Historic Tax Credits News Briefs - October 2015

Thursday, October 1, 2015

On Aug. 25, U.S. Bank announced the investment of $65 million in construction and acquisition loans for the renovation of the historic Plymouth Building in downtown Minneapolis. The construction and acquisition loans were partially replaced with $16.2 million in historic tax credit (HTC) equity. The city of Minneapolis also provided $1.5 million in environmental and transit-oriented district grants. The 384,000-square-foot building will be converted into a 290-room Embassy Suites by Hilton hotel. Development is expected to produce 400 construction jobs and 172 permanent jobs. Total development cost will be $109.6 million. Renovations are expected to be complete in September 2016.

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On Aug. 28, John Tess, president of Heritage Consulting Group, announced the appointment of Roger Roper as senior associate in the company’s Portland, Ore., office. Roper joined Heritage in spring 2015. Before joining Heritage, Roper worked for 32 years with state historic preservation offices in Utah and Oregon. He was also appointed to serve on the Task Force for Historic Properties by Oregon Gov. Ted Kulongoski in 2008 and from 2009 through 2013 he was a board member of the National Conference of State Historic Preservation Officers.

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The Bevier Building in Rochester, N.Y., officially opened in mid-August. With $800,000 in state HTCs and $800,000 in federal HTCs, a complete renovation transformed the building into loft-style apartments. The Bevier Building is now a mixed-used development with 15 residential apartments and 5,000-square-feet of commercial space. Additional financing came in the form of a $750,000, 24-month HTC bridge loan from the city of Rochester through its Capital Project Housing Revolving Loan Fund, and a $2.7 million construction loan from Community Preservation Corporation. Renovation costs totaled $4 million.

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The Salyers Group and Aparium Hotel Group announced the closing of the $1 million purchase of the former City Hall in Covington, Ky., July 30. Developers have plans to transform the former City Hall property into Hotel Covington, with the help of $5.4 million in state HTCs from the Kentucky Tourism Development Finance Authority. Built in 1908, the seven-story building was home to the Coppin Department Store and later served as City Hall until 2013. Soon the building will provide 114 rooms and an upscale restaurant. Renovation costs are expected to total approximately $21.5 million, with a completion date slated for summer 2016.

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On Aug. 12, the Montgomery County Historic Preservation Commission in Maryland approved $2.6 million in HTCs for the rehabilitation of 95 properties. Cities with projects receiving funding include but are not limited to Bethesda, Clarksburg, Kensington, Potomac, Silver Spring and Takoma Park. To be eligible to receive this county allocation, properties must be listed in the Montgomery County Master Plan for Historic Preservation or be located within the boundaries of a county-designated historic district. The approval includes eight more properties than the previous year, as well as an increase of $400,000 awarded.

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The Center for Great Neighborhoods held the groundbreaking for the historic Hellman Lumber Building in Covington, Ky., Sept. 17. The 13,800-square-foot building, a former lumber mill now listed on the National Register of Historic Places, will be converted into the center’s new headquarters, community meeting and event space and leasable artist studios. Heritage Bank, with assistance from HOPE of Kentucky LLC, is anticipating $400,000 in federal HTCs. The center will also use $500,000 of a $1.5 million grant from the Kresge Foundation for development. Development costs are expected to total $2.2 million. The Center for Great Neighborhoods supports community residents seeking to improve the quality of their lives and their community.

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