Historic Tax Credits News Briefs - April 2015

Wednesday, April 1, 2015

U.S. Bank announced a $7.9 million investment Feb. 12 of historic tax credit (HTC) and new markets tax credit (NMTC) equity for the renovation of former Goodyear Hall and the Ohio Savings and Bank Trust buildings into a mixed-use development in Akron, Ohio. Constructed in the 1920s, the properties will soon provide 292,000 square feet of space for 106 residential apartments, offices, retail use, a restaurant site, a gym and a 1,500-seat theater. Renovation costs will total $36 million. The development is expected to create 165 construction jobs and provide 250 permanent jobs once completed in late 2015. This is the second of three phases.

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The Advisory Council on Historic Preservation (ACHP) released the report, “In a Spirit of Stewardship: A Report on Federal Historic Property Management 2015,” to President Barack Obama Feb. 17. The report analyzes progress reports submitted by federal agencies to the ACHP in September 2014. These reports focused on progress in identifying, protecting and using historic properties in federal ownership. Based on submission results, the ACHP developed findings and recommendations to work toward the goals of the Executive Order and the National Historic Preservation Act, specifically, Executive Order (EO) No. 13287, “Preserve America.” EO 13287 requires agencies to advance the protection, enhancement and contemporary use of historic properties owned by the federal government. This is the fourth triennial report submitted to the president. More information can be found in the Feb. 24, 2015 Tax Credit Tuesday podcast.

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On Feb. 20, Heritage Consulting Group congratulated Sage Hospitality on its Part 3 approval for the rehabilitation of Union Station in Denver. The rehabilitation of the property converted Union Station into the Crawford Hotel. Features also include a variety of dining options. Rehabilitation costs are $50 million. Union Station is the central part of redevelopment plans in North Denver that covers 20 acres and cost $900 million. Heritage Consulting Group stated in a press release that the renovation of the Union Station is a creative reuse of the iconic building.

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Secretary of the Interior Sally Jewell approved President Obama’s establishment of the Pullman National Monument in Chicago on Feb. 19. The monument is located in a 200-acre boundary in Chicago’s South Side on the original Pullman town site. The site was established in the 1880s by the Pullman Palace Car Company to serve as a model factory town to manufacture railroad passenger cars and house factory workers and their families. The monument represents America’s first planned industrial town and signifies milestones in the labor and civil rights movements. Located in the monument site is the Administration Clock Tower Building, owned by the National Park Service. The building will contain a visitor center that will offer exhibits and programs to educate schoolchildren, the community and visitors about the Pullman site. The National Park Foundation announced that it raised nearly $8 million from individual donors and organizations to support the development of the new visitor center and programs.

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Groundbreaking for the renovation of Sears Crosstown, a 1.5-million-square-foot warehouse in Memphis, Tenn., was Jan. 21. The old Sears building, built in 1927, will be transformed into a mixed-use development with the help of $200 million in financing. SunTrust Bank led the syndication of an $80.5 million senior loan. SunTrust Community Capital oversaw the $56 million NMTC transaction, participated as an investor of $18.3 million and provided $10 million of its own allocation. The Sears Crosstown building is listed on the National Register of Historic Places. It is a 14-story building located on a 19‐acre site, and will provide restaurants and retail, a small grocery store, a fitness center and health clinics, a charter high school, a contemporary art center, commercial offices and 265 loft‐style apartments. Development is expected to create 800 jobs and generate more than $37 million in new wages annually. Sears Crosstown is expected to open in 2017.

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