By: Jenna Lawson, WHIO
View video of the announcement on WHIO's website
There were many points in the last five years that community partners thought ‘Legacy Place’ might never happen.
It took time to capture nearly $13 million in funding sources, including historic tax credits – not to mention delays due to the pandemic. But on Thursday, partners announced the funds were released and they are able to move forward with the project. It’s possible construction could start within the next week.
‘Legacy Place’ transforms the Douglas Inn in downtown Urbana and two former elementary schools (North & South) into affordable senior housing. 51 units will be created for those 55 and older, with six of them being devoted to people with disabilities.
“It’s just a real renaissance for Urbana,” Mayor Bill Bean told News Center 7′s Jenna Lawson.
Duane Miller, with development company Flaherty & Collins and also president of F & C Legacy Place, said the project accomplishes two goals: turning three vacant properties into useful properties and filling the need for affordable senior housing in Urbana.
“I love to jump into the skin of a community that’s looking for help and looking for opportunities to spur on their own development,” he said.
The Douglas has been vacant since 2004 and has long been a large eyesore on the southwest corner of Monument Square. The building has somewhat deteriorated and was the target of multiple arson fires in 2019.
The former owner of the property, John Doss, has done work to stabilize the structure. The elementary schools, despite being about 100 years old, are in solid shape, partners said.
The timeline for the project will move quickly. Developers estimate about six months to complete both elementary schools and a little over a year to finish the Douglas. Partners are hopeful that the project will have a positive domino effect on other aspects of Urbana living including neighboring businesses and housing.
“We may see some of those seniors who may move in here and now their single family homes are available for a new families to move in,” said director of the Champaign Economic Partnership, Marcia Bailey.
Bailey added that this solution also preserves the history of all three buildings for the community to enjoy for decades to come. “Having these buildings standing as they are and being repurposed is a huge win for our community,” she said.
Other partners in the project include the City of Urbana, Urbana City Schools and Resident Supports and Services, Inc., which provides housing for seniors and adults with developmental disabilities.
By Jenna Lawson, Springfield News-Sun Staff Writer
The last bit of needed funding has been secured to push forward the ‘Legacy Place’ senior housing project in Urbana.
Sourcing all of the funding has been a tedious multi-year task undertaken by several different parties — but soon residents will start to see the fruits of labor.
“This is going to be a reality,” said Champaign Economic Development Director Marcia Bailey. “It’s not just sketches on a piece of paper. It’s going to be a reality.”
In August, the developers of the project — Flaherty & Collins Properties — applied for a grant through the Federal Home Loan Bank of Cincinnati with the help of community partners.
“(The developer) has indicated to us if they’re able to secure that grant, then they can move forward toward a closing to this project,” said Doug Crabill, Urbana’s community development manager.
Crabill, as well as Marcia Bailey, director of Champaign County Economic Development, have been working with Flaherty & Collins Properties, a developer based in Indianapolis that has expressed interest in the project, to secure the funding for “Legacy Place.”
The project would convert the Douglas Hotel, as well as the former North and South Elementary Schools in Urbana, into affordable senior apartments.
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“It’s exciting that another piece of the puzzle has been approved for funding,” said Champaign Economic Partnership Executive Director Marcia Bailey. “Nothing is finalized yet, and we’re not quite ready to sign for the property, but the city, Urbana City Schools and the CEP have done everything we can on our end and now we’re continuing to work with Flaherty & Collins to get this project to the final stages.”
According to ODSA, Legacy Place is only the second project to be awarded in Urbana. The awards are planned to assist private developers in rehabilitating historic buildings in downtowns and neighborhoods that, once rehabilitated, drive further investment and interest in adjacent property.
“The historic preservation tax credit is another way we’re investing in our communities,” said Gov. Mike DeWine in a news release. “These investments can spur development in a neighborhood or downtown.”
“Partnering with communities and developers across Ohio, we’re preserving historic sites that make Ohio unique,” said Lydia Mihalik, director of ODSA. “We’re creating new opportunities for small businesses and housing.”
The Ohio Historic Preservation Tax Credit program is administered in partnership with the Ohio History Connection’s State Historic Preservation Office. The state Historic Preservation Office determines if a property qualifies as a historic building and if the rehabilitation plans comply with the U.S. Secretary of the Interior’s Standards for Rehabilitation.
Bailey said that in addition to providing a built-in customer base for downtown business owners, the project will be an example for the Moving Downtown Forward committee to inform developers how to move projects ahead in downtown Urbana.
According to information from the ODSA, the Douglas Inn was constructed about 1870 in the Second Empire style with a mansard roof. The structure has been vacant since 2004. When ready to complete the sale of property, Flaherty & Collins will work directly with private owner John Doss to acquire the Douglas Inn.
“Just seeing the Douglas get put back into use again is a very positive thing for the community,” said Community Development Manager Doug Crabill. “Seeing those school buildings be reused rather than being torn down and vacant lots gives us a good feeling, because at least we know there is a plan for re-purposing those buildings.”
“It’s something we’re used to doing and we feel like there’s usually an extra need for senior housing in communities, and in communities like Urbana there’s a need to help older (buildings) continue their life,” said Julie Collier, vice president of Development for Flaherty & Collins Properties. “It’s two-fold for us because we’ll help save some important buildings in … Urbana, and we’ll also fulfill a housing need for local residents.”
The two schools, built in 1901 and 1921, served the city’s children until they became vacant in 2018. Bailey said the Ohio Revised Code allows the school district to dis-invest of the two properties no longer needed by the school district. Rather than demolish the buildings, the plan is for them to be purchased by the city for $1 each under an alreadysigned purchase agreement. Then the CEP will act on behalf of the city to sell the buildings to Flaherty and Collins.
“The city council agreed to do all of this,” said Bailey. “We had the city schools that were willing because they didn’t want to see the buildings (demolished) either, and it’s a cost savings for taxpayers not to have to pay for the demolition. But the city council agreed that they will take on the buildings … That was an important component, because if the city had not agreed to do that we wouldn’t be where we’re at right now.”
On March 19, the Urbana City Council unanimously passed a resolution of support for the developers of Legacy Place to apply to the Ohio Historic Preservation Tax Credit Program. Flaherty & Collins also obtained tax credits through the Ohio Housing Finance Agency.
‘Legacy Place’ project in Urbana receives almost $1M in funding from state tax credit
The project, called Legacy Place, would create 51 housing units available to residents 55 and older.
“We are super excited, this was a big hurdle and achieving this credit is a really exciting achievement,” said Marica Bailey, Director of the Champaign Economic Partnership. “We are ready to move forward with this process.”
MORE: Plan might find new use for Douglas Hotel, longtime Urbana eyesore
While funding for the project has been secured, Bailey said, the project is still a work in progress.
“There is no start time,” Bailey said. “This project is still in the making, but this is a big step in the making.”
The Ohio Historic Preservation Tax Credit is administered in partnership with the Ohio History Connection’s State Historic Preservation office and the Ohio Development Services Agency. The credit is awarded to, “assist private developers in rehabilitating historic buildings in downtown and neighborhoods.”
“Partnering with communities and developers across Ohio, we’re preserving historic sites that make Ohio unique,” Lydia Mihalik, director of the Ohio Development Services Agency, said in a news release. “We’re creating new opportunities for small businesses and housing.”
The Legacy Place project is just one of 22 projects awarded the tax credit. In total, the Ohio Department of Services Agency awarded more than $28 million for the rehabilition of 49 historic buildings, according to the ODSA.
Under the Legacy Place project, the city of Urbana has agreed to take ownership of the two elementary school buildings and transfer them to the Champaign Economic Partnership. The CEP will then transfer the two buildings to Flaherty and Collins.
The next step in the Legacy Place project since receiving the credit, will be to work on transferring and finalizing property agreements, Bailey said.
“We are going to be meeting up and working through the fine details of the project and finalizing some of the purchasing agreements and stuff like that in the coming months,” Bailey said.
The former Douglas Hotel is privately owned by John Doss, who plans to work out a separate agreement with the company.
Doss said previously that he purchased the Douglas with plans to eventually restore it, although it’s been a slow process to track down funding and find a suitable project.
The former hotel has been vacant for more than a decade and city officials have said in the past they believe the building is an eyesore downtown. Turning the site into senior housing will encourage more residents to live downtown and create new opportunities for retailers, Bailey said.
“This is going to have a tremendous impact and the making of this has been an incredible effort,” Bailey said.
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$988,058: Total tax credit the Legacy Place project has received as a part of the Ohio Historic Preservation Tax Credit
51: Housing units for residents 55 and older the Legacy Place project will create
3: Total properties involved in the senior housing plan- 2 elementary schools and the Douglas Hotel
The Springfield News-Sun is committed to covering economic developments in Clark and Champaign counties.
Key development projects
Thanks to economic development investments by private businesses working with the CEP, Urbana – for the first time ever – ranked 41st in the Site Selection magazine’s 2017 list of top U.S. micropolitan communities.
Recent successes include the new Navistar distribution center, Memorial Health’s medical building, expansion of Weidmann Electrical Technology, opening of Nutrien Ag Solutions, Sutphen Corporation’s new Service, Parts and Refurbishment Center, expansion of Old Souls Farms hydroponic operations, expansion of Advanced Technology Products and purchase of the former Robert Rothschild Farm property.
Champaign County manufacturing jobs have grown from under 3,000 jobs in 2013 to nearly 4,000 in 2018.
Major projects for 2019 include:
The CEP is partnering with schools and businesses in numerous ways to help make sure Champaign County has the skilled workforce required by new and expanding businesses.
Results of these partnerships include:
For more information, call the CEP at 937-653-7200 or browse CEPOhio.com.
The group has agreed to a potential sale price with the property’s owner, but the deal is contingent on a zoning change under review as well as an official commitment from the investors, Howell said.
“We have a pretty nice group and I think most people think Urbana needs it, so let’s give it a try,” Howell said.
According to its website, the Cobblestone chain focuses on providing upper-midscale rooms, typically in smaller towns. The chain’s only other hotel in Ohio is located in Orrville, south of Akron.
Assuming the project moves forward it’s possible construction could start in March and be finished by mid-September next year, Howell said.
A request to rezone 8.7 acres of a roughly 11-acre parcel has been approved by Urbana’s planning commission and recently had a first reading at Urbana City Council, said Adam Moore, zoning officer for the city. The request would change the zoning from high-density residential to a general business district, allowing the hotel project to move forward. The proposal needs two more readings before council members can vote whether to approve the change.
Local economic development officials began taking a closer look at a possible hotel project earlier this year after a consultant from the Core Distinction Group determined there’s enough demand for rooms to make a new hotel feasible. Champaign County has been losing possible revenue to Clark County, where there are several newer options for guests to stay overnight, said Jessica Junker, a managing partner for Core.
“The community is losing revenue not only in hotel revenue, they’re losing money on the room taxes, convenience store purchases, grocery sales and restaurants,” Junker said.
The area has several large manufacturing firms that could attract guests overnight, and Urbana University is also nearby and could attract additional business, she said.
Core’s report recommended as many as 70 to 80 guest rooms, but the project being discussed by investors is more conservative to make sure the project is a success, said Marcia Bailey, economic development coordinator for the Champaign Economic Partnership.
“It is anticipated that a new hotel would capture displaced lodging demand currently staying in markets surrounding Urbana, OH,” the report states. “Additionally, the newness of the hotel should be well received in the marketplace. It’s location will be ideal to serve Urbana and regional markets. This type of hotel would also be capable of adjusting rates to best fit the demand in the market and the seasonality of the area.”
Champaign County has rooms available for overnight stays, including a downtown bed and breakfast and businesses like the Econo Lodge Inn and Suites and the Logan Lodge Motel. But there hasn’t been a new hotel in years, Bailey said. The goal isn’t to harm existing lodging businesses in the county, Bailey said, but to ensure enough rooms are available to meet demand.
A 2013 study by Tourism Economics showed that the total tourism impact in Champaign County resulted in more than $47 million in sales and enables the employment of more than 350 people in the county, according to information on the Champaign County Chamber of Commerce website.
The Springfield News-Sun is commited to providing unmatched coverage of business and jobs in Clark and Champaign Counties. For this story, the paper spoke to city and economic development officials in Champaign County about a proposal to build a new hotel to attract more business to the city.
By the numbers:
3 — Estimated acres for the hotel
8.7 — Acres that may be rezoned
58 — Possible guest rooms
15 to 25 — Possible full-time jobs based on a 70 to 80 room hotel