The Hercules Motors Company Building is a 610,000-sq. ft. industrial complex of buildings located on a 26-acre site at Market Avenue South in the City of Canton in Stark County, Ohio. Phase I of the rehabilitation project, which is currently under construction, consists of the redevelopment of 90 units of market rate housing, totaling 125,000 sq. ft. located on 3 acres.
The $2,460,000 taxable bond proceeds is secured by TIF revenue and will be used to reimburse land acquisition costs to the developer. Phase One is the initial of three phases anticipated to be completed over the next 5 years. The end result will be the creation of new market rate residences, Class A office space, and additional retail development. The total private capital investment is projected to be over $50,000,000 and create 150 new jobs in the City of Canton.
Bonds were placed with an institutional investor at a fixed rate of 4.75% for a 17.5-year term. The Bonds are secured by Tax Increment Financing (“TIF”) Net Service Payments, generated from the property taxes on the Private Development.
In addition to the Bond Fund and owner equity, this project will also use Federal and State of Ohio Historic Tax Credits, New Markets Tax Credits, program related investment from a private foundation, and grants/incentive programs from local/county governments to finance the project.
Roetzel and Andress served as Bond Counsel and DiPerna Advisors served as Financial Advisor for the project.