LORAIN — The Broadway Building hotel project will receive $1.75 million in historic tax credits.
According to a news release Wednesday from the Ohio Development Services Agency, the money is part of the Ohio Historic Preservation Tax Credits aimed at the rehabilitation of historic buildings.
The release said the total project cost for turning the building into a 55-room hotel is about $9.1 million and when completed, it will be the first hotel in the city in more than 15 years.
“Complementing the city’s efforts at redeveloping the lakefront area for entertainment and recreation, the building will include a 55-room hotel, restaurant and event space,” the release said.
Tom Brown, the executive director of the Lorain Port Authority, who is running point on the project with developer Ariel on Broadway, said the agency was excited to hear the news.
“We look forward to starting construction on this vital project in downtown Lorain,” he said. “We are very lucky to have an amazing partnership with the Ariel on Broadway team and we look forward to bringing this great building back to life.”
The Ohio Historic Preservation Tax Credit program is administered in partnership with the Ohio History Connection’s State Historic Preservation Office, which determines whether a property qualifies as a historic building and that the rehabilitation plans comply with the U.S. Secretary of the Interior’s Standards for Rehabilitation.
The Broadway Building, which sits at the corner of Broadway and East Erie Avenue, is on the National Register of Historic Places and previously served as the Spitzer Plaza Hotel before closing in 2005 due to low occupancy rates.
“An old building can be a blemish or a promise for the future,” David Goodman, director of the Ohio Development Services Agency, said in the news release. “These communities have chosen an economic boost for the future.”
During a walkthrough of the building Wednesday, Brown showed some of more dilapidated sections of the hotel, including an old pool and sections of the roof where water damage has been so prevalent that plant life is growing.
Brown said things like the roof probably will need completely replaced, but since the state awarded the tax credits construction will be able to begin as soon as Ariel on Broadway can get permits.
Ariel on Broadway is being run by Cleveland-based Ariel Ventures. Ariel Ventures partner Radhika Reddy said in a news release that the project would be the culmination of work from those at the port authority, the city of Lorain, the Lorain County Community Foundation, Lorain County Community College, Lorain Schools and the Lorain County Chamber of Commerce.
“We are so excited to be awarded the state historic tax credit for the Ariel on Broadway project,” she said. “We look forward to starting construction on this catalytic, transformative project for downtown Lorain.”
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