Council delays voting on proposed complex downtown at Main, Cedar 
By Stephanie Warsmith
Beacon Journal staff writer
Published on Tuesday, Mar 29, 2011
The addition of a second apartment building in downtown Akron would provide housing for nearly 800 people in a two-block area.
The new complex, a J-shaped building that would front Main and Cedar streets, would include 209 units with 310 beds. Added to the same developer's 22 Exchange complex across the street, this will provide housing for 779 University of Akron students and downtown workers.
These figures were part of the information Akron City Council received Monday on the proposed development, which is being called 401 Lofts. Council held public hearings on the plans for the development, but delayed voting on five pieces of legislation related to the project.
''We want to make sure all the questions are answered,'' said Councilman Jeff Fusco, who chairs the Planning Committee. ''There are a lot of moving parts.''
However, Fusco said he's excited about the prospect of the $12 million development, especially given the positive results of developer Martin Mehall. His 22 Exchange building is nearly filled and most of the retail space is spoken for.
''His success record is fantastic,'' Fusco said. ''We want more and we're getting more.''
The new five-story, 167,000-square-foot complex would feature two-bedroom and studio or loft-style apartments and an outdoor swimming pool off a 117-space parking lot behind the building. Other amenities would include a fitness center, media room, game room, tanning bed and
study lounges. It would be marketed to college students and young professionals who work — or want to live — downtown.
The new apartments would rent for about $700 a month per bed, compared to $600 a month at 22 Exchange.
Details of the project and the pending legislation related to it include:
• Akron would sell the 2.2-acre property to Mehall for $264,000. The city purchased the property, which formerly housed the Parrish McIntyre tire store, in 2008 for about $1.6 million. Summit County's appraised value for just the land is $198,000.
Planning Director John Moore said this is the same purchase price — per square foot — that Mehall paid the city for the property that houses the 22 Exchange building.
• Mehall would reimburse the city for the approximately $40,000 cost of demolishing the Parrish McIntyre building.
• Akron would use the sale and demolition proceeds to pay for improvements around the building, including adding 46 on-street parking spaces and new curbs and sidewalks. The improvements are expected to cost between $250,000 and $270,000, Moore said.
• The city would use the proceeds from tax-increment financing (TIF) over the next 27 years — or as long as needed — to cover the remainder of the purchase price for the property.
A TIF freezes the value of the land before any improvements are made. Taxes on the land are paid as if the land had never been developed, with the increased value going into the project. In this case, this additional money would go to Akron, which would share part of the proceeds with the school district.
• Akron would vacate a 12-foot wide section of South High Street to make room for the building.
Councilwoman Tina Merlitti questioned whether the plans will provide adequate parking.
Moore said the project would provide parking for 163 vehicles in a surface lot and on-street spots. Residents also would have access to 100 parking places in the former Board of Realtors lot.
Moore said many of the UA students in the 22 Exchange building use the Polsky parking deck, which is a few blocks away, because parking passes are included in what they pay the university.
''We feel there is essentially enough parking for this development,'' he said.
Mehall said the student housing in the 22 Exchange building is at about 98 percent of capacity and the retail space is almost completely occupied.
Zar, an upscale nightclub and bar, is going in at the corner of Exchange and Main streets. The 6,000-square-foot club, which will extend to Brubaker's, is expected to open in early summer, said Michael Weiss, a project manager with Campus 360, which is the company overseeing Mehall's student housing developments.
Weiss said that Club 349, the company that owns the nearby Lux nightclub, is behind Zar.
Talks are also under way with a fast-food Mexican restaurant and a pizza shop to move into the complex, Weiss said.
As for 401 Lofts, Mehall said he's ready to start building as soon as the plans are approved. He's hoping the complex can open by the fall of 2012.
Mehall said he has no plans for additional student housing in downtown Akron or Kent, where he built two developments. He said he is looking to expand to other schools in the eastern United States.
City leaders hope the additional housing will attract more retail to this section of downtown, which has seen additional development since the 22 Exchange building opened.
''Having this much activity is strange,'' Moore said. ''Now, you have to watch out for college students.''
Stephanie Warsmith can be reached at 330-996-3705 or swarsmith@thebeaconjournal.com.
