CLEVELAND, Ohio – Tax incentives and development aid were approved by Cleveland City Council on Wednesday for three construction projects that together are expected to pump about $162 million and nearly 800 jobs into Cleveland’s economy.
Legislation authorizing the development assistance would take effect once signed by Mayor Frank Jackson.
Here’s a look at the projects.
75 Public Square
The Cleveland-based Millennia Companies plans to convert the 75 Public Square building into apartments, with a restaurant and retail space on the ground floor.
Completed in 1915, the building once was the headquarters for Cleveland Electric Illuminating Co.
Millenia bought the property six years ago. It plans to rehabilitate the historic structure, putting in 114 apartments in the upper floors. The cost of the construction is estimated at nearly $42 million.
City Council approved a 30-year tax-increment-financing agreement that would allow the developers to divert property taxes the city would have collected from the project to help pay for financing. Cleveland Economic Development Director David Ebersole said the package is worth about $215,000 a year for the company. The deal would not affect taxes for Cleveland schools.
As a residential development, the project also qualifies for a 15-year tax abatement on revenues generated by the project. The TIF would kick in after the abatement expires.
The project is expected to create 13 jobs. Those workers and residents of the building are expected to pay about $135,000 a year in income taxes to Cleveland.
Waterford Bluffs Apartments
The Stoneleigh Companies, based in Chicago, plans to build a $65-million apartment building at West 20th Street and Lorain Avenue just east of the West Side Market.
The four-story building would have 240 residences, Ebersole said.
City Council approved a 30-year tax-increment-financing deal for the building. Ebersole estimated the deal would be worth about $400,000 a year for the company but would not affect taxes for Cleveland schools.
The project qualifies for a 15-year tax abatement on revenues generated by the project. The TIF would kick in after the abatement expires.
The project is expected to create five jobs. Those workers and residents of the building are expected to pay about $405,000 a year in income taxes to Cleveland.
CrossCountry Mortgage headquarters
City Council approved a forgivable, $750,000 construction loan and a job creation grant worth up to $1.15 million to help CrossCountry Mortgage build a headquarters that would bring more than 700 jobs to the downtown.
CrossCountry is headquartered in Brecksville, where it has 400 employees. Ebersole said the growing company needs more space and plans to add 100 employees at its new Cleveland headquarters in the first year.
Eventually the company expects to have 750 employees in the headquarters complex.
The project is expected to cost about $55 million to redevelop a six-acre block between East 21st and East 22nd streets from Superior Avenue to Payne Avenue. In addition to the headquarters, CrossCountry plans to build 56,000 square feet of multifamily housing on the site that is envisioned as potential homes for workers.
Cleveland expects to recoup the grant and loan costs in two years from new income taxes and projects that when employment reaches 750 people at the site, the annual income tax collection for the city would be nearly $1.4 million.
CrossCountry also has asked for tax-increment financing, which Ebersole said should be ready for City Council’s review in the next several weeks.
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