Posted: 6:00 a.m. Monday, March 23, 2015

Manchester Inn project making progress

By Ed Richter

Staff Writer

MIDDLETOWN — 

    Middletown officials said a $10 million project to renovate the former Manchester Inn remains on schedule and the developer is expected to submit an application for state historic tax credits by March 31.

    Denise Hamet, city economic development director, said William Grau, an Illinois-based developer is working on securing the financing commitments from investors before filing the application and s.

    Hamet said Thursday that Grau continues to follow up on every aspect of the project and the city will know some time next week if he will submit his application in the March cycle or wait until September.

    “He is evaluating rates and terms for several financing options, including the Port Authority, and will choose what is most beneficial to the project,” Hamet said via email.

     Last month, Grau updated the Butler County Port Authority that his development group had raised $5.6 million at the point for renovations and repairs and is seeking investors for another $7.4 million. He told the port authority his company needed to get at least commitments from investors for the remaining amount in order to apply for Ohio historic tax credits by the end of March or else wait until the next funding cycle to apply again.

    As of this week, the port authority had not approved any financing for the project.

    Hamet said that Grau was working with the port authority about a sales tax abatement which is a benefit that it could offer. She also said that it was too early if the city would contribute funding to raise the additional investment needed by the group.

    While the state historic preservation tax credit deadline is March 31, the project is expected to begin work on June 1, according to the application for a Community Reinvestment Act abatement, according to city officials.

    Hamet said Grau is currently evaluating the best choice for the historic tax credit application time-frame.

    “If he chooses to apply in September, he intends to start pre-construction repairs to the building, based on what is allowed by the historic standards, so that the project continues to move along,” she said.

    Hamet said that Grau is also continuing to review a variety of options for the hotel flag or brand, management company, restaurant, etc. in order to determine the optimum structure for the facility. She said he has several choices for the flag but has not made a selection yet.

    The 93-year-old Manchester Inn hotel on Manchester Avenue has been closed for nearly four years.

    Since acquiring the hotel, Grau and his ownership group have made repairs to the building’s leaking roof and treated it for mold. In addition, the various metal awnings that once adorned the building have been removed to prevent water damage to the structure. Plans for the Manchester include renovating it back into a hotel along with a restaurant, banquet facilities and office space. The former hotel has been nominated to be included on the National Register of Historic Places.

    The city was asking $325,000 for the Manchester, but accepted Grau’s $1 offer earlier last year. Grau also acquired the adjacent Sonshine Building for $1. He plans to invest $10 million into the property.

    Hamet said Grau’s other group, Snider Building LLC, which was the previous name of the Sonshine Building, is planning to restore the three-story, 32,376 square-foot building to its original look renovating it into a 100-plus-seat brewpub on the first floor; small brewing system with canning/ bottling lines and storage on the first floor and lower level.     There will be meeting and event rooms, offices and storage on the second floor.

    Grau said the development plan is to partner with a brewer to produce and self-distribute the beers both locally and regionally. Approximately 3,000 square feet of the former auto showroom will be utilized as a taproom/ brewpub that is expected to employ 28 full- and part-time workers. The project completion date is set for fall 2016.

    Hamet said Grau plans to submit a separate application for state historic preservation tax credits for the Snider Building project.