Council OKs plans for new apartments at Cedar and Main in downtown Akron
By Stephanie Warsmith
Beacon Journal staff writer
Published on Tuesday, Apr 12, 2011
Akron City Council voted Monday to move forward with plans for a new downtown apartment building, despite concerns about the financial terms of the deal.
Akron bought the 2.2-acre property at Main and Cedar streets, which formerly housed the Parrish McIntyre tire store, for about $1.6 million in 2008. The city is selling it to developer Martin Mehall for $264,000 and another $37,000 to cover the cost of demolishing the tire store.
''The project does not need any assistance or subsidy,'' said Councilman Mike Williams.
Councilman Jeff Fusco, whose committee handled the legislation, said the city will recoup what it spent on the property through tax-increment financing (TIF) over the next 27 years.
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, the additional money would go to Akron, which would share the money with the school district.
The TIF is expected to raise about $2.1 million over 27 years, after the school's share is doled out, said Planning Director John Moore.
The city will use the up-front money it gets from Mehall to pay for public improvements, including new curbs, sidewalks and 46 on-street parking spaces, Moore said.
Williams said he thinks the city should reserve TIF for projects that need assistance. He said Mehall's first development, 22 Exchange, which is across from the new site, has been successful, with nearly full occupancy.
''The developer said he would be one of the hottest commodities in town and has proven to be so,'' Williams said. ''This is the kind of project that should be able to subsist without assistance.''
Council voted 11-2 to approve five pieces of legislation related to the project. Councilman Bruce Kilby joined Williams in voting no.
''We are happy to be able to move forward,'' Fusco said, noting that the project is expected to create 200 construction jobs and 14 permanent positions in the building when it is complete. ''We're happy this is landing in downtown Akron.''
Fusco said the deal is similar to what was approved for the 22 Exchange apartment building.
Moore said Akron has sold land in urban renewal areas for 50 cents a square foot. In the case of both the new building and 22 Exchange, the city charged $2.75 per square feet. Both properties are in the Exchange Street-Opportunity Park Urban Renewal Area.
The new five-story development, which will be called 401 Lofts, will feature 209 apartments — two-bedroom and studio or loft-style. The 167,000-square-foot complex also will have an outdoor swimming pool, fitness center, media room, game room, tanning bed, study lounges and surface parking for more than 100 cars.
The $12 million complex will be marketed to University of Akron students and downtown workers. The rent will be about $700 a month per bed, compared to $600 a month at 22 Exchange.
Besides approving the financial aspects of the deal, council also voted to vacate a 12-foot wide section of South High Street to make room for the new building.
Council members had questioned whether the development will have adequate parking.
Moore said the project would provide parking for 163 vehicles in a surface lot and on-street spots and residents would have access to 100 parking places in the former Board of Realtors lot. He 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.
With council's approval, Mehall said the project is ''good to go.'' He said his company needs to submit plans to the county, have the soil tested and do some environmental reporting. He said market studies have been completed and a construction loan has been secured.
''We should be in good shape,'' he said.
Mehall is hoping the building will be ready to open in fall of 2012.
Stephanie Warsmith can be reached at 330-996-3705 or swarsmith@thebeaconjournal.com.
