I wonder if Michelle is preparing an article?  I would like to get her take on this.

Well keep in mind that Carney and company had already secured tax credits for both the May Co. project and the George Worthington conversion back in 2013. At the time they indicated that those credits would enable them to move forward. I think they got greedy.

I wonder if the May Co. would be considered for the 'media center' for the RNC. There is going to be money available for that. The size and location work.

Wow, and here I thought people would act like adults and be happy that an historic structure that is a cultural hub in a revitalizing urban center. Instead I'm seeing bitter and accusatory comments. Nobody got screwed. There was only going to be one recipient. Everyone knew that.

 

It's sad when people who are grown act like spoiled children who didn't get their way. Come on now.

 

Omg, I think I'm going to puke.

 

Seriously though, tax credits are a zero sum game.  No one is going to be conciliatory for a project that didn't deserve to win.

 

Case in point...

 

It's a cultural asset to the entire state. It draws in people from the suburbs into a neighborhood that they haven't stepped foot into in a long time, if ever. By being able to serve as a better performance space that allows for more shows, more people will travel to Music Hall, see the restaurants and residences popping up all over OTR, a revitalized Washington Park, etc. and realize that the city is doing a good job for once. This could lead to a lot of things, including people moving to OTR or even just realizing it's a place where they can now take their friends or family out. This isn't some "zero-sum" project. It's a huge deal for OTR.

This isn't some "zero-sum" project. It's a huge deal for OTR.

 

Case in point...

 

It may be a huge deal for OTR but it does nothing for Cleveland.  I don't care about OTR...I care about Cleveland.  The award going to the music hall means that it does not go to the May Co.  Zero sum game it is.

^In loose terms, it needs major help. 2/3 of the windows are bricked in, all mechanical systems need to be revamped, the interior is...dated.

 

I have a feeling it has to do with the cultural aspects of Music Hall versus the other contenders.

 

Yeah sorry but that's a bunch of BS.  The music hall, regardless the condition of its interior, is currently operation, right?  So please tell me what "catalytic" impact new mechanical systems in the music hall will make in OTR?  Also, the costs for rehab were rejected when put to municipal vote - so that gives you an idea of the local interest.  Meanwhile, the May Co. building sits vacant right on PS.

 

Actually, there was lots of local support.  It never got to a municipal vote due to county commissioners removing it from the ballot late in the game.  All political BS.  It should have gone to vote.

 

Although I'm happy to see Music Hall receive this funding avenue, I too believe something isn't right.  MayCo should have gotten this before Music Hall, simply because it is vacant.  But it's not like MayCo is located in a wasteland.  It's right there at the heart of the city, literally, and there is tons of development going on all around it as we speak.  Maybe the decision makers felt it had less catalytic value than Music Hall?

 

Even more so, maybe the Akron project would have been the best choice?  It seems, from what little I know about it, that it might better fit the mission of it being "catalytic" based on it's location.  Again, I'm not sure.

 

 

No. Just no. This wasn't about being catalytic for the entire state. No project could do that.

 

It was about being catalytic for wherever the project was. And it is. Being upset because a project in Cincy doesn't help Cleveland is exactly what I'm talking about.

Wow, and here I thought people would act like adults and be happy that an historic structure that is a cultural hub in a revitalizing urban center. Instead I'm seeing bitter and accusatory comments. Nobody got screwed. There was only going to be one recipient. Everyone knew that.

 

It's sad when people who are grown act like spoiled children who didn't get their way. Come on now.

 

The Music Hall is a lovely building that deserves to get a nice renovation. But it's incredibly clear that it did not deserve to win the catalytic tax credits over the May Co. building. 1) It is currently being used. The May Co. building is essentially vacant and in noticeably terrible shape. There will be no "catalytic" results from giving the Music Halls the credits. On the other hand, the May Co. renovation would lead to an immediate multi-million dollar impact in the surrounding region.  2) The May Co. people actually have solid plans and drawings for their project, and 3) It is unlikely that we will see any movement on the Music Hall renovation for at least a couple years. Meanwhile, the May Co. building will still sit vacant.

 

We are mad about the clear role that politics played in this decision. It is hurting the credibility of the historic tax credit program.

Honestly I agree with zero of what you say. You clearly stated you don't know about Music Hall yet you KNOW that it won't be catalytic? Come on. That's precisely what I'm talking about.

 

At no point was "vacant" a requirement. Sorry that you feel so, but that wasn't what this was about.

 

They may have felt that another residential conversion isn't what they view as truly catalytic. Those are happening all over,  and maybe they felt a different type of project was really what was catalytic to a city.

 

The May Co. building isn't going to fall down. It'll get renovated one way or another. All these projects will. It was just a matter of which they felt will make the biggest difference.

Well keep in mind that Carney and company had already secured tax credits for both the May Co. project and the George Worthington conversion back in 2013. At the time they indicated that those credits would enable them to move forward. I think they got greedy.

I wonder if the May Co. would be considered for the 'media center' for the RNC. There is going to be money available for that. The size and location work.

 

Great points!

^^ I said I didn't know all the details about the state of the Music Hall. Then you told me, so now I know. I'm talking in terms of money, that the Music Hall project will not be catalytic, at least compared to May Co.

 

I never said vacant was a requirement, but it sure should be a large part of the consideration.

 

I'm just saying that, since the Music Hall probably won't see any serious renovations for a couple years considering how much money they still have to raise, the funds should have gone to May Co. building, which would've been ready for immediate construction. That way, by 2016 we would have a newly renovated May Co. building with a huge impact on that part of downtown, and the Music Hall could get the catalytic credits in 2016 and still move forward at about the same pace that they will be moving forward now.

^^Are Carney-Rains involved in the George Worthington project?  I thought it was the Vinni Family (don't know if I got the name right).  And what is going on there (not to get off topic)...have not heard anything since the credits were awarded.

Edit: Never mind. People will feel as they feel. Carry on.

 

Hopefully something else is figure out soon so this project can move forward. I think we'd all love to see this finished sooner rather than later.

^ What I heard is that the Music Hall will be closed for renovations from Summer 2016 to Fall 2017. If that's the case, then it seems like the tax credits could have waited until 2016. The renovations would happen a bit later, but at least the May Co. building would be completely done by that time.

 

I am not a spoiled child whining that I didn't get a Christmas gift. I am listing legitimate reasons why May Co. would have been a much, much better choice for this round of catalytic tax credits. Am I allowed to discuss my opinions on historic preservation and development without being insulted, or am I just supposed to accept anything that happens without saying a word?

 

But yeah, let's not take this any more off topic. I'm not happy with the choice mostly because I think it means we won't see any "catalytic"development for at least the next couple years. The Music Hall is great and definitely deserved the money. Just not this round, in my opinion.

Though I am pretty bummed May didn't get the credits, it is true that there is already a lot of development around the building.  From what they say, the Music Hall has virtually no new development.  Improving that building could be a 'catalyst' for new development around the area, which it currently sounds like is in bad shape.

^ What I heard is that the Music Hall will be closed for renovations from Summer 2016 to Fall 2017. If that's the case, then it seems like the tax credits could have waited until 2016. The renovations would happen a bit later, but at least the May Co. building would be completely done by that time.

 

I am not a spoiled child whining that I didn't get a Christmas gift. I am listing legitimate reasons why May Co. would have been a much, much better choice for this round of catalytic tax credits. Am I allowed to discuss my opinions on historic preservation and development without being insulted, or am I just supposed to accept anything that happens without saying a word?

 

I'm not commenting on your opinions on historic preservation and development. I hope you realize that. I'm commenting solely on this tax credit. That's it. Nothing more, nothing less. I agree this building needs to be saved immediately. But that's not the topic of conversation.

 

I'm not insulting you, I'm pointing out that jumping to the "they didn't deserve it!" conclusion when you have admitted you don't know much about Music Hall and have stated some incorrect things about it is similar to a child not getting their way. I'm not calling you a child, I'm throwing out a comparison so that maybe people can take a step back. That's all. We all need that sometimes.

 

As Firenze pointed out this side of Washington Park and the blocks around it are less than ideal. They have tons of potential but having a giant bricked in building towering over you makes these buildings and lots less desirable. This renovation can change that. The area bound by Central Parkway on the south and west and 15th to the north could change for the better because of this project. That's a huge deal.

 

 

^ Check my edit. I'm not saying the Music Hall doesn't deserve it. The Music Hall absolutely deserves the credits... just not this round, in my opinion. I clearly stated the reasons why, which I'd say are pretty reasonable.

 

Anyway, I'd say we both made ourselves pretty clear so we probably shouldn't take this off-topic anymore.

There are a bunch of reasons why the Music Hall beat out the May Company building. The level of investment already surrounding the May Company is probably the biggest. The area in Over-the-Rhine surrounding the Music Hall has more potential if we're talking "catalytic". I bet the large parking component didn't do it any favors either. Converting internal floors for parking is not exactly worthy of additional tax credits for historic preservation.

 

Besides, there is zero chance the Music Hall would be renovated without it.

 

http://development.ohio.gov/files/redev/OHPTC_Overview20140321.pdf

 

Program Requirements:

The rehabilitation plans are reviewed by the Ohio Historic Preservation Office to verify all work is consistent with the U.S. Secretary of Interior’s Standards for Rehabilitation. The issuance of a tax credit must be a major factor in the applicant’s decision to rehabilitate the historic building or to increase the level of investment in the project.

Maybe in some small way, the state is repaying Cincy for the BS Kasich pulled when he yanked over $50 million in transportation funds from the Cincy streetcar project two years ago?  Karma.

I don't know squat about Music Hall, but I don't see any injustice towards the May Co. Building not being picked.  That project is going to happen with or without these tax credits.  The market for apartments in downtown is hot enough right now that a developer should be able to turn a profit on the rehab/conversion and certainly (I would think) will get the lower historic tax credits to do so.

^I would think you are right given those facts but to quote Rains in the Crains article "I'm done".  Hopefully he will cool down and find a way for this to work.

In 10 years when that section of OTR has taken off it's not going to be because of these tax credits. It's going to be the result of actual catalytic investment that Cincinnati has already undertaken in Washington Park, the streetcar, and the work of 3CDC. This is a "win more" investment in the neighborhood which by definition isn't catalytic.

FWIW, I don't think any recent downtown conversions have worked without the tax credits making up a significant share of the project budget, and given the size of this project, the $5M credit they already have just isn't very much. Wouldn't surprise me at all if this project is dead for the time being, unless/until market rents increase more, which isn't a given.  EDIT: though the public square project will certainly help, even if not for a couple years.

I don't know squat about Music Hall, but I don't see any injustice towards the May Co. Building not being picked.  That project is going to happen with or without these tax credits.  The market for apartments in downtown is hot enough right now that a developer should be able to turn a profit on the rehab/conversion and certainly (I would think) will get the lower historic tax credits to do so.

 

Very good point.  I'm disappointed, but not bitter.  nuCLEus is going up diagonally across the street from May's, and with this plus the synergy from E. 4th, the casino, the revamped Public Square, May Company is going to happen.  It just won't be with this particular tax credit.

FWIW, I don't think any recent downtown conversions have worked without the tax credits making up a significant share of the project budget, and given the size of this project, the $5M credit they already have just isn't very much. Wouldn't surprise me at all if this project is dead for the time being, unless/until market rents increase more, which isn't a given.  EDIT: though the public square project will certainly help, even if not for a couple years.

 

I was going to say this exact same thing.  The size of the May Co., in physical and financial sense, cannot be overstated.  $5 million is somewhat insignificant for this project.  It's likely dead for the next couple years.

Sure, size matter ;).  But doesn't size also impact potential profits.  The number of apartments they could tuck into this prime location and the proven track record of recent conversions should significantly help with financing.  That's just me using my common sense, as I know next to nothing about financing developments.

I would suggest reducing the parking in the building, increasing the number of apartments with more micro apartments, and using a location-efficient mortgage as principal financing. A LEM works because you trade transportation costs for housing costs -- which is possible here because this project is next to the region's transportation system. This is a unique location. Leverage that value as part of your financing.

Of course it sucks that this project didn't win the catalytic tax credit, but I think it's totally understandable why the credit went to Music Hall instead.  From what I've been able to read about the May Co. project, it was going to be a residential conversion project.  That is an endeavor that is being pursued, and will eventually be paid for by a developer.  My understanding of the Cleveland downtown residential market is that it's very hot, and several large buildings have been and are currently in the process of being redeveloped into hotels or residences.  If there is already such action underway, one can assume that developers have found a way to make these type of conversions profitable in the market, and that it will only be a matter of time before May Co. has a similar fate.  Sometimes it seems like these types of projects are impossible without large grants like the catalytic tax credits, but as prices rise, and development is seen as less risky, some developer will eventually take on the project. 

 

We (Cincinnati) just had a cluster of old buildings on 7th St. purchased by a Columbus developer, who publicly announced that they would be converted into housing, which would have been a huge win for that part of downtown- even catalytic one might say.  The development received tax credits last year, but the developer announced recently that the project was dead because they just couldn't get the project to make financial sense with the level of tax credits they received.  It sucks, but I think most people are pretty optimistic that sooner or later, another developer will come in and take on the project, and that those buildings will be put back to productive use in the future.  In the case of Music Hall, there is no money to be made. No developer can put forth financing.  No profit will be reaped from the renovation of Music Hall.  Outside of grants, the project is completely reliant on city money and philanthropy.  Without this tax credit, it would have been very hard to make the renovation of this civic asset possible, and it will have a catalytic effect on OTR.  Without upgrades, the ballet, symphony, opera, and all the other users could have moved out to other theaters and venues, taking their thousands of spectators out of OTR, which of course would be devastating for the Washington Park area. 

 

I'm sorry to see the May Co. not receive funding from this catalytic tax credit, but I think it's rehab is inevitable given the resurgence of downtown Cleveland.  I think the idea of leveraging the Republican Convention to get the building renovated is a great one.  Coincidentally enough, Music Hall also has a connection to a political convention, as it was the host site of the 1880 Democratic Convention!

I wanted the May Company to win- but I'm happy for Cincy that the Music Hall won out.  We are all urban enthusiasts (most of us, at least) here- and I don't think anyone can deny that the Music Hall is a huge gem. 

 

The developer may be mad now- and maybe even justifiably so.  But the May Company building will be reborn one day soon.  Maybe not as soon as the developer had hoped, but as others have said: the market for apartments is too hot for this building, in this location, to be empty for too much longer.

 

Congrats Cincy

Downtown Cleveland, Akron miss out on 'catalytic' tax credit, losing to Cincinnati Music Hall

 

CLEVELAND, Ohio -- Downtown Cleveland and Akron lost out to Cincinnati on a major tax-credit award Thursday, casting a pall over redevelopment prospects for the historic May Co. building on Public Square.

 

The Ohio Development Services Agency announced that the state's first "catalytic" project award - a $25 million tax credit for historic preservation - will go to Cincinnati Music Hall, a cultural icon that hasn't been renovated in decades.

 

"A restored Music Hall will bring more people to Over-the-Rhine and downtown, encouraging further development and investment," David Goodman, the state agency's director, said in a news release. "Using the hall for more performances and events will result in new demand for restaurants, housing and other services in the neighborhood."

 

The news, a boon for the Cincinnati arts and cultural community, was a blow to downtown Cleveland, where two massive buildings were in the four-way race for the big-ticket award. Now a local developer team appears unlikely to proceed with an apartment conversion of the May Co. building, a largely empty former department store. Plans for an overhaul of the former Huntington Building, now called the 925 Building, on East Ninth Street are murky.

 

http://www.cleveland.com/business/index.ssf/2014/12/downtown_cleveland_akron_miss.html#incart_river

Michelle does not seem to think the May Co. conversion will go forward anytime soon if ever.  Not even a hint of good tidings in her PD article.

While he might be sincere, I'd think the developer is going to posture for the time being after losing out on this.  He wants government funding to increase his profits.  If I was the City/County/State, I'd tell him to either sh!t or get off the toilet.  Somebody will make this project happen.  If 1717 E9th happened, this project is largely inevitable.

Industrial Realty Group showed how to pursue the big $25 million tax credit.... They applied for both the $25m credit AND the $5m credit for conversion of the old Goodyear HQ in Akron to residential and offices.

 

Developers of the May Co. and the old Huntington Building swung for the fences by seeking only the $25m credit and both struck out.

The reality is that all of the candidate sites deserved the credit, they are all cultural gems.  Unfortunately, there could be only one winner.  I have a feeling in the next round of "catalyst" investment CLE will be rewarded.

^Plus, I think Michelle was talking strictly in terms of May's being finished in time for the RNC for which, now, it probably won't be.  But I'm convinced this project will happen... In the bad old days of downtown Cleveland (1950s through the early 90s), a bump in the road like a small-ish tax credit would kill a project like this forever.  Not so in the can-down Cleveland of today.

I would suggest reducing the parking in the building, increasing the number of apartments with more micro apartments, and using a location-efficient mortgage as principal financing. A LEM works because you trade transportation costs for housing costs -- which is possible here because this project is next to the region's transportation system. This is a unique location. Leverage that value as part of your financing.

 

This is THE post of all posts concerning this topic.

^Plus, I think Michelle was talking strictly in terms of May's being finished in time for the RNC for which, now, it probably won't be.  But I'm convinced this project will happen... In the bad old days of downtown Cleveland (1950s through the early 90s), a bump in the road like a small-ish tax credit would kill a project like this forever.  Not so in the can-down Cleveland of today.

 

This isn't a "small-ish tax credit", that's the problem.  This credit would have paid for 25% of the project.  Literally, 20 percent of the anticipated capital stack just evaporated today, which is probably half of the equity.  It's not like this project was oh so close and this tax credit was just needed to put it over the top.  I don't know what substitutes there really are. Sounds like NMTC are a stretch, and I'd guess even EB-5 visa seekers want some kind of return, so that kind of equity wouldn't be a perfect substitute.  The best shot for this project happening anytime soon is extremely strong rents in the Park Building and 75 Public Square to demonstrate the rent premium at this location, and a lower sales price for the building.

 

I would suggest reducing the parking in the building, increasing the number of apartments with more micro apartments, and using a location-efficient mortgage as principal financing. A LEM works because you trade transportation costs for housing costs -- which is possible here because this project is next to the region's transportation system. This is a unique location. Leverage that value as part of your financing.

 

Unfortunately, I don't think there is such a thing as a location equivalent mortgage for multifamily construction. The value of the location will be factored into the market rent the lender is using to under-write the project, so in that sense, transportation-related value is implicitly included already. LEMs are residential mortgage products (i.e., 1-4 family), which is an entirely different ballgame. Also, unlike true new construction, I doubt there's much money to be saved by reducing the parking space count.

 

My understanding of the Cleveland downtown residential market is that it's very hot, and several large buildings have been and are currently in the process of being redeveloped into hotels or residences.  If there is already such action underway, one can assume that developers have found a way to make these type of conversions profitable in the market, and that it will only be a matter of time before May Co. has a similar fate. 

 

Unfortunately, the only way they found was the historic preservation tax credit. Remember the annoyance when Cleveland proposals won a huge share of the early rounds?  That's where they all went.

 

I don't begrudge Cinci one bit for winning this, though I do think it's weird public buildings are eligible for the grants. That's the one real estate type local governments have complete control over.  It's true no profit could ever be generated to finance a rehab of Music Hall, but that's no different from Cleveland City Hall, a crumbling building at Ohio State, or the Preble County Courthouse.  Not sure this program was really intended to bail out deficient public facility management.  It's certainly a great project, though, so I'm happy it's getting done, and I look forward to checking it out down the line.

I can't wait to see all of the new restaurants, apartments, and retail projects now that the music hall will have a new HVAC system!

The beauty of the HTC program is that it is objective and transparent.  It doesn't matter how connected you are, how big a developer you are etc.  We have 3 employees and got 2 big awards in 2 years. 

 

This Catalytic thing unintentionally  violated those principles in many respects.    It introduced  a subjective analysis into an objective program.  This came about because one developer lobbied a state rep to stick it at the end of an unrelated House bill.  I wouldn't assume this is how the people at OHPO or ODSA thought extra resources should be distributed.      I am fine for giving any of these projects more resources but it seems like the way they enacted this was off-base.  The program needs more money to meet big demand for stimulative projects.    it is well run and not wasteful and therefore needs more resources.  Not a random every other year one time award that is more subjective then objective.

 

This is not a knock on any of the projects.  I hope they all happen.  But the process for how we got here was driven by the May Company lobbyists and it was not all that great of a process.  I get why lobbying for something, getting it stuck in a bill, and then not getting the award is very frustrating.  But, if you are going to go that route, you can't be surprised when it doesn't go your way.

 

"The program needs more money to meet big demand for stimulative projects."

 

That's really the take away for me.  HTC's have been such a successful public investment that it amazes me we can't make a solid case for having the cap raised, or eliminated altogether so that all qualified projects would get funding.

I don't begrudge Cinci one bit for winning this, though I do think it's weird public buildings are eligible for the grants. That's the one real estate type local governments have complete control over.  It's true no profit could ever be generated to finance a rehab of Music Hall, but that's no different from Cleveland City Hall, a crumbling building at Ohio State, or the Preble County Courthouse.  Not sure this program was really intended to bail out deficient public facility management.  It's certainly a great project, though, so I'm happy it's getting done, and I look forward to checking it out down the line.

 

I don't really understand your point here.  Local governments can control the amount of subsidy they provide for any project they want.  If Cleveland City Council thought the May Co. building was critical to the success of dt Cleveland, could they not theoretically provide $25 mil in grants, loans, and other various subsidies? Obviously that's not in the realm of possibility for the city, just as contributing $25 mil to the restoration of music hall would not be a possibility for Cincinnati.  If Cleveland City Hall (1916) is in dire need for renovations to keep the building functional and occupied, why didn't the city apply for this grant? It's not as old as Music Hall (1878), but I think it would be a candidate for a preservation oriented grant such as the catalytic tax credit.

 

And I think there is an assumption among some here that ~400 new apartments will have a greater impact than the 250,000 annual visitors that come through Music Hall each year (http://www.cincinnati.com/story/news/2014/07/10/icon-tax-five-new-things-know/12507941/).  I'm not sure that's a completely valid assumption.  The improvements to the building are not all that sexy, but they are very necessary for keeping the building usable by the arts institutions that call Music Hall home.  It's a/the major economic driver for OTR. 

What I find strange is that the May Co. developers made the entire project contingent on a grant whose allocation is something akin to a lottery.  That there is no Plan B amazes me especially if what they say is true in that they were ready to begin construction upon award of the grant.  If the May Co. project essentially had all its financing and plans in place and the economic justification for the project is sound (with a 98% occupancy rate it most likely is) then closing the $25MM gap should not be insurmountable.  Perhaps a more sophisticated developer can do it. 

I can't wait to see all of the new restaurants, apartments, and retail projects now that the music hall will have a new HVAC system!

 

I don't want to stick my nose in this too much, but you shouldn't be so bitter.  Why don't you go walk around the perimeter of Music Hall and see what a sorry state parts of that neighborhood are in.  Yes a lot of development on the East Side of the building in Washington Park and the perimeter, but then you have to move further outwards to the East to run into more development again on Vine Street.

 

There isn't much directly South of the building, directly north or directly west.  It is absolutely a run down area.  And this project will most definitely have a catalytic affect on the neighborhood.

 

Now I am speaking on the requirement to have a catalytic affect on, was it a 2,500 feet in each direction?  I am not 100% certain on the May Company building, but it seems like there is a lot of investment already, all around that building.  Here are some images of the area immediately around and in the vicinity of Music Hall, if you are not familiar:

 

https://www.google.com/maps/@39.1076553,-84.5190491,3a,75y,81.65h,96.56t/data=!3m4!1e1!3m2!1suOfG-sPZ7X0OWFd3j5PJ_Q!2e0

 

https://www.google.com/maps/@39.1107952,-84.5187575,3a,75y,92.75h,101.18t/data=!3m4!1e1!3m2!1sshf8QvBYWU-1al-qtxKP2g!2e0

 

https://www.google.com/maps/@39.110564,-84.5199232,3a,75y,247.36h,94.72t/data=!3m4!1e1!3m2!1sgZUNvGKIkhmoR_vOR82uzg!2e0

 

https://www.google.com/maps/@39.110116,-84.5203567,3a,75y,247.11h,108.06t/data=!3m4!1e1!3m2!1sOTUZXxSR93I5CDqkWPuDMA!2e0

 

https://www.google.com/maps/@39.1115573,-84.5168914,3a,75y,320.48h,104.36t/data=!3m4!1e1!3m2!1sMP3v2povT2h25cv9GWudDg!2e0

^Showing how rough the surrounding blocks are despite the operation of Music Hall is strange evidence to suggest that this project will have a "catalytic effect."  That said, it's no doubt a great asset there, and if you can convince the gray-hairs to do more than walk between the on-site parking and their seats, it could drive a lot of restaurant business. Cleveland's had the same struggle at Playhouse Square.  So the potential is definitely there.

 

I actually agree with you guys that the MayCo project wouldn't have a "catalytic impact," so if that was really the key metric, I can't complain too much.  It would be a great aesthetic upgrade, but the incremental benefit of 400 new households to the surrounding neighborhood is probably pretty small.

^ I don't disagree with your point of it still being in operation.  However, I think a lot of people have higher ambitions, as in instead of what they do already, increase the concert load, maybe have more special events and attract larger events there, like possibly some music awards, smaller time movie award shows, etc.  I don't think that they will rest on their laurels to maintain what they currently have programmed there, but instead increase their programming considerably.  That is just my take, however.

Hey all -

 

I updated my story about the catalytic credits around 5 o'clock last night, with some comments from Bob Rains, some additional info from the state and a bit more context. The Rains-Carney-Goldberg team isn't giving up yet. They still have some time on their option, so they're going to try to make some decisions in the next month or so. Rains did say that "absent a miracle," the project won't be done in time for the RNC. Missing out on the credit clearly is a huge blow for the project, but the developers are trying to determine whether they can change the scope or financing plan to keep the deal from dying.

 

It's worth noting that May Co. won a $5 million credit in a previous round. That's still on the table for the project. But Rains says they need to fill a $20 million hole.

 

Michelle

 

PS - We would have posted a story earlier yesterday, but somehow ODSA left me off the distribution list for the catalytic announcement. Murphy's Law. I did publish a separate article about the other, smaller awards. (I think someone asked about that elsewhere in the thread.)

Don't forget the $4 Million that Fitzgerald is recommending be loaned to the May Co. Project.

^Plus, I think Michelle was talking strictly in terms of May's being finished in time for the RNC for which, now, it probably won't be.  But I'm convinced this project will happen... In the bad old days of downtown Cleveland (1950s through the early 90s), a bump in the road like a small-ish tax credit would kill a project like this forever.  Not so in the can-down Cleveland of today.

 

This isn't a "small-ish tax credit", that's the problem.  This credit would have paid for 25% of the project. 

 

Sorry Strap, you're right, $25M (or 25%) is substantial.  But as Michelle notes, since they received the $5M credit, previously, they're now "just" in need of another $20M.  I'm still optimistic they'll get it ... from somewhere, just probably not in time for the RNC... Oh well, the City will indeed have a life after the Republicans leave in Summer 2016!

Real quick:

 

900,000sf vacant former department store, with plywood covering several windows, not to mention a crumbling entry "canopy" in the main public space of a City that will be hosting the Republican National Convention in 17 months.  Not only should the current landowner be ashamed (I'm sure he's not), the state should be as well if it's anywhere near this shabby in June 2016.  May Company had seemingly everything going for it, not sure how it lost.

My guess for why they lost was how integral they were to get this $25MM award started.  If they had won, the rest of the state would likely cry foul.

This may not be a new rendering since the leasable commercial spaces aren't new listings (they date to 2012), but the rendering is new to UrbanOhio as it hasn't been posted here until now. FYI:

 

Listing: http://looplink.natl.cbre.com/xNet/Looplink/Profile/Profile.aspx?stid=cbre7&LID=17661780&LL=true&UOMListing=&UOMMoneyCurrency=&RentPer=PY&SRID=5611071065