Cincinnati City Council will vote Wednesday on a 30-year property tax exemption for a developer working to convert Carew Tower into apartments.
Council's Budget and Finance Committee on Monday approved the agreement, with several members praising the project.
"Since I've been here, this is one of the most exciting votes and exciting projects," said Jeff Cramerding. "To see it converted from its underutilized state to 375 units — hundreds, maybe a thousand new tenants right in the Central Business District — is a sign of our commitment to housing and the business district moving in the right direction."
The project is expected to cost about $162 million and will result in 375 market-rate apartments:
- 246 one-bedroom units (average rent $1,950)
- 109 two-bedroom units (average rent $2,700)
- 20 three-bedroom units (average rent $3,300)
The developer is Victrix Investments, a New York-based company that recently completed renovations of the former Macy's headquarters building, another office-to-residential conversion.
"Yes, this is amazing for housing, but I think this also just really shows the vision that the city and this Council and our partners have when it comes to what Downtown can be," said Council member Anna Albi. "I think years after we are no longer in these seats this will be one of those things that outlast us and this part of our legacy."
Officials from the city's Department of Community and Economic Development say the project would not move forward without the incentive.
The 30-year property tax exemption does not apply to the current value of the property, only to the improvements. It's expected to save the developer a total of almost $33 million over three decades. The city's portion of forgone property taxes is about $7.1 million.
In exchange, the developer will pay Cincinnati Public Schools about $560,000 a year, for a total of about $16.7 million. They also will pay about $34,000 a year to the VTICA for operation of the streetcar, a total of about $1 million.
The project also is supported by a $6.4 million state grant for environmental remediation and interior demolition, state historic preservation tax credits worth $10 million, and state transformational mixed-use development tax credits worth $4.25 million.
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