the same time that the above projects were approved for the credits, it appears a number have been quietly denied:

 

- Hercules Motor in Canton

- Allerton Hotel in Cleveland

- Colony Theater in Marietta

 

Meanwhile, 20 applicants have received 45-day notices regarding deficiencies in their applications.

OHIO DEPARTMENT OF DEVELOPMENT ANNOUNCES HISTORIC PRESERVATION TAX CREDIT AWARDS FOR IMMEDIATE RELEASE

December 28, 2007

 

Columbus, OH -- Lieutenant Governor Lee Fisher today announced an additional 11 awards through the Ohio Historic Preservation Tax Credit program, which awards refundable tax credits to owners of historic buildings who renovate and rehabilitate the buildings in preparation for commercial or residential uses. The Ohio Historic Preservation Tax Credit program will provide recipients tax credits equal to 25 percent of qualified rehabilitation expenditures ...

 

... More at http://www.odod.state.oh.us/newsroom/releases/1849.asp

Six Cleveland projects awarded historic-preservation tax credits

Saturday, December 29, 2007

Alison Grant, Plain Dealer Reporter

 

State subsidies of more than $4.7 million are expected to breathe life into six projects to renovate historic buildings in Cleveland.

 

The projects are among 11 across Ohio that received historic preservation tax credits to renovate historic buildings for commercial or residential use. The credits are property tax discounts equal to 25 percent of qualifying expenses in the projects.

 

http://www.cleveland.com/business/plaindealer/index.ssf?/base/business-4/1198921019280260.xml&coll=2

Hanna, Higbee buildings among winners of state historic preservation tax credits

Michelle Jarboe

March 13, 2008 14:08PM

 

Nine Cleveland-area properties made the cut for the latest round of state tax credits meant to help with renovation of historic buildings.

 

The downtown Higbee and Hanna buildings are among the properties earmarked today by the Ohio Historic Preservation Tax Credit program, which distributes refundable tax credits to owners of historic buildings who revamp the properties for commercial or residential uses. The former department stores made a list of 15 properties statewide, collectively slated to benefit from an estimated $73.4 million in tax credits.

 

http://blog.cleveland.com/business/2008/03/hanna_higbee_buildings_among_w.html

Other approved projects include Gospel Press in Tremont, 900 Euclid Avenue and the Exhibit Builders' Building in Ohio City

 

A great deal of applications also appear to have been denied in this latest round. Denied applications in Cleveland included:

 

- Terminal Tower

- St. Luke's

- Amassa Stone Home

- Central National Bank Building

- 2010 Euclid Avenue

 

It appears the vast majority of applications have either been accepted or rejected, so if you haven't heard on the status of a project, you probably won't, unless a rejected entry resubmits.

Ohio Historic Preservation Tax Credit Pilot Program Officially Closed

by Staff on Thu 13 Mar 2008 11:56 PM EDT

 

As previously covered by MyHometownOhio, the pilot program of the Ohio Historic Preservation Tax Credit was thrown into some question late last year when a press release from the Ohio Department of Development referred to it a “120 million dollar program.” When that happened, several individuals involved in the effort, including legislators, began to discuss the meaning of that phrase, and openly questioned whether or not an announced second round of applications would actually be accepted this Summer.  As it turns out, not only will there not be a Round Two, but several pending Round One applications will not be approved.

 

http://myhometownohio.blogharbor.com/blog/_archives/2008/3/13/3579363.html

So, with the pilot program coming to a close, 37 projects received tax credits.

 

By my count, 3 are in Butler County ($1.5 million), 1 in Champaign ($0.8 million), 20 in Cuyahoga ($64.3 million), 1 in Erie ($1.8 million), 2 in Lucas ($3.7 million), 3 in Mahoning ($5.8 million), 1 in Miami ($3.7 million), 1 in Ottawa ($0.6 million), 2 in Stark ($38.4 million), 2 in Summit ($0.9 million) and 1 in Washington ($2.3 million).

 

That's 26 projects in Northeast Ohio ($72.8 million), 3 projects in Southeast Ohio ($40.7 million), 3 in Northwest Ohio ($4.3 million), 2 in Southwest Ohio ($4.5 million) and none in Central Ohio. This estimate is based on many state agencies' tendency to put Stark County in Southeast Ohio. Given its spatial proximity to Akron, Cleveland and Youngstown, I think Canton is arguably more strongly affiliated with Northeast Ohio. In that case, 28 projects were in Northeast Ohio ($111.2 million) and only one project is in Southeast Ohio ($2.3 million).

 

In other words, even discounting Stark County's sizable tax credits, Northeast Ohio had 70.3% of funded projects and 58.8% of total funds. If you add Stark County in, Northeast Ohio had 75.7% of funded projects and 89.8% of funding.

 

While I'm really glad to see so many Cleveland projects moving forward, I think it's a real shame that not a single project from Cincy is receiving a credit, nor any of the small number of proposed projects in Columbus. In fact, while Cleveland has 20 projects moving forward, only 4 other projects statewide are taking place in cities with populations greater than 100,000 ... 2 in Akron and 2 in Toledo. 

^really, what happened in Cincy? Were developers not interested? Did their applications get rejected?