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: historic@development.ohio.gov

Urban Development Division