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

1. Ohio Urban
Development
Division
Toledo Tax Credit Workshop
March 2011

2. 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

3. Urban Development Division
Removing obstacles to the sustainable revitalization of
Ohio’s urban places & buildings with:
- Innovative Financing
- Critical Resources
- Redevelopment Expertise

4. Urban Development Tools

5. Urban Development Division
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
• OWDA Brownfield Loan Fund
• Alternative Stormwater Infrastructure Loan Fund

6. Problem: Environmentally Contaminated Site

7. 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

8. 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

9. Problem: Urban runoff and CSOs

10. 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

11. Problem: Financing Gap

12. Tool: Ohio New Market Tax Credits
 $25.6 million per year allocated
to Community Development
Entities (CDEs)
 Up to $2.56 million per project
 Provides tax credits to investors
to create below market rate
business investments in low-
income communities
 Attracts Federal New Markets
CF Ware Coffee Building, Dayton

14. Ohio Historic Preservation Tax
Terminal Tower, Cleveland
Credit Program Overview

15. 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

16. 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

17. 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)

18. 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

19. All Approved Projects
Akron Oberlin
Berea Piqua
Cambridge Port Clinton
Canton Portsmouth
Cincinnati Russell Twp.
Cleveland Sandusky
Columbus Scott Twp.
Dayton Springfield
Hamilton St. Clairsville
Ironton Toledo
Lebanon Urbana
Lima Youngstown
Marietta

20. Ohio Historic Preservation Tax
Credit Program Process

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

32. 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

33. Before

34. After
o 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

35. Urban Development Division
http://development.ohio.gov/UD/OHPTC/
Urban Development Division
Mark Lundine, Urban Revitalization Coordinator
Phone: 614-995-2292
E-mail: historic@development.ohio.gov