Tax Credit Boosts Legacy Place

The Douglas Inn on Monument Square is to become a residence for senior citizens. Christopher Selmek | Urbana Daily Citizen

By Christopher Selmek, Urbana Daily Citizen
cselmek@aimmediamidwest.com
The Ohio Development Services Agency awarded $28,033,063 in Ohio Historic Preservation Tax Credits on June 26 for the rehabilitation of 49 historic buildings in 13 communities around the state, including $988,058 for the Legacy Place project planned in Urbana. The project is eligible for additional tax credit allocation, up to the requested $1,315,118, as it becomes available through withdrawn applications or project savings. The developer, Flaherty & Collins Properties, will not be issued the tax credit until project construction is complete and all program requirements are verified.

ODSA has estimated the total project cost as $13,164,335 for 51 units of senior housing that would occupy the former North and South elementary schools as well as the Douglas Inn on Monument Square. All three buildings will hold apartments designed for residents 55 or older making 60 percent of the area median income or less, roughly $24,000 to $25,000 a year, and the former hotel will also have commercial space on the first floor. Local officials have been working with architect McCall Sharp Architecture, of Springfield.
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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.

Legacy Place
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.

In July 2018, the Urbana City Council unanimously authorized a fee waiver of up to $500 in support of Flaherty & Collins’ application to the affordable housing program of the Federal Home Loan Bank of Cincinnati, including but not limited to water and sewer tap fees, construction permit fees and zoning fees. The resolution affirmed that the city council supports the efforts of Flaherty & Collins to obtain the necessary financing resources to redevelop all three buildings.
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Christopher Selmek can be reached at 937-508-2304