The document discusses Ohio's urban development opportunities and tools to support redevelopment. It highlights Ohio's dense cities and historic assets as well as programs like the Clean Ohio Fund, Brownfield Revolving Loan Fund, New Market Tax Credits, and Historic Preservation Tax Credits. A success story of the Fort Piqua Hotel redevelopment using these tools is also provided.
2. Agenda
Ohio’s Urban Opportunity
A Success Story
Tools That Can Help:
• Clean Ohio Fund
• Brownfield Revolving Loan Fund
• New Market Tax Credits
• Historic Preservation Tax Credits
3. Urban Development Division
Removing obstacles to the sustainable revitalization of
Ohio’s urban places & buildings with:
- Innovative Financing
- Critical Resources
- Redevelopment Expertise
5. Ohio’s Urban Opportunity
Demographic shifts
• Currently, the two largest
demographic groups are 20-29
and 45-55
• US population is projected to grow
by 100 million in 40 years
• By 2030, every five-year age
group younger than 75 will be
roughly equal size
6. Ohio’s Urban Opportunity
Market Demand shifts
Market Demand for housing shifting to higher density
o National Association of Realtors study shows nearly 2/3rds of demand
for housing in the next generation will be higher density
Housing close to transit
o By 2025, more than 15 million will demand housing close to transit
New and replacement housing will dominate
o By 2030 over half of all existing development will have been built after
2000.
7. Ohio’s Urban Opportunity
Ohio is well positioned to take advantage of
these shifting demands:
Dense Cities with Focused Infrastructure and
Institutions
Great Historic Assets
Statewide Tools and Resources
9. Ohio’s Urban Opportunity
Ohio’s Downtowns and Urban Areas have:
19 of the 27 Fortune 500 companies from Ohio
• Ohio ranks 5th nationally amongst states on the Fortune 500
Many universities and colleges
• Columbus has the second highest per capita student
population in the US
All 7 of Ohio’s professional sports teams
Ohio’s nationally recognized Arts and Cultural
Institutions
10. Phoenix vs. Cleveland
Phoenix Cleveland
1950 Population: 106,818 1950 Population: 914,808
Population Rank: 99 Population Rank: 7
1950 Population Density: 6,247 1950 Population Density: 12,197
1950 Land Area: 17.1 sq. miles 1950 Land Area: 75.0 sq. miles
2000 Population: 1,321,045 2000 Population: 478,403
2000 Population Density: 2,781.9 2000 Population Density: 6,166.5
2000 Land Area: 474.86 sq. miles 2000 Land Area: 77.58 sq. miles
21. The Urban Development Division
Helps take blighted properties from vacancy to
redevelopment through:
• Grants
• Clean Ohio Fund
• Tax Credits
• Historic Preservation Tax Credits
• New Market Tax Credits
• Loans
• Brownfield Revitalization Fund
23. Tools: Environmentally Contaminated Site
• Grants
• Clean Ohio Revitalization Fund: Up to $3 million
• Clean Ohio Assistance Fund: Up to $750,000
• Loans
• Brownfield Revolving Loan Fund: Up to $1 million
24. Clean Ohio Revitalization Fund
Known End User Track Redevelopment Ready
•Max $3 million grant Track
•Max $2 million grant
•Acquisition
•Environmental Cleanup
•Environmental Cleanup
•Demolition
•Demolition
•Infrastructure – minimum
needed
25. Clean Ohio Assistance Fund
• Focused on Priority
Investment Areas
• Assessment Focused
• Ongoing approvals
• Grant amounts
$300,000 Assessment grants
$750,000 Cleanup grants
26. Brownfield Revolving Loan Fund
• Eligible property – includes residential,
institutional, schools
• Loans of up to $1 million
• Below market rates
• Non-competitive program
• Loans made to property owner
29. Tool: Ohio New Market Tax Credits
•New Program, $10 million per
year
•Up to $1 million in state tax
credits per project
•Provides tax credits to
investors to create below
market rate investments for
Ohio businesses
CF Ware Coffee Building, Dayton
•Gives Ohio a competitive
advantage nationally
30. Federal New Market Tax Credits
•Began in 2000
•Awarded $21 billion in tax credits nationally
•Created to enhance investments in
businesses and real estate projects in low-
income communities throughout the country
32. Overview of the Program
Provides tax credits for the rehabilitation of historic
buildings
Program administered by the Dept. of Development,
Ohio Historical Society and Dept. of Taxation
Approved $200 million in tax credits to 89 applicants in
23 different cities
Additional tax credits are available:
$17.5 million for FY 2010 (July 1, 2009)
$24.2 million for FY 2011 (January 1, 2010)
33. Akron Approved Applicants Marietta
Canton Peebles
Chillicothe Piqua
Cincinnati Port Clinton
Cleveland Sandusky
Columbus Springfield
Dayton St. Clairsville
Elyria Tiffin
Hamilton Toledo
Lebanon Urbana
Lima Youngstown
Marion
34. Eligibility Requirements
1. Applicant is the owner of the building and non-
governmental entity
2. The property is a historic building
3. Work is consistent with the U.S. Secretary of the
Interior’s Standards for Rehabilitation
4. Tax credit is a major factor in rehabilitating the
building or increased level of investment
35. What is Rehabilitation?
Protects and maintains historic building materials
and character defining features
Allows for a compatible new use of the building
Can involve replacement of extensively damaged
features
Ability to construct additions onto the structure
36. Eligible Expenses
Subsidizes 25% of Qualified Rehabilitation
Expenditures (QRE) up to a project cap of $5 million.
QRE can include:
Hard construction costs (HVAC, plumbing,
electrical, windows)
Some soft costs (design, engineering, site
surveys, legal fees, developer fees)
37. Restoring Historic Streets: Euclid Ave, Cleveland
11 approved applications along historic
Euclid Avenue
Strategic priority area for Cleveland
New $200 million bus rapid transit system
along Euclid Ave connects:
Two largest employment centers
(Public Square and Cleveland Clinic)
Universities (Cleveland State, Case Western
Reserve and Cleveland Institute of Art)
Cultural Attractions (Severance Hall and
Terminal Tower, Cleveland
Playhouse Square)
38. Restoring Historic Neighborhoods:
Over-the-Rhine, Cincinnati
13 approved applications in Over-the-Rhine
Decades of disinvestment
Largest collection of Italianate architecture in US
Strategic link between downtown and University of
Cincinnati
Over-the-Rhine, Cincinnati
Terminal Tower, Cleveland
39. Restoring Historic Downtowns: Piqua, Ohio
17 approved applications in
historic downtowns of small
Ohio cities
Spurs local reinvestment in
downtown area’s
Fort Piqua Hotel was vacant
and deteriorating
Public library, coffee shop and
restaurant now occupy the
building
Over-the-Rhine, Cincinnati
Terminal Tower, Cleveland Fort Piqua Hotel
40. Round 3
o Application Deadline was September 30th, 2009
o 55 applications were received from 13 different cities
o $XXXX million in total project investment
o $XXXX million in tax credits were requested
o Application Approval Announcement: December 31, 2009
41. Round 4
Round 4
$24.2 million will be available
Application Deadline: March 31, 2010
Application Approval Announcement: June 30, 2010
Projects will be evaluated on potential economic
impact and regional distributive balance
42. Regional Distributive Balance – 20%
Economic Development Region
Jurisdictional Balance
County Per Capita Balance
43. Potential Economic Impact – 80%
Financing and Speed of Development
Financing Secured, Leveraged Investment, Jobs Created,
Timeliness to Completion
Quality of Property
Physical Scope, End Use, Vacant Property, Green Building
Quality of Place
Strategic Plan in Place, Benefit to Low Income, Economic
Development Innovation Zone
44. Other Historic Preservation Tax Credit
Use Examples
• Theatre (Hanna Theatre)
• Hotel (Shawnee Place)
• Steam Plant (Dayton Power and
Light Building)
• School (Old Ohio Deaf School)
• Department Store (Higbee Dept
Store)
45. Before: The Fort Piqua Hotel
•Built in 1891,National
Register of Historic
Places
•Several redevelopment
efforts stalled due to
funding difficulties
•Vacant and blighted
•Presence of asbestos
and other hazardous
contaminants
48. Success Story: The Fort Piqua Hotel
• $20 million dollar
rehabilitation for a
20,000 person
community
• Fully occupied by a
library, restaurant,
coffee shop and
banquet facility
• A community focal
point
49. Fort Piqua Hotel: Clean Ohio
Revitalization Fund
•$1,358,546 grant
from the Clean Ohio
Revitalization Fund
•Used grant for
asbestos removal,
removal of other
hazardous chemicals
50. Fort Piqua Hotel: New Market
Tax Credit
• $5.8 Million Federal New Market Tax Credits
51. Fort Piqua Hotel: Historic Preservation
Tax Credits
•Total Tax Credit:
$3.6 million
•Type of Tax Credit
Received: State and
Federal
52. Why was it successful?
• Library (Long-Term Lease)
• Compatible Uses (Coffee Shop and Library
integration)
• Community and Private Support Up Front
• Infrastructure Already in Place