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Middletown microbrew tax credit

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Vivian Moon View Drop Down
MUSA Council
MUSA Council


Joined: May 16 2008
Location: Middletown, Ohi
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    Posted: Jul 06 2015 at 8:32pm

Posted: 6:47 p.m. Monday, July 6, 2015

No tax credits awarded this cycle for Middletown microbrew

By Ed Richter

Staff Writer

MIDDLETOWN  

A lot of developers were breathing easier last week after Ohio’s biennial budget was signed into law last week.

During the last weeks of the budget process in the Ohio General Assembly, there was a proposal to drop the historic preservation tax credits from the budget. However, that proposal was short-lived and escaped any line item vetoes and was put back into the budget that was signed last week by Ohio Gov. John Kasich.

Had the historic tax credits been eliminated, it would have resulted in roughly a $1.7 million loss to the Manchester Hotel project and about $600,000 from the Snider Building/Brewery project, said Illinois developer William Grau, who heads the ownership group redeveloping both projects.

In a recent email response to the Journal-News, Grau said, “The State Historic Tax Credits are imperative to the Manchester Hotel’s redevelopment as a hotel, but we believe to create a destination, both buildings need to be redeveloped.”

Grau said had the tax credits been discontinued, “Our plan B is the redevelopment of the Manchester Hotel as a hotel, at the urging of the city. Our original proposal was to redevelop the Manchester Hotel as apartments, and if the State Historic Tax Credits we’re to be eliminated, that option would need to be reconsidered.”

Now that the state historic tax credit program remains in place for the next two years, Grau said his group is still on track to submit the historic tax credit application for the $12.7 million Manchester project in September as previously announced.

As for the $3.5 million Snider Building project, the application for historic tax credits that was submitted at the end of March was ruled ineligible by the Ohio Development Services Agency, which administers the program.

Penny Martin, a development services agency spokeswoman, said the Snider application was ineligible because there was no pre-application meeting held with the State Historic Preservation Office. She said the project is eligible to apply in the next round. The application deadline is Sept. 30 and awards for that cycle will be announced on Dec. 31.

Grau could not be reached for comment Monday on the past award cycle.

He recently told the Journal-News that SHPO was reviewing the restoration plans for the Snider Building provided by Hardlines Design Company.

Grau also said the group is currently in talks with several existing microbreweries as potential partners, including Cigar City Brewing located in Tampa, Fla.

Although the projects have hit a snag in seeking historic preservation tax credits, Grau’s group may receive some positive financial news tonight.

That is when Middletown City Council is expected to approve a pair of Community Reinvestment Area tax abatements for both projects for 100 percent for 12 years.

City officials said the Manchester tax abatement is valued at approximately $104,000 a year for a total of $1.24 million over the 12-year abatement period. The city’s portion of the property taxes that would be abated is estimated to be $9,660 a year or $115,920 over the abatement period. Announced plans call for The Manchester Inn, which closed four years ago, to be restored back to an operating 70-room/suite boutique hotel with a restaurant, conference and meeting space, and additional commercial office space as well as the historic ballroom event space.

According to city officials, the tax abatement for the Snider Building, also known as the Sonshine Building, is valued at $45,000 a year for a total of $546,00 over the 12-year abatement. The Snider Building is to be redeveloped as a brewery, taproom, distillery project that would have a direct relationship with the Manchester Hotel redevelopment.

In 2010, Middletown created a community reinvestment area to use all reasonable incentive measures to assist and encourage development in the downtown area of Middletown. Based on state guidelines, CRA abatements can be used for residential developments, industrial/commercial developments, or a combination of both.

- See more at: http://www.journal-news.com/news/news/no-tax-credits-awarded-this-cycle-for-middletown-m/nmsW2/#sthash.PnaqM2fj.dpuf

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Vivian Moon View Drop Down
MUSA Council
MUSA Council


Joined: May 16 2008
Location: Middletown, Ohi
Status: Offline
Points: 4187
Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jul 08 2015 at 12:48pm
I still do not understand how Mr Grau can apply for Historic Tax Credits without completed and approved blueprints of these projects.
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