Cleveland City Council OKs financial packages to help finance projects for property redevelopment
CLEVELAND, Ohio - Financial aid packages were approved Monday by the Cleveland City Council for three redevelopment projects in the city.
Tax incentives were approved for two projects, each consisting of commercial space and apartments. In both cases, the tax break would help cover financing for projects—one in Huff and one on the edge of Tremont.
The third project, involving an old Masonic hall in Ohio City, would allow for a special tax assessment that would secure funding for green energy projects.
Mayor Frank Jackson will be required to sign legislation for each project before the aid package takes effect.
Here's a look at three projects:
Addis View Apartments
Inspiron Group plans to build more than 400 apartment units in a four-phase construction plan, on East 90th Street at Chester Avenue in Huff.
The estimated cost is approximately $43 million. Developers expect to close their financing package this month, Cleveland economic development director David Ebersol told City Council.
Inspiration secured several parcels from the city's land bank for the project. In April, the city approved a $500,000 loan to help pay for the demolition of dilapidated housing on the lot.
The project, known as Addis View Apartments, will be built in four phases, with 424 apartments in the upper floors and commercial space on the ground level.
On Monday the council approved the project for tax hike financing, a tool that allows for new property taxes generated by developments to help finance the project.
The tax package, worth $1.7 million over 30 years, will have no impact on schools taxes in downtown Cleveland.
TREO Development Project
Three Cleveland natives who run a Chicago development company are planning to build 171 new apartments on West 25th Street on the Tremont shore.
Maverek Development's project will consist of studio, one- and two-bedroom units in a new building in the 2400 block of West 25th Street. The site was previously home to Sass Automotive and Wrecking.
Councilman Kerry McCormack said, "It's the West 25 area that hasn't had much investment." The project could help advance development, moving south on West 25 across the RTA tracks and allowing for future development.
Ebersol said the project involved an investment of about $31 million. A tax increase financing package for TREO is valued at approximately $1.2 million over 30 years.
This will have no effect on taxes for schools in the city of Cleveland.
The company expects to settle its financing this month, Ebersol said.
Cleveland Rocks Gym
Cleveland Rocks Holding, LLC, a privately held real estate investment entity, is planning a multidisciplinary redevelopment of a former Masonic temple at 2831 Franklin Blvd.
The building, approximately 42,000 square feet of space, is located just west of West 28th Street. It will have a gym mainly for rock climbing. The remaining space will be occupied by a number of other fitness facilities, including yoga studios, and office space and commercial "makers" for entrepreneurs.
The city council on Monday approved a special assessment to support green energy installations. Cleveland Rocks will be allowed to apply property taxes generated by the special appraisal toward loans to pay for energy projects, Ebersol said.
"The idea is that the energy improvements you're making to the building are reducing the cost of operation by an amount greater than the amount of the particular appraisal," Ebersol said.
Ebersol said the special appraisal would help developers get loans for that construction at an annual interest rate of around 3.5%. Work can start from this month itself.