Ohio's Urban Opportunity
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Ohio's Urban Opportunity

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Mark Lundine, Ohio Department of Development, presented this presentation at the Heritage Ohio Historic Tax Credit Workshop in Springfield, Ohio on May 6, 2011.

Mark Lundine, Ohio Department of Development, presented this presentation at the Heritage Ohio Historic Tax Credit Workshop in Springfield, Ohio on May 6, 2011.

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Ohio's Urban Opportunity Ohio's Urban Opportunity Presentation Transcript

  • Ohio Urban Development DivisionToledo Tax Credit Workshop March 2011
  • Agenda Urban Development Tools • Clean Ohio Fund • Brownfield Revolving Loan Fund • Alternative Storm Water Loan Fund • New Market Tax Credits Ohio Historic Preservation Tax Credit Program Process • Success Stories
  • Urban Development DivisionRemoving obstacles to the sustainable revitalization of Ohio’s urban places & buildings with: - Innovative Financing - Critical Resources - Redevelopment Expertise
  • Urban Development Tools
  • Urban Development DivisionHelps 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 • OWDA Brownfield Loan Fund • Alternative Stormwater Infrastructure Loan Fund
  • 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 • OWDA Brownfield Loan Fund: Up to $5 million
  • NEW Tool: OWDA Brownfield Loan Program• Partnership with OWDA• Loans up to $5,000,000 for demolition and cleanup – Max 10 year term; interest rate no more than 2%• Loans up to $500,000 for assessment – Max 5 year term; interest rate no more than 2%• Must use VAP process• Local governments and private entities (including those who caused or contributed)• No match or public involvement requirements
  • Problem: Urban runoff and CSOs
  • NEW Tool: Alternative Stormwater Infrastructure Loan Program• Partnership with OWDA• Loans up to $5,000,000 for alternative stormwater infrastructure in developed areas – Consultant costs – Materials – Construction; installation – Site prep – Limited maintenance – LEED certification fees• Max 10 year term; interest rates no more than 2%• Local governments, with Development Partner
  • Problem: Financing Gap
  • Tool: Ohio New Market Tax Credits $25.6 million per year allocatedto Community DevelopmentEntities (CDEs) Up to $2.56 million per project Provides tax credits to investorsto create below market ratebusiness investments in low-income communities Attracts Federal New MarketsCF Ware Coffee Building, Dayton
  • Ohio Historic Preservation Tax Terminal Tower, Cleveland Credit Program Overview
  • Ohio Historic Preservation Tax Credit 25% of QRE’s Biannual competitive application process $5 million per project cap Program administered by the Dept. of Development with assistance from the Ohio Historical Society and Dept. of Taxation
  • Program Features Allocated credit with special allocation authority Can be bifurcated from Federal Credit Refundable up to $3 million in credits Tax credit received upon certification No recapture provision
  • Current Status Approved $245 million in tax credits to 108 applicants through 4 rounds 35 Projects have been completed and certified to date Program has allocated all tax credit authority granted by the legislature Efforts are underway to renew the program through state budget (June 30th deadline)
  • 35 Completed Projects have led to… Total Project Investment: $408 M Total Tax Credits Certified: $69 M Leveraged Investment Ratio: 5.91 Total Permanent Jobs: 5,464 Total Construction Jobs: 2,984 Total Residential Units: 911
  • All Approved Projects Akron Oberlin Berea PiquaCambridge Port Clinton Canton PortsmouthCincinnati Russell Twp.Cleveland SanduskyColumbus Scott Twp. Dayton SpringfieldHamilton St. Clairsville Ironton ToledoLebanon Urbana Lima Youngstown Marietta
  • Ohio Historic Preservation Tax Credit Program Process
  • 1. Establish Project Concept  Contemplate demand and end use - Conduct market study to validate - Consider similar successful projects  Assemble team - Architect (& Historic Pres. Consultant) - Legal Counsel & Accountant - Construction Manager, contractors, etc  Establish eligibility - Historic Building: Approved Part 1
  • 2. Pre Application Activities  Establish Site Control  Preliminary Design - Develop Rehabilitation Approach - Develop Initial Cost Estimates  Seek Financing - Review successful financing models - Create finance model with likely sources identified - Pursue sources and secure commitments, letters of interest  Create Ownership Structure -Ability to Receive Tax Credit: For-profit ownership structure
  • 3. Application Process – 6 months  Conduct Preliminary Meetings - Meet with OHPO to discuss rehabilitation approach - Meet with ODOD to discuss application and funding approach  Submit Part 2 - Allow time for review and questions, ideally submitted a month before application deadline  Complete Application - ODOD available for questions and review prior to submission  Application Approval - OHPO Part 2 recommendation required - ODOD awards highest scoring projects
  • 4. Development  Communicate Changes to Project - Ownership, scope and timeline amendments to ODOD - Part 2 amendments to OHPO 12 Month Reviewable Progress Report - Viable financial plan - Construction drawings complete - Part 2 approvals up to date  18 Month Reviewable Progress Report - Closed on financing  Project End Date - Project should be complete or nearing completion
  • 5. Certification  Part 3 required - Allow for time for review and sign off  Request for Certification - Proof of Ownership - Certificate of Occupancy - Financial Analysis (3rd party cost certification) - Structure for Claiming the Credits
  • 6. Claiming the Credits  Can be claimed against the following taxes: - Individual Income - Corporate Franchise - Dealer in Intangibles Certificate submitted with tax return - Department of Taxation standard review policies  Realization of Benefit - Reduce Tax Liabilities - Refund
  • o SPRINGFIELD – Shawnee Hotel Total Project Investment: $14.7 Million  Former hotel converted for affordable senior housing in the 1980’s  Substantial upgrades to building systems and finishes allowed property to continue operation  85 apartment units are completely occupied
  • o CINCINNATI – 1346 Broadway Total Project Investment: $470,000  Long vacant residential building fully rehabbed into 4 apartments  Owner performed much of the work himself
  • o CLEVELAND – Capitol Theatre Total Project Investment: $6.6 Million  Long-vacant theatre converted to modern, three-screen cinema complex  Community gathering place showing independent and specialty films  Highlight of emerging Gordon Square Arts District
  • o COLUMBUS – Seneca Hotel Total Project Investment: $16 Million  Saved from demolition and converted to housing for college students  Close proximity to Columbus State, Columbus College of Art and Design, Capitol Law School, and Franklin University  Utilized Clean Ohio Assistance Fund to address environmental issues
  • Before
  • Aftero PIQUA – Fort Piqua Hotel Total Project Investment: $21 Million  1891 Romanesque Revival castle anchoring downtown  Restored for community library, coffee/candy shop, and banquet facility  2009 National Preservation Honor Award from the National Trust
  • Urban Development Divisionhttp://development.ohio.gov/UD/OHPTC/Urban Development DivisionMark Lundine, Urban Revitalization CoordinatorPhone: 614-995-2292E-mail: historic@development.ohio.gov