NORTH CANTON – Historic preservation tax credits will revive efforts to develop residential and commercial operations in the Hoover District and help revitalize one of Canton’s downtown bank buildings.
The two Stark County projects are among 38 statewide to receive Ohio Historic Preservation Tax Credit assistance. The program awards tax credits to developers rehabilitating historic buildings.
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Lydia Mihalik, Ohio Department of Development director, stopped at the Hoover District during a daylong visit to some of the project sites.
“Ohio is flourishing in historic rehabilitation projects,” Mihalik told local officials and developers. “We’re happy to play a small part in this project.”
Who do tax credits help?
The Hoover District project received a $5 million tax credit to help develop 226 apartments, along with commercial space in the oldest portion of the factory complex at the corner of E. Maple Street and N. Main Street.
Industrial Commercial Properties, based in Solon, and California-based Industrial Realty Group have been redeveloping the former Hoover Co. factory and offices since 2008. The companies received a $5 million tax credit in 2013 but had it rescinded in 2019 because the project stalled.
Mills Historic Tower on the southwest corner of Tuscarawas Street W and Market Avenue S received a $1.12 million tax credit. Built in 1924 as home for the First National Bank, the building was last used by Chase as a bank office in 2018.
Canton lawyer Laura Mills, who has offices in the building, bought it last year.
Tax credits will help with a $5.71 million renovation of select interior spaces, including the historic banking hall. Plans are to have have upper floors leased to new tenants, while ground floor will be offered for a restaurant.
‘Already a success’
Since acquiring the Hoover office and factory complex, ICP and IRG have leased to multiple tenants. Different companies now have nearly 1,000 people working in the Hoover District.
“This is already a very successful project,” said Stuart Lichter, IRG’s president and founder.
But while much of the building is leased, the portion fronting Main Street has remained vacant. Plans always have called for construction of apartments and retail or office space. The plan discussed on Wednesday isn’t much different from earlier proposals.
The 226 apartments will be one- two- or three-bedrooms on the upper floors. Earlier plans called for 150 apartments.
The main floor will be designed for commercial use, with about 50,000 square feet available. The developers still hope to attract a brewery for the power house building that anchors the towering Hoover smokestack.
The project carries an $89.2 million price tag, according to state officials.
Jeff Martin, senior vice president for development at ICP, said the company already has invested a lot of money preparing the site. Work already done includes interior demolition and infrastructure, as well as new windows and other changes.
Why the delays?
Chris Semarjian, ICP owner, cited a variety of financing issues as factors in the project’s delay.
While costs for the project were high, rental values were low, he said. Rental values have increased, helping to balance the costs.
Also helping the residential and commercial project is construction of a 178,000-square-foot addition to a building already leased by Diebold Nixdorf. The addition will increase Diebold Nixdorf’s production and add space for research and other business activities.
Semarjian said the developers learned from developing the East End project at former Goodyear facilities in Akron, that when paired, commercial and residential projects help each other and thrive.
Semarjian and Martin said the state tax credits are helping developers cross the finish line as they secure financing for the project.
“It also allows us to kickstart the commercial leasing,” Martin said.
North Canton officials, naturally, are happy to see the state tax credits help the project.
Mayor Stephan Wilder said the community has been waiting patiently for the redevelopment and is encouraged by Wednesday’s announcement.
Wilder cited the city’s 2022 master plan, which identifies the importance of the Hoover District redevelopment, adding that the project “helps to build a vibrant downtown core with a vision for Main Street as a destination.”
— to www.cantonrep.com
