CLEVELAND, Ohio – Cleveland City Council has approved tax incentives topping $100,000 a year for development of an 83-unit apartment building in Tremont.
Sustainable Community Associates has proposed a $24 million, four-story building known as the Lincoln Building at Scranton Road and Willey Avenue. It also would have about 6,500 square feet of commercial space.
The council on Wednesday approved a 30-year tax-increment financing package that will divert property taxes generated by the Lincoln Building toward improvements to the property. Mayor Frank Jackson signed the legislation Wednesday afternoon.
The value of the finance package is expected to be slightly less than $143,500 a year. It will be based on the assessed value of the completed building. The financing package does not affect Cleveland schools, which is expected to gain about $215,000 a year in new taxes from the building.
Since the project involves new housing, it qualifies for a 15-year tax abatement on the improvements to the property. The financing package would kick in after the abatement expires.
About one quarter of the apartments would be “workforce housing,” with lower rents pegged to the area’s median income. The median household income in Cleveland was about $30,000 in 2018, according to the Census Bureau.
The development company also agreed to some community benefits, including new signs in the area and paying for small home repairs for some residents, Councilman Kerry McCormack, who represents the area, has said.
The commercial space is expected to allow for creation of 30 jobs. The city expects to collect about $30,000 in income taxes from residents and people who work at the building.
Sustainable Community Associates already has done three other projects in Tremont along the Scranton Corridor.
Across the street from the Lincoln site is the former Fairmont Creamery building, which Sustainable Community Associates converted into apartments and offices.
The company also converted the former Ohio Awning & Manufacturing Co. factory and developed the Tappan project, a housing and commercial space at Scranton and Auburn Avenue.
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