PD reports that Ohio Preservation Office has recommended that Ameritrust Tower should receive federal tax credits.  Article said that Doug Price was very encouraged and that he hopes to proceed early next year if the credit crisis eases.

cool!  Did they finish work on the asbestos removal finally?  I noticed they took down the "fugly blue fence" last week.

Has there been approval of any other projects in Cleveland?

:clap:  This is great news...and the second of the week. I'd been getting a little worried about the silence surrounding this project in light of the credit crisis, but it's good to here that the wheels are still in motion, as illustrated by this as well as Price's comments in the Crain's article about the Euclid Corridor:

 

"Mr. Price said the HealthLine also pushed K&D to submit what would turn out to be the only bid to buy the former Ameritrust complex from Cuyahoga County for a planned, $200 million apartment, hotel and office project. K&D is working overtime to put together a financing package for the Ameritrust project despite the credit deep freeze, but Mr. Price vows to continue pursuing the county purchase."

^I dont care what he "vows" I will believe it when I see it.

As we should.

I didnt see the Breuer Tower on the list of tax credits released today, nice list otherwise.:

 

Northeast Ohio wins $37 million in state tax credits; most not available until mid-2010

By mjarboe

October 16, 2008, 1:00PM

Updated 6:45 p.m.

 

 

* Allerton Apartments, 1802 E. 13th Street in Cleveland: $2.2 million

* Amasa Stone Home for the Aged, 975 East Blvd. in Cleveland: $1.1 million

* Central National Bank/United Office Building, 2012 W. 25th Street in Cleveland: $1.8 million

* Tudor Arms, 1066 Carnegie Ave. in Cleveland: $4.4 million

* East Ohio Gas Co. building, 1403 and 1305 E. Sixth Street in Cleveland: $5 million

* F.W. Woolworth Building, 1317 Euclid Ave. in Cleveland: $1.1 million

* Heyse Apartments, 1702 W. 28th Street in Cleveland: $847,000

* Kresge Building, 406 Euclid Ave. in Cleveland: $474,000

* Liberty Building, 2010 Euclid Ave. in Cleveland: $400,000

* McCory Building, 422-424 Euclid Ave. in Cleveland: $646,000

* Petrie Plus Building, 416 Euclid Ave. in Cleveland: $258,000

* St. Luke's Hospital, 11311 Shaker Blvd. in Cleveland: $5 million

* Terminal Tower, 50 Public Square in Cleveland: $5 million

* YMCA, 3200 Franklin Blvd. in Cleveland: $775,000

 

http://blog.cleveland.com/business/2008/10/northeast_ohio_wins_43_million.html

 

edit: looking back it says it was recommended for the federal tax credits, did they not qualify for the state?

 

Nice to see so many downtown tax credits!

East Ohio Gas Building???? What's going on there?

That's the old WKYC building. About two years ago, some developer wanted to turn it into an extended stay hotel.

That's the old WKYC building. About two years ago, some developer wanted to turn it into an extended stay hotel.

I believe a staybridge suites...

 

It's good to see some of those on the list that missed out the first time around.  Though since the money won't be available until 2010 developers more than likely need to secure some sort of bridge financing in the near term.

 

^I dont care what he "vows" I will believe it when I see it.

 

I'd say anything without financing at the current time is fighting an uphill battle.  But it will be interesting to see if the federal bailout/rescue plan makes financing easier to secure in the coming months... and I'd also never bet against Doug Price.  There are several things about K&D that I don't like... but somehow that guy always finds a way to get things done in the end.

RE: Ameritrust & State Historic Tax Credits, what does this mean? >

http://www.cleveland.com/entertainment/plaindealer/steven_litt/index.ssf?/base/entertainment-0/122405942229710.xml&coll=2

 

Ohio preservation office recommends tax credits for Ameritrust renovation

Wednesday, October 15, 2008 Staff report

 

The Ohio Historic Preservation Office has recommended that a developer's proposal to renovate the Ameritrust tower in downtown Cleveland should receive federal tax credits so a private developer can buy and renovate it.

 

The credits could be worth $8 million to $10 million on a $133 million project, said developer Doug Price, chief executive of K&D Group.

 

"It looks very encouraging," Price said Tuesday. "It's a critical part of making the project work financially."

 

 

-Steven Litt

 

Folks, when including links, is it possible to also include the text as those link don't live on forever.

 

A few months from now, someone (old or new to UO) might want to acquaint themselves with a topic and having the actual text along with the link would be beneficial.

 

thanks,

RE: Ameritrust & State Historic Tax Credits, what does this mean? >

 

I think it just means it is one more piece to a very complicated puzzle.

The Litt article is talking about federal historic tax credits, which cover up to 20% of project costs. That list above from the PD is referring to state historic tax credits, which cover 25% of project costs up to a cap of $5MM.

So... K&D got federal credits but looks like it hasn't gotten state credits yet. I'm assuming they "only" qualify for $8-10 million in federal credits because only the rotunda qualifies as historic; the tower is from the 70s and is too new.

Does this clear things up?

This project has the potential to secure $15 million in historic tax credits (10M federal, 5M state). That's really a drop in the bucket on a $133 million project, particularly in this lending climate. 668 Euclid, which got its financing before the state cap went into effect, got something like $16-17 million in state tax credits alone, and I've been told it wouldn't have happened without that amount of subsidy. So, I'm worried but of course optimistic about Ameritrust. ;)

I actually probably confused matters when I posted the list of buildings recieving state tax credits further up, thinking that the news yesterday, was referencing this, then realized that yesterdays was about recommending for the federal credits. (note the edit part)

 

It looks like it is not receiving the state credits, if it even qualified.   

 

Thanks for that run down blinker.  It looks like 668 was very lucky to get approved for that amount beofre the limits were capped at 5 million. 

Here We go down the toilet.                                       

 

Credit crunch imperils Cleveland's commercial development projects

Posted by Michelle Jarboe/Plain Dealer Reporter October 16, 2008 23:54PM

Categories: Breaking News, Economic development, Economy, Real Estate News Impact, Real Time News, Real estate

 

John Kuntz/The Plain Dealer

Credit problems are hurting businesses across the nation. Some commericial developments in Cleveland could be at risk.

Cleveland's nascent development renaissance could be standing on shaky ground, with a series of high-profile projects imperiled by the financial crisis.

 

The subprime mortgage meltdown and turmoil in the banking industry have put a vise on credit for building, buying and selling commercial properties. Even if the government's rescue efforts get credit flowing again, analysts expect tough times for the commercial real estate industry.

 

 

Download map (PDF, 2.3 MB)Defaults could rise as property owners who secured loans during more-euphoric times fail to refinance their debt in a downturn. Flagging store sales and retailer bankruptcies may spark foreclosures on shopping centers across the country. And in Cleveland, developers will face serious challenges to their grand plans to revive the city, from the Flats to University Circle.

"No project is insulated from market conditions," said developer Peter Rubin, who recently dropped plans for a $500 million development in Solon.

 

 

 

http://blog.cleveland.com/business/2008/10/northeast_ohio_wins_43_million.html

 

 

Here We go down the toilet.

 

Serious question.  Did you post this in several threads to be mean spirited and negative or do you have something constructive to discuss about the article and how it impacts Cleveland as a whole?

MTS  I think this crunch impacts Ameritrust tower and Jacobs tower the most. These two projects are going to have it extremely difficult to get financing

MTS  I think this crunch impacts Ameritrust tower and Jacobs tower the most. These two projects are going to have it extremely difficult to get financing

 

Then what was the "here we go down the toilet" comment for? 

 

I for one don't think, that the credit crunch will be any more significant that it has in the past as we know that a) you need x% of signed leases/contracts before you start a building.  In addition, this could be a positive for Cleveland as we have not been hit as bad as New York, San Fran., Charlotte, Miami or Atlanta in the Banking sector.  Downtown occupancy rates are only going to get lower so we will have to build sooner than later.

 

There are also smaller high value projects that will spring up.  Development and Lending will not stop.

We constantly get close in cleveland but have a tendency to be a bridesmaid instead of the bride. This has happening most of my life and I am over 50.  Sports, Development, Business, Economy, Politics, etc, etc & etc. We always seem to come up short. Down the toilet  means here we go again.  I'.m really hoping this project goes because the Eaton project has left me disappointed.

That's too bad that you let the Eaton departure get you disappointed. Once I sorted through the actual impacts on the city, Eaton's departure measured about a 1 out of 10 on my disappoint-o-meter.

 

As for the Bruer Tower and going down the toilet, you sure are one skittish guy who is apparently prone to seeing the clouds in the silver lining, the emptiness in the half-full cup, the sun being too bright, the snow too white and the rain too cold. Are you also bummed that you will grow old soon, or that you will die someday?

 

Or maybe you should look at the good things that have happened here and are continuing to -- that downtown Cleveland is attracting office tenants faster than the suburbs, that Tower City Center has far fewer vacancies than most suburban malls, that some downtown apartment buildings have waiting lists and that their vacancies are less than 5 percent?

 

If that's going down the toilet, then make me dizzy!

Losing that Eaton FEB project isn't so bad at all.  Stark had a point when he called it suburban and inappropriate for the site.  It'd be great to keep Eaton downtown, but their moving was probably inevitable all along.  Now the tracks don't have to be ripped up.  Maybe they can put a skinny office tower in there for smaller companies someday.

 

The new building for the Breuer complex sat around for a while and they improved the design.  Hopefully Jacobs does that too.  We've got a nice pointy style going on public square and it doesn't need an icecube.  A little time to think things over never hurts.  I'm anxious to get things up too, but we have more things going up than we've had for a long time.  Life is good.  K&D and the banks might be waiting to hear more about the medical mart before they move forward with a new hotel.                 

MTS I think this crunch impacts Ameritrust tower and Jacobs tower the most. These two projects are going to have it extremely difficult to get financing

 

There's no question that the two projects you just described are going to be on hold for the next 12-18 months (based on what I've read / heard about how long it will take to get back to a full recovery). But down the toilet is a little extreme. Liquidity has been pumped back into the credit markets. Banks have the capability to lend, or will at some point in the next 1-2 quarters. The issue now is that the economy is slowing down / entering into a recession (depending on who you ask). Lastly, the cost of financing projects is abnormally high right now, due to the lingering effects of the credit problem.

 

Developers have been forced to put the brakes on some pretty ambitious projects. But the world isn't coming to an end. The underlying justifications for taking on these projects still exist. We just have to be patient. Economic development for a city of this size is like steering an ocean liner. It takes a long time to change course. But, using that same analogy, once we've changed course, that momentum will keep us going in the right direction for a long time.

well yeah simplythis, it would have been possible and great for eaton to stay downtown. yes there is room to eventually consolidate all their affiliates, if not on one campus than in buildings on properties very nearby to each other. i do think more could have been done to twist their arms and to be more creative about that. however, even heroic efforts may not have mattered, they seem to be dead set on a suburbia campus. but let's don't forget eaton is still around and its definately not the end of the world for downtown.

 

at the very least just look around, feb is going up and so is the avenue. hey if anything i hope the jacobs building stalls, that prime site needs something more impressive and mixed use anyway.

 

the shame of the economic crisis would be if complicated redevelopment projects like breuer get stalled, but how can we even go there given the developer's remarks and learning that they just aquired tax credits? i dk about you, but that sounds like moving forward to me.

 

http://blog.cleveland.com/metro/2008/10/cuyahoga_to_waive_500000_for_k.html

Cuyahoga to waive $500,000 for K&D on Ameritrust Tower deal

Posted by dsims October 22, 2008 20:00PM

 

Cuyahoga County commissioners are expected to cut a half-million-dollar break for a private developer despite the county's own financial woes that could result in layoffs of workers.

 

The deal would waive a $500,000 fee that K&D Group had agreed to pay if the company could not close a deal on the county-owned Ameritrust Tower by Oct. 31.

 

More at:

http://blog.cleveland.com/plaindealer/2008/10/cuyahoga_to_waive_500000_for_k.html

This is one of those articles that looks like it is trying to drum up some controversy.  In the end, it just seems like a smart move for all involved.

^Agreed.

Ooo .. sorry about that! I just saw it today, and I didn't look up-thread enough. I apologize.

 

Don't worry, I did the same thing.  Someone kindly deleted it.  The PD fooled everybody by reposting their own story from last night.

 

I'm glad the county has the foresight to wait out this deal.  I have a feeling they (we) are still going to take a big loss.  But K&D's plan is a best case scenario for the site, as long as they don't tear down anything on Euclid.

Ameritrust developer seeks union financing

 

Labor union pension funds could help finance a makeover of the former Ameritrust complex in downtown Cleveland. Local unions would get the construction jobs if groups they invest in keep the $200 million development alive.

 

continued at>>>>>

http://blog.cleveland.com/business/2008/11/ameritrust_developer_seeks_uni.html

 

^Thanks for posting freethink. It will be interesting to see if union pension fund managers are any less skittish on this sort of investment than the banks. I was justing waiting for the news that this project was on hold as well. Nice to see some creative steps being taken.

Nice to see some creative steps being taken.

 

That's exactly what I thought. Kudos to K&D for making the best of a bad situation and not letting it get them down. It's just proof that one can do anything if one really wants to. I don't know anything about these union financing situations, but it sounds promising, at least.

I believe the Crittenden Court Apartments on West 10th were built using union pension funds, as was LaCentre conference facility in Westlake. The former went off without a hitch; the latter was fraught with charges of corruption. So much for the squeaky-clean suburbs......

Ameritrust developer seeks union financing

 

Price's original plans involved knocking down those offices to make way for a new building, aimed at large downtown tenants who covet new space. Though a new building remains possible, Price instead might renovate the existing buildings inside and out -- a cheaper effort that, in a financial crisis, would be easier to finance than new construction.

 

The buildings could accommodate roughly 160,000 square feet of offices and probably would appeal to small and mid-size tenants rather than the big-name law firms and other companies seeking new space.

"It really depends on what we're able to do with the financing," Price said.

K&D hopes to secure federal and state historic preservation tax credits to turn the Breuer tower into a hotel and apartments. The Ohio Historic Preservation Office recommended last month that the tower be eligible for credits, and federal preservation officials concurred last week. Price said K&D will file the remaining paperwork necessary for federal credits and will seek state credits when applications are available.

 

 

I think it was McCLV who talked about the critical importance of repurposing older space in our city center.  It is through this logic that this new news has heightened my anticipation for this project.  I'm much more keen on the results of our efforts to grow companies here, real CLV companies, rather than play the game of shuffling around old boy law and accounting firms, which is why I am excited about the potentially lower rents that will be charged for these overhauled spaces.  As the new Cleveland begins to emerge, I'm excited by the possibilities of re-imagining existing space.  Columbus has had lots of success re-imagining buildings through facade renovation & landscape design.  I for one am excited to see that idea take off here in the CLV, whether as a product of necessity or choice.

http://neighborhooddesign.org/web/projectportfolio.htm

I'm still optimistic on the indigo hotel coming to Cleveland as part of the project if it gets off the ground. If anything, the intercontinental hotel group moves pretty slowly on decisions. They are still holding the occasional planning meeting at the I-con conference center at the Cleveland Clinic. Not that this himble waiter has any say in the matters.

text from 2009 county budget

Once the sale is finalized the County will reimburse itself for most of the funds expended on purchase and

related costs of asbestos removal and design. Additional outlays of approximately $10 million over the sale

price of $35 million incurred for asbestos mitigation and related contractual obligations will be absorbed by

the County. It is expected these expenses will be included in the planned bond anticipation note issue in

December of 2008.

sounds like its still moving along -- good news!

This is crushing.  Hopefully another developer can come along and revive this project.  From Cleveland.com:

 

Ameritrust complex back in Cuyahoga County's hands after developer Doug Price drops plans

by Michelle Jarboe and Joe Guillen/The Plain Dealer

Tuesday June 23, 2009, 8:47 PM

Peggy Turbett/The Plain Dealer

 

Cuyahoga County could be stuck without a buyer for the former Ameritrust tower, at the corner of East Ninth Street and Euclid Avenue. Developer Doug Price notified the county Tuesday that he was dropping plans to redevelop the tower and neighboring buildings with a hotel, offices and apartments.

 

http://www.cleveland.com/business/index.ssf/2009/06/peggy_turbettthe_plain_dealera.html

This is such bullshit.

As suggested, I am sure there were many factors which torpedoed the project, but I have never been a big fan of Gus Frangos.

Staying optimistic... at least the city spent $40 mil on cleaning the asbestos and clearing the site?  Less costs and quicker turnaround for a future buyer.  Yeah, but this is pretty frustrating.

Rosetta employs around 400.  This sounds interesting.

 

"Terry Coyne, a real estate broker representing Rosetta, said he could not comment about the Ameritrust situation.

 

"We remain interested in downtown," he said.

 

Oh well. Something will happen with this property someday. Could be months. Could be years. But it will happen.

I wonder how much more viable this makes the schofield building redevelopment as they were essentially competing proposals.

 

Great to hear about rosetta.

^hmm..Rosetta and Asher??

County Commissioner Peter Lawson Jones said there is no way to reconsider plans to turn the complex into a new county administration complex --commissioners' strategy when they paid $22 million for the property in 2005.

 

"We don't have the money to do that," he said.

 

 

Good news here as well, considering they were going to tear down the tower and build a new glass curved shaped building about 15 stories (?) tall.

Im pretty confident something will get done here but its just a question of when. And i hope that whatever they do they keep the tower and the rotunda!

^hmm..Rosetta and Asher??

 

that was the first thought that came to my mind.  the other 2 that jumped out were the halle building... 400 employees could take a large chunk of what is left of that building and really energize it.  Second was the ohio gas building.  They did just announce that they were removing their last tennants and were ready to renovate the entire building if they got an anchor tennant... that building in such a prime location, with naming rights could be a pretty attractive property (assuming of course it is renovated, right now not so attractive :))

*Sigh*  I have to admit I was almost expecting this to fall through, however sad that is.  Now back on the optimism bandwagon!!!!!

but I have never been a big fan of Gus Frangos.

 

Gus or Lou?  Gus is the new head of the county land bank.  The article quotes Lou.  Though you probably know much more about the clan than I and will tell me it's all the same.