Article source for : Blade wants to keep the Fiberglas tower ?
On June 23, The Blade published the following costs involved with the renovation of the Fiberglas Tower:
≺ $10 million from a 20-year, Section 108 loan from the federal Department of Housing and Urban Development.
≺ $2 million from a Brownfield Economic Development Initiative grant, which can be used to pay the interest on the Section 108 loan.
≺ $7.277 million in new market tax credits.
≺ $5.381 million in federal historic tax credits.
≺ $6.407 million in Ohio state tax credits.
≺ $3 million from an economic development grant.
≺ $1 million from a climate-control energy efficiency grant.
≺ $3 million from a Clean Ohio Revitalization Fund grant.
≺ $750,000 from Clean Ohio Assistance Fund.
≺ $1.5 million developer contribution.
≺ $3 million developer equity.
≺ $1.49 million developer deferred fee.
Note that of the 44ish million dollars, the owner of the building was putting in a total of $1.5 million in cash, and then would be paying themselves $1.49 million for developing the building. While the $3 million in developer equity leads a person to assume that they would be contributing significant equity, it appears as though the only concrete cash commitment to the project is a less than impressive $0.01 million or $10,000 ? WTF?
Today the Blade came out all in favor of the project because of the laughable notion that the 10 Million that the city is guaranteeing is not an issue, because the City would get this gem if the deal goes sideways. It could sell the property and get all the 10 million back.
The city could just pick from any of the dozens of companies and individuals that are waiting to buy this building. Yah, right.
I think the Blade would be a lot more critical of the structure of the deal if they were going to be on the hook for the 10 million.
Soon the asbestos will be removed. That would be a great time to review the true value of this decrepit giant.