Cincinnati purchasing former Saks building for $3 million
The city of Cincinnati will spend $3 million to purchase the now-empty location of the former Saks Fifth Avenue Downtown. The department store permanently closed at the end of last year.
It’s a key spot for Downtown development, located a block west of Fountain Square. It's also a block away from the Duke Energy Convention Center and within the area slated to be a "convention district" in the future.
"This is a really an anchor property for that district," said Mayor Aftab Pureval. "Paired with whatever is going to happen with Terrace Plaza, this is a really exciting time for our business district."
Officials say there are no immediate plans to redevelop the property.
"We always hate to see a business close," said Council Member Jeff Cramerding. "But with so much exciting things going on in that section of Downtown, I think it's important that the city does retain site control. And I think that whatever goes in there is going to be, frankly, a better fit than Saks was and add more vitality and energy in that critical block."
"I know we don't know what's going to happen with it, but I'm hoping it'll definitely include mixed income housing so that we can have some affordable housing included with it," said Vice Mayor Jan-Michele Lemon Kearney.
The city owns the land and was leasing it to Saks, but it doesn't own the building. The purchase is for "improvements" to the lot, meaning the building. Agreements for other parts of the building will remain, like the Hyatt Regency ballroom.
The city's estimate for fair market value of the building is $2,595,000. Instead of entering a binding arbitration process with Saks over the market value, the city offered the $3 million purchase price.
The funds come from the Downtown South/Riverfront TIF District fund, which holds property tax revenue from within the district to be spent on projects that benefit the public in the same area.
Cincinnati Council unanimously approved the deal Wednesday.