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Akron Community Revitalization Fund

Issuer(s)
DFWR
Investment Amount(s)
(in millions)
$6.75
Closing Date
7/27/2017
County
Summit

The Akron Community Revitalization Fund is designed to create a pool of funds to leverage other funding sources and provide additional loans between $500,000 and $2,000,000 with more flexibility, less stringent credit requirements and below market rates. Eligible project areas include downtown, North Hill, and parts of east, south and west Akron that have a poverty rate of at least 30% along with an unemployment rate of at least 10%. The projects are evaluated on their readiness, investment in the community, the number and quality of jobs created and/or retained, and the impact the product or service will provide the community.

The Fund is managed by the Development Fund of the Western Reserve (DFWR), a private non-profit (501c3) affiliate of the Development Finance Authority of Summit County (DFA).

The United Building - A $1.28M loan was issued from the Akron Community Revitalization Fund in order to finance the adaptive reuse
of the existing historic United Building into a 71-room boutique hotel in downtown Akron.  Total project costs are approximately $10M with
other funding sources including Cortland Bank and Village Capital Corporation (a CDFI based in Cleveland).  This hotel will create
approximately 20 full-time and 9 part-time permanent positions as well as 83 construction jobs.
Northside Marketplace – This loan was in the amount of $650,000 in order to finance the construction build-out of the Northside Marketplace – an urban market with a focus on social interaction, local businesses and grass roots artisans. It features an eclectic mix of the area’s best startups and offers small local businesses the tools and support they need to grow their business and increase exposure of their brand and product offerings. Like a retail incubator, the Northside Marketplace is all about identifying up and coming businesses and bringing them together to create a unique local shopping experience to both residents and visitors. The ACRF loan will also enable the development of phase two of the project which will be used for a farmers market and eBay marketplace.
Rubber City Arches – A loan was issued in the amount of $700,000 in order to finance the construction build-out of a single story commercial building located in the Northside District into the headquarters, regional training center and warehousing facility entirely for Rubber City Arches, a family-owned franchise of McDonald’s Restaurants in Northeast Ohio.  It will bring 25 jobs and many people from 250 NEO restaurant locations into Akron for programs such as food safety courses and management training.
AES Building Tenant Improvement – A loan was issued in the amount of $580,000 in order to finance tenant improvements in the former AES Building. The two new tenants, OHM Advisors and CommuniCare Health Services are expected to bring approximately 70 quality jobs into downtown Akron. These tenants will help to fill the gap left in the building and the city when Exxon Mobil vacated in 2016, resulting in the loss of 200 jobs. The low interest rate and flexible terms of the ACRF loan are expected to help enable the borrower to incentivize future tenants as well.

Middlebury Commons – A loan in the amount of $1.6M was used in order to finance the construction and buildout of the ground floor commercial/retail space of Middlebury Commons  – a mixed-use project with 40 affordable apartments for seniors and first floor retail space. We anticipate that this project will increase residential and business density at the heart of Middlebury while providing access to necessary services and amenities for the residents of the building and the surrounding blocks.  Middlebury Commons is a significant part of the strategy to transform Middlebury from an area of disinvestment into a thriving neighborhood on Akron’s eastside. We are pleased to collaborate with East Akron Neighborhood Development Corporation (EANDC) alongside others to make this crucial investment.
The Bowery re-development – The loan was in the amount of $1.67M in order to provide pre-development funds for the Bowery redevelopment project, a proposed six building, $40M mixed use project anchored by the historic Akron Civic Theatre. We anticipate this short-term loan will be repaid prior to year-end. Upon repayment, DFWR plans to make a subsequent loan in the equivalent amount for a tenant in the Bowery project after an additional underwriting process and review. As envisioned, the Bowery project is a key part of upgrading downtown Akron to improve public life and catalyze reinvestment and repopulation of the city. This development will completely revitalize 6 long-empty buildings to bring a fresh food market, retail, entertainment, office and residential elements to downtown Main Street that will likely stimulate further demand for residential and retail projects in Akron.

Akron-Canton Regional Foodbank, Stark County Campus

Issuer(s)
Investment Amount(s)
(in millions)
Closing Date
County
Stark

Each year, the Akron-Canton Regional Foodbank provides millions of meals to families within its 8-county service area in Northeast Ohio. With many families still facing food insecurity, however, it became clear that a second facility was needed to expand capacity. DFWR allocated $6.5 million in New Markets Tax Credits to this project along with Capital One, the NMTC Investor, who provided an additional $1 million of allocation; the Foodbank funded the remainder of the cost through its capital campaign donations and reserves.
At the time of investment, approximately 200,000 people (1 of every 7) in the Foodbank’s service area are food insecure, with about 70% of residents surrounding the project’s census tract in Canton eligible to receive food assistance benefits. DFWR’s financial support enabled construction to begin on this new distribution hub, which will provide over 14,000 square feet of food storage and processing space and feature a volunteer center, pantry, marketplace, teaching kitchen, and a unique community collaborative area for network partners.
The Foodbank has been a community leader in Northeast Ohio since 1982; the Stark facility will ultimately make food more accessible for its network partners and families alike, and enable to Foodbank its continue their mission of empowering people to experience healthy and hunger-free lives.

East End Hotel

Issuer(s)
DFWR // PNC Bank CDE
Investment Amount(s)
(in millions)
9.0 // 2.0
Closing Date
2013
County
Summit

Gateway Center at Oberlin College

Issuer(s)
DFWR // Dudley Ventures // Chase Bank
Investment Amount(s)
(in millions)
$5.25M // $6.5M // $2.7M
Closing Date
2016
County
Lorain

The Gateway Center at Oberlin College is expanding to include community space for the LaunchU Program, musical performing arts venue, greenspace plaza improvements needed to relocate the Oberlin Farmers’ Market, and additional parking and utility improvements.  This is a significant expansion of the University into the downtown Oberlin business district.

Development Fund of the Western Reserve provided a $5.25M New Markets Tax Credits (NMTC) allocation and partnered on this project with Dudley Ventures and Chase Bank, who brought an additional $9.2M NMTC allocation.

This project creates 270 construction jobs, in addition to the creation/retention of 172 full time permanent jobs.

Great Wave Broadband

Issuer(s)
DFWR//Finance Fund
Investment Amount(s)
(in millions)
$4.5M//$5M
Closing Date
2016
County
Ashtabula

GreatWave Broadband Services provides broadband telecommunication services to residential and business subscribers located in rural Ashtabula, Lake and Geauga Counties.  Formerly known as the Conneaut Telephone Company, GreatWave has been in business over 100 years in Conneaut, Ohio.  The company currently has over 2,000 telephone customers, 1,650 cable TV subscribers, and 3,200 broadband internet users.

With the $9.5M NMTC allocation, GreatWave anticipates adding 650 new broadband telecommunication customers per year by expanding their services in areas where it was previously unavailable due to lack of infrastructure.  Additionally, with the NMTC financing, GreatWave will be able to retain 37 full time jobs and create 17 additional full time positions with comprehensive benefit packages over the next 7 years.

This project marks DFWR’s first use of its allocation in a non-metro county.

Jetro/Restaurant Depot

Issuer(s)
DFWR // Capital One CDE
Investment Amount(s)
(in millions)
5.5 // 1.0
Closing Date
2015
County
Summit

Restaurant Depot is a membership based wholesaler that serves local restaurants, non-profits, caterers, and other small businesses with their food and equipment needs. There are successful locations in 30 states nationwide with 3 located in Ohio (Cleveland, Columbus, and Cincinnati). The site is a former brownfield that was purchased by the City of Akron for development. Restaurant Depot has created approximately 250 construction jobs using primarily local contractors. In addition to the construction jobs, 33 full time permanent union jobs were also created with that number expected to rise to over 50 jobs in the next 5 years. Capital One, in addition to being the NMTC investor, provided a $1.0M allocation through its CDE. Among other financing sources, Development Fund of the Western Reserve (DFWR) allocated $5.5 million in Federal New Markets Tax Credits.

Restaurant Depot Ribbon Cutting

Kent State University Hotel & Conference Center

Issuer(s)
DFWR // Finance Fund // Chase Bank CDE
Investment Amount(s)
(in millions)
7.0 // 10.5 // 2.0
Closing Date
2012
County
Portage

Lil Bit Cafe

Issuer(s)
Investment Amount(s)
(in millions)
Closing Date
County
Summit
Western Reserve Community Fund closed its 4th loan for the renovations of a of a vacant building located in the Kenmore community of Akron for the purposes of starting Lil Bit Cafe. This project is one of the first steps of implementing the Kenmore Neighborhood Vision Plan that included a retail analysis of the area that stated a demand for more restaurants. Lil Bit Café will be a small take-out restaurant that will also create jobs in conjunction with an initiative of culinary skill training for young mothers in Kenmore.
Lil’ Bit Café’s location is on Kenmore Boulevard. The Boulevard as the key focus point of the plan. The vision for the café started with a Better Block event in September, 2017. This small building was used as a pop-up coffee shop that people loved, and the idea evolved into the concept of Lil’ Bit Café.  Part of the initiative was to create a platform for economic development and attract neighborhood friendly businesses and jobs to Kenmore. Lil’ Bit Café is owned by Todd Ederer, and this project is seen as a catalyst for additional private and public investment for the neighborhood.

Lincoln Electric Welding Technology Center

Issuer(s)
DFWR//Chase//CDFI
Investment Amount(s)
(in millions)
$5.0M//$1.0M//$5.0M Federal NMTC//$2.6M State NMTC
Closing Date
2016
County
Cuyahoga

The new Center will focus on the training of welding educators and industry leaders to address the rising demand for welding education and career pathways in welding and advanced manufacturing and expand Lincoln’s local, national and global reach in its recognition as the global leader in welding education.

This project is utilizing $5.0M of Federal New Markets Tax Credits provided by the Development Fund of the Western Reserve.

This project creates approximately 194 construction jobs and 40 full time permanent jobs, in addition to retaining 20 existing permanent full time jobs.

Lorain County Health & Dentistry

Issuer(s)
DFWR // PNC Bank CDE
Investment Amount(s)
(in millions)
9.0 // 2.0
Closing Date
2013
County
Lorain

Mercy Medical

Issuer(s)
DFWR // Finance Fund
Investment Amount(s)
(in millions)
5.0M // 5.0
Closing Date
2015
County
Mahoning

Mercy Health’s St. Elizabeth Hospital in Youngstown, Ohio is renovating a 32,000 SF section of its current facility and creating a Behavioral Health Institute (BHI). The $10,970,396 renovation consists of modifications to vacant floors of St. Elizabeth in an effort to adapt to the changing needs of the Youngstown community, particularly the need for increased geriatric care. The project is also in response to a community health assessment of Mahoning County which indicated that behavioral health is one of the top needs in the community. St. Elizabeth is the only provider of behavioral health services within a 90 mile radius. The BHI will expand the hospital’s current behavioral health services from just adult care, to include geriatric care, outpatient services, and increased inpatient admission. The BHI will have 24 adult acute beds and 14 senior medically frail beds, with the ability to service up to 100 patients per day. In addition, the creation of post-acute services and intensive outpatient programs is expected to reduce the need for frequent inpatient hospitalization. This project will create approximately 80-90 construction jobs, and allow BHI to create 20 new full time permanent jobs primarily in the health care field, and retain at least 50 existing full time permanent jobs. Development Fund of the Western Reserve provided a $5M NMTC allocation and partnered on this project with another CDE, Finance Fund, who brought an additional $5M Federal NMTC Allocation and $2.5 State NMTC Allocation.
The Behavioral Health Institute is an ideal NMTC project because it serves a federally designated medically underserved area that has a 42% poverty rate, median family income of 45.5% of statewide median family income, and a 23.9% unemployment rate (more than 1.5 times the national average). NMTC financing allowed Mercy Health to immediately fund construction and expand the scope of its renovations to include specialized equipment for treating behavioral health patients, instead of waiting years for funding from the operating budget to become available.

New Castle School of Trades East Liverpool Campus

Issuer(s)
PNC Bank CDE // DFWR // State of Ohio
Investment Amount(s)
(in millions)
5.2 // 2.5 // 2.4
Closing Date
2015
County
Columbiana

New Castle Ground Breaking2New Castle School of Trades is a vocational school with successful campuses in Western Pennsylvania. Their new location, in downtown East Liverpool Ohio will provide job-ready training to thousands each year while revitalizing the downtown area. The New Castle School of Trades will be located in soon-to-be renovated historic buildings in downtown East Liverpool that have sat vacant for years. The East Liverpool Campus created 33 new jobs. In addition to historic tax credits and other financing sources, Development Fund of the Western Reserve (DFWR) allocated $2.5 million in State of Ohio New Markets Tax Credits.

Ronald McDonald House of Akron

Issuer(s)
DFWR//Chase
Investment Amount(s)
(in millions)
$7.5//$2
Closing Date
2016
County
Summit

The Ronald McDonald House of Akron serves the Akron Children’s Hospital.  Akron Children’s Hospital is the 9th largest children’s hospital in the United States.  With 20 rooms currently, the Ronald McDonald House of Akron was able to provide service to 821 families in 2014 with over 75% of those families being Ohio residents, and over 50% of the patients’ families served  by the House are low income, Medicaid-eligible families.

The Ronald McDonald House of Akron serves families not just from Northeast Ohio, but from many parts of the state, country, and world.  In 2014, they accommodated families from 46 Ohio counties, 23 states, and 8 countries.

The need far outweighed the resources currently available.  In the same year that 821 families were accommodated by the Ronald McDonald House of Akron, over 6,000 families were turned away due to lack of space.  This project will triple the number of rooms available from 20 to 60.

Additionally, this project will create 135 construction jobs, 8 full time and 3 part time quality jobs available to qualified local residents.

Construction on the facility expansion is anticipated to begin in late summer 2016.  Akron-based contractor, Thomarios, has been hired for both the new construction and the renovation of the existing rooms.

Steel Warehouse

Issuer(s)
Investment Amount(s)
(in millions)
Closing Date
County
New Markets Tax Credits (NMTC), provided through DFWR, enabled Steel Warehouse of Ohio to acquire and install specialized equipment and machinery such as cutting-edge lasers at its manufacturing facility in Warren, Ohio. Steel Warehouse will hire approximately 50 full-time employees and provide them with customized job training.
 
DFWR partnered with Finance Fund which provided $8,000,000 of federal NMTC allocation; Development Fund of the Western Reserve provided $5,000,000 of federal NMTC allocation; Capital One, the tax credit investor, provided an additional $2,000,000 of federal NMTC allocation for the project.
 
The New Markets Tax Credit program provided the financing tools necessary to bring this important project to completion and create much-needed jobs in the City of Warren, and this investment helps secure Warren’s role in the heavy equipment supply chain and helps put the local economy back on stable footing.
 
Steel Warehouse was supported by local economic development leadership from the City of Warren, Youngstown/Warren Regional Chamber of Commerce, and JobsOhio.

 

Youngstown YMCA

Issuer(s)
DFWR // DFWR
Investment Amount(s)
(in millions)
$5.5M // $2.5M
Closing Date
2016
County
Mahoning

The Youngstown YMCA is renovating nearly 20,000 square feet of its 100 year old downtown Central YMCA creating modified spaces for continuing its transformational work in providing healthy living, youth development, and strengthening families in its downtown community.

This project is utilizing $5.5M of Federal New Markets Tax Credits and $2.5M of State New Markets Tax Credits provided by the Development Fund of the Western Reserve.

This project creates 50 construction jobs and 19 full time permanent jobs, in addition to retaining at least 55 existing permanent full time jobs.