Local projects awarded millions in tax credits

The state of Ohio today awarded $3.4 million in state historic tax credits to two projects that seek to bring more hip apartments and office space to downtown Dayton.

A $25 million proposal to convert the six-story Delco building at 329 E. First St. into housing and a restaurant won a tax credit award of $3.2 million.

A $1 million plan to overhaul the office space in the Dickey building at 124 E. Third St. was awarded $168,000 in tax credits.

The state this morning awarded $27.5 million to 19 projects, which seek to rehabilitate 33 historic buildings.

The awards allow developers to recoup some of the rehabilitation costs of restoring historic buildings through a dollar-for-dollar reduction in tax liability.

“These investments preserve historic buildings while creating new economic opportunity for neighborhoods,” said David Goodman, director of the Ohio Development Services Agency, which oversees the historic tax credit program. “This program preserves the rich historic character of communities.”

Local officials said historic tax credits play a significant role in urban redevelopment and reuse of underutilized buildings because they provide a significant equity source. Crawford Hoying, which is developing the Water Street district, plans to spend about $25.4 million to transform the 214,000-square-foot Delco building into 129 apartments.

The firm applied for $5 million in tax credits from the Ohio Historic Preservation Tax Credit Program, which is the maximum award amount. It received $3.2 million of its request.

Developers said the project could not move forward unless tax credits are secured.

In its application, Crawford Hoying said the preservation and rehabilitation of this property will create 18 jobs and add residential options to downtown.

The upper floors of the structure will be housing. The basement and ground floor will be parking and a 5,000-square-foot restaurant space.

Crawford Hoying said the project could serve as an economic catalyst for more historic redevelopment in the area.

Just a few blocks away is the Dickey building, located on E. Third Street by St. Clair St. Elliot Katz bought the 75,000-square-foot building earlier this year.

Katz proposes spending more than $1 million to renovate the Dickey building, which is more than 50 percent vacant.

The state awarded this project $168,000 in historic tax credit awards.

Today, about seven companies call the building home, and about 50 people work at the site.

Katz projected that the renovation of the building would bring 60 new workers to the building. The project is expected to be completed in 2017.

Katz is part of an investment group that has purchased several commercial buildings in downtown.

The group’s goal is to create a new entertainment and residential district. The investors also purchased the David Building, located across the street.