Dayton Arcade wins big: State awards project $4M in tax incentives

Published: Tuesday, December 19, 2017 @ 11:00 AM

Drone footage reveals beautiful interior of Dayton Arcade

The Dayton Arcade, one of downtown’s most iconic properties, received a significant boost today when the state awarded the project an additional $4 million in historic tax credits.

The arcade closed 26 years ago, but a development group has been working to pull together financing for a more than $90 million overhaul of the historic complex, which sits in the heart of downtown along West Third Street.

INSIDE THE ARCADE: See amazing interior views

Developers have said that the additional $4 million in state tax incentives is one of the final puzzle pieces of its “capital stack,” and they wanted to announce by year’s end whether the arcade project is going to happen.

RELATED:Dayton Arcade: When a 1904 party with performing bears and a vaudeville show opened a city gem

Transforming the massive complex into a mix of uses, including housing and an innovation hub, would reinvigorate a sleepy section of downtown and would be a catalyst for new investment in the center city, officials and developers say.

Skeptics say there have been many proposals for reviving the property — and all fell flat.

But no proposal has ever come this close to reaching the finish line, officials say.

“This is big,” said John Gower, urban design director of CityWide.

RELATED: New Dayton Arcade plans: Pop-up restaurants, micro apartments, ‘secret tenant’

Today, the Ohio Development Services Agency announced it has awarded the Dayton Arcade $4 million in state historic preservation tax credits for a nearly $41 million project.

Developers propose to rehab the arcade in phases, beginning with new housing for artists and creative types and professionals, event spaces and a hub for entrepreneurs, students, faculty, businesses and other groups.

RELATED: These unique details inside the Dayton Arcade made it beloved in its heyday

In June, the first phases of the project were awarded $5 million in state historic tax credits.

The $56 million early stages of renovation will focus on the southern buildings, including the rotunda and the Commercial and Fourth Street Apartment buildings. The Dayton Arcade consists of about eight interconnected buildings.

RELATED: Living in the Dayton Arcade: What you need to know

The tax incentives announced today will support the restoration of the Third Street Arcade and Gibbons Annex buildings.

“It’s really important,” Gower said. “Nine million dollars in state historic tax credits is a scale of an award that the Dayton area has never seen before.”

Miller-Valentine Group and Cross Street Partners, the development partners, want to make the Third Street Arcade into first-floor retail spaces and offices and small apartments on the upper levels.

The Third Street Arcade has a two-story, sky-lit retail arcade. The retail spaces will be filled by a collection of pop-up restaurants.

RELATED: Downtown project wins tax incentives — but not the Dayton Arcade

The McCrory building will house University of Dayton art programs in the basement and first floor, and its upper floors will have spaces related to the innovation center.

The proposed rehab of the arcade is expensive because of the complex’s deteriorated condition and the specialized construction needs to bring it back to life, according to the developer’s application for credits.

“Market conditions in Dayton will not support the cost without some outside incentive,” the application states.

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Arcade is definitely happening, developer says: ‘We’re way too pregnant’ 

Published: Monday, March 05, 2018 @ 6:22 PM
Updated: Friday, April 27, 2018 @ 4:12 PM

A rendering of what the Dayton Arcade will look like after proposed renovations.
A rendering of what the Dayton Arcade will look like after proposed renovations.

It’s the words some people have waited nearly three decades to hear: The Dayton Arcade is going to reopen.

The project is not in doubt, says Cross Street Partners, the project’s lead developer: It’s definitely happening.

RELATED: 8 things you probably never knew about the Dayton Arcade

Though previous proposals to revitalize the arcade fizzled out, Cross Street Partners has never had a project progress to this point and not finish, said Bill Struever, principal of Cross Street Partners.

“We’re way too pregnant,” said Struever.

PHOTOS: A look back at the Dayton Arcade

Last week, this newspaper broke the news that Miller-Valentine Group, one of the largest commercial real estate developers in the region, has pulled out of a project to create new housing in the Dayton Arcade, electing to take a back seat from efforts to revitalize the famed complex.

RELATED: Miller-Valentine withdraws from Dayton Arcade project

But two big players in urban redevelopment — Cincinnati-based Model Group and St. Louis-based McCormack Baron Salazar — have signed on as partners on the arcade, and Struever says they are better suited for the work.

Model Group and McCormack Baron Salazar are “powerhouses” in tax credit investments and new market or historic reuse projects that have large extensive experience completing large and complicated projects, he said.

LATEST: Miller-Valentine remains tied to the Arcade, CEO says

There are always things that could still go wrong with the arcade project, Struever said: Like any project, tenants can pull out, leasing can hit a snag and construction can face delays.

But the arcade is headed toward a closing on financing in July, with construction beginning soon after, he said.

“Things changed with Miller-Valentine — that’s unfortunate — but we roll with it and we have a terrific team,” Struever said.

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Miller-Valentine Group has withdrawn from the housing component of the Dayton arcade. The company said it will be involved in the leasing of the commercial component and continues to work with Cross Street on multiple capital raising initiatives.

The departure has not signficantly impacted the project, except the partners’ plans now include expanding the arts component of the arcade and modifying the mix of units on the residential side, officials said.

Some amenity space in the basement of the Fourth Street building will be turned into artists’ studio space.

Model Group had a lead role in transforming the Over-the-Rhine (OTR) neighborhood in Cincinnati from a riot-damaged wasteland, featuring vacant and crumbling buildings, into one of the hottest destinations in the Queen City.

RELATED: 7 of Dayton's most haunted spots

In the 2000s, the company helped clean-up the neighborhood, which struggled with blight and crime, by restoring 73 historic buildings and creating 383 units of affordable, “high-quality” housing.

Since 2006, more than 175 new businesses have opened in the neighborhood.

Model Group’s investment in Over-the-Rhine alone is north of $200 million. The firm has completed more than $500 million in development in Ohio, Kentucky and Indiana.

RELATED: Where is the last fragment of NCR’s famed underground Dayton tunnel system?

The Model Group has been one of the most active historic tax credit developers and general contractors in the state the last 15 years, said Bobby Maly, principal of the firm.

McCormack Baron Salazar developed the Landing Apartments located at 115 W. Monument Ave. in Dayton.

The project, which opened in the 1990s, turned the downtown YMCA tower into about 59 apartments as well as townhouses and apartments between West Monument and the Great Miami River. There are 233 apartments in total.

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McCormack Baron Salazar has developed 195 projects in 46 cities in 26 states and U.S. Territories, including 21,290 housing units and 1.2 million square feet of commercial space, with development costs of $3.9 billion.

The company has completed 9 projects in Ohio, resulting in 928 apartment homes, investing $165 million.

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Amazon announces final 20 cities in the running for second headquarters

Published: Thursday, January 18, 2018 @ 9:59 AM
Updated: Thursday, January 18, 2018 @ 9:52 AM

Amazon Announces Cities Still In Consideration For Second Headquarters

Officials with technology giant Amazon on Thursday announced that the company has narrowed down its list of possible sites for its second headquarters to 20 metropolitan areas.

>> Read more trending news

The company said it got nearly 240 proposals from across the U.S. Canada and Mexico.

“All the proposals showed tremendous enthusiasm and creativity,” Holly Sullivan, with Amazon Public Policy. “Through this process we learned about many new communities across North America that we will consider as locations for future infrastructure investment and job creation.”

The following metropolitan areas are still in the running for Amazon’s second headquarters:

  • Atlanta, Georgia
  • Austin, Texas
  • Boston, Massachusetts
  • Chicago, Illinois
  • Columbus, Ohio
  • Dallas, Texas
  • Denver, Colorado
  • Indianapolis, Indiana
  • Los Angeles, California
  • Miami, Florida
  • Montgomery County, Maryland
  • Nashville, Tennessee
  • Newark, New Jersey
  • New York City, New York
  • Northern Virginia, Virginia
  • Philadelphia, Pennsylvania
  • Pittsburgh, Pennsylvania
  • Raleigh, North Carolina
  • Toronto, Ontario, Canada
  • Washington D.C.

Amazon employees will spend the next several months diving into the remaining proposals. Company officials said Amazon’s decision will come this year.

Amazon is headquartered in Seattle, but the company announced in September 2017 that it was seeking proposals to build its second headquarters somewhere in North America.

Amazon officials said the company plans to invest $5 billion in its second headquarters, which will bring as many as 50,000 high-paying jobs to whichever metropolitan area it gets built in.

“In addition to Amazon’s direct hiring and investment, construction and ongoing operation of Amazon HQ2 is expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community,” Amazon employees said in a news release.

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Memorial sign honors fallen Shelby County firefighter

Published: Sunday, April 22, 2018 @ 3:27 PM

Memorial sign honors fallen Shelby County firefighter

A memorial sign was dedicated today to fallen firefighter, Michael (Mike) J. Aselage, on SR 705 at East Edge of Fort Loramie in Shelby County.

Aselage was electrocuted in the line of duty on April 2, 1975. 

He served four years with the United States Coast Guard, but was discharged a year prior to his death, and was also a Probationary Member of the Fort Loramie Community Fire Company. 

On April 2, 1975, Aselage came upon a downed electric power line - that was blown down by the high wind from the previous night - on Ohio St. Rt. 705. 

According to the Shelby County Sheriff's Deputies, Aselage drove to the nearby home of Walter Silvers and telephoned the Sheriff's office to notify them of the power line, owned by Pioneer Rural Electric Company. 

He then drove back to the scene with the intention to direct traffic around the live wires, but as he got out of his vehicle and stepped onto the ground, his vehicle touched a 7,200 volt electric line and he was electrocuted. 

OTHER LOCAL NEWS: Dayton Duplex Fire

Robert Bunsold from Sidney, Ohio, followed Aselage to the scene to help direct the traffic, but when he came in contact with Aselage's vehicle at the same time, Bunsold was knocked unconscious to the ground. 

Bunsold was transported to Wilson Memorial Hospital for treatment. 

Shelby County Sheriff's Deputy Thomas Bergam received earlier reports of the down power lines and was on his way to the scene when he witnessed the fatal explosion. 

Members of the Fort Loramie were dispatched to the scene to extinguish the fire that occurred by the voltage, but the Fire Department had to wait until a representative from Pioneer Rural Electric Company arrived to make sure the power was off. 

After power was securely off and the fire was extinguished, Aselage was removed via Ambulance. 

Got a tip? Call our monitored 24-hour line, 937-259-2237, or send it to newsdesk@cmgohio.com

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2-year-old boy taken to hospital after near-drowning at Island MetroPark

Published: Saturday, April 21, 2018 @ 7:39 PM

A 2-year-old boy was taken to Dayton Children's Hospital after he fell in to the Great Miami River at Island MetroPark Saturday afternoon. 

The child fell in to the water near the Helena Street bridge park area. 

Montgomery County Regional Dispatch confirmed he was taken to the hospital with non-life threatening injuries. 

Tabatha Davis, who witnessed the incident and called 911, said there is nothing there to keep children from running into the water. 

In the 911 call, she states it initially seemed as if the child wasn't breathing, but after CPR was performed by his parents, he threw up the water. 

"He ran over there so fast, in the blink of an eye," said Davis. "There is no blockage to the water and I think they really need to do something about that." 

LOCAL: Volunteers help clean up parks in honor of Earth Day

Davis was there with her granddaughter, and gave the child a piece of candy when he approached her. 

Davis said he and his mother went to a picnic table near the water and ate the candy, then she looked up and he was gone. 

"I heard her scream, 'Where's my baby?' and I looked up and he was in the water," said Davis. 

Briana Greenwood, another witness, wrote a letter to park officials making them aware of her safety concerns. 

"My two concerns here are the safety of the parks despite the posted warnings, and the availability of park rangers in case of an emergency. Thankfully, the park was full of families and parents so we were able to dial 911 as instructed on the Metro Parks website, but I would like for there to be posts with buttons that people can push throughout the trails and near playground areas," Greenwood states in the letter. 

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"I was scared, horrified and worried for this family," wrote Greenwood. 

Greenwood said she will petition for a "strong sensible fence" to be put in to block the water ways. 

Greenwood was at the park with her son when she assisted the child's parents in looking for him. 

"This simple precaution could save many lives of the thousands of children and families that enjoy the MetroParks," wrote Greenwood. "I ask this not only for the safety of my own child, but the safety of others' children."

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