Posted: 6:00 a.m. Monday,
March 23, 2015
Manchester Inn project making progress
By http://www.journal-news.com/staff/ed-richter/" rel="nofollow - 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.
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