State awards developer $40M tax break for overhaul of former Huntington Building in

CLEVELAND, Ohio — The developer behind a planned transformation of the 1.4 million-square-foot former Huntington Building in downtown Cleveland was awarded a $40 million tax credit through a new program designed to help projects that could become major economic drivers.

Owners The Millennia Cos. plan to turn the the 98-year-old building at East Ninth Street and Euclid Avenue into 864 affordable apartments, a 61-room boutique hotel, along with a high-end restaurant, offices, storefronts and event space. The Ohio Tax Credit Authority awarded the project the largest incentive of any in the state.

Millennia said in a news release that it has secured $476 million in loans and local, state and federal incentives. A spokeswoman said the company will start renovation work this year and that it will take up to 40 months to complete.

The award, along with 12 others across the state, came out of the new “transformational mixed-use development” program, administered by the state Development Department. It is aimed toward projects that “have influence on both economic and social well-being that will produce long-term change for the use of the site and as well as instigate an increase in economic activity in the surrounding area,” according to a document for applicants.

The state tax board approved the awards during its meeting Wednesday.

Under the program, the state awards up to $100 million in tax credits each year for fiscal years 2022 through 2025. Of that, no more than $80 million can go to projects in major cities, and the largest tax credit any single project can receive is $40 million. The tax credit program is designed to cover 10% of a project’s total cost.

To qualify, the project must meet size requirements. It must also include at least two uses, such as housing and retail, or three if one of the uses is a parking garage. The projects in major cities must cost at least $50 million, and the tax credit must be a “major factor” in ensuring it gets done.

Statewide, 42 developers sought a combined $417.7 million of tax credits.

In Cleveland, several major projects that did not make the cut include a planned renovation of Erieview Tower, building new apartments and hotel on West 25th Street near the Detroit-Superior (Veterans Memorial) Bridge, and the in-progress redevelopment of The Phantasy nightclub in Lakewood.

Also losing out was the development surrounding the Pro Football Hall of Fame in Canton.

Projects awarded the tax credit in Northeast Ohio include:

* A plan by lender CrossCounty Mortgage to renovate six buildings between Superior Avenue and Payne Avenue, and near East 21st Street, in downtown Cleveland. The area, known as the Superior Arts district, will be the new home for the company, currently based in Brecksville. The plan also includes apartments and a restaurant.

The project is estimated to cost more than $100 million. The state awarded an $8.56 million tax credit.

* Developer Kevin Flanigan plans to turn the vacant Dixon and Robinson buildings in downtown Elyria into an arena and gaming facility for Lorain County Community College’s eSports team, complete with food options on the first floor. Other portions of the building will have classroom space used by the community college, as well as office space. It will also have a media production facility for the building’s events.

He also plans to build a six-story, 51-apartment building that will feature storefront space, a wine bar and underground parking. The project is estimated to cost $35.73 million. The state awarded a $3.41 million tax credit.

* Developers plan to clear 4 acres on Mentor Avenue in downtown Mentor and replace it with a 43,000-square-foot building with office and storefront space, a restaurant and recreation space.

The building will house an unspecified medical services provider. It is estimated to cost $13.96 million to build. The state awarded a $1.16 million tax credit.

* In Wooster, developers plan to build a 16,000-foot, two-story building with storefront and restaurant space, along with eight apartments. The $5.81 million project was awarded a $527,429 tax credit.

* In downtown Canton, the owners of the 133,502-square-foot Renkert Building plan to turn it into an extended-stay hotel with a restaurant on the first floor. They also plan to build a three-story building on a neighboring piece of land with more hotel, restaurant, event and storefront space, and public parking.

The $42.09 million project received a $4.21 million tax credit.