Ohio Urban Development Ohio Urban Development DivisionDivision
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
Urban Development Division
Removing obstacles to the sustainable revitalization of Ohio’s urban places & buildings with:
- Innovative Financing
- Critical Resources
- Redevelopment Expertise
Ohio’s Urban Opportunity
Demographic and market demand are shifting towards urban living
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
Ohio’s Urban Opportunity
Market Demand shifts
Market Demand for housing shifting to higher densityo National Association of Realtors study shows nearly 2/3rds of demand
for housing in the next generation will be higher density
Housing close to transito By 2025, more than 15 million will demand housing close to transit
New and replacement housing will dominateo By 2030 over half of all existing development will have been built after
2000.
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
Dense Cities with Focused Infrastructure and
Institutions
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
Phoenix vs. Cleveland
Phoenix
1950 Population: 106,818 Population Rank: 991950 Population Density: 6,2471950 Land Area: 17.1 sq. miles
2000 Population: 1,321,0452000 Population Density: 2,781.92000 Land Area: 474.86 sq. miles
Cleveland
1950 Population: 914,808Population Rank: 71950 Population Density: 12,1971950 Land Area: 75.0 sq. miles
2000 Population: 478,4032000 Population Density: 6,166.52000 Land Area: 77.58 sq. miles
PhoenixPhoenix
ClevelandCleveland
Blythe, California
City in Eastern California Population:12,155
Population Density: 501.5/sq mi
Marietta, OhioPopulation: 14,515
Population Density:1,747.0/sq mi
Historic Assets
State National Register of Historic Places Entries
1. New York 4,995
2. Massachusetts 4,074
3. Ohio 3,782
4. Virginia 3,634
5. Pennsylvania 3,235
6. Texas 3,058
7. North Carolina 2,630
8. California 2,416
9. Georgia 1,974
10. Michigan 1,707
Ohio’s Urban Opportunity
The Short North, ColumbusThe Short North, Columbus
Downtown ToledoDowntown Toledo
Mansfield Mansfield
Statewide Tools and Resources
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
The Urban Development Division
Problem: Environmentally Contaminated Site
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
Clean Ohio Revitalization FundKnown End User Track
•Max $3 million grant
•Acquisition
•Environmental Cleanup
•Demolition
•Infrastructure – minimum needed
Redevelopment Ready Track
•Max $2 million grant
•Environmental Cleanup
•Demolition
Clean Ohio Assistance Fund
• Focused on Priority Investment Areas
• Assessment Focused
• Ongoing approvals
• Grant amounts $300,000 Assessment grants $750,000 Cleanup grants
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
Types of Brownfield Projects
Problem: Financing Gap
Tool: Ohio New Market Tax Credits
CF Ware Coffee Building, Dayton
•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
•Gives Ohio a competitive advantage nationally
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
Terminal Tower, Cleveland
Problem: Historic Expenses
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)
Overview of the Program
Approved Applicants Marietta
Peebles
Piqua
Port Clinton
Sandusky
Springfield
St. Clairsville
Tiffin
Toledo
Urbana
Youngstown
Akron
Canton
Chillicothe
Cincinnati
Cleveland
Columbus
Dayton
Elyria
Hamilton
Lebanon
Lima
Marion
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
Eligibility Requirements
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
What is Rehabilitation?
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)
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 Playhouse Square)
Terminal Tower, Cleveland
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
Terminal Tower, ClevelandOver-the-Rhine, Cincinnati
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
Terminal Tower, ClevelandOver-the-Rhine, Cincinnati
Restoring Historic Downtowns: Piqua, Ohio
Fort Piqua Hotel
Round 3o 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
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
Regional Distributive Balance – 20%
Economic Development Region
Jurisdictional Balance
County Per Capita Balance
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
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)
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
Before
After
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
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
Fort Piqua Hotel: New Market Tax Credit
• $5.8 Million Federal New Market Tax Credits
Fort Piqua Hotel: Historic Preservation Tax Credits
•Total Tax Credit: $3.6 million
•Type of Tax Credit Received: State and Federal
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
The Lesson: You Can Do It Too!!
http://development.ohio.gov/UD/OHPTC/
Urban Development DivisionWilliam Murdock, DirectorMark Lundine, Ohio Historic Tax Credit CoordinatorPhone: 614-995-2292E-mail: [email protected]
Urban Development Division